Market Trends of United States Household Battery Industry
This section covers the major market trends shaping the US Household Battery Market according to our research experts:
Lithium-Ion Battery to Dominate the Market
- The lithium-ion battery is a type of rechargeable battery, majorly used in electronic devices and electric vehicles. It has been growing in popularity in various military and aeronautical uses. In 2021, lithium-ion batteries in the United States had a significant market share in the household battery market because of the increased use of electronic devices.
- Lithium-ion batteries are commonly used in electronic devices, such as smartphones, laptops, clocks, watches, and remote controls. Sales of consumer electronics are very much dependent on the population and disposable income. The increasing disposable income in the United States has led to rising living standards, driving the demand for consumer electronics in the country.
- Li-ion batteries have been gaining more popularity compared to other battery types due to their favorable capacity-to-weight ratio. Other factors boosting its adoption include better performance, higher energy density, and decreasing price.
- Mobile phones are the most commonly used electronic devices, which use lithium batteries. With about 298 million smartphone users by 2021, the United States has one of the world's largest smartphone markets. It is likely to increase further with technological development and a drop in the price of mobile phones.
- Due to the high competition in the consumer electronics market, the prices of technology have been reducing, while the disposable income of people has also been increasing, resulting in increased penetration levels of the devices. Similarly, the growth over the forecast period is expected to drive the demand for batteries used in these devices.
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Declining Lithium-ion Battery Price and Technological Development to Drive the Market
- The price of lithium-ion batteries has fallen steeply over the past ten years. In 2018, the lithium-ion battery price was USD 176 per kWh. Lithium-ion battery prices have been falling continuously, decreasing to USD 132 kWh in 2021.
- This sharp and sustained cost reduction is expected to help cement lithium-ion as the battery chemistry of choice in all energy storage markets, including grid-scale, behind-the-meter storage, residential storage, and micro-grids.
- Lithium-ion batteries are expected to dominate the overall battery market over the next ten years, as they are widely used in cell phones, tablets, and laptops, among other gadgets, whose demand has been increasing at a significant rate globally and in the United States.
- Furthermore, the decline in average lithium-ion battery prices is expected to continue and reach approximately USD 100/kWh by 2025, making it much more cost-competitive than other battery types. The trend is likely to result in an increased application of lithium-ion batteries in many other consumer electronics, with a decrease in the price of household electronic goods during the forecast period.
