Battery Testing Equipment Market

Market Overview

The global battery testing equipment market size was valued at USD 11,205 million in 2021 and is anticipated to generate USD 16,652 million by 2030. The market is projected to grow at a CAGR of 5% during the forecast period (2022–2030). Battery testing equipment is used for analyzing the performance and activity of a battery. It is used to analyze the energy held by the battery and test the temperature, heat, and other parameters of the module and pack of the batteries. It is also used to check the charge and discharge of the battery. The growth of the battery testing equipment can be attributed to several tailwind factors such as increasing demand from the automotive industry, the growing energy and power sector, and increasing regulations regarding the safety of batteries, among others.

Battery testing equipment is intended for testing the state of an electric battery, going from a simple device for testing the charge present in the cells and/or its voltage output to more comprehensive testing of the battery's condition, namely it's capacity for accumulating charge and any possible flaws affecting the battery's performance and security. It measures, charts, and manages the life cycle of the battery system, giving voltage, impedance, and storage capacity data to the use.

Market Dynamics

Battery Testing Equipment Market Drivers

• Demand for Portable Devices Boosting Global Market

The fast growth of the electronics industry is expected to trigger the demand for battery testing equipment. The evolution of modern electronic technologies has led to wireless electronics products. There is a surge in demand for electronic gadgets as they act as a medium of convenience and novelty for consumers globally. Consumers are easily attracted to sleeker, smaller, and portable electronic products. As a result, the need for batteries with a superior lifespan is highlighted. As a result, electronic manufacturing companies focus on developing portable devices, like batteries, with improved efficiencies. The need for effective battery testing solutions is expected to grow due to the developing electronics world as the demand for speed and convenience grows.

As per World Bank statistics, worldwide consumer expenditure increased significantly to USD 62.6 trillion in 2018, up from the previous year’s record USD 59.3 trillion. The increasing consumption expenditure of individuals is considered an important factor in the escalating demand for electronic devices. Almost all the complex electronic devices are built using batteries or rechargeable solutions for them to perform as designed. Thus, the burgeoning electronics industry is expected to bolster the growth of the battery testing equipment market during the forecast period.

The usage of drones to deliver equipment by e-commerce players is also leading to an increase in production capacities. Key players like Amazon are transforming delivery methods by using advanced drones and curated aircraft for this purpose. The spike in demand for drones and several electronic products is bolstering the market growth. The higher consumption of wireless electronic gadgets is the driving factor for battery testing for the improved safety of systems, presenting ample business opportunities for battery testing providers to participate in electronics manufacturing. Another key factor providing a fillip to market growth is the trend of partnerships and joint ventures with electronic manufacturers for the undisrupted supply of raw materials.

• Demand for Chargeable Battery soaring the Market Growth

Recently, lithium-ion batteries have gained significant popularity owing to their unique properties and advantages. Lithium-ion battery technology is noticed to have incredible growth as the batteries become more energy-dense and cheaper. They are the upcoming trend in the global battery industry, supported by their lightweight and easy use in a plethora of applications. Rechargeable battery technologies are essential catalysts in unlocking the potential of new markets, such as electric vehicles, consumer devices, and energy storage systems for renewable sources.

Battery energy storage (BES) is an important part of the smooth supply of power generated from renewable like wind and solar. Essentially, these systems are gaining attraction as they are the ideal solutions to overcome the dependency of renewables on climatic conditions. The future of the battery market and its importance in overall end-user industries is evidenced by the investments made across the ecosystem.

The battery industry recorded around a USD 13.7-billion influx of battery-related investments and acquisitions. The massive spending of key organizations highlights the need for battery testing equipment worldwide. For instance, in January 2021, Tesla signed a new agreement with Panasonic for the supply of lithium-ion batteries owing to the soaring sales of EVs. Additionally, in 2017, Total acquired Saft Group, a French battery manufacturer, to accelerate the company’s growth toward renewable energy. These investments are owing to rapid growth in the demand for battery testing equipment, which is expected to further increase in the coming years.

