Battery Manufacturing Equipment Market Size, Share & Trends Estimation Report By Type ( Lead Acid, Lithium Ion, Nickel Metal Hydride),By Application ( Automotive Batteries, Industrial Batteries, Portable Batteries), By Region, And Segment Forecasts, 2023 - 2030
The global Battery Manufacturing Equipment Market size was evaluated at USD 3.42 Billion in 2022 and is projected to hit around USD 30.84 Billion by 2030, growing at a CAGR of 31.63% from 2023 to 2030.
Battery Manufacturing Equipment Market Overview:
The global demand for lithium-ion batteries is growing due to a number of factors, including the popularity of electric vehicles and the expansion of the energy storage industry. To meet the increased demand, battery manufacturers are giving major resources to developing environmentally friendly cell technologies and increasing their construction capability. As a result, the number of businesses devoted to the production of batteries is quickly growing across the globe. In addition, automakers are increasing their manufacturing capacity to satisfy the fast growing demand for electric vehicles (EVs), and they are collaborating with battery producers to assure an enough supply of lithium-ion batteries for their EVs (EVs). During the period covered by this forecast, it is predicted that the expansion of the lithium-ion battery manufacturing industry would be the key factor driving the growth of the market for battery production equipment.
Drivers: Increasing number of lithium-ion gig factories
China, Japan, and South Korea are the countries with the largest established production base for lithium-ion batteries. However, other regions, including as Europe and North America, are now focusing on decreasing their reliance on Asia Pacific for battery supplies. As a manufacturing hub for autos, Europe attracts automotive battery manufacturers to build plants in the region. According to a February 2022 article published by PV Magazine, the region is transforming into a major battery production hub, with plans to construct 35 gigafactories. Similarly, the United States is a major contributor to the expansion of the global EV market. To address the growing demand for electric vehicle batteries, the country aims to develop new battery gigafactories. This increased emphasis on developing lithium-ion battery construction during the world is increasing the demand for battery production machinery.
Restraints: Requirement of high initial investments and setup costs
In the coming years, battery production equipment will be in high demand due to the increasing number of applications for batteries. To fulfil the increasing demand for batteries, it has become imperative to develop new battery manufacturing equipment facilities in many regions of the world. Despite this, the cost of constructing a battery production machinery facility is rather high and requires large capital expenditures. A range of machinery included in the battery production equipment are used for mixing, coating, calendaring, slitting, electrolyte filling, and assembly, between other processes. In addition, the majority of battery production machine manufacturers provide all of this equipment as a complete, customer-tailored package. Each machine's design, size, technology, and technical specifications vary based on the battery type and manufacturing process. As a result, all of these qualities must be considered when creating a factory for the manufacture of machines, resulting in a extensive initial investment and setup costs. This issue hinders market expansion, especially in developed regions such as Europe and North America, where resource and labour costs are significantly higher than in Asia-Pacific.
Opportunities: Emerging energy storage applications
A battery energy storage system consists of battery packs and modules. The technology stores energy from renewable energy sources, such as solar panels, wind, or even the electric grid, and then releases it as needed to provide electricity or to perform other grid activities. During periods of low peak demand, energy storage batteries are utilised to store excess energy for distribution to end users during peak demand periods. The energy storage battery has been widely used across the globe, particularly in the United States, Canada, Germany, France, China, India, and other economies of note. The demand for energy storage batteries has increased in recent years due to factors such as the ongoing grid modernization, the increasing penetration of lithium-ion batteries in the renewable energy sector, the rising trend of adopting a low-carbon and less fossil fuel-based economy, and the ongoing renewable energy revolution.
