The secondary battery market comprises rechargeable batteries that are used in various portable electronic devices such as smartphones, laptops, tablets, power tools, e-vehicles among others. Secondary batteries offer advantage of being recharged multiple times and have a longer lifespan as compared to primary batteries that can be used only once. Some key types of secondary batteries used widely include lead-acid batteries, lithium-ion batteries (Li-ion), nickel-metal hydride batteries and nickel-cadmium batteries. Secondary batteries are small, lightweight, have high energy density and provide long battery life, making them ideal for powering various portable electronic devices. The Global secondary battery market is estimated to be valued at US$ 120.19 Bn in 2024 and is expected to exhibit a CAGR of 4.4% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the secondary battery market size are 3M, ConvaTec Inc., Coloplast Corp., Salts Healthcare, MEDLINE, Medicareplus International, Essity Medical Solutions, Cardinal Health, Smith & Nephew Plc., Safe n Simple, B Braun Medical Inc., Hollister Inc., and DermaRite Industries, LLC. These players are focused on developing advanced battery technologies and expanding their production capacities to cater to the growing demand.
The demand for secondary batteries is surging due to the widespread adoption of portable electronic devices across the world. Increasing sales of smartphones, laptops, tablets, power tools and electric vehicles are majorly driving the consumption of secondary batteries. Advancements in battery technologies are further boosting the applications of secondary batteries in various sectors.
Technological advancements are encouraging battery innovations and developments of advanced battery chemistries. Companies are focused on improving battery charging capabilities, energy density, life cycle and safety. Development of lithium-ion battery technologies with high energy density is widening the scope of secondary batteries.
Market Trends
Rise in portable electronics demand: Growing sales of consumer electronics such as smartphones, laptops, tablets, wearable devices and power tools is propelling the demand for lightweight and long-lasting secondary batteries in these devices.
Electric vehicles sales surge: Increasing adoption of electric vehicles worldwide is creating significant opportunities for secondary battery manufacturers. Major battery technologies powering EVs include lithium-ion batteries and lead-acid batteries.
Market Opportunities
Product miniaturization: Continuous reduction in the size of various consumer electronic devices without compromising on performance is driving opportunities for developing miniature secondary batteries with high energy density.
Shift to green energy: Emergence of renewable energy storage solutions along with growing adoption of solar panels and wind turbines is augmenting opportunities for secondary batteries like lithium-ion batteries for storing excess energy.
Impact of COVID-19 on Secondary Battery Market Growth
The COVID-19 pandemic significantly impacted the secondary battery market growth globally. During the initial lockdown phase, factories were shut down affecting battery production. This led to disruptions in the supply chains and shortage of raw materials like cobalt, lithium and graphite used in lithium-ion battery manufacturing. The demand from major end-use industries like consumer electronics and automotive also declined sharply as manufacturing activities were halted. However, with the easing of lockdowns and resumption of operations, the market is recovering gradually. The demand for batteries is also rising from healthcare sector for devices like ventilators, portable X-ray machines and Patient monitors used for treating COVID-19 patients.
To deal with future crises, companies are now focusing on establishing robust and flexible supply networks. They are diversifying sourcing and increasing inventory levels of critical raw materials. Battery manufacturers are also ramping up production capacities to meet the growing demand from various sectors including renewable energy storage. Governments across regions are supporting the development of domestic battery industries through incentives and funding to reduce import dependence. Overall, the long-term outlook for the secondary battery market remains positive driven by increasing adoption of EVs, renewable energy integration and demand for batteries in consumer electronics.
Geographical Regions with Highest Secondary Battery Market Value
Asia Pacific currently holds the largest share of the global secondary battery market in terms of value attributed to high consumption in China and other developing countries. China dominates the lithium-ion battery production globally owing to presence of leading battery makers and availability of raw materials. North America is the second largest market led by the rising sales of electric vehicles across the US and Canada. Considerable investments are being made by automakers to set up local battery manufacturing plants in the region. Europe is another major regional market for secondary batteries driven by stringent emission norms promoting electric mobility in countries like Germany, UK and France.
Fastest Growing Regional Market for Secondary Batteries
The secondary battery market in Middle East and Africa is expected to exhibit fastest growth during the forecast period on account of ongoing energy storage projects, infrastructure development activities and automobile sector expansion across GCC countries and Africa. Governments are undertaking initiatives to provide electricity access through off-grid solar projects powered by battery storage systems. Key battery storage applications include residential, commercial and utility-scale use. Additionally, growing electric vehicle adoption and investments by global automakers in developing charging infrastructure will further drive the secondary battery demand in the region.