Battery Testing Equipment Market Restraints

• Complexity, Maintenance, and Hazardous Nature Hampering Market Growth

Battery testing is complex and critical. Manufacturers face various challenges, such as system complexity and set-up, long testing times, compliance with changing safety standards, and hazardous nature. Furthermore, testing modules and packs require application-based real-world conditions while responding to signals from the battery, system, and other external devices. Battery testing has become a challenging and long process owing to the complex systems and toxic substances.

Batteries have high voltages, toxic chemicals, and high currents and pose environmental issues associated with some safety risks. Further, battery testing and set-up take a long duration to understand different chemical reactions and battery behavior. For instance, most manufacturers run life cycle tests, which take up to 6 months or more. Each application requires different tests, making it a time-intensive process. Also, the constantly changing battery safety standards and regulations limit the revenue potential of the market.

Battery Testing Equipment Market Opportunities

• Automation, Electrification, and Digitization Increasing Growth Trends

The increasing digitalization and electrification across various industries work as a driving force for the overall growth in the global battery testing equipment market. In recent times, the rise in technological advancements and increasing automation have transformed and modernized the industrial sector.              

The adoption of artificial intelligence (AI) in manufacturing processes has opened the market for battery testing equipment. Further, to keep pace with the market, players are introducing digital battery testing solutions with touch screens and user-friendly features, further enhancing the market growth. Therefore, the demand for high-precision battery testing equipment is rising due to the constant evolution and advancements in the industry. 

Overall, a favorable ecosystem and market conditions are attracting many start-ups to enter the industry. With the presence of small players serving the demand, there is an array of opportunities for the key players to capitalize on the growing opportunity.

Segmental Analysis

The global battery testing equipment market share is categorized by product, function, and application.

Based on the products used, the portable battery testing equipment segment is the major shareholder in the global battery testing market. Its market revenue was valued at USD 791 million in 2021. The demand for portable testing equipment is higher owing to its convenience and lightweight. Also, the demand for portable battery testers from industries such as electronics and automotive is high.  The global market for portable battery testing equipment is projected to generate USD 11,866 million in 2030 and grow at a CAGR of 5% by 2030.

Based on the function, the battery testing equipment market is segmented into cell testing, module testing, and pack testing. The cell testing segment is the highest market shareholder and was valued at USD 4,996 million in 2021. The cell testing segment is projected to generate USD 7,111 million in 2030 and grow at a CAGR of 4% by 2030.

Based on application, electronics is the largest market holder. It was valued at USD 2,763 million in 2021. A surge in demand for consumer electronics across the globe, owing to the changing lifestyle, increased per capita income of individuals, availability of smart devices at lower prices, and the growing young population is the driving factors propelling the market growth for electronics. The packaging segment is projected to generate USD 4,106 million in 2030 and grow at a CAGR of 5% by 2030.

Impact of covid-19

The COVID-19 outbreak sent shock waves across the world, leading to supply chain disruptions and impairing various industries such as automotive, chemical, energy & power, consumer electronics, food & beverages, and textile. Additionally, the social distancing guidelines and lockdown measures worsened the condition for the manufacturers. This has led to the reduction in the production of the equipment, such as battery testing equipment which further anticipated causing a crash in the profit margins of the various companies. As the crisis has shut the doors of a large number of industries, the electrical devices, semiconductors, and electronic products manufacturing companies globally are witnessing a major disruption from the demand side.

The lack of a skilled workforce, rehiring challenges, and lockdowns have brought manufacturing activities to a halt. Key industry players are likely to focus on finding suppliers and distributors who can help in selling stock to free up inventories. Manufacturers of battery testing equipment are expected to have started to evaluate alternative suppliers of raw materials. Moreover, bigger companies having a large balance sheet are likely to adopt strategies such as vertical integration, which will give them control of the supply chain and aid in gaining a deeper understanding of domestic markets. These players are expected to merge smaller players with smaller businesses, either shutting down temporarily or permanently.

