Secondary batteries provide a portable and flexible source of energy and are widely used in consumer electronics such as laptops, smartphones, digital cameras, and power tools among others. They are also used in larger applications such as electric vehicles, grid energy storage systems, and backup power solutions. Secondary batteries deliver electricity through reversible chemical reactions and can be repeatedly recharged. Some common types of secondary batteries include lead-acid batteries, lithium-ion batteries, and nickel-metal hydride batteries.
The global secondary battery market provides advantages such as high energy density, high operating voltage, long cycle life, low self-discharge, compact size, and a lack of memory effect. Growing awareness regarding climate change and environmental pollution has boosted the adoption of electric vehicles which are a major application area for lithium-ion batteries and other advanced battery technologies. Increasing investments by governments and private organizations in smart grid and renewable energy storage are also fueling market growth. 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 key trends:
One of the key trends in the secondary battery market is the rising demand for lithium-ion batteries from the electric vehicle industry. Various automakers are focusing on manufacturing electric vehicles to comply with stringent emission norms. As lithium-ion batteries provide higher power and energy density compared to other battery technologies, they are the primary choice for electric vehicles. Government incentives and subsidies on electric vehicles in various countries are also encouraging consumers to shift towards electric mobility. This is expected to significantly drive the demand for lithium-ion batteries during the forecast period.
Porter's Analysis
Threat of new entrants: The threat of new entrants in the secondary battery market is moderate due to high capital investment required to enter the market. However, new technologies can disrupt the market.
Bargaining power of buyers: The bargaining power of buyers is moderate due to the presence of several established players. However, buyers can negotiate on price and demand high-quality products.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw materials used in secondary batteries such as lithium and cobalt are limited in sources. Suppliers can influence prices.
Threat of new substitutes: The threat of substitutes is high due to technological advancements in energy storage technologies such as solid-state batteries and fuel cells.
Competitive rivalry: The competitive rivalry in the market is high owing to the presence of key global players competing on product quality, pricing, innovation, and expansion.
Key Takeaways
The global Secondary Battery Market Growth is expected to witness high growth. Asia Pacific dominates the market currently due to the presence of manufacturing plants of prominent battery players and high automobile production in countries such as China and Japan. European and North American markets are also expected to grow significantly over the forecast period with increasing adoption of electric vehicles.
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. Duracell Inc. and EnerSys are focusing on expanding their lithium-ion battery portfolio. Tesla is investing heavily in battery manufacturing capacity and technology development.
The global secondary battery market is driven by growing demand for portable consumer electronics and electric vehicles. Stringent emission regulations in automotive sector are promoting adoption of electric vehicles. Rapid technological advancements in battery chemistries such as solid-state and lithium-sulfur are further expected to boost market growth during the forecast period.
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