By the year 2021, it is estimated that the Global Battery Market will be worth approximately $17.26 billion US dollars, a compound annual growth rate of 4.15 percent from the year 2016. Government incentives, electric vehicles and the increased demand for transportation are just some of the factors that are expected to fuel the growth of this market.
The Battery Market is expected to experience significant growth worldwide in the coming years. This market consists of a variety of battery types, and many of these types will be used in a variety of applications, increasing their demand, and thus increasing the value of the global market.
Batteries are used in a variety of applications across several industries; however, the transportation industry is expected to dominate the market, making it the leading industry to fuel its growth.
In the past few years, there has been a surge in the demand for transportation across the globe. This demand has been sparked by the growth of the population and the changes that have occurred as a result of this growth. Currently, China is the leading car manufacture in the world, holding 26 percent of the share of vehicle production in the world. Vehicle sales have risen from $23.5 million in 2014 to $24.6 million in 2015. This number is expected to continue rising every year through 2021, hence the expected increase in the value of the Global Battery Market. The United States and India have also been experiencing a boom in the production of vehicles, which will further drive the growth of this market.
The increasing size of the population and the growth of the economy are responsible for the growth of sales in the automotive industry, thus they are also factors that are contributing to augmentation of the Battery Market on a global scale. Moreover, an increase in the sales of other forms of transportation, such as aviation and two wheelers, are also expected to boost the value of this market by 2021. A higher rate of international transportation has also contributed to the increased demand for aviation and marine transportation.
Transportation isn’t the only industry expected to increase the value of the Global Battery Market; the consumer electronic industry is also projected to boost the value of this market.
It is believed that the rising popularity of electronics by consumers on a global scale will also contribute to the growth of the Global Battery Market. It is projected that there will be a high demand for portable electronics, such as smart phones, tablets, LCD displays and wearable devices, like fitness bands. The growing demand for these electronic products are expected to propel the growth of the Global Battery Market. This market is expected to see a significant amount of growth as a result of advancements in technology in regard to product innovation and improve efficiency, as well as greater cost-effectiveness.
Environmental concerns are also expected to increase the demand for battery use in various applications. Stringent regulations have been established in regard to the emissions of carbon dioxide emissions, and the establishment of further regulations are expected. Moreover, the reserves of fossil fuels have decreased and are expected to continue decreasing. As such, the government has established several initiatives to further the research and development of batteries so that they can be used in further applications. Consequently, these factors are also expected to boost the growth and the value of the Global Battery Market.
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Batteries are widely used by individual consumers, another factor that is expected to increase the growth and the value of the Global Battery Market. Non-rechargeable batteries are used widely in light children’s toys, light beacons, remote controls, watches and electronics, among other products. However, in an effort to save money and reduce pollution, the manufacturers of these products and the consumers are becoming increasingly interested in rechargeable batteries. It is believed that this will lead to the further use of these batteries, an even more research and development for newer, longer lasting and more cost effective rechargeable batteries.
Several economies will drive the growth of the global battery market. It is believed that the emerging market in both Africa and Asia Pacific will enhance the augmentation of the battery market on a global scale. The increased demand for vehicle production combined with rapid industrialization will fuel the growth of the market in Asia Pacific. China and India are both key manufacturing countries, which is also expected to fuel the growth of the Global Battery Market.
North America and Europe are projected to see a significant amount of growth over the forecasted time period. In these regions, the increased production of vehicles that run on batteries. The Chevrolet Volt and the Nissan Leaf dominated the electric vehicles market, accounting for 50 percent of the electric vehicles that are sold in the United States.
Several companies contribute to the research and development, and in turn, the growth, of the Global Battery Market. Some of the biggest players in this market include:
Johnson Controls dominates the market. This company produces batteries for use in various applications, such as automotive, marine, aerospace and industrial applications. Johnson Controls has also established several brands, like Optima, Heliar, MA, LTH and Varta, in key regions in order to accommodate for the specifications and requirements of needs.