According to Polaris Market Research, the global Battery Market is anticipated to grow at a CAGR of 11.3% from 2020 to 2026. In 2019, the consumer electronics segment accounted for the highest market share in terms of revenue. Asia-Pacific is expected to be the leading contributor to the global Battery market revenue in 2019.
The demand for smart phones and other mobile devices is increasing worldwide, promoting the growth of the Battery market. The growing use of batteries in varied industries such as aerospace and defense, healthcare, and electronics has accelerated the battery market growth. Increasing disposable incomes in developing countries, rising living standards, and growing environmental concerns foster the Battery market growth. The demand for battery electric vehicles has increased significantly over the years owing to increasing prices of gasoline across the globe, resulting in increased adoption of batteries. The exponential growth in the prices of gasoline and diesel owing to the depleting fossil fuel reserves has encouraged consumers to switch to battery electric vehicles, thereby supporting the battery market growth.
Leading global players are expanding their presence in developing nations of China, Japan, India, Indonesia, and Malaysia to tap the battery market growth opportunities offered by these countries.
There has been a significant reduction in the prices of Li-ion batteries over the years, which drives the growth of the battery market. Most electric vehicles are equipped with Li-ion batteries. The prices of lithium-ion batteries have fallen by nearly half since 2014. Declining battery prices in turn result in lower prices of battery electric vehicles. According to the Institute for Energy Research, the cost of a Tesla battery pack in the current scenario is $190 per kWh. It is predicted that the cost would reach $100 per kWh by 2020, significantly increasing the market share of battery electric vehicles as well. The increasing production volume of batteries and the increasing adoption of batteries in electric vehicles and hybrid electric vehicles have resulted in reduced costs of batteries.