The market for consumer battery market is expected to grow at a CAGR of more than 6% during the forecast period of 2020 - 2025. Since the global financial crisis of 2008, strengthening of economies of major nations across the globe has resulted in increased disposable income among households. Also, the price tag associated with consumer electronics, such as smartphones and tablets, has witnessed a significant reduction, thus driving an increased purchase of smartphones and tablets. On the other hand, transportation restrictions on batteries that are environment unfriendly are likely to hinder the market growth.
- The lithium-ion battery is expected to dominate the market due to its high electrode potential, high charge and favorable capacity-to-weight ratio during the forecast period.
- The use of battery-based energy storage systems with solar photovoltaic (PV) is gaining popularity in both developed and emerging economies creating market opportunities for battery manufacturers.
- Asia-Pacific is expected to dominate the market with majority of the demand coming from the countries such as India and China.
Key Market Trends
Lithium-ion Battery to Dominate the Market
- Among different types of battery technology, lithium-ion battery (LIB) is expected to dominate the global consumer battery market majorly due to its capacity-to-weight ratio and other factors like better performance, high energy density, and decreasing price.
- These unique properties have made lithium-ion batteries the power sources for consumer electronics manufacturers, with a production of the order of billions of units per year. Historically, the lithium market has been driven by battery demand - particularly from consumer electronics, which represented more than 45% of demand in 2017.
- The price of LIB is usually high, as compared to other batteries. Also, leading players in the market have been investing, in order to gain economies of scale and in R&D activities, to improve LIB's performance and price.
- Lithium-ion batteries find application in a wide range of consumer goods, like smartphones, wearables, laptops, digital cameras, remote controls and gaming devices. Lithium-ion batteries are safer and have higher capacity power packs and are more economical than other alternatives for long-term use.
- Therefore, owing to better wide scale application, performance, and decreasing battery prices, the lithium-ion battery segment is expected to witness the highest growth rate during the forecast period.
Asia-Pacific to Dominate the Market
- Asia-Pacific comprises multiple growing economies with substantial natural as well as human resources such as China and India which are expected to be major investment hotspots for battery companies in coming years, on account of policy-level support, from the governments, encouraging the manufacturing sector.
- China is currently one of the largest markets for the electric vehicle and has registered approximately 30 times faster growth than the electric vehicle market in 2018 when compared to 2017.
- The increasing adoption of electric vehicles is in line with the clean energy policy. In order to reduce the demand-supply gap, the government of China is planning to ease restriction on automakers importing cars into the country.
- On the other hand,India is expected to aggressively ramp up the domestic production of lithium-ion batteries. The India lithium-ion battery is expected to register a robust growth during the forecast period, amidst increased uptake of electric vehicles, energy storage, and renewable-based initiatives.
- Therefore, the above mentioned factors are expected to drive the consumer battery market in Asia-Pacific region during the forecast period.
The global consumer battery market is fragmented. Some of the major companies include Panasonic Corporation, VARTA Consumer Batteries GmbH & Co. KGaA, Samsung SDI Co. Ltd, Duracell Inc., and PolyPlus Battery Company Inc., amongst others.
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