Challenges: Continuous development of new battery technologies
Batteries are widely utilised in a wide range of applications, from those with heavy loads, such as aircraft, to those with minimal utilisation, such as wristwatches. In recent years, the battery industry has participated in a variety of research and development initiatives, primarily to create compact batteries with a high energy density. Consequently, research and development is being conducted on revolutionary technologies such as solid-state, liquid metal, and vanadium flow batteries. As newer batteries arise, the most as expanded as the important challenge for battery manufacturers is the installation of new production lines for the corresponding batteries. Likewise, battery production equipment manufacturers must develop new turnkey solutions to accommodate the development of battery technology. The entire process of producing machines is expensive to set up, and battery production machine manufacturers are unable to modify it fast to accept new battery types on the market. As a result, as new battery technologies are produced and adopted, battery production machine manufacturers will struggle to identify the most recent battery technology and adapt their product offerings to the altering technological landscape.
Due to the increasing prevalence of electric vehicles in the automotive industry, the market for lithium-ion batteries has increased steadily. Lead acid batteries will be increasingly adopted by enterprises and industries in the near future. Due to the viability of the earlier model, this industry is witnessing an invasion. The demand for these batteries has extended as the necessity for constant power supply to allow the proper operation of electronic devices has grown. Moreover, nickel metal hydride batteries provide more service and are favoured for a variety of industry applications. In addition to nickel metal hydride batteries, nickel-cadmium batteries make up a major share of the market for batteries.
Due to their large demand and supply chain, the market for automotive batteries has reached new heights as a result of the growing popularity of electrically driven vehicles. Depending on the expected power output of the product, the numerous varieties of batteries supplied by the industry have become necessary due to the market's vast selection of automobiles. The increasing industrialisation of the world has supported the industrial battery business. In developing nations, a huge amount of rising industries and businesses increase the production of industrial battery types.
Portable batteries make it easier to operate electronic devices and allow them to be carried with their battery-powered power sources. These various applications contribute to the growth of the market for battery production equipment, which encourages the use of renewable resources.
The Asia-Pacific region has experienced the greatest growth in the market for battery manufacturing equipment due to the strong demand for electric vehicles resulting from their latest introduction to the market and the rising cost of fuel. Due to the recent introduction of electric automobiles to the market, this is the case.
As a result of the high demand for electronic gadgets and devices related to the swiftly increasing technologies in the country, the market in North America is the next in line to boost the market size. This is because the North American market is next in line to increase market size. The high concentration of information technology companies in this region is proving to be a crucial element driving the expansion of the market for battery-manufacturing equipment. The major technological improvements that have occurred through European nations also help to the expansion of the market.
|Units||Value (USD Billion)
|Growth Rate||CAGR of 31.63% from 2023 to 2030|
|Reasons to Purchase this Report||
- Samsung has been seen to step into the market from the production of batteries to end-user utilization of the devices along with other competitors such as Panasonic.
- M&A and JVs are the various strategies adopted by companies in order to maintain a stable position in the market. Increasing research and development is seen in order to increase production as per the demand in the market.
- In September 2022, Durr Group, Manz AG, and GROB-WERKE GmbH & Co.KG have made a strategic partnership. Through this approach, they will jointly acquire and execute the projects involved in battery production facilities.
- In May 2022, Shenzhen Yinghe Technology Co., Ltd. announced the launch of a new integrated machine set that saves time and cost and provides high speed in processes such as cutting and stacking. The integrated set of machines also improves the production capacity of battery production lines.
- In May 2020, Manz AG announced the launch of its new production platform for lithium-ion pouch battery cells or hard case cells. These cells are used in automobiles or energy storage batteries.
This portion of the study on the Battery Manufacturing Equipment Market gives detailed data on the segments at the country and regional level, thereby aiding the strategist in determining the target demographics for the relevant product or service and the impending opportunities.
- Lead Acid
- Lithium Ion
- Nickel Metal Hydride
- Nickel Cadmium
- Automotive Batteries
- Industrial Batteries
- Portable Batteries
- Johnson Controls
- NEC Corporation,
- GS Yuasa International
- BYD Company
- A123 Systems LLC
- Hitachi Chemical Co.,
- Panasonic Corporation
- Samsung SDI Co.,
- Toshiba Corporation
- LG Chem
- Contemporary Amperex Technology
- Sony Corporation
- Eveready Industries