The 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.
Electric vehicles are gaining popularity worldwide due to growing environmental concerns regarding conventional fuel vehicles and supportive government policies and initiatives toward electric vehicles adoption. Secondary batteries find major application in electric vehicles as they provide high energy density and longer battery life.
Market Overview:
Secondary batteries are rechargeable batteries that can be charged, discharged into an external circuit, and recharged many times with little memory effect. Common types of secondary batteries include lead-acid batteries, lithium-ion batteries, and nickel-metal hydride batteries. These batteries are widely used in portable consumer electronics, power tools, electric vehicles, backup power, and grid energy storage applications due to their high energy density and longer usage life.
Market key trends:
One of the major trends in the secondary battery market is growing adoption of lithium-ion batteries in various applications such as consumer electronics, automotive, and grid energy storage. Lithium-ion batteries have higher energy density compared to other batteries such as lead-acid and nickel-metal hydride batteries. Furthermore, lithium-ion batteries have a longer lifespan, no memory effect, low self-discharge, and a higher discharge voltage. Owing to these advantages, lithium-ion batteries are increasingly replacing other conventional batteries in various applications driving the growth of the market. Growing electric vehicle sales are also boosting demand for lithium-ion batteries as they are the preferred battery type for electric vehicles. Rapid establishment of charging infrastructure and falling battery prices are further fueling electric vehicle adoption.
Porter's Analysis
Threat of new entrants: The high production cost involved in manufacturing secondary batteries acts as a barrier for new players to enter the market.
Bargaining power of buyers: Buyers have moderate bargaining power due to the presence of many established players offering a variety of secondary battery types.
Bargaining power of suppliers: Raw material suppliers have moderate bargaining power due to availability of substitutes and less differentiation in raw materials.
Threat of new substitutes: Continuous research in energy storage technologies may lead to improved substitutes posing a threat.
Competitive rivalry: Intense due to the presence of global players differentiating based on product quality, pricing and innovation.
SWOT Analysis
Strengths: Growing demand for EVs and energy storage applications. Technological advancements help improve performance.
Weaknesses: High initial costs and potential safety issues during manufacturing and operations. Limited battery life reduces reuse potential.
Opportunities: Increasing investments in developing flexible, solid-state batteries with higher energy density. Rising integration of batteries in consumer electronics and automotive industries.
Threats: Stringent environmental regulations pertaining to disposal could hamper market growth. Volatility in raw material prices poses risks.
Key Takeaways
The Global Secondary Battery Market Size is expected to witness high growth at a CAGR of 10% over the forecast period, due to increasing demand for electric vehicles. Asia Pacific dominates the market currently due to the presence of emerging economies like China and established battery manufacturing hubs.
Regional analysis - Asia Pacific dominates the global market currently, owing to high production in countries such as China, Japan and South Korea. China has emerged as the largest producer of secondary batteries due to presence of leading global players. Europe is anticipated to witness significant growth due to stringent emission norms driving EV adoption in the region.
Key players - Key players operating in the secondary battery market include 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. These established brands are investing in product innovations to gain a competitive edge. Collaborations are also happening to further drive R&D in battery technologies.
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