Over the last few years – particularly in 2021 – the battery manufacturing equipment market witnessed a huge expansion in production capacity, according to new research from Interact Analysis. From 2021 to 2023, global li-ion battery capacity climbed to a total of 2.3 TWh and is expected to reach a grand total of 6.8 TWh by 2029. However, as the boom in production capacity begins to slow down, there is currently a record-low utilization rate of 61.4%.
The resilience of the battery equipment market
Despite a somewhat pessimistic forecast for market revenue, demand from all regions continues to drive the battery equipment market.
In 2023, the Asia-Pacific region maintained an 88.6% share of the battery manufacturing equipment market and amassed $18 billion in value – a feat achieved because of China’s huge production base (making up 89.2% of total global production). China is still expected to account for 75% of global market revenues, despite a downward trend in production capacity expansion. EMEA was valued at $1 billion in 2023 and is predicted to experience the fastest growth rate between 2024 and 2029, with a 5-year compound annual growth rate (CAGR) of 20.4% taking revenues to $3.6 billion. Similarly, the Americas region was also valued at $1 billion in 2023 and is expected to witness a 5-year CAGR of 19.7%, growing to $3.9 billion by 2029.
Li-ion battery shipment rates are expected to remain positive over the forecast period, having surged by 38.8% year-on-year in 2023 to reach a new high of 1,100 GWh. In 2024, total shipments are estimated to grow by 21.2% year-on-year to 1,334 GWh, driven by robust demand in the energy storage market. Furthermore, this growth momentum will continue in the future, with the sector registering a 21.4% CAGR from 2024 to 2029, rising to 3,515 GWh in 2029.
Finally, the global market for Li-ion battery equipment was valued at $20.3 billion in 2023, following year-on-year growth of 32% from 2022. It is forecast to generate a 5-year global CAGR of 7.1% from 2024 to 2029 to reach $30 billion.
