Hybrid and Electric Vehicles (HEVs) to be the largest driver of growth; Grid storage market expanding quickly from small base.
The global demand for batteries is forecasted to grow 9.8 percent per year to USD 141 billion in 2022, as per the ResearchAndMarkets report “Global Batteries by Product and Market, 11th Edition”.
Further, the growth will be driven by increased demand for high-value batteries in emerging applications such as electric vehicles and grid storage.
The key findings of the report include:
Hybrid and Electric Vehicles (HEVs) to be the largest driver of growth: Increased penetration of HEVs will fuel rapid demand for batteries worldwide, with lithium-ion products absorbing the bulk of gains. Massive investments in lithium-ion battery production capacity will support price reductions due to improved economies of scale, allowing HEVs to increasingly compete on cost with conventional vehicles. Growth will be particularly strong for products used in EVs, as cost reductions will fuel increased use of high-value high-capacity batteries.
Grid Storage market expanding quickly from small base: Battery-based grid storage systems have proliferated rapidly in recent years after commercialization began at a large scale in 2014. Cost reductions for lithium-ion batteries have abruptly made this technology economical, and it is expected that these grid storage systems will become increasingly common as the technology’s efficacy is established. Rapid growth in renewable energy capacity worldwide -particularly for solar energy- will further contribute to an increased need for grid-scale energy storage systems.
Advances in developing regions boosting sales in conventional applications: Growth in sales of alkaline and lead-acid batteries will be spurred by broad economic development in the Asia/Pacific and Africa/Mideast regions, with China and India posting particularly strong growth. Rising personal income levels will drive increased sales of alkaline batteries in consumer replacement applications, with these products displacing low-cost zinc-carbon products. Increased wealth and industrialization will also boost demand for lead-acid batteries in both the OEM and aftermarket segments of the automotive market.