According to recent data from Interact Analysis, the market for battery manufacturing equipment has seen a significant increase in production capacity over the past few years, especially in 2021. Global li-ion battery capacity increased to 2.3 TWh in 2021–2023, and by 2029, it is anticipated to reach 6.8 TWh. However, the utilization rate is currently at a record low of 61.4% as the production capacity boom starts to wind down.
The market’s resilience for battery equipment
The market for battery equipment is nevertheless driven by demand from all regions, despite a fairly bleak estimate for industry revenue.
Due to China’s massive production base, which accounts for 89.2% of worldwide output, the Asia-Pacific region managed to maintain an 88.6% market share in 2023 and generate $18 billion in value. In spite of a decline in the increase of manufacturing capacity, China is still anticipated to generate 75% of global market revenues. EMEA, which was valued at $1 billion in 2023, is expected to expand at the quickest rate between 2024 and 2029, reaching $3.6 billion in revenues at a 5-year compound annual growth rate (CAGR) of 20.4%. Similar to this, the Americas area was valued at $1 billion in 2023 and is projected to expand to $3.9 billion by 2029 at a 5-year CAGR of 19.7%.
Li-ion battery shipment rates, which jumped 38.8% year over year to a new high of 1,100 GWh in 2023, are anticipated to continue to rise during the projection period. Strong demand in the energy storage industry is expected to propel total shipments to reach 1,334 GWh in 2024, an increase of 21.2% year over year. Additionally, this growth pace is expected to continue, as the industry recorded a 21.4% compound annual growth rate (CAGR) from 2024 to 2029, reaching 3,515 GWh in 2029.
