Market Trends of North America Consumer Battery Industry
Lithium-ion Batteries to Witness Significant Growth
- Advancements in technology and mass production or economies of scale have led to a significant fall in lithium-ion battery prices. Furthermore, it is forecasted that lithium-ion battery prices will keep decreasing. This, in turn, is expected to drive the li-ion battery segment further.
- The sale of consumer electronics, which use lithium-ion batteries, has been increasing hand-in-hand with the region's economic growth, positively impacting the consumer battery market.
- Due to its high electrode potential, high charge, and power-to-weight ratio, lithium is among the critical components for battery electrolytes and electrodes.
- Additionally, lithium-ion batteries are rechargeable and have a high energy density. The demand for this type of battery has been driven primarily by the proliferation of personal technology products, including smartphones, tablets, and laptops.
- The GDP growth rate in the region is expected to increase at a moderate pace during the forecast period. When supported by the expected increase in demand for electronic devices due to the increasing population, consumer battery demand is also expected to go up.
- Therefore, the above-mentioned factors are expected to drive the li-ion consumer battery market in the North American region during the forecast period.
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The United States to Dominate the Market
- The United States is one of the largest markets for consumer batteries, mainly due to the high demand for consumer goods and military equipment.
- The United States portable medical equipment market is growing significantly, in turn, driving the consumer battery demand for portable medical equipment in the country during the forecast period.
- The country is likely to be the dominant player in the North American lithium-ion battery market, supported by increasing urbanization and consumer spending, which is expected to ramp up the demand for technically advanced devices due to the benefits provided by the same. Consecutively, this is expected to result in a growth in demand for consumer batteries.
- The United States has been focusing on developing a domestic mineral supply to strengthen the lithium-ion battery supply chain, reducing the dependence on imports. In order to mitigate this, in February 2021, the President of the United States, Joe Biden, issued an executive order which included a directive for the Secretary of Energy requesting a report identifying risks in the supply chain for high-capacity batteries, including electric-vehicle batteries, and policy recommendations to address the said risks. Prior to this, in September 2020, with an acquisition of a 10,000-acre lithium deposit, Tesla had already secured rights to extract lithium in Nevada for its own use in the manufacturing of batteries.
- Therefore, the above-mentioned factors are expected to drive the consumer battery market in the United States during the forecast period.
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