The Southeast Asian battery market is expected to register a CAGR of more than 10.2% over the period of 2021-2026, reaching a value of more than USD 30 billion by 2026, up from USD 16.8 billion in 2019. The COVID-19 pandemic has led to a slight decline in the overall battery market in the region due to lockdown restrictions and supply chain disruptions in battery manufacturing. Factors such as growing demand from the automotive sector, declining lithium-ion battery prices, and plans to make Southeast Asia a data center hub are expected to drive the market during the forecast period. Despite the growing demand for batteries in automotive, data centers, and telecommunications sectors, the battery energy storage segment is expected to witness stagnant growth, as most of the countries are dependent on other alternatives for energy storage. This, in turn, is likely to hinder the growth of the battery market in the energy storage segment during the forecast period.
- The automotive segment accounted for most of the market in 2019 due to the increasing demand for new vehicles produced in the region.
- Plans to integrate renewable energy with the national grids in respective countries are expected to create a significant amount of opportunity for the lithium-ion battery manufacturers and suppliers in the near future.
- Thailand dominated the market in 2019, owing to the increasing demand from the automotive, data center, and other end-user sectors.
Key Market Trends
Automotive Sector to Dominate the Market
- Vehicles with internal combustion engines (ICE) were the only types used earlier. ICE vehicles have been using lead-acid batteries, and they may continue to do so, with no major replacement available.
- The sales of new vehicles in six of Southeast Asia's largest markets, i.e., Thailand, Indonesia, Malaysia, the Philippines, Vietnam, and Singapore, combined, continued to weaken in the third quarter of 2019, with sales falling by 6.3% to 851,820 units from 908,913 units sold during the same period in 2018. This is a negative second quarter for the market and brings the nine-month year-to-date total to 2,538,718 units - 2.4% lower than the 2,600,737 units sold in the same period of last year.
- However, automotive production in countries like Thailand, Indonesia, and Malaysia witnessed a decent growth of over 8% during 2017-2018. This trend is expected to continue in the coming years as well, irrespective of the global decline in automotive production. Therefore, the increasing trend of automotive production in the major countries in Southeast Asia is expected to drive the battery market, especially the lead-acid type, during the forecast period.
Thailand to Dominate the Market
- Thailand accounts for the majority share in the market. This trend is expected to continue in the coming years, owing to the increasing demand from the automotive, data center, and telecom sectors.
- Thailand provides a great investment potential for the automotive sector. The country has a leading automotive production base in the Association of Southeast Asian Nations. Over a period of 50 years, the country has developed from an assembler of auto components into a top automotive manufacturing and export hub.
- By 2020, Thailand aims to manufacture over 3,500,000 units of vehicles to become one of the top performers in the global automotive market. Hence, this is expected to increase the demand for automotive batteries in the country during the forecast period.
- Moreover, the Thailand government is focusing on incentivizing eco car makers to launch more eco EVs, especially the hybrid type. These eco EVs will also get an excise tax reduction, like other EV models, making retail prices more affordable. This, in turn, is expected to create a significant amount of opportunities for both EV and battery manufacturers in the coming years.
- Adding to this, the government has planned its business module under Thailand 4.0 Programme. This Programme will be increasing the new technologies, such as cloud computing, interactive media, big data, and the internet of things, among others.
- In May 2019, ST Telemedia Global Data Centres (STT GDC) collaborated with real estate firm Frasers Property Thailand for building its first hyperscale data center facility in Bangkok. The investment for the hyperscale data center project is more than USD 219 million, and the construction of phase I of the project is expected to be completed in 2021.
- Therefore, factors such as upcoming data centers and expected increase in automobile production in the coming years are expected to drive the battery market in Thailand during the forecast period.
The Southeast Asian battery market is partially fragmented. Some of the key players in this market include Tianjin Lishen Battery Joint-Stock Co. Ltd, GS Yuasa Corporation, FIAMM Energy Technology SpA, Leoch Battery Corporation, and Hitachi Chemical Energy Technology Co. Ltd.
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Table of Contents
1.2 Market Definition
1.3 Study Assumptions
4.2 Market Size and Demand Forecast in USD billion, till 2026
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5.1.1 Lead-acid Battery
5.1.2 Lithium-ion Battery
5.1.3 Other Battery Types
5.2 End User
5.2.2 Data Centers
5.2.4 Energy Storage
5.2.5 Other End Users
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 BYD Co. Ltd
6.3.2 C&D Technologies Inc.
6.3.3 East Penn Manufacturing Co. Inc.
6.3.4 Tianjin Lishen Battery Joint-Stock Co. Ltd
6.3.5 Exide Industries Ltd
6.3.6 FIAMM SpA
6.3.7 GS Yuasa Corporation
6.3.8 LG Chem Ltd
6.3.9 Panasonic Corporation
6.3.10 Saft Groupe SA
6.3.11 Samsung SDI Co. Ltd
6.3.13 Tesla Inc.
6.3.14 Leoch International Technology Limited
A selection of companies mentioned in this report includes:
- BYD Co. Ltd
- C&D Technologies Inc.
- East Penn Manufacturing Co. Inc.
- Tianjin Lishen Battery Joint-Stock Co. Ltd
- Exide Industries Ltd
- FIAMM SpA
- GS Yuasa Corporation
- LG Chem Ltd
- Panasonic Corporation
- Saft Groupe SA
- Samsung SDI Co. Ltd
- Tesla Inc.
- Leoch International Technology Limited