The battery market in Taiwan is expected to grow at a CAGR of more than 8% in the forecast period of 2020 - 2025. The increasing demand from the EVs, consumer electronics, and telecommunication industries are expected to the battery market in the country. Moreover, the growing renewable energy market in Taiwan is increasing the battery's need for energy storage considerably. However, the outbreak of the COVID-19 significantly affected the market studied creating a demand-supply mismatch of raw materials, which, in turn, is expected to hinder the market growth.
- Lithium-ion batteries, due to its decreasing prices and advantages over other types of batteries, are expected to grow at a significant rate during the forecast period.
- The growing telecom industry and the increasing adoption of electric vehicles are expected to create significant market opportunities for the Taiwan battery market in the near future.
- The increasing demand from the automotive sector is expected to drive the market during the forecast period.
Key Market Trends
Lithium-ion Batteries to Witness Significant Growth
- The penetration of lithium-ion batteries is growing in the industrial sector, on account of expansion in industrial infrastructure, increasing economic viability of energy storage deployment, and increasing need to reduce grid dependency for power supply.
- Due to the increasing sales of consumer electronics, including mobile phones, laptops, tablets, power banks, and wearable devices, the demand for lithium-ion batteries is expected to grow significantly during the forecast period.
- The adoption of Li-ion batteries in electric vehicles, energy storage systems, and portable devices is expected to rise at a fast pace owing to their low maintenance properties and higher energy densities.
- In 2019, Taiwan reported 4150 MW of installed solar capacity. With growing renewable energy, especially solar and wind, the demand for lithium-ion batteries as an energy storage solution is increasing as they offer high-energy density solutions and are lightweight.
- Moreover, with the decreasing prices of lithium-ion batteries and increasing application in various segments, the share of Lithium-ion batteries is expected to grow considerably.
Increasing Demand Automotive Sector to Drive the Market
- The automotive application segment is leading the market on account of increasing demand from EVs, plug-in hybrid vehicles, and HEVs. Starting, lighting, and ignition (SLI) batteries in the automotive sector have contributed to high battery demand.
- Moreover, the automotive sector is expected to be one of the major end-user segments for lithium-ion batteries in the future. The penetration of electric vehicles is anticipated to provide a massive impetus for the lithium-ion battery industry growth.
- A range of different vehicle types is now available globally, featuring increasing degrees of hybridization and electrification. There are various types of vehicles, including hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles, and electric vehicles (EVs).
- Electric vehicles are expected to witness significant growth. In 2020, Tesla won a contract with the Taiwanese military police to provide them with a fleet of Model 3 electric vehicles. Moreover, the number of passenger cars in July 2020 reached 6946 thousand units, resulting in high demand for batteries.
- The number of vehicles is increasing in Taiwan and driving the market. Additionally, falling lithium-ion battery prices and improving technology are expected to bring price-competitive electric cars to the market, leading to considerable growth in batteries demand in the automotive industry.
The Taiwan battery market is fragmented. Some of the major companies include Amita Technologies Inc., CSB Battery Technologies Inc, Tesla Inc, Kung Long Batteries Industrial Co Ltd, and Panasonic Corporation.
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