Report Overview

A spurring demand for reliable batteries from the thriving electric vehicles (EVs) and consumer electronics sectors and an increasing emphasis on renewable energy storage are expected to drive Singapore Battery Market during the forecast period between 2024 and 2030.

Singapore Battery Market – Industry Trends & Forecast Report, 2030

Singapore Battery Market size was estimated at USD 428.72 million in 2023. During the forecast period between 2024 and 2030, Singapore Battery Market size is projected to grow at a CAGR of 18.4% reaching a value of USD 1,385.16 million by 2030. Prominent drivers of the market include the Singapore government's initiatives to create a greener environment through increased awareness and support for electric vehicles (EVs). The government has implemented a comprehensive strategy to encourage EV adoption, including tax incentives, regulatory frameworks, and the widespread deployment of EV charging infrastructure. For example, under the EV Early Adoption Incentive (EEAI), owners of fully electric vehicles can receive a rebate of 45% on the Additional Registration Fee (ARF), up to USD 20,000, available until December 31, 2023. Additionally, Singapore aims to establish 60,000 EV charging points across the country by 2030, with 40,000 in public car parks and 20,000 in private locations. These measures are significantly boosting EV adoption in Singapore, which in turn is driving growth in the battery market.

Battery – Overview

A battery is a device that stores and provides electrical energy through chemical reactions. It consists of one or more electrochemical cells, each containing a positive electrode (cathode), a negative electrode (anode), and an electrolyte that facilitates the movement of ions between the electrodes. When connected to an external circuit, a battery releases stored energy in the form of direct current (DC) electricity, powering various electronic devices and systems. Batteries are commonly used in a wide range of applications, from small devices like smartphones and watches to larger systems like electric vehicle (EV)s and power grids.

Singapore Battery Market

Growth Drivers

Rising Adoption of Electric Vehicles (EVs)

The rise of electric vehicles (EVs) is significantly driving the growth of Singapore Battery Market, with EVs accounting for nearly 20% of new car registrations in 2023, up from 12% in 2022. The surge aligns with Singapore's commitment to achieving net-zero carbon emissions by 2050 and phasing out internal combustion engine vehicles by 2040. However, the success of this transition hinges on advancements in battery technology, addressing concerns about safety and environmental impact. Singapore is leading the charge with robust research and development efforts, including collaborations between institutions like A*STAR, NTU, and NUS, focusing on innovations in battery materials, design, and thermal management. The A*STAR Battery Test Facility and initiatives like the EV Battery Testing and Disassembly Line are crucial in enhancing battery safety, reliability, and sustainability, reducing the environmental footprint of EVs. As EV adoption accelerates, Singapore is positioning itself as a hub for battery innovation in Southeast Asia, with the potential for significant economic benefits as EV sales in Asia are projected to grow by 22% annually from 2024 to 2028. This growth is not only transforming transportation but also reinforcing Singapore's role in the global shift towards a greener future.

Challenges

High Production Costs

High production costs are a significant barrier to the growth of Singapore's battery market. The manufacturing process, particularly for advanced lithium-ion batteries used in electric vehicles (EVs) and renewable energy storage, requires substantial investment in raw materials, specialized equipment, and technology. Additionally, the energy-intensive nature of battery production contributes to higher expenses, impacting the overall cost-competitiveness of locally produced batteries. These elevated costs can limit the market's ability to scale and compete globally, potentially slowing the adoption of new battery technologies and restraining the growth of Singapore Battery Market.

Impact of Escalating Geopolitical Tensions on Singapore Battery Market

Escalating geopolitical tensions among countries and spreading across regions could have a significant impact on the growth of Singapore Battery Market. These tensions are disrupting global supply chains, particularly for critical materials like lithium, nickel, and cobalt, which are essential for battery production. As the world’s top automakers intensify their focus on electric vehicles (EVs), the demand for these raw materials is soaring, creating a choke point in the supply chain. For Singapore, which relies heavily on imported materials for its battery production, these disruptions could hinder planned expansions and slow down the adoption of EVs. Rising prices for key battery metals further threaten profit margins for suppliers and automakers, potentially increasing the cost of battery production and making it more challenging for Singapore to compete in the global market. As a result, the country’s ambitions to become a hub for advanced battery technology in Southeast Asia could face significant obstacles, underscoring the broader impact of geopolitical instability on Singapore's battery market growth.

Singapore Battery Market

Segmental Coverage

Singapore Battery Market – By Product Type

On the basis of product type, Singapore Battery Market is divided into Lead Acid, Lithium Ion (Li-ion), Nickel Metal Hydride, Nickel Cadmium, and Lithium Titanate Oxide (LTO) segments. The lithium-ion segment holds the highest share in Singapore Battery Market by product type, driven by its pivotal role in electric vehicles (EVs) and renewable energy storage. As EV adoption surges and renewable energy integration expands, the demand for lithium-ion batteries has soared due to their high energy density, fast charging capabilities, and scalability. This growth is supported by Singapore’s focus on sustainable energy solutions and advanced infrastructure. Consequently, Li-ion batteries hold the largest market share, outperforming other battery types in terms of volume and revenue, reflecting their critical importance in the nation’s transition to greener technologies.

Singapore Battery Market – By Application

Based on application, Singapore Battery Market is divided into Automotive Batteries, Industrial Batteries, and Portable Batteries segments. The industrial segment holds the highest share in Singapore Battery Market by application. It can be attributed to the increasing demand for reliable power backup and energy storage across diverse sectors, including power generation, chemical manufacturing, marine, recreational equipment, and agricultural machinery. Also, the rising use of compact lithium-ion batteries in portable devices and consumer electronics is anticipated to drive further market growth during the forecast period.

Singapore Battery Market – By End Use

Based on end use, Singapore Battery Market is divided into Automotive Batteries, Industrial Batteries, and Portable Batteries segments.

Competitive Landscape

Major players operating in Singapore Battery Market include LG Chem, Samsung SDI, CATL, GS Yuasa, Durapower Group, VFlowTech, Tadiran Batteries, and Leoch Battery. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In June 2024 - Indian Oil Corporation partnered with Sun Mobility, Singapore, to form a 50:50 joint venture focused on the battery swapping business. The JV will deploy and operate Battery-as-a-Service (BaaS) solutions for two-wheelers, three-wheelers, and four-wheelers under 2 tons. It will also retrofit vehicles to Small Format Electric vehicles (SFEVs) using docks and batteries, enabling them to function as EVs across a network of swap points, including Indian Oil Retail Outlets.

• In November 2023 - JIOS Aerogel inaugurated a new manufacturing plant in Pioneer, Singapore, to support the adoption of aerogel-based technology in electric vehicle (EV) batteries. This facility, part of JIOS' strategic investment, will produce the Thermal Blade, an advanced thermal and electrical insulation solution designed to enhance EV battery safety. The plant underscores JIOS' commitment to meeting evolving safety standards and has achieved ISO 9001 certification, with plans to pursue further automotive industry certifications. The opening marks a significant milestone in JIOS' expansion and dedication to innovation in EV battery technology.

Scope of the Report

By Product Type

• Lead Acid

• Lithium Ion (Li-ion)

• Nickel Metal Hydride

• Nickel Cadmium

• Lithium Titanate Oxide (LTO)

By Application

• Automotive Batteries

• Industrial Batteries

• Portable Batteries

By End Use

• Aerospace

• Automobile

• Electronics

• Energy Storage

• Military & Defense