Battery Packaging Market Expected to Reach $61.5 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Battery Packaging Market," The battery packaging market was valued at $24.5 billion in 2021, and is estimated to reach $61.5 billion by 2031, growing at a CAGR of 9.7% from 2022 to 2031.

Battery packaging includes packing cells that are fully enclosed in inner packaging that is made from non-conductive material. Battery packaging is designed to control power flow to and from the cells and to maintain the power level within the design envelope. In addition, it offers protective covering to the batteries due to which it is extensively finds application in automotive batteries, electric vehicles, electronics devices, and others.

Surge in demand for sustainable energy storage solutions is the major factor driving the market growth. The demand for solar batteries is expected to increase over the projected timeframe as governments across the globe are promoting sustainable energy sources. Thus, there is an increase in the demand for battery packaging materials in the market.

However, fluctuation in the prices of raw material and lead acid batteries tend to discharge frequently due to which it may have hazardous health effect. This may be anticipated to hinder the growth of the battery packaging market.

The rise in population, increase in disposable income, and growing residential activities has surged the demand for solar energy storage. The installation of solar batteries can effectively reduce the demand for coal, oil, and other imported fossil energy resources.

Additionally, the implementation of solar battery storage systems will provide new employments, which can open new investment opportunities for the battery packaging market.

The global market for battery packaging is anticipated to be driven by the expansion of the electronics industry due to its numerous benefits, including corrosion resistance, excellent electrical conductivity, reusability, and reflectivity. Battery packaging materials are lightweight and capable of withstanding great strength. These advantages are expected to be crucial factors driving the global battery packaging market.

In addition to the construction industry, battery packaging is frequently used in the automobile industry. As a result of the increasing automobile industry, the global battery packaging market is expected to experience substantial expansion during the forecast period. In addition, extensive urbanization and industrialization are driving rapid expansion in the construction and vehicle industries, which is anticipated to increase demand for battery packaging.

Batteries play a crucial part in residential, commercial, and industrial facilities, as they are utilized to transfer power, data, and voice transmission to electrical devices in a safe manner. These factors are projected to offer new opportunities for the battery packaging market.

The battery packaging market is segmented into material type, battery type, casing type, and region. On the basis of material type, the market is divided into all metals, plastic, and others. On the basis of battery type, the market is classified into lithium ion, lead acid, and others. On the basis of casing type, it is categorized into cylindrical, prismatic, coin, and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

On the basis of material type, the battery packaging market is categorized into metal, plastic, and others. metal is projected to be the fastest-growing segment. Metals are lustrous opaque, elements that are good conductors of heat and electricity. Metal based covering is extensively used as covering material on lead acid, lithium ion, nickel cadmium, and other types of batteries. It offers protection to the batteries from over discharge.

In addition, data published by Visual Capitalist in October 2022, currently, Chinese companies make up 56% of the EV (electric vehicles) battery. This EV battery requires metal covering for mechanical stability. This factor is expected to drive the demand for battery packaging; thus, increasing potential sales of market in the coming years.

On the basis of battery type, the battery packaging market is categorized lithium ion, lead acid, nickel cadmium, and others. The lithium ion  battery type segment dominated the global market, in terms of revenue in 2021, with 48% of the total share. This is attributed to the fact that, the energy density and efficiency of lithium-ion battery is extremely high than that of other solar batteries due to which several manufacturers have increased their production capacities for several types of battery packaging component such as metal, plastics, board, and others. This battery packaging material is expected to drive the market.

In addition, the efficiency of lead acid battery can be up to 85% whereas for lithium ion, it can be up to 95%. It is effective to generate maximum power for commercial and industrial applications. However, high product cost and protection circuitry cost of lithium-ion battery is a big challenge for residential and small-scale applications.

Unlike other batteries, lithium-ion batteries require circuitry protection against overcharging and discharging. Lithium-ion batteries are preferred over other types of batteries, owing to their low weight (50-60% less weight than lead-acid equivalent). This may anticipate increasing demand for battery packaging as a lubricant; thus, creating lucrative opportunities for the market.

On the basis of casing type, the battery packaging market is categorized into cylindrical, prismatic, coin, and others. Cylindrical segment dominated the global market, with 43% of the total share in 2021. To allow variations within a given size, key manufacturers use partial cell lengths, such as half and three-quarter formats. The trendy design, the 18650 Li-ion, is used in power tools, medical devices, laptops, and e-bikes. The 3Ah 18650 delivers 248Ah/kg. These factors are fostering market growth in the coming years.

Moreover, extensive use of primary and secondary-based cylindrical cells in remote automobile door locks, remote control garage door openers, home smoke detectors, and remote controls for consumer electronic products such as television and stereo sets. These factors are anticipated to boost the battery packaging market for cylindrical casing segment; thus, offering most lucrative opportunities for the market.

Region-wise, Asia-Pacific is projected to register robust growth during the forecast period. Presence of leading battery manufacturers such as GS Yuasa, Panasonic, Exide, LG, and others are likely to boost the market. In addition, the growing number of investment opportunities in new solar power projects will further influence the market growth in this region.

For instance, in March 2021, VRB Energy signed an agreement with Xiangyang Municipal Government to build a 100 MW solar plant with a vanadium flow battery. This is anticipated to increase demand for the battery packaging market in the Asia-Pacific region; thus, creating remunerative opportunities for the market.

The major players operating in the global battery packaging market are the global battery packaging market profiles leading players that include Deutsche Post AG, EPEC LLC, NEFAB Group, Wellplast AB, schott, Sohner Kunststofftechnik GmbH, DS Smith Plc, heitkamp & thumann group, targray, and zarges gmbh. The global battery packaging market report provides in-depth competitive analysis as well as profiles of these major players.

Key findings: 

• On the basis of material type, the metal type segment is expected to grow at a CAGR of 9.9%, in terms of revenue, during the forecast period.
• On the basis of battery type, the lithium-ion battery type segment is expected to grow at a CAGR of 10.1%, in terms of revenue, during the forecast period.
• Depending on casing type, the cylindrical casing type segment is expected to grow at a CAGR of 10.2%, in terms of revenue, during the forecast period.
• Region wise, Asia-Pacific garnered a share of 63% in 2022.