Mordor Intelligence has published a new report on the Southeast Asia Battery Market, offering a comprehensive analysis of trends, growth drivers, and future projections.
The Southeast Asia Battery Market, valued at USD 2.85 billion in 2024, is projected to grow to USD 3.95 billion by 2029, registering a robust CAGR of 6.77% during the forecast period. This growth is fueled by rising demand for electric vehicles (EVs), declining lithium-ion battery prices, and government initiatives to integrate renewable energy into national grids. The region’s positioning as a global hub for data centers and telecommunications further enhances the market’s prospects, positioning Southeast Asia as a critical player in the global battery landscape.
Key Trends
1. Automotive Sector Driving Market Dominance
The automotive sector is the largest contributor to the Southeast Asia battery market. Traditional internal combustion engine (ICE) vehicles predominantly use lead-acid batteries, but the shift towards electric vehicles (EVs) is redefining the industry. Lithium-ion batteries, known for their high energy density, fast recharge capabilities, and low maintenance, are the preferred choice for EVs.
Governments across Southeast Asia are implementing aggressive EV adoption policies to curb emissions. For example:
- Lithium-ion battery prices have fallen by 81.5% from USD 668/kWh in 2013 to USD 123/kWh in 2021, making EVs more affordable for broader consumer segments.
- Plug-in hybrid and hybrid electric vehicles (PHEVs and HEVs) are witnessing significant growth, supported by robust incentives and infrastructure development.
2. Growth in Renewable Energy and Energy Storage Systems
Governments in the region are increasingly integrating renewable energy sources like solar and wind into national grids. This transition necessitates efficient energy storage solutions, creating opportunities for lithium-ion battery manufacturers. While energy storage in the region is still in its infancy compared to other sectors, advancements in battery technology are expected to enhance grid reliability and support renewable energy adoption.
3. Thailand’s Leadership in Regional Growth
Thailand dominates the Southeast Asia battery market, leveraging its position as a leading automotive production hub within ASEAN. The country’s strong policies and investment in EV manufacturing contribute significantly to market growth. For example:
- In September 2022, BYD Co. announced the establishment of its first overseas electric passenger car plant in Rayong, Thailand.
- The National Electric Vehicle Policy Committee (NEVPC) roadmap projects the addition of 100,000 to 300,000 EVs by 2025, and 400,000 to 750,000 EVs by 2026.
4. Data Centers and Telecommunication Growth
Southeast Asia is emerging as a global data center hub, with countries like Singapore, Indonesia, and Malaysia experiencing exponential growth in data-driven industries. Telecommunications also remains a key driver, requiring reliable energy backup solutions, further propelling battery demand.
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Market Segmentation
The Southeast Asia Battery Market is segmented by battery type, end-user, and geography:
By Battery Type:
- Lead-Acid Batteries: Widely used in traditional vehicles and energy backup systems.
- Lithium-Ion Batteries: Dominating EVs and advanced energy storage solutions.
- Other Battery Types: Including nickel-metal hydride and solid-state batteries.
By End-User:
- Automotive: Leading segment, driven by rising EV adoption and infrastructure expansion.
- Data Centers and Telecommunications: Critical in ensuring uninterrupted operations and energy storage.
- Energy Storage: Supporting renewable energy integration and grid stability.
By Geography:
- Thailand: Leading market due to its strong automotive and EV production capabilities.
- Indonesia: High potential for EV manufacturing and renewable energy projects.
- Vietnam and Malaysia: Emerging markets for telecommunications and industrial applications.
- Rest of Southeast Asia: Witnessing increasing adoption across various end-user industries.
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Key Players
Major players shaping the Southeast Asia battery market include Panasonic Corporation, LG Energy Solution, Samsung SDI Co., Ltd., BYD Co., Ltd., and Contemporary Amperex Technology Co., Ltd. (CATL). These companies are leveraging strategic partnerships and innovation to expand their market presence.
- Panasonic Corporation focuses on high-performance lithium-ion batteries, catering to both automotive and energy storage needs.
- LG Energy Solution is a leader in battery innovation, supplying key markets with advanced solutions for EVs and renewable integration.
- Samsung SDI Co., Ltd. emphasizes sustainable and efficient battery production, driving growth in industrial and automotive applications.
- BYD Co., Ltd. is rapidly expanding its footprint in Southeast Asia, particularly in Thailand’s EV market.
- CATL remains at the forefront of battery technology, contributing significantly to the global transition to renewable energy.
These players invest heavily in R&D and manufacturing facilities, ensuring cost-effective and scalable solutions for Southeast Asia’s diverse energy demands.
Conclusion
The Southeast Asia Battery Market is set to grow significantly, driven by the rising adoption of electric vehicles, renewable energy integration, and the region’s emergence as a data center hub. Thailand leads the market, supported by strong government policies and industrial investments, while neighboring countries like Indonesia and Vietnam contribute to regional growth. As battery technologies evolve and lithium-ion prices continue to decline, the market is poised to address Southeast Asia’s growing energy needs, ensuring a sustainable and efficient future for the region.
Industry Related Reports
Battery Market: The Global Battery Market is segmented by Type, including Primary Batteries and Secondary Batteries, and by Technology, covering Lead-Acid Batteries, Lithium-Ion Batteries, Nickel-Metal Hydride (NiMH) Batteries, Nickel-Cadmium (NiCd) Batteries, Nickel-Zinc (NiZn) Batteries, Flow Batteries, Sodium-Sulfur (NAS) Batteries, Zinc-Manganese Dioxide Batteries, Small Sealed Lead-Acid Batteries, and Other Technologies (such as Dual Carbon Batteries, Zinc-Carbon Batteries, Silver-Oxide Batteries, etc.).
Battery Electrolyte Market: The Global Battery Electrolyte Market is segmented by Battery Type and Electrolyte Type, including Lead Acid (Liquid Electrolyte and Gel Electrolyte), Lithium-ion (Solid Electrolyte, Gel Electrolyte, and Liquid Electrolyte), Flow Battery (Vanadium and Zinc Bromide), and Other Battery Types and Electrolyte Types. It is further categorized by End User, covering Electric Vehicles, Energy Storage, Consumer Electronics, and Other End Users. Geographically, the market spans North America, Europe, Asia-Pacific, South America, and the Middle East & Africa.
Battery Recycling Market: The Battery Recycling Market is segmented by Battery Type, including Lead-Acid Batteries, Nickel-Based Batteries, Lithium-Ion Batteries, and Other Battery Types, and by Geography, covering North America, Europe, Asia-Pacific, South America, and the Middle East & Africa.
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