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North America Battery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 110 Pages
  • February 2022
  • Region: North America
  • Mordor Intelligence
  • ID: 4828204

The North America battery market was valued at USD 22.51 billion in 2020, and it is anticipated to reach USD 53.84 billion by 2027, registering a CAGR of more than 10.5% during the forecast period of 2022-2027. The battery market was moderately impacted by the COVID-19 outbreak in Q1 of 2020. The growth of the market declined due to the imposed lockdown that restricted the supply of batteries and other components as a result of severe disruptions in businesses and the global economy. The COVID-19 situation has exposed the over dependency of countries, especially on China, for key raw materials. Major factors driving the market include declining lithium-ion battery prices, increasing adoption of electric vehicles, growing renewable energy sector, and increased sale of consumer electronics. Moreover, North America remains a pioneer in research and innovation in the global battery market and one of the largest consumers of batteries. On the other hand, the demand-supply mismatch of raw materials is likely to hinder the market growth during the forecast period.

Key Highlights

  • The automotive batteries segment is expected to be one of the major applications for lithium-ion batteries, owing to the increased adoption of electric vehicles expected during the forecast period.
  • The North American region remains as one of the largest consumers of batteries. Moreover the integration of renewables with energy storage systems is presenting itself as a great opportunity for the region battery market.
  • The United States government has been encouraging investors for both Electric Vehicle (EV) and the renewable industries, resulting in an increased demand for battery-based energy storage systems, primarily led by lithium-ion batteries.

Key Market Trends

Automotive Application to Witness Significant Growth

  • 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.
  • A range of 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, 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, which has already begun transforming its public transportation infrastructure for EVs.
  • The total electric car sales in Canada increased by over 300% in 2020 compared to 2017. The country has sold 36.9 thousand units of battery electric vehicles (BEV) in 2020.
  • In June 2021, the United States Department of Energy (DOE) announced funding of USD 200 million over the next five years for electric vehicles, batteries, and connected vehicle projects at DOE national labs and new DOE partnerships to support electric vehicles innovation.
  • Additionally, in October 2021, Toyota announced that it will invest approximately USD 3.4 billion in automotive batteries in the United States by 2030. Specifically, the investment focuses on developing and localizing automotive battery production for battery electric vehicles (BEV).
  • 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.
  • Moreover, declining lithium-ion battery prices and improving technologies are expected to bring price-competitive electric vehicles to the market, creating demand for lithium-ion batteries in the coming years.

The United States to Dominate the Market

  • The United States is one of the major hotspots for industrial batteries worldwide, on account of robust industrial infrastructure, surging deployment of battery-based energy storage projects, and expansion in renewable power infrastructure.
  • To increase the adoption of clean energy systems and in order to reduce GHG emissions, the country is rising the deployment of solar and wind power installations, which needs to be supported by energy storage systems.
  • As of 2020, the United States has 118 GW of wind power installed capacity. The country has several battery-based energy storage projects under operation, which include several battery technologies. Around 14.5 gigawatts (GW) of battery storage power capacity is expected to come online in the United States from 2021 to 2024. Around 9.2 GW of this storage capacity will be co-located with solar, 1.3 GW with wind energy, and the remaining 4 GW in a stand-alone capacity.
  • Moreover, the requirement for data centers in the country is growing rapidly, due to increasing connectivity and other factors, which means that roughly 600 zettabytes of new data are created each year (that is 600 trillion gigabytes). ​
  • In March 2021, Alphabet Inc Class A’s subsidiary Google Inc, announced that the company is planning to invest around USD 7 billion in the United States to build new offices and data centers. The development of data centers is expected to increase demand for UPS systems, thereby leading to a rise in demand for industrial batteries.​
  • Therefore, owing to the above points, the United States is likely to dominate the North America Battery market, supported by increasing urbanization, consumer spending, and technically advanced devices & vehicles.

Competitive Landscape

The North America battery market is fragmented. Some of the key players in this market include Contemporary Amperex Technology Co. Limited, BYD Co. Ltd, Samsung SDI Co., Ltd, LG Chem Ltd. and Panasonic Corporation.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

Table of Contents

1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2027
4.3 Battery/Raw Material Price Trends and Forecast, by Major Technology Type (in USD per kWh or USD per tonne), till 2027
4.4 International Trade Statistics (Import/Export Data), by Major Technology Type, By Major Countries, in USD million, till 2027
4.5 Recent Trends and Developments
4.6 Government Policies and Regulations
4.7 Market Dynamics
4.7.1 Drivers
4.7.2 Restraints
4.8 Supply Chain Analysis
4.9 Porter's Five Forces Analysis
4.9.1 Bargaining Power of Suppliers
4.9.2 Bargaining Power of Consumers
4.9.3 Threat of New Entrants
4.9.4 Threat of Substitutes Products and Services
4.9.5 Intensity of Competitive Rivalry
5.1 Type
5.1.1 Primary
5.1.2 Secondary
5.2 Technology
5.2.1 Lead-Acid
5.2.2 Lithium-Ion
5.2.3 Others
5.3 Application
5.3.1 Automotive
5.3.2 Industrial Batteries (Motive, Stationary (Telecom, UPS, Energy Storage Systems (ESS), etc.))
5.3.3 Consumer Electronics
5.3.4 Other Applications
5.4 Geography
5.4.1 United States
5.4.2 Canada
5.4.3 Rest of North America
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 BYD Co.Ltd.
6.3.2 Contemporary Amperex Technology Co. Limited
6.3.3 Duracell Inc.
6.3.4 EnerSys
6.3.5 Johnson Controls International plc
6.3.6 LG Chem Ltd
6.3.7 Panasonic Corporation
6.3.8 Saft Groupe S.A.
6.3.9 Samsung SDI Co. Ltd
6.3.10 Sony Corporation
6.3.11 Tesla Inc.

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • BYD Co.Ltd.
  • Contemporary Amperex Technology Co. Limited
  • Duracell Inc.
  • EnerSys
  • Johnson Controls International plc
  • LG Chem Ltd
  • Panasonic Corporation
  • Saft Groupe S.A.
  • Samsung SDI Co. Ltd
  • Sony Corporation
  • Tesla Inc.