Product Code: 4412
Global demand for batteries is forecast to rise 12% per year to $234 billion in 2026, with growth coming primarily from real unit increases as pricing for primary and lead-acid batteries moderates from high 2021 levels, and lithium-ion battery prices continue to decline. Growth will be driven by the expansion of the electric vehicle market, which will fuel sharp increases in sales of lithium-ion batteries. Rising use of battery power in consumer devices will also boost demand.
Electric Vehicle Market Spurring Dramatic Gains
Global production of electric vehicles is projected to more than quadruple through 2026, and massive increases in battery output will be required to support this industry. Lithium-ion batteries will be the primary near-term technology for EVs, as nickel-metal hydride batteries are less competitive and new alternative chemistries require more development.
While the Asia/Pacific region is expected to account for the largest share of automotive battery demand growth, the fastest gains will occur in Western Europe. Many European nations have adopted ambitious targets for ending the sales of cars powered by internal combustion engines, and these countries will be required to rapidly transition their local industries to EV production to meet these targets. Growth for the short term will be concentrated in the OEM segment, with aftermarket demand for EV batteries likely to take off in the 2030s as EVs produced in the 2020s begin to age.
Lead-Acid Batteries Continuing to Find Use
Lead-acid batteries accounted for the largest share of the global market in 2021, and - although they will be overtaken by lithium-ion batteries by the end of 2022 - will remain a major source of sales going forward. While the rise of electric cars could threaten the automotive market for lead-acid batteries, which are traditionally the largest driver of demand, current EVs still make use of lead-acid batteries for startup and auxiliary power systems. EV producers are increasingly experimenting with designs that exclude lead-acid batteries, but most suppliers believe that these productsa€™ ease of use and cost-competitiveness will make them standard in automobile designs for the foreseeable future.
Supply Issues Driving Development of Alternative Chemistries
The expected fast growth in demand for lithium-ion batteries has called into question the ability of materials producers to provide sufficient supply. As a result, battery manufacturers are investing heavily in the development of alternative chemistries - both new formulations of lithium-ion batteries and more exotic technologies.
Potentially the most significant development in the near term is the proliferation of lithium-iron phosphate (LFP) batteries in place of ternary lithium chemistries. LFP batteries are preferable because they require neither cobalt nor nickel, both of which have significant supply concerns. The weaker performance characteristics of LFP batteries have largely limited them to use in lower-end Chinese EVs, but Tesla has begun to employ them in higher-value models, which signals an important milestone for the use of this technology.
This Freedonia industry study analyzes the $133 billion battery industry. It presents historical demand data (2011, 2016, and 2021) and forecasts (2026 and 2031) by product (alkaline, primary lithium, zinc-carbon, other primary batteries, lead-acid, lithium-ion, nickel-based, other secondary batteries), market (automotive, consumer, industrial and other), and region (North America, Central and South America, Western Europe, Eastern Europe, Asia/Pacific, Africa/Mideast). The study discusses the impact of the COVID-19 pandemic. The study also evaluates company market share and competitive analysis on industry competitors including CATL, Clarios, LG Energy Solution, Samsung SDI, and Tianneng Power.
