Batteries – Procurement Best Practices & Sourcing Strategies

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Global Batteries Market Size:

According to the latest research report of ELINT Market Research, the global batteries market reach a valuation of USD 61.91 billion by 2022. In addition, it also evaluates a positive growth trajectory to push the market to hit USD 94.15 billion by 2025 with a healthy CAGR of 14% to 15%. A boost in the growth of the Electric Vehicles (EV) industry fosters revolution in the batteries industry. In addition, several technological advancements, a growing preference for sustainable transportation, and favorable government policies related to electric vehicles complement the market growth.

Global Batteries Market Definition:

The battery is an electrochemical device used for electric power storage and distribution. Batteries are commonly usable in diverse applications such as electronic devices, electric vehicles, grid energy storage, etc. Continuous R&D activities to develop advanced battery technology with enhancements in charging speed, energy density, and lifespan push revolution and industry growth.

Key Growth Drivers of Global Batteries Market:

A high adoption rate of lithium-ion batteries for the renewable energy industry is the primary driver for the global batteries market growth. As per industry analysis, such batteries offer superior performance compared to other mediums present. In addition, it finds extensive application in energy storage systems related to renewable energy sources such as wind and solar. Furthermore, industry advancements such as increasing battery delivery capacity and stringent regulatory landscape striving for pollution control further boost the global industry growth. Moreover, a substantial rise in the demand for consumer electronics is pushing the demand and integration of different batteries. All these factors complement the overall efforts of businesses fostering product diversification to gain consumer attraction. Furthermore, investment in eco-friendly innovations, such as electric bikes and cranes, supports market expansion.

Notable Challenges in Global Batteries Market:

The overall manufacturing of batteries, particularly lithium-ion batteries, primarily relies on the availability of raw materials such as nickel, lithium, and cobalt. The ample availability and cost of such materials influences overall battery production cost. In addition, the recycling and disposal of existing batteries often leads to climate issues. The wrong disposal method of lithium-ion batteries can cause water and soil contamination. Hence, it is crucial to develop an environment-friendly and sustainable recycling process. Moreover, enhancing the power density of modern batteries and overall performance is a continuous challenge for manufacturers. Industry stakeholder should consider all these factors while preparing their future road map.

Lucrative Opportunities in Global Batteries Market:

Recent demand spick for electric vehicles offers lucrative opportunities for companies operating in the global batteries market. The automotive industry trend is shifting towards specialized electrification, leading to a rise in demand for high-capacity batteries. In addition, the rising usage of renewable energy sources creates scope for reliable energy storage solutions, as batteries play a vital role in the storage and distribution of power generated from different sources. Moreover, the constant growth landscape of laptops, tablets, smartphones, and other portable electronics presents a continued demand for high-performance batteries with fast-charging functionalities and long lifespan.

Global Batteries Market: In-depth Segmentation

The research report segments the global batteries market based on battery type, application, and region.

1. Battery-Type: The latest research analysis divides the global market based on battery type into Lithium-Ion Batteries, Solid-State Batteries, Lead-Acid Batteries, and Nickel-Metal Hydride Batteries.
2. Application: According to application type, the research study classifies the market into Automotive, Energy Storage Systems, Consumer Electronics, and Industrial.
3. Region: As per the regional outlook, the research segments the market across North America, Latin America, Europe, Asia-Pacific, and the Middle East & Africa.

Regional Analysis of Global Batteries Market:

1. High Market Maturity – Asia Pacific: The Asia Pacific region is a leading participant in the global batteries market, covering high market maturity with the support of the latest technological revolutions. Japan, China, and South Korea are in front of R&D initiatives, particularly related to lithium-ion batteries. The region’s increasing emphasis on sustainable transportation solutions makes it a vital destination for electric mobility. Moreover, the increasing integration of renewable energy solutions in regional countries further indicates the relevance of advanced battery technologies.
2. Medium Market Maturity – North America and Europe: Although North America and Europe do not match Asia Pacific’s maturity levels, they also play crucial roles in the global batteries market in several ways. Both regions witness an increasing environmental awareness, pushing investments in cleaner and sustainable energy solutions. The popularity of electric vehicles is growing, complemented by government initiatives and incentives boosting battery demand. In addition, stringent regulatory rules in the European region focusing on eliminating carbon emissions and pushing energy efficiency promote the integration of energy storage solutions, especially batteries.

Cost Components of Global Batteries Market:

Stakeholders must gain insight into the cost dynamics to decode the global market. This cost breakdown analysis indicates the pivotal contribution of the anode and cathode. Both components are central in identifying the pricing strategy that leading market players implement.

1. Cathode (48% Approx.)

• Essential Component: constitutes around half of the production cost.
• Ongoing emphasis on improving durability and efficiency.

2. Anode (14% Approx.)

• Negative electrode, leading contribution to price determinants.
• Continuous efforts to enhance anode materials for added efficiency.

Cutting-edge Technologies in Global Batteries Market:

In the quest for eco-friendly solutions, the batteries market is experiencing the necessity for revolutionary technologies. Li-S and Solid State Batteries are ahead in this innovation phase, enabling longer lifespans, higher energy density, and added safety. Solid-state batteries offer a significant shift with solid electrolytes. Li-S batteries leverage sulfur’s properties to achieve higher power density.

Global Batteries Market Pricing Strategies:

Leading industry players implement varied pricing strategies to meet diverse customer requirements. One-time orders and contractual purchases are among the most adopted models, providing reliability to both suppliers and consumers.

1. Contractual Purchase: Long-term agreement that enables long and steady supply. It also offers reliability and resourceful operational planning.
2. One-time Orders: Such strategies implement an ad-hoc approach to changing demand. In addition, it ensures instant turnaround without the need for long-term commitment.

Leading Market Suppliers of Global Batteries Market:

The global batteries market has a presence of diverse players contributing to the overall market dynamics. Some prominent players are Tesla, Samsung SDI, Saft Batteries, LG Chem, Panasonic, CATL, and BYD. These industry leaders constantly invest in R&D programs, strategic partnerships, and production scalability to stay market competitive.