The secondary battery market comprises products such as lithium-ion batteries, nickel-metal hydride batteries, and lead-acid batteries. Secondary batteries find applications in consumer electronics, automotive, industrial, and grid storage, among others. Growing demand for portable consumer electronics such as smartphones, cameras, and laptops is expected to augment the growth of the lithium-ion battery segment in the coming years. Rising adoption of electric vehicles due to stringent emission norms is another key factor fueling the growth of the secondary battery market. Secondary batteries are essential components of electric vehicles as they power electric motors. The global secondary battery market is estimated to be valued at US$ 104461.1 Mn in 2023 and is expected to exhibit a CAGR of 10.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing need for energy storage systems is the key driver propelling the growth of the secondary battery market. Energy storage systems find increasing applications across various industries for load balancing, peak shaving, and backup power solutions. The uptake of renewable energy resources such as solar and wind energy is augmenting the demand for energy storage to mitigate intermittent electricity generation from these resources. Secondary batteries are excellent solutions for energy storage applications due to their flexibility, long service life, and technical properties such as power density and efficiency. Government initiatives in various countries to incentivize the adoption of electric vehicles and energy storage systems is expected to boost the secondary battery market growth over the forecast period.
However, the high manufacturing cost of lithium-ion batteries compared to other battery chemistries may pose a challenge for their widespread adoption. Also, risks associated with thermal runaway in lithium-ion batteries during manufacturing and usage can hamper the market growth. Ongoing research & development in battery technology focused on improving performance, safety, and lowering the manufacturing cost is expected to help overcome these challenges.
Segment Analysis
The global secondary Battery market is dominated by the lithium-ion battery segment which holds around 60% of the total market share. Lithium-ion batteries have higher energy density when compared to lead-acid and nickel-metal hydride batteries. They provide longer battery life and are less maintenance intensive. Hence lithium-ion batteries witness wide acceptance in consumer electronics as well as electric vehicles. Within lithium-ion batteries, lithium iron phosphate battery segment is growing at a faster rate owing to its thermal stability which makes it safer.
PEST Analysis
Political: Favorable government policies and initiatives toward increasing adoption of electric vehicles in major countries is boosting demand for secondary batteries. Subsidies and tax rebates on electric vehicles encourage their sales.
Economic: Growing economy and rising disposable income is fueling sales of consumer electronic devices using secondary batteries. The automotive industry is also witnessing strong growth driving electric vehicle production.
Social: Increasing consumer preference toward green and environment friendly vehicles as well as gadgets is propelling secondary battery market growth. Rising health awareness regarding pollution caused due to gasoline vehicles supplements electric vehicle adoption.
Technological: Continuous R&D efforts toward improvement in battery life, capacity, and safety has widened application scope of secondary batteries. Advanced battery chemistries like solid state batteries are gaining attention.
Key Takeaways
The global Secondary Battery Market Growth size was valued at US$ 104461.1 Mn in 2023, expanding at a CAGR of 10.% during the forecast period.
Regional analysis: Asia Pacific dominated the global market in 2023 and is expected to maintain its leading position during the forecast period. This can be attributed to large production clusters and presence of key battery manufacturers in China and other Asian countries.
Key players: Key players operating in the secondary battery market are TianJin Lishen Battery Joint-Stock Co. Ltd., BYD Co. Ltd., Tesla Incorporation, Contemporary Amperex Technology Co. Limited, Showa Denko K.K., Duracell Inc., Samsung SDI, EnerSys, Saft Groupe SA, GS Yuasa Corporation, Panasonic Corporation, Clarios, and LG Chem Ltd. BYD Co. Ltd and Contemporary Amperex Technology Co. Limited captured the major market share in 2023.
For more insights, Read- https://www.pressreleasebulletin.com/secondary-battery-market-trends-size-and-share-analysis/
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