Table of Contents
1. Executive Summary
2. Impact of COVID-19 Pandemic
- COVID-19 General Trends
- Impact on the Economy
- Impact on the Global Battery Industry
3. Overview
- Study Scope
- Historical Trends
- Regional Trends
- Demand by Region
- Shipments by Region
- International Trade
- Product Trends: Secondary vs. Primary Batteries
- Markets Overview
- Legal & Regulatory Factors
- Region-Specific Regulations
- Product-Specific Regulations
- Sustainability Trends
- Battery Recycling
- Metal-Free & Other Sustainable Battery Technologies
- Sustainable Mining Activities
4. Primary (Disposable) Batteries
- Scope & Product Description
- Regional Overview
- Demand by Region
- Shipments by Region
- International Trade
- Product Trends
- Demand by Battery Type
- Alkaline Batteries
- Zinc-Carbon Batteries
- Primary Lithium Batteries
- Other Primary Batteries (Zinc-Air, Silver Oxide, All Other)
- Pricing Patterns
- Technology Trends & New Product Development
- Market Share
5. Secondary (Rechargeable) Batteries
- Scope & Product Description
- Regional Overview
- Demand by Region
- Shipments by Region
- International Trade
- Product Overview
- Lead-Acid Batteries
- Demand by Region
- Market Share
- Lithium-Ion Secondary Batteries
- Demand by Region
- Technology & New Product Development
- Market Share
- Nickel-Based Secondary Batteries
- Demand by Region
- Suppliers
- Other Secondary Batteries
- Pricing Patterns
- Technology Trends & New Product Development
- Lithium-Based Batteries
- Zinc-Air Batteries
- Sodium-Ion Batteries
- Market Share
6. Automotive Batteries
- Market Scope
- Regional Trends
- Demand by Battery Type
- Market Trends
- OEM vs. Aftermarket
- OEM
- Aftermarket
- Vehicle Applications
- Demand by Vehicle Type
- Internal Combustion Engine Vehicles
- Hybrid/Electric Vehicles
- Key Suppliers
7. Consumer Batteries
- Market Scope
- Regional Trends
- Demand by Battery Type
- Market Trends
- OEM vs. Aftermarket
- OEM
- Aftermarket
- Key Suppliers
8. Other Battery Markets
- Market Scope
- Regional Trends
- Demand by Battery Type
- Market Trends
- Demand by Market
- Motive Power
- Transportation Equipment (Motorcycles, Aircraft, Trains, Boats)
- All Other Markets
- Key Suppliers
9. North America
- North America: Battery Market Size & Historical Trends
- North America: Battery Supply & Demand
- North America: Primary Battery Demand
- North America: Secondary Battery Demand
- North America: Battery Markets
- North America: Market Share
- United States
- United States: Battery Market Size & Historical Trends
- United States: Supply & Demand
- United States: Primary Battery Demand
- United States: Secondary Battery Demand
- United States: Battery Markets
- United States: Suppliers
- Mexico
- Mexico: Battery Market Size & Historical Trends
- Mexico: Supply & Demand
- Mexico: Primary Battery Demand
- Mexico: Secondary Battery Demand
- Mexico: Battery Markets
- Mexico: Suppliers
- Canada
- Canada: Battery Market Size & Historical Trends
- Canada: Supply & Demand
- Canada: Primary Battery Demand
- Canada: Secondary Battery Demand
- Canada: Battery Markets
- Canada: Suppliers
10. Central & South America
- Central & South America: Battery Market Size & Historical Trends
- Central & South America: Battery Supply & Demand
- Central & South America: Primary Battery Demand
- Central & South America: Secondary Battery Demand
- Central & South America: Battery Markets
- Central & South America: Market Share
- Brazil
- Brazil: Battery Market Size & Historical Trends
- Brazil: Supply & Demand
- Brazil: Primary Battery Demand
- Brazil: Secondary Battery Demand
- Brazil: Battery Markets
- Brazil: Suppliers
- Other Central & South America
- Other Central & South America: Battery Market Size & Historical Trends
- Other Central & South America: Supply & Demand
- Other Central & South America: Primary Battery Demand
- Other Central & South America: Secondary Battery Demand
- Other Central & South America: Battery Markets
- Other Central & South America: Suppliers
11. Western Europe
- Western Europe: Battery Market Size & Historical Trends
- Western Europe: Battery Supply & Demand
- Western Europe: Primary Battery Demand
- Western Europe: Secondary Battery Demand
- Western Europe: Battery Markets
- Western Europe: Market Share
- Germany
- Germany: Battery Market Size & Historical Trends
- Germany: Supply & Demand
- Germany: Primary Battery Demand
- Germany: Secondary Battery Demand
