lithium-ion is expected to emerge as a potential segment for investment and grow at a CAGR of 8.2% during the forecast period, 2019–2026.
Custom battery packs’ specifications (shape & size) are personalized to meet the unique needs of the application. Each pack is inspected for defects or quality issues. Custom battery packs are made using nonferrous metals and minerals such as Li-Ion, Li-poly, Ni-Cd, Ni-MH, and Sealed Lead Acid. Increasing complexity and demand for clean energy have created a need for custom battery packs to provide a long span life in a compact form.
The industrial revolution has challenged the battery manufacturing industry to create competitive and sustainable custom solutions. Custom battery packs have seen rapid improvements in performance and cost due to extensive research and development activities in lithium-ion (Li-ion) batteries and prominent growth in developed economies. These investments by existing and new players have built a vast ecosystem; for instance, research institutes, manufacturers, and end-users such as automotive, electronic devices, and utilities have expanded the application range of custom battery packs. These batteries’ voltage and current are designed as per application for use in different combinations.
The custom battery pack product is in its growing phase with the sudden transformation of fuel run automobiles into electric vehicles. The demand for battery and hybrid electric vehicles has tremendously increased around the globe. According to the International Energy Agency, the global sale of electric vehicles (EVs) hit a record 750,000 in 2016, and currently holds a global stock of 2 million units. EV sales increased by 63% in 2017 compared to 2016. The product has a significant opportunity ahead before it matures or becomes obsolete.
The growing popularity of EVs is expected to translate to an upsurge in demand for custom-made batteries in the coming years. EVs are expected to account for 35% of all vehicles by 2024, largely driven by a steep decline in the cost of battery technology and decarbonization by governments worldwide.
As the demand for mobile computing and all-electric vehicles increases, existing battery technology poses a roadblock to future battery development. The existing technology is paving the way for the development of batteries that can compete and provide improvised performance similar to Li-ion batteries, bypassing the significant cost associated with production. For instance, Tesla Motors (TSLA) has underlined the clear demand for electric vehicles with new sales records every year; however, such vehicles require custom-made batteries, making them an expensive single component.
A key restraint is the battery recycling dilemma that manufacturers face. Lithium battery technology registers tremendous demand from various industry verticals such as automotive, defense, aerospace, medical devices, and oil and gas instruments. Different recycling schemes will need to be in place to overcome the challenges associated with waste collection in landfills. With the boom of custom batteries, researchers and environmentalists are seeking novel solutions for improvements in the recycling process.
According to the U.S. Environmental Protection Agency (EPA), around 350 million rechargeable batteries are purchased every year in the U.S., and the number continues to grow exponentially. As mercury is also highly toxic, especially in vapor form, various governments have banned the use of mercury batteries in many regions.
The German government has designated around EUR 1 billion to support battery cell production, and Europe is expected to account for 30% of the global market share by 2030. The European Union organized the European Battery Alliance in 2017 to establish a competitive manufacturing value chain in Europe. This alliance is expected to conquer up to EUR 250 billion per year market from 2025.
| Study Period | 2020-2032 | CAGR | 8.2% |
| Historical Period | 2020-2022 | Forecast Period | 2024-2032 |
| Base Year | 2023 | Base Year Market Size | USD XX Billion |
| Forecast Year | 2032 | Forecast Year Market Size | USD XX Billion |
| Largest Market | North America | Fastest Growing Market |
North America Leads the Global Custom Battery Pack Market
North America’s custom battery pack market was valued at USD 9,110 million in 2018 and is expected to reach a value of USD 15,503.5 million by 2026, with a CAGR of 6.9% during the forecast period. The battery storage system market has been witnessing significant growth in the past few years, with vast scope in various applications – from tiny electronic devices to huge military instruments. Lithium-ion batteries largely drive market growth by battery type, with massive investments and efforts by manufacturers to improve the design and build of customized battery packs.
Such developments are being galvanized by more supportive markets and governance, reconstructing battery pack costs, growing approach towards financing, and upgrading infrastructure requirements. BREN-TRONICS, INC., a U.S.-based repackaging private company, is providing the U.S. military custom battery packs for their communication equipment. The company specializes in custom design batteries, and the U.S. military accounts for around 90% of the company’s sales.
