Southeast Asia Battery Market - Growth, Trends, COVID-19 Impact

• Posted by Asmita Patil August 7, 2021 - Filed in Technology - #Southeast Asia Battery Market  #Southeast Asia Battery Market Size  #Southeast Asia Battery Market Share  #Southeast Asia Battery Market Forecast  - 904 views

  The Southeast Asia Battery market is expected to grow at a CAGR of more than 10.2% over the period of 2021-2026, reaching a value of more than USD 30 billion by 2026, up from USD 16.8 billion in 2019. The COVID-19 pandemic has led to a slight decline in the overall battery market in the region due to lockdown restrictions and supply chain disruptions in battery manufacturing. Factors such as growing demand from the automotive sector, declining lithium-ion battery prices, and plans to make Southeast Asia a data center hub are expected to drive the market during the forecast period. Despite the growing demand for batteries in automotive, data centers, and telecommunications sectors, the battery energy storage segment is expected to witness stagnant growth as most of the countries are dependent on other alternatives for energy storage. This, in turn, is likely to hinder the growth of the battery market in the energy storage segment during the forecast period.
  
  

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  • The automotive segment has accounted for the majority of the market in 2019 owing to the increasing demand for new vehicles produced in the region.

   

  • Plans to integrate renewable energy with the national grids in respective countries are expected to create a significant amount of opportunity for the lithium-ion battery manufacturers and suppliers in the near future.

   

  • Thailand has dominated the market in 2019, owing to the increasing demand from the automotive, data center, and other end-user sectors.

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  Key Market Trends
  
  Automotive Sector to Dominate the Market
  
  

   

  • Vehicles with internal combustion engines (ICE) were the only types used earlier. ICE vehicles have been using lead-acid batteries, and they may continue to do so, with no major replacement available.

   

  • The sales of new vehicles in six of Southeast Asia's largest markets, i.e., Thailand, Indonesia, Malaysia, the Philippines, Vietnam, and Singapore, combined, continued to weaken in the third quarter of 2019, with sales falling by 6.3% to 851,820 units from 908,913 units sold during the same period in 2018. This is a negative second quarter for the market and brings the nine-month year-to-date total to 2,538,718 units - 2.4% lower than the 2,600,737 units sold in the same period of last year.

   

  • However, automotive production in countries like Thailand, Indonesia, and Malaysia witnessed a decent growth of over 8% during 2017-2018. This trend is expected to continue in the coming years as well, irrespective of the global decline in automotive production. Therefore, the increasing trend of automotive production in the major countries in Southeast Asia is expected to drive the battery market especially the lead-acid type during the forecast period.

   

  
  
  Thailand to Dominate the Market
  
  

   

  • Thailand accounts for the majority share in the market and this trend is expected to continue in the coming years as well owing to the increasing demand from the automotive, data center, and telecom sectors.

   

  • Thailand provides a great investment potential for the automotive sector. The country has a leading automotive production base in the Association of Southeast Asian Nations. Over a period of 50 years, the country has developed from an assembler of auto components into a top automotive manufacturing and export hub.

   

  • By 2020, Thailand aims to manufacture over 3,500,000 units of vehicles to become one of the top performers in the global automotive market. Hence, this is expected to increase the demand for automotive batteries in the country, during the forecast period.

   

  • Moreover, the Thailand government is focusing on incentivizing eco car makers to launch more eco EVs, especially the hybrid type. These eco EVs will also get an excise tax reduction, like other EV models, making retail prices more affordable. This, in turn, is expected to create a significant amount of opportunities for both EV and battery manufacturers in the coming years.

   

  • Adding to this, the government has planned its business module under Thailand 4.0 Programme. This Programme will be increasing the new technologies, such as cloud computing, interactive media, big data, and internet of things, among others.

   

  • In May 2019, ST Telemedia Global Data Centres (STT GDC) collaborated with real estate firm Frasers Property Thailand for building its first hyperscale data center facility in Bangkok. The investment for the hyperscale data center project is more than USD 219 million, and the construction of phase I of the project is expected to be completed in 2021.

   

  • Therefore, factors such as upcoming data centers and expected increase in automobile production in the coming years are expected to drive the battery market in Thailand during the forecast period.

   

  
  
  Competitive Landscape
  
  The Southeast Asia battery market is partially fragmented. Some of the key players in this market include Tianjin Lishen Battery Joint-Stock Co. Ltd, GS Yuasa Corporation, FIAMM Energy Technology S.p.A., Leoch Battery Corporation, and Hitachi Chemical Energy Technology Co., Ltd.
  
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