Secondary Battery Market Growth Depends on Rising Demand for Portable Electronic Devices
The secondary battery market involves the manufacturing and sale of rechargeable batteries that can be recharged multiple times by removing and returning electrical charge after the initial use. Common examples of secondary batteries include lithium-ion batteries, lead-acid batteries, and nickel-metal hydride batteries. These batteries are widely used in smartphones, laptops, power tools, vehicles, telecommunication devices and other portable electronic appliances due to their ability to hold electrical charge for long durations and be recharged for continuous use. Advantages of secondary batteries include portability, convenient recharging and energy density. The growing trend of mobility has increased the demand for portable devices that can support untethered internet connectivity and entertainment access, driving the need for quality secondary batteries.
The Global Secondary Battery Market is estimated to be valued at US$ 120.19 Bn in 2024 and is expected to exhibit a CAGR of 4.4% over the forecast period from 2024 to 2030.
Key Takeaways
Key players operating in the secondary battery market size are 3M, ConvaTec Inc., Coloplast Corp., Salts Healthcare, MEDLINE, Medicareplus International, Essity Medical Solutions, Cardinal Health, Smith & Nephew Plc., Safe n Simple, B Braun Medical Inc., Hollister Inc., and DermaRite Industries, LLC. These companies are focusing on developing innovative battery chemistries and technologies to improve energy density and lifespan.
The growing demand for portable electronic devices is expected to boost the secondary battery market during the forecast period. Consumer preference for devices such as smartphones, tablets, laptops, power tools and electric vehicles that perform optimally without being tethered to power outlets will drive the need for high-performance secondary batteries.
The market is witnessing increased global expansion as key players strategize manufacturing and distribution networks across regions to cater to the rising local demand. Continuous investments are boosting production capacities, especially in Asian countries, to ensure adequate supply and establish stronghold in evolving secondary battery markets.
Market Drivers
One of the key drivers for the secondary battery market is the increasing demand for electric vehicles. With stringent emission regulations and consumer shift towards environment-friendly mobility solutions, electric vehicle sales are rising exponentially. As electric vehicles require large secondary batteries to power the engines for longer driving ranges, this growing vehicle segment is expected to accelerate market growth over the forecast period from 2024 to 2030.
The current geopolitical situation is impacting the growth of the secondary battery market in several ways. The ongoing conflict between Russia and Ukraine has disrupted supply chains and increased costs of key raw materials like lithium, cobalt and nickel that are used in lithium-ion batteries. This has negatively affected battery production volumes across Europe and Asia. Furthermore, sanctions against Russia are limiting technology transfers and R&D collaborations, impacting the development of next-generation battery technologies.
To sustain growth in such an uncertain environment, battery manufacturers will need to diversify their sourcing markets and invest in developing alternative chemistries that rely less on global supply hotspots. Policy support for local sourcing and production can help boost energy security. Manufacturers also need to closely monitor geopolitical risks and have contingency plans to shift operations if tensions escalate further between global powers. Overall, managing geopolitical risks and minimizing single-source dependencies will be critical for the long-term growth prospects of the secondary battery market.
In terms of value, the secondary battery market is currently concentrated in Asia Pacific, led by China, Japan and South Korea. This is due to the large global electronics manufacturing bases and EV industries located in these countries. North America is the second largest geographical market driven by government incentives and investments to develop electric vehicle infrastructure. Meanwhile, Europe is witnessing fastest market growth at a CAGR of over 7% during the forecast period due to stringent emission regulations and support for adoption of EVs and energy storage solutions across industries.
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