Key players are predicted to turn to increased automation, keeping in mind the uncertainty of the global economy and the workforce. This will also be done to increase just-in-time solutions and is expected to aid in the provision of customizations. Major players are expected to invest in the R&D of new technologies, which can help in lowering operational costs and staying in line with the consumer mindset and changing preferences towards quality goods.

Regional Analysis

North America to be the Largest Revenue Holder in Global Market

Based on region, the battery testing equipment market share is segmented into North America, Europe, Asia-Pacific, Central & South America and The Caribbean, and Middle-East and Africa.

Due to the burgeoning electronics and battery manufacturing sectors, North America is anticipated to hold the largest market share of USD 4,061 million by 2030 at a CAGR of 3% during the forecast period. The market in North America was valued at USD 3,113 million in 2021. Significant government and corporate investment in the region is also expected to contribute to the growth of the electronics industry. The regional market is expected to develop on the grounds of developing the consumer electronics sector and the presence of key players in battery testing equipment. The US is the largest contributor to the market compared to other countries, which was valued at USD 2,087 million in 2021.

Asia-Pacific is the second contributor to the battery testing equipment market with revenue of USD 2,998 million in 2021. The rising automobile industry and the shift of most manufacturing plants in Asia are surging the demand for different solutions. This growth can be attributed to the driving factors such as the increasing adoption of electric vehicles in the countries such as China and India. China and India have maximum market revenue. The market revenue of China and India were valued at USD 852 million and USD 731 million, respectively.

The battery testing equipment market in Europe is expected to witness steady growth owing to the region's advanced medical sector and digital communications, with a value of USD 2,374 million in 2021. Germany and France have the major market in this region.

Central & South America and The Caribbean possess the largest reserves of lithium, a crucial metal used to manufacture batteries for EVs and different power storage systems. With cheap lithium resources and the availability of low-cost labor, this region seems to become a manufacturing hub for rechargeable batteries. The large influx of electronic devices and the adoption of battery-operated technologies are boosting the demand for testing systems. In 2021, the market revenue in Central & South America was valued at USD 1,392 million, with Brazil being their major contributor.

Middle East & Africa have the lowest market. The market revenue of the Middle East was USD 864 million in 2021, with Saudi Arabia being their major contributor. With rapid economic growth across several countries in the region, there is a rise in the demand for battery testing equipment from various end-use industries. The market value of Africa was USD 428 million in 2021 with South Africa being their major market shareholder.

Recent Developments

• In September 2020, Arbin Instruments expanded its portfolio with the launch of the new three-electrode battery testing
• In June 2020, Megger Group Limited established a new subsidiary in Turkey for instant customer support and expansion of its geographic presence
• In January 2020, Storage Battery Systems LLC introduced a new handheld SBS- 2510 digital hydrometer and tester to expand its range of product offerings
• In October 2019, Cadex Electronics Inc. announced a strategic partnership with CTEK Sweden AB to revolutionize new approach to battery testing in the automotive industry
• In December 2018, Midtronics Inc. introduced the CPX-900 Battery and Electrical System Analyzer to expand its product portfolio
• In May 2018, Soverma Group S.p.A partnered with W5 Engineering to extend its sales and service network in the U.S. states of California, Oregon, Washington, Idaho, and the Canadian provinces of British Columbia and Alberta.

Battery Testing Equipment Market Segmentation

By Product

• Stationary Battery Testing Equipment
• Portable Battery Testing Equipment

By Function

• Cell Testing
• Module Testing
• Pack Testing

By Application

• Energy & Power
• Automobiles
• Telecommunication
• Electronics
• Healthcare
• Others

By Region

• North America
• Europe
• Asia-Pacifc
• Central & South America and The Caribbean
• Middle East & Africa