Report Overview
The global plastic battery containers market size was valued at USD 17.23 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 6.7% from 2022 to 2030. The growing number of electric vehicles around the world is anticipated to drive the demand for the product over the forecast period. Plastic battery containers hold the battery plates, cast-on straps, and electrolytes and reduce the impact of vibration and improve the battery lifecycle.
According to the International Energy Agency, sales of electric vehicles recorded 6.6 million in 2021 which is 10% of global car sales. This is double the sales compared to 2020 and four times the market shares in 2019. The total number of electric cars reached about 16.5 million which is triple the number in 2018. The demand for electric cars is strong in 2022 with two million cars sold in the first quarter, up seventy-five percent from the same period in 2021. This rapid growth in electric vehicles is going to drive market growth over the forecast period.
The Covid-19 pandemic and the Russia-Ukraine war have disrupted the supply chains worldwide, and heavily impacted the automotive industry. Because of this reason, the market may experience lesser growth in the short term. However, in the long term, corporate and government efforts to decarbonize transportation are providing strong support for the growth in EV sales which in turn will drive the growth of the plastic battery container industry.
The U.S. government has been promoting the renewable industry and Electric Vehicles, which increased the demand for battery energy storage systems (BESS) dominated by lithium-ion batteries, and has resulted in higher adoption of EVs across the country. The U.S. is one of the leading markets for electric vehicles, along with other countries such as China and Canada, and has already begun transitioning to electric mobility.
In 2021, 630,000 electric cars were sold in the U.S, compared to 308,000 in 2020, which is double the number in 2020. EV sales grew by eighty-five percent from 2020 to 2021 and accounted for 73% of all plug-in electric vehicle sales in 2021. These factors are going to positively impact the growth of the plastic battery containers market in the U.S over the forecast period.
Battery Insights
Lead Acid dominated the battery segment with a revenue share of over 49% in 2021. Lead-acid batteries are widely used for storage in backup power supplies in stand-alone power systems, mobile towers, and emergency power backups in hospitals. Growing application in the transportation industry and energy storage applications is projected to drive the demand over the forecast period.
Increasing use in the commercial vehicle, passenger car, and motorcycle manufacturing industries is also expected to drive product demand. Growing demand for Uninterruptible Power Source (UPS) in various sectors, such as healthcare, banking, chemicals, and oil and gas is expected to drive the demand for lead acid batteries which in turn will drive the market growth.
Lithium-ion is the fastest growing battery segment owing to its use in electric vehicles and smartphones. The growing adoption of electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) because of pollution-reduction and energy-saving has increased the use of lithium-ion batteries, which is expected to increase further in the future. However, COVID-19 has restricted the supply chains of batteries and other components due to severe disruptions in businesses and the global economy. This is going to hinder the growth of the industry.
Resin Insights
Polypropylene (PP) dominated the resin segment with a revenue share of over 73% in 2021. Most automotive battery containers and their covers are made of polypropylene as it offers a high strength-to-weight ratio and excellent chemical resistance. Polypropylene containers can be molded with thin walls and partitions which increases the available acid volume and makes it possible to have higher capacities for given sizes and new compact battery designs. Also, polypropylene (PP) battery cases have a high recycling rate.
Acrylonitrile Butadiene Styrene (ABS) is a non-conductive high-impact resistant thermoplastic. This material provides very good resistance to heat, shock, vibration, and chemicals while being lightweight. ABS plastic resin is commonly used in the manufacturing of several sealed lead acid battery boxes. Also, ABS can be recycled easily and is often reprocessed into new cases, while other parts of the battery are taken out for reuse.
Regional Insights
Asia Pacific dominated the regional segment with a revenue share of more than 35% in 2021. Emerging countries like China, Vietnam, and India are going to drive growth. Electric vehicles are rapidly growing in China where more electric cars were sold in 2021 which is 3.3 million than in the entire world in 2020 which is 3.0 million.
China has the largest number of electric cars in the world with 7.8 million EVs in 2021 and it accounted for 16% of domestic car sales in 2021, up from 5% in 2020. The Indian electric vehicle market is also growing rapidly with 0.32 million vehicles sold in 2021. India is the fifth largest market for automobiles in the world and is expected to become the third largest by 2030.
North America is a major market for plastic battery containers due to the reduced lithium-ion battery prices, the growing number of electric vehicles, and the growing renewable energy sector. The COVID-19 pandemic showed the over-dependency of countries on China for key raw materials. Also, the presence of strong research and development in the region is going to drive market growth over the forecast period.
Key Companies & Market Share Insights
The market is fragmented and major players engage in product development, strategic partnerships, mergers & acquisitions, and joint ventures to vertically integrate across the value chain; reducing the operational cost to have more profit margins. For instance, in May 2022, LG Chem launched advanced plastic material which prevents battery thermal runaway. Key companies also indulge in organic and inorganic growth strategies to enhance their foothold in the market through diversification of their product offerings. Some prominent players in the global plastic battery container market include:
LyondellBasell Industries Holdings B.V.
VIKING PLASTICS
SGL Carbon
TIRTH POLYMERS PVT. LTD.
Biasin Srl
Xiamen Tmax Battery Equipments Limited
Kdpolymers
Sanatan
AkumsanDesigned