Market Trends of Consumer Battery Industry
The Lithium-ion Batteries Segment is Expected to Dominate the Market
- Lithium-ion batteries are rechargeable batteries that use lithium ions to store and release electrical energy. They are widely used in various applications, including consumer electronics, electric vehicles, energy storage systems, etc.
- Lithium-ion batteries offer higher energy density compared to other battery chemistries. This means they can store more energy in a smaller, lighter package, making them ideal for portable electronic devices requiring long-lasting power in a compact form factor.
- Lithium-ion batteries typically have a longer lifespan than other rechargeable batteries, such as nickel-metal hydride (NiMH) or nickel-cadmium (NiCd) batteries. They can withstand more charge-discharge cycles before experiencing significant capacity loss, providing consumers with more usage time and value for their investment.
- Global lithium-ion battery manufacturers are focusing on reducing the cost of Lithium-ion batteries. The price of lithium-ion batteries declined steeply over the past ten years. In 2022, an average lithium-ion battery was valued at around USD 151 per kWh. It witnessed a decrease in the price of more than 79% in 2022 compared to 2013.
- Further, most smartphone companies, including Samsung, iPhone, Infinix, and Nokia use lithium-ion batteries. The increasing use of smartphones will drive the market for lithium-ion batteries. According to Ericsson, China, India, and the United States have the highest number of smartphone mobile network subscribers worldwide, with almost 6.6 billion in 2022, and is expected to surpass 7.8 billion in next five years.
- Additionally, in February 2022, Berkshire Hathaway Energy Renewables (BHE Renewables) announced its plans to break ground by mid-2022 on a California facility to test the commercial viability of a process that extracts lithium from geothermal brine. Once the test succeeds, the company will likely start commercializing lithium hydroxide and lithium carbonate in next three years. Such moves will likely boost the lithium-ion battery market for ESS applications in North America.
- Therefore, as mentioned above, the lithium-ion segment is expected to dominate the market during the forecasted period.
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Asia-Pacific is Expected to Dominate the Market
- The Asia-Pacific region, particularly countries like China, Japan, South Korea, and Taiwan, has established itself as a manufacturing hub for consumer electronics and batteries. These countries have well-developed supply chains, production facilities, and expertise in battery manufacturing, enabling them to meet the global demand for consumer batteries.
- Moreover, Asia-Pacific is home to a significant portion of the world's population, including emerging economies with growing middle-class populations. The increasing disposable income and rising adoption of consumer electronic devices in this region drive the demand for batteries, making it a lucrative market for battery manufacturers.
- For instance, in February 2023, the Malaysian government identified the electronics market as a potential market that can become significant to the country's economy. To promote manufacturing in the electronics segment, the government announced its decision to extend the tax incentive given to manufacturing companies that relocate to Malaysia and the tax rate of 15% for C-Suite until next year.
- The Asia-Pacific region is also a major hub for the electric vehicle (EV) industry. As EVs rely heavily on lithium-ion batteries, the growing adoption of electric vehicles in countries like China, Japan, and South Korea contributes significantly to the demand for lithium-ion batteries, strengthening the region's dominance in the market.
- The Asia-Pacific region has also witnessed substantial growth in e-commerce platforms and online retail. This has made consumer batteries easily accessible to a wide customer base, contributing to the market's expansion. E-commerce provides convenience, competitive pricing, and a vast range of options for consumers to purchase batteries, fueling the market's dominance.
- Therefore, per the points mentioned above, the Asia-Pacific region is expected to dominate the consumer battery market during the forecasted period.
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