Emerging in the early 1990s, the lithium ion battery segment is anticipated to become the fastest growing and most promising battery technology in the global market. - Bonafide Research.

A battery is a device that consists of one or more electrochemical cells. The battery majorly works on the principle of electromotive force. The growing demand for portable batteries requires fast charging functionality, which is known as lithium iron phosphate (LiFePO4) battery technology. Primary batteries hold more energy than secondary batteries, and their self-discharge is lower in comparison. Lead, nickel, and lithium-based batteries require periodic recharging to compensate for lost energy. The desirable qualities of an electric battery are large capacity, production of an unchanging voltage, and resilience to environmental factors. The major market driver for the battery market is the growing integration of electronics. Growing demand for transportation also contributes to the market’s growth. Fuel savings and government incentives for cleaner transportation boost the demand for the market. In addition, new hybrid and electric automotive models from OEMs are the other factors that can accelerate the market’s growth. In addition, industrial batteries are increasingly being used in applications such as backup power for telecom base stations and data centres or to power forklifts, which significantly contributes to the industrial battery market's growth.

The report "Global Battery Market Outlook, 2027" published by Bonafide Research provides comprehensive information on batteries classified by type (primary & secondary), technology (lead-acid, lithium-ion, nickel cadmium & nickel metal hydride), and application (automotive, industrial, & portable). The overall battery market was valued at around USD 110 billion in 2021, which is anticipated to rise to over USD 188 billion by the upcoming timeframe. Furthermore, the market is expected to grow at a CAGR of more than 9% between 2022 and 2027.The number of people without access to electricity in the African region is to increase by over 600 million in 2030, despite efforts to boost electrification. The Sub-Saharan and rural South Asian regions, in particular, are expected to be one of the central hotspots for off-grid solar initiatives. As a result, the use of energy storage with solar photovoltaic technology has been gaining popularity in these countries, which is likely to create an enormous opportunity for the battery market.

Growing integration of electronics, fuel savings, rising government incentives for cleaner transportation and an increasing number of new hybrid and electric automotive models from OEMs are some of the major factors driving the growth of the global battery industry. The increasing demand for transportation and electronic vehicles is a prominent driver for the battery market. Along with that, incentives provided by the government and fuel savings with the use of electronic vehicles will further drive the market growth. Also, the development of new electric and hybrid automotive vehicles by the OEMs is anticipated to boost the market's growth. Furthermore, several other factors, such as increased efficiency, cost-effectiveness, etc., will further fuel the market's growth. Furthermore, several battery market opportunities are anticipated to improve the market growth. The rising demand for electronic and hybrid vehicles will offer new opportunities for the market. The development and research of these vehicles will further fuel the market's growth in the upcoming years.

There has been an increase in the demand for energy storage systems across the globe. Energy storage can play a crucial role in balancing variable generation sources and grid integration. In this regard, by increasing the overall flexibility of the system, energy storage systems can reduce peak demand, improve power quality, avoid or reduce deviation penalties, and enhance the capacity of distribution and transmission grids. The demand for lithium batteries has been increasing with the growing demand for consumer electronic products such as mobile phones and laptops, as these batteries are widely used in these products. Lithium-ion batteries are widely used in consumer electronics due to their rechargeable quality. Moreover, the lithium-ion battery pack offers high power and also has a higher energy density compared to other battery types. These factors are leading to an increase in demand for lithium-ion batteries in consumer electronic products.

Asia is a major customer of batteries because of growing automobile production, coupled with rapid development in the industrial sector, generating high demand across the region. Growing aircraft and automobile manufacturing in the developing nations of the region is expected to provide enormous potential for market growth. In many areas, the Asia-Pacific has been one of the most dynamic and promising regions in the world over the past three decades and has become an important driving force in the world economy. The Asia-Pacific countries, led by China, Korea, and Japan, have shown a dynamic scene in the field of lithium-ion batteries. They are considered to be the core driving force of the global new lithium-ion battery industry. With the major countries of the region being the top 10 contributors, Asia-Pacific is without any doubt the market leader in the battery market. In a declining market trend, China leads the market with a share of more than 25%. Both China and India's markets are driven by increasing populations, urbanization, declining costs of electronic items, the introduction of new smart technology, and cheaper internet data. The increasing penetration of telecommunication service providers and frequent replacements of gadgets are opportunities for the growth of the battery market in China and India, which aid the countries to contribute approximately 40% over the forecast period.

