The battery technology market is predicted to reach USD 176.92 billion by 2030, growing at a CAGR of 7.20% between 2022 and 2030. This can be attributed to the constantly expanding demand for smart electronic devices, such as watches, remote controls, and electronic keys, which include primary batteries; and the surging need for secondary and solid-state fuel cells in the automotive and aviation sectors.
Due to the growing environmental awareness and concerns, as well as government efforts, environmental standards, and emission laws, there is an increase in the demand for electric vehicles (EVs). Li-ion, lead-acid, and Ni-Mh batteries, which offer great thermal stability, high energy, and power densities, and are secure for use in EVs, have seen a surge in demand as a consequence.
By 2030, the demand for electricity is expected to increase by around 30%, approaching 4,500 gigawatt-hours (GWh), and the battery value chain is projected to grow by up to 10 times between 2020 and 2030. Moreover, the expansion has sparked due to surging investment. This helps fuel cell makers execute their operations properly to maintain their competitiveness, while other sectors compete for limited resources.
Moreover, the demand for battery energy storage systems (BESSs), which are mostly powered by lithium-ion batteries, has surged as a result of the U.S. government's backing for the electric vehicle and renewable energy industries. The country as a whole is increasingly adopting EVs. The U.S. is one of the top-selling nations for electric cars internationally, along with other countries like Canada, which has already started improving its transportation infrastructure for electric vehicles.
Geographically, APAC is the largest market for battery technologies. This is ascribed to the presence of leading producers of electric vehicles in nations like South Korea, Japan, and China. The leading country in the world for the production of electric vehicles is China, due to the ongoing government measures to encourage the usage of electric vehicles in the country. Moreover, China, India, Japan, and South Korea are among the Asian countries that create the most consumer electronics. Thus, the region has a significant need for battery technologies since it is home to several major manufacturers of consumer electronics.
Moreover, the APAC battery technology market is growing as a consequence of the region's substantial customer base and the increasing demand for a range of products, including cars, medical equipment, and consumer electronics, and smart and autonomous technologies. In addition, with the expanding government efforts to assist industrial growth and favorable government policies that attract a sizable amount of FDI from outside, it is projected that the need for battery technologies would rise in the upcoming years.
Some of the major players operating in the battery technology market include Wuxi Hitachi Maxell Co. Ltd., BYD Company Ltd., Hitachi Chemical Co. Ltd., Exide Technologies, American Battery Charging Inc., SAMSUNG SDI CO. LTD., GS Yuasa International Ltd., Panasonic Holdings Corporation, Contemporary Amperex Technology Co. Ltd., LG Chem Ltd., and China Bak Battery Inc.