The global battery market size was valued at USD 108.4 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 14.1% from 2020 to 2027. The market growth is attributed to high demand from the automotive application. The automotive application includes rechargeable batteries used in non-rechargeable batteries and electric vehicles. The increasing popularity of consumer electronics on a global scale is projected to result in the usage of the lithium-ion battery as a product type over the forecast period. High demand for portable electronics, including LCD displays, smartphones, tablets, and wearable devices such as fitness bands, is boosting the market growth. The market is expected to observe substantial growth on account of technological advancements in terms of enhanced efficiency, cost-effectiveness, and product innovation. Strict emission norms by the government authorities of developed countries, such as the United States and the United Kingdom, coupled with growing attention towards fuel efficiency, are expected to drive battery demand.
The U.S. battery market size was valued at USD 10.49 billion in 2019. The U.S. government has been cheering stakeholders for both renewable industry and Electric Vehicles (EVs), resulting in an improved demand for battery energy storage systems (BESS), mainly led by Li-ion batteries. The adoption of EVs is rising at a high rate across the country. The U.S. is one of the leading countries in global electric vehicle sales, along with other countries such as Canada, which has already begun transforming its transportation infrastructure for electric vehicles.
Decreasing fossil fuel reserves, along with promising government initiatives and high CO2 emissions, are expected to propel market growth in the next few years. Key non-rechargeable batteries are extensively used in children’s toys, light beacons, remote controls, watches, and electronic keys. These are expected to observe a loss of stake to rechargeable batteries on account of efficiency and enhanced lifespan.
Developing markets of Africa and the Asia Pacific are expected to boost battery demand in electric bicycle applications and storage applications such as the leveling of load in renewable sources of energy like the wind and solar. Growing aircraft and automobile manufacturing in developing nations of APAC, including China and India, is expected to provide enormous potential for market growth.
Growing technological advancements in battery technologies have amplified the usage of various battery-operated equipment across the world. Hybrid Electric Vehicles (HEV) are equipped with the countless features that consume a significant amount of battery power. These features include a GPS navigation system, power windows, display that give information about the battery charge level, and air-conditioning systems.