As for the Europe region, the growing demand for product delivery in a timely manner has pushed for improvements in the logistics and distribution business in the European region, which will likely provide many opportunities for Li-ion batteries in the material handling industry in the coming years. The EU Battery Directive (2006/66/EC) regulates the manufacturing and disposal of batteries and accumulators in the European Union to protect human health and the environment from hazardous substances such as mercury and cadmium. Owing to the increasing demand from the automotive, telecommunications, and renewable sectors, the battery demand in the region is likely to witness significant growth in the coming years. Batteries are a strategic part of Europe's clean and digital transition and a key enabling technology. They’re also essential to maintaining the automotive sector's competitiveness, which is why building its own full life-cycle battery value chain is critical. Advanced rechargeable batteries, such as lithium-based or next-generation nickel, zinc, sodium, or solid-state battery chemistries, are a key enabler for the transition towards low-emission mobility and decarbonizes energy generation in Europe.

The automotive sector is expected to be the major application segment for the battery market in the near future. In the current market scenario, policy support plays a crucial role in driving the adoption of electric vehicles. Policy support enables market growth by making vehicles appealing to consumers, reducing risks for investors, and encouraging manufacturers to develop electric vehicles on a large scale. Falling battery prices and improving technology are expected to bring price-competitive electric vehicles to the market, creating a demand for battery technologies.

On the other hand, North America is one of the largest consumers of batteries, and the integration of renewable energy with energy storage systems is expected to supplement the market in the forecasting period. Other factors driving the market include a decrease in the prices of lithium-ion batteries; a rise in the adoption of electric vehicles; growth in the renewable energy sector; and an increase in the sale of consumer electronics. The automotive sector is expected to be one of the major end-user segments for batteries, primarily lithium-ion batteries, in the coming years. The penetration of electric vehicles is anticipated to provide a massive impetus for the lithium-ion battery industry growth in North America.  Different vehicle types are now available, featuring increasing degrees of hybridization and electrification. There are various types of vehicles, including hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and electric vehicles (EVs). The adoption of electric vehicles is increasing at a high growth rate. The United States is already among the countries leading in global EV sales, and other economies like Canada have already begun transforming their public transportation infrastructure for EVs. Policy support enables market growth by making vehicles appealing to consumers, reducing risks for investors, and encouraging manufacturers to develop electric vehicles on a large scale. Moreover, improving technologies are expected to bring price-competitive electric vehicles to the market, creating demand for lithium-ion batteries in the coming years.

The Middle East and Africa have many developing regions where construction is at its peak and cities are developing at a faster rate. This leads to a high demand for industrial and construction tools that use lithium ion batteries as a source of energy, acting as a major factor for the growth of the market. Growing adoption of cordless power tools is increasing the demand for lithium ion batteries across the region. Growing demand for smart devices and wearable is boosting the growth of the lithium ion battery market. Safety issues related to storage, usage, and transportation of lithium ion batteries are acting as a major restraining factor for the lithium ion battery market. The factors such as the growth in strategic initiatives taken by the region’s market players, the large-scale presence of lithium reserves, the increase in demand and adoption of consumer electronics and household appliances for increasing deployment of different types of batteries are expected to promote the growth of the studied market in the region. Major factors driving the South American battery market include declining lithium-ion battery prices, increasing adoption of electric vehicles, and growing the renewable energy sector. Also, increasing demand from data centres is likely to drive the market as data centres are evolving digital infrastructures for cloud services and the next generation of cloud services may be adapted to incorporate a blockchain network.

Covid-19 Impacts:
The battery market was moderately impacted by the COVID-19 pandemic. In the prevailing COVID-19 situation, the expected growth of the market is expected to decline as the pandemic is restricting the supply of batteries and other components due to severe disruptions in businesses and the global economy. The current situation has impacted the supply chain of the battery industry. Key components for batteries are mainly manufactured in Asia and the Pacific. The COVID-19 situation has exposed the over-dependency on the region for key raw materials, especially China. Battery manufacturers in the US, Germany, and Australia are highly impacted by the shutdown of operations in China and other Asia-Pacific countries. It has also resulted in limited production, leading to a serious decline in business inputs. The recovery depends on government assistance as well as the level of corporate debt and how the companies and markets cope with the trimmed demand. After the recovery phase, the market is projected to grow at a moderate rate until 2030.