The Europe market was valued at USD 7,206.9 million in 2018 and is expected to reach a value of USD 11,625.4 million by 2026, with a CAGR of 6.2% during the forecast period. Currently, lithium-ion batteries are one of the most expeditiously growing forms of technology in the battery market since they meet specific demands from the rapidly developing electric mobility market. The European Union is aiming to reduce CO2 emissions in the transport sector. As per a European Environment Agency (EEA) report, around 149.5 thousand electric vehicles were sold in the region in 2015.
We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports
By product type, lithium-ion is expected to emerge as a potential segment for investment and grow at a CAGR of 8.2% during the forecast period, 2019–2026. Stringent regulations on the ban of mercury and cadmium are expected to drive the demand for custom batteries in automotive and portable device industries. The European Union Battery Directive (2006/66/EC) regulates manufacturing and accumulators in the European Union to protect human health and the environment from hazardous substances such as cadmium and mercury.
The Lithium-ion (Li-ion) batteries segment was valued at USD 16,138 million in 2018 and is expected to reach USD 30,235 million by 2026, with a CAGR of 8.2% during the forecast period. High energy density rechargeable batteries are widely used in portable devices and offer higher efficiency and longer lifespans over other batteries such as lead-acid ones. Among all batteries, Li-ion is one of the lightest rechargeable battery technologies in the market with the highest specific energy and energy density, owing to its high rate of recycling with a low CO2 hydrometallurgical recycling process.
The rapid adoption of electric and hybrid vehicles and renewable energy storage systems has dramatically fuelled the demand for Li-ion batteries that are highly versatile, scalable, and can be adapted to any voltage as per the power and energy requirement. Furthermore, Li-ion batteries are used as an alternative to nickel-metal batteries in electric vehicles, due to their small size and lightweight. According to Bloomberg New Energy Finance, the price of lithium-ion batteries dropped from USD 1000/kWh in 2010 to USD 273/kWh in 2016, and it is further expected to fall to as little as USD 73/kWh by 2030.
The medical segment by application was valued at USD 3,316 million in 2018 and is expected to reach a value of USD 6,212 million by 2026, with a CAGR of 8.2% during the forecast period. Medical devices require battery packs for unique power requirements such as in assemblies for healthcare devices, including blood glucose monitors, life-saving devices (surgical tools and respirators), and most other battery-powered medical equipment. Battery packs provide primary or backup power in hospitals that utilize electronic devices for medical care. Moreover, custom medical battery packs are also extensively used in ultrasound devices, drug delivery systems, patient monitors, imaging systems, ventilators, surgical tools, defibrillators, and motorized wheelchairs, among others.
The extensive use of different medical devices and equipment is expected to boost the growth of the custom battery pack market. As per the India Brand Equity Foundation, India’s healthcare industry is one of the fastest-growing sectors and leading destinations for high-end medical devices, equipment, and diagnostic services.
The COVID-19 pandemic has severely impacted various industry verticals for the entire first half of 2020 and is continuing to have its impact on the rest of the year as well. The industries have been shut down and workers sent home, resulting in halted production almost for the entire year. However, there has been a constantly emerging demand for work from home culture across the world is a significant factor for the growth of Continuous Performance Management. The advancement in technology has a considerable potential to meet the mounting scalable and growing data transmission requirement. The rising demand for performance monitoring interfaces explicitly used for mobile device computing is anticipated to create lucrative opportunities for universal Continuous Performance Management in the post-COVID-19 era.
Without data collection, subjective analysis becomes the basis for performance review, leading to overall imprecision and bias in performance management. Organizations are leveraging the wealth of available digital insights and embracing the power of business intelligence to make more informed decisions that would facilitate business growth and evolution.
Currently, most business-based decisions are backed by metrics, facts, or figures. Several companies are adopting and implementing various reporting tools for accurate analysis and measurement of data. For example, according to Sisense Inc., more data-driven organizations are at the top of their game than those whose decisions are driven by instincts. Therefore, different organizations attach importance to data-driven decision-making for employee performance management. According to Atiim Inc., only 8 % of companies consider the annual review to be beneficial in the case of employee performance management. The increasing need to improve business performance and the increasing adaptation of data-driven decision-making by organizations drives the demand for continuous performance management software.
