Battery packaging market projected to more than double by 2031

Allied Market Research says the global battery packaging market is set to rise from $24.5 billion in 2021 to $61.5 billion by 2031, driven by renewable energy storage, electric vehicles and lithium-ion demand. Asia-Pacific leads the market now, while metal and cylindrical packaging formats are forecast to grow fastest.

Why it matters: - Battery packaging sits at the center of the shift to renewable energy storage, electric vehicles and other battery-powered systems. - The market's projected growth signals rising demand for packaging that protects batteries, supports safety and enables wider deployment of energy storage. - Growth in battery storage can help cut carbon emissions and reduce reliance on imported fossil fuels.

What happened: - Allied Market Research published a report on the global battery packaging market covering material type, battery type, casing type and region. - The market was valued at $24.5 billion in 2021. - The market is projected to reach $61.5 billion by 2031. - The forecast implies a 9.7% compound annual growth rate from 2022 to 2031. - The report is available as a sample request.

The details: - Renewable energy storage is a major growth driver for battery packaging. - Governments and industry stakeholders are investing in battery storage infrastructure. - The United Kingdom and Portugal are promoting solar battery storage through capacity auctions. - Lithium-ion batteries remain highly sensitive to elevated temperatures, which can shorten operational life. - High costs and lower efficiency in some sustainable technologies may slow market expansion. - The metal segment held the largest share of market revenue in 2021, accounting for nearly half of the global total. - The metal segment is projected to grow at a 9.9% CAGR through 2031. - Rising crude steel production and demand for durable packaging materials are supporting metal packaging demand. - India's crude steel production reached 71.3 million metric tons in FY23, through October 2022. - Higher production of aluminum, nickel and iron is also strengthening the metal segment. - The lithium-ion segment held nearly half of the market in 2021 and is expected to keep its lead through 2031. - The lithium-ion segment is forecast to grow at a 10.1% CAGR. - Demand is rising across consumer electronics, electric vehicles, industrial uses and renewable energy storage. - The cylindrical segment represented nearly half of the global market in 2021. - The cylindrical segment is forecast to post the fastest CAGR at 10.2% through 2031. - Cylindrical packaging is widely used because it is easier to manufacture, structurally stable and mechanically durable. - Cylindrical formats can withstand high internal pressure without deformation. - Common applications include power tools, medical devices, laptops and electric vehicles. - Asia-Pacific was the largest regional market in 2021 and is expected to keep that lead through 2031. - China, India and South Korea are emphasizing zero-emission initiatives. - China remains the world's largest producer of electric vehicles and solar power, supporting demand for lithium-ion batteries and related packaging. - Major market players include Deutsche Post AG, EPEC LLC, NEFAB Group, Wellplast AB, Schott, Söhner Kunststofftechnik GmbH, DS Smith Plc, Heitkamp & Thumann Group, Targray and ZARGES GmbH. - These companies are pursuing product launches, partnerships, capacity expansions and acquisitions. - The report also includes market dynamics, emerging trends, investment opportunities, value chain analysis, regional outlooks and competitive landscape insights. - Allied Market Research says its reports draw on primary interviews with top officials, along with online and offline research and discussions with industry professionals and analysts. - The company also provides market research and business intelligence services for enterprises and smaller businesses. - The firm says CEO Pawan Kumar is leading the organization toward high-quality data and insights.

Between the lines: - The report points to a market shaped by the same forces driving the clean-energy transition: storage buildout, electrification and manufacturing scale. - Asia-Pacific's lead suggests the supply chain and demand center for battery packaging remain tightly linked to China and neighboring manufacturing hubs. - The fast growth forecasts for metal, lithium-ion and cylindrical formats show that packaging demand is not evenly distributed across materials or battery designs.

What's next: - Battery packaging manufacturers are likely to focus on products that handle heat, pressure and durability requirements better than current options. - Capacity additions, partnerships and acquisitions are expected to remain common as companies try to expand their global reach. - Policy support for storage in Europe and emissions cuts in Asia may continue to support demand through the forecast period. - More information is available in the company's purchase options page.