- Germany: Battery Markets
- Germany: Suppliers
- France
- France: Battery Market Size & Historical Trends
- France: Supply & Demand
- France: Primary Battery Demand
- France: Secondary Battery Demand
- France: Battery Markets
- France: Suppliers
- United Kingdom
- United Kingdom: Battery Market Size & Historical Trends
- United Kingdom: Supply & Demand
- United Kingdom: Primary Battery Demand
- United Kingdom: Secondary Battery Demand
- United Kingdom: Battery Markets
- United Kingdom: Suppliers
- Spain
- Spain: Battery Market Size & Historical Trends
- Spain: Supply & Demand
- Spain: Primary Battery Demand
- Spain: Secondary Battery Demand
- Spain: Battery Markets
- Spain: Suppliers
- Italy
- Italy: Battery Market Size & Historical Trends
- Italy: Supply & Demand
- Italy: Primary Battery Demand
- Italy: Secondary Battery Demand
- Italy: Battery Markets
- Italy: Suppliers
- Other Western Europe
- Other Western Europe: Battery Market Size & Historical Trends
- Other Western Europe: Supply & Demand
- Other Western Europe: Primary Battery Demand
- Other Western Europe: Secondary Battery Demand
- Other Western Europe: Battery Markets
- Other Western Europe: Suppliers
12. Eastern Europe
- Eastern Europe: Battery Market Size & Historical Trends
- Eastern Europe: Battery Supply & Demand
- Eastern Europe: Primary Battery Demand
- Eastern Europe: Secondary Battery Demand
- Eastern Europe: Battery Markets
- Eastern Europe: Market Share
- Russia
- Russia: Battery Market Size & Historical Trends
- Russia: Supply & Demand
- Russia: Primary Battery Demand
- Russia: Secondary Battery Demand
- Russia: Battery Markets
- Russia: Suppliers
- Other Eastern Europe
- Other Eastern Europe: Battery Market Size & Historical Trends
- Other Eastern Europe: Supply & Demand
- Other Eastern Europe: Primary Battery Demand
- Other Eastern Europe: Secondary Battery Demand
- Other Eastern Europe: Battery Markets
- Other Eastern Europe: Suppliers
13. Asia/Pacific
- Asia/Pacific: Battery Market Size & Historical Trends
- Asia/Pacific: Battery Supply & Demand
- Asia/Pacific: Primary Battery Demand
- Asia/Pacific: Secondary Battery Demand
- Asia/Pacific: Battery Markets
- Asia/Pacific: Market Share
- China
- China: Battery Market Size & Historical Trends
- China: Supply & Demand
- China: Primary Battery Demand
- China: Secondary Battery Demand
- China: Battery Markets
- China: Suppliers
- Japan
- Japan: Battery Market Size & Historical Trends
- Japan: Supply & Demand
- Japan: Primary Battery Demand
- Japan: Secondary Battery Demand
- Japan: Battery Markets
- Japan: Suppliers
- South Korea
- South Korea: Battery Market Size & Historical Trends
- South Korea: Supply & Demand
- South Korea: Primary Battery Demand
- South Korea: Secondary Battery Demand
- South Korea: Battery Markets
- South Korea: Suppliers
- India
- India: Battery Market Size & Historical Trends
- India: Supply & Demand
- India: Primary Battery Demand
- India: Secondary Battery Demand
- India: Battery Markets
- India: Suppliers
- Taiwan
- Taiwan: Battery Market Size & Historical Trends
- Taiwan: Supply & Demand
- Taiwan: Primary Battery Demand
- Taiwan: Secondary Battery Demand
- Taiwan: Battery Markets
- Taiwan: Suppliers
- Indonesia
- Indonesia: Battery Market Size & Historical Trends
- Indonesia: Supply & Demand
- Indonesia: Primary Battery Demand
- Indonesia: Secondary Battery Demand
- Indonesia: Battery Markets
- Indonesia: Suppliers
- Other Asia/Pacific
- Other Asia/Pacific: Battery Market Size & Historical Trends
- Other Asia/Pacific: Supply & Demand
- Other Asia/Pacific: Primary Battery Demand
- Other Asia/Pacific: Secondary Battery Demand
- Other Asia/Pacific: Battery Markets
- Other Asia/Pacific: Suppliers
14. Africa/Mideast
- Africa/Mideast: Battery Market Size & Historical Trends
- Africa/Mideast: Battery Supply & Demand
- Africa/Mideast: Primary Battery Demand
- Africa/Mideast: Secondary Battery Demand
- Africa/Mideast: Battery Markets
- Africa/Mideast: Market Share
15. Industry Structure
- Key Findings & Industry Composition
- Market Share
- Mergers & Acquisitions
- List of Industry Participants
16. Appendix
- Report Details
- Definitions
- Abbreviations
- Freedonia Methodology
- Study-Specific Methodology
- Sources
- Associations & Agencies
- Related Studies & Reports
- Country Lists by Region
- Macroeconomic Assumptions
- Economic Environment
- Demographic Trends
- Global Manufacturing
- Global Motor Vehicle Production