Market Trends of East Asia Battery Industry
This section covers the major market trends shaping the East Asia Battery Market according to our research experts:
Automotive Segment to Drive the Market
- The automotive sector is expected to be one of the major end-user segments for lithium-ion batteries shortly. The penetration of electric vehicles is anticipated to provide a massive impetus for the lithium-ion battery industry's growth.
- A range of different vehicle types is now available globally, 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).
- In both developed and developing economies, the adoption of electric vehicles is increasing at a high growth rate. The United States and China are already leading global EV sales, along with other developing economies like Japan, which has already begun transforming its public transportation infrastructure for EVs.
- Moreover, in 2021, electric vehicles accounted for over 16% of the automotive market in China. With the increasing adoption of EVs, the use of lithium-ion batteries in the automotive segment is expected to grow, which, in turn, will drive the battery market in the forecast period.
- 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 demand for battery technologies.
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China to Dominated the Market
- East Asia has multiple growing economies with substantial natural and human resources. China is expected to be a significant investment hotspot for battery companies in the coming years on account of policy-level support from the governments, encouraging the manufacturing sector.
- The deployment of electric vehicles and the installation of renewable power plants in China are increasing rapidly, which is expected to foster massive demand for batteries.
- China is one of the largest markets for electric vehicles, and the percentage share of electric vehicles in car sales increased by 11% in 2021 compared to 2020.
- The increasing adoption of electric vehicles aligns with the clean energy policy. To reduce the demand-supply gap, the government of China is planning to ease restrictions on automakers importing cars into the country.
- China is likely to be the dominant player in the battery market, supported by increasing urbanization and consumer spending across the country, which is expected to ramp up the demand for technically advanced devices and vehicles due to the benefits provided. Consecutively, leading to a growth in demand for batteries.
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