CLEVELAND, Oct. 30, 2020 /PRNewswire/ -- A new Freedonia Group analysis projects global demand for batteries to rise 8.1% per year to $156 billion in 2024, driven by expansion of the hybrid and electric vehicle (HEV) industry, which makes use of high-value lithium-ion batteries.
The automotive market is the largest outlet for battery sales worldwide, accounting for 36% of demand in 2019. Even as COVID-19 rocks the global automotive industry, EVs represent a bright spot due to major corporate investments as well as technology innovations and new product introductions by both established automakers and start-ups improving the affordability and performance of electric vehicles.
HEVs to Account for 69% of Automotive Battery Market Growth Through 2024
While lead-acid batteries for conventional vehicles will continue to account for the majority of automotive battery demand, the HEV segment holds much greater growth potential.
Through 2024, sales of batteries for HEVs are projected to more than double, accounting for 69% of automotive market growth. Advances will be fueled by particularly strong gains in full electric vehicles, which typically use higher priced batteries than hybrid electric variants, which have constituted the bulk of the HEV industry until very recently.
Battery firms participating in the HEV industry are investing heavily in technological innovations to capture share in this fast-growing market:
- In addition to seeking production efficiencies to reduce the cost of lithium-ion batteries, firms are exploring a variety of novel technologies.
- Shorter term opportunities exist for battery designs that minimize cobalt content, while solid-state batteries represent a potentially transformative innovation in the longer term.
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Global Batteries is now available from The Freedonia Group. This study covers the global battery industry. Demand by product and market are presented in US dollars.
For each country, product demand is presented for:
- primary alkaline batteries
- primary zinc-carbon batteries
- primary lithium batteries
- other primary batteries, including zinc-air, silver-oxide, nickel oxyhydroxide, and all other primary batteries
- secondary lead-acid batteries
- secondary lithium-ion batteries
- secondary nickel-based batteries
- other secondary batteries, such as sodium-nickel chloride, rechargeable alkaline, zinc-air, nickel-hydrogen, sodium-sulfur, silver-zinc, nickel-air, lithium-sulfur, aluminum-air, and zinc bromine
Totals for primary and secondary battery demand in each country are segmented into:
- automotive OEM (including for conventional and hybrid/electric vehicles)
- automotive aftermarket (including for conventional and hybrid/electric vehicles)
- consumer OEM
- consumer replacement
- other markets (e.g., motive power, UPS systems, telecom backup systems, aerospace and defense, energy storage)
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SOURCE The Freedonia Group