Market Trends of Global Battery E-commerce Industry
The Lithium-Ion Battery Segment is Expected to Dominate the Market
- In the early years of the lithium-ion battery industry, the consumer electronics sector was the primary consumer. However, in recent years, with the increasing sales of electric vehicle (EV), the EV manufacturers have become the biggest consumers of lithium-ion batteries. With the growing number of EVs, various countries such as the United States, Germany, China, and India have witnessed increased penetration of batteries through online mode.
- Battery-electric vehicle sales reached an estimated 9.5 million in 2023, up from around 7.3 million in 2022. Also, electric vehicles (EVs) do not emit CO2, NOX, or any other greenhouse gases and, hence, have a lower environmental impact compared to conventional internal combustion engine (ICE) vehicles. Due to this advantage, many countries are encouraging the use of EVs by introducing subsidies, tax rebates, and government programs. This will, in turn, create avenues for the promotion of the battery e-commerce market.
- Several countries have announced plans to ban the sales of ICE or conventional vehicles in the upcoming years. Norway announced plans to ban the sales of conventional vehicles by 2025, France by 2040, and the United Kingdom by 2050. India also has plans to phase out ICE engines by 2030, while China's similar plan is currently under the relevant research phase. The ban on ICE vehicles will create avenues for the adoption of electric vehicles and further boost the market’s growth.
- A significant portion of the Asia-Pacific and African populations is estimated to live without access to electricity and depend on conventional fuels, such as kerosene and diesel, for their lighting and mobile phone charging needs. Lithium-ion battery integrated energy storage solutions are likely to witness an increasing adoption rate due to its technical benefits and declining lithium-ion battery prices. This is expected to create a significant number of opportunities for online suppliers of Li-ion batteries in the near future.
- Therefore, the lithium-ion battery segment is expected to dominate the battery e-commerce market during the forecast period.
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North America is Expected 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. The growing adoption of battery energy storage projects requires more lithium-ion batteries, which can potentially develop the battery e-commerce market. In 2023, the capacity of the battery manufacturing industry in the United States amounted to 177 gigawatt-hours.
- To increase the adoption of clean energy systems and reduce GHG emissions, the country is increasing the deployment of solar and wind power installations, which need to be supported by energy storage systems.
- In 2022, General Motors and Ford announced their targeted strategy to manufacture and sell EVs. General Motors declared its target to manufacture 30 EV models and set up a battery electric vehicle (BEV) production facility with a capacity of 1 million units in North America by 2025, along with carbon neutrality by 2040. In comparison, Ford announced its target to have one-third of sales be fully electric by 2026 and 50% by 2030, with all-electric sales in Europe by 2030. This will drive the need for lithium-ion batteries in North America, boosting the growth of the battery e-commerce market.
- With the growing sales of electric vehicles, the demand for lithium-ion batteries in the automotive segment is expected to increase significantly during the forecast period. For instance, according to the International Energy Agency, the sales of electric vehicles in the United States and Canada grew by more than 38.04% between 2022 and 2023.
- Therefore, North America is expected to dominate the global e-commerce market during the forecast period.
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