Batteries
Market, Supplier, Risk and
Competitive Intelligence

Industry Outlook & Drivers

Batteries Global Market Outlook:

Market Growth: Global market size: $38.6 billion (2020) Expected to grow at a CAGR of 6-6.5 percent to $49.6 billion by 2023

Major Market Drivers: Increasing adoption of Li-Ion batteries in Consumer Electronics due to its high energy and power density thus ensuring smooth running of devices for long hours

Porter's Analysis on Batteries

Supplier Power

• The industry is moderately fragmented with the bigger players like LG Chem, Panasonic, Samsung SDI commanding a major chunk of the market. However, there is  a presence of local suppliers as well
• The overall supplier power is moderate and with the adverse impact of the Covid-19 situation leading to supply shortages, it is expected to remain that way in the foreseeable future

Barriers to New Entrants

• It is imperative for manufacturers to have a highly skilled R&D team and R&D investments
• Consequently it is difficult for new manufacturing firms to enter the market due to the presence of well established manufacturers already entrenched in the market and the high costs of R&D investments and patent technologies involved

Intensity of Rivalry

• Top global and regional manufacturers have similar product portfolios leading to enhanced competition. Increasing demand of Li-Ion Batteries coupled with declining prices has also led to increase in competition within the industry

Threat of Substitutes

• Threat of substitutes will be quite high with researchers trying to analyse and come up with various alternatives like Sodium-ion, Nickel- zinc, Proton, Aluminium-ion, Graphite dual-ion batteries, etc as they seek to produce batteries which can be cheaper, easy to produce and also hold as much energy as Li-ion batteries

Buyer Power

• For customized batteries, buyers provide their requirements to the suppliers in terms of energy density, size etc. Hence, buyers enjoy considerably greater bargaining power

• With the adverse effects of the Covid-19 situation, the bargaining power of buyers is expected to increase with manufacturers struggling to meet capacity demands