Battery Manufacturing 2030: Collaborating at Warp Speed
What it takes for equipment manufacturers to ride the coming wave of breakneck growth
Feb 2024
| Study
| English
Battery Manufacturing 2030:
Collaborating at Warp Speed
What it takes for equipment manufacturers to ride the coming wave of breakneck growth
The rapidly growing battery market presents a unique growth opportunity for Western economies to forge a new industrial sector, independent from Asia's predominant influence. With the global battery market projected to skyrocket by the end of this decade, equipment manufacturers are confronted with an imperative for growth, striving to achieve a dizzying compound annual growth rate (CAGR) of 40% or more.
Central to this study is the pivotal question on how Europe and North America can ride the wave of breakneck growth and successfully establish a second battery cluster outside of Asia, where currently the equipment manufacturing market is highly concentrated. The answer lies in collaboration among European and North American manufacturers, original equipment manufacturers (OEMs), and public entities. Without such collaboration, Asia may further solidify its dominance, hindering the creation of a viable alternative cluster.
This study, conducted by Porsche Consulting together with VDMA, sheds light on substantial rewards by overcoming the challenges, and the potential to unlock a €300 billion market by 2030, contributing to the green economy and securing technological sovereignty. A unified roadmap and cooperation across the industry is crucial to manage anticipated growth rates and outpace competition.
In Brief
- Western battery equipment manufacturers expect to have a 20 % global market share by 2030, representing a market opportunity worth € 85 billion.
- To surpass Asian competitors, it is essential for Europe and North America to collaborate on a unified roadmap, involving both battery OEMs and equipment manufacturers, as well as fostering cooperation among equipment manufacturers.
- To manage the anticipated annual growth rates of 30 % or more, a different mindset is necessary. Initially, five critical steps must be undertaken to catch up in cost and scalability, followed by another five to pull ahead of the competition.
- Case studies from various manufacturing sectors indicate that remarkable growth rates exceeding 50 % are achievable through the consistent application of productization and industrialization principles.
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Gregor Harman
Managing Director Porsche Consulting USA
