The Rechargeable Batteries Market poised to grow on the back of rising adoption of EVs
Rechargeable batteries are energy storage devices that can be recharged multiple times and include lithium-ion, nickel-metal hydride, nickel-cadmium and lead-acid batteries. They are used in a wide range of consumer electronic devices such as smartphones, laptops, power tools and electric vehicles (EVs). Rechargeable batteries offer better energy density and life cycle compared to non-rechargeable batteries. Portable electronics and EVs are increasingly adopting lithium-ion batteries owing to their high energy density and reduced recharging time. In EVs, lithium-ion batteries help provide longer driving range and reduce charging time. The global rechargeable batteries market is primarily driven by growing sales of consumer electronics and rising adoption of EVs worldwide.
The rechargeable batteries market is estimated to be valued at USD 123.81 Bn in 2024 and is expected to reach USD 184.65 Bn by 2031. It is projected to grow at a compound annual growth rate (CAGR) of 5.88% from 2024 to 2031.
Key Takeaways
Key players operating in the rechargeable batteries market are Samsung SDI Co., Ltd., BYD Company Ltd., LG Chem Ltd., Panasonic Corporation, Contemporary Amperex Technology Co. Limited.
The growing Rechargeable Batteries Market Demand for portable consumer electronics such as smartphones, laptops, power banks is fueling the need for high-performance, long-lasting rechargeable batteries. Factors such as lightweight design, extended battery life and fast charging are driving innovation in the batteries used for consumer devices.
Advancements in battery chemistries including lithium-sulfur and sodium-ion batteries offer higher energy density and achieve faster charging. Technologies such as solid-state batteries and flexible batteries present new opportunities for batteries in unique form factors.
Market Trends
Increasing investments in EVs - Major automakers are significantly increasing investments in EVs and battery production to transition to electric drivetrains. This is expected to boost the demand for high-capacity lithium-ion batteries for EVs.
Focus on renewable energy storage - Battery technologies are playing a vital role in effective storage of power from renewable energy sources like solar and wind. Grid-scale battery storage systems can help balance electricity demand and supply from intermittent renewable sources.
Market Opportunities
Growing application in energy storage - Rechargeable battery technologies offer potential for both distributed and utility-scale stationary storage applications. Increased storage capacity can help integrate higher levels of renewable energy into the grid.
Adoption in consumer electronics - Innovation in form factors, battery life and fast charging presents new opportunities for battery technologies in applications like smartphones, wearables, hearables and wireless headphones.
Impact of COVID-19 on Rechargeable Batteries Market Growth
The outbreak of COVID-19 pandemic impacted the rechargeable batteries market negatively in the initial stages. The imposition of lockdowns led to the closure of manufacturing facilities which disrupted the supply chain and logistics. This caused a shortage of batteries as the demand rose from the healthcare sector, online deliveries and other essential services. However, as people were confined to their homes, the usage of electronic gadgets increased which boosted the demand for rechargeable batteries. The work from home culture resulted in higher sales of laptops and headphones which propelled the battery market growth. As restrictions eased, manufacturing units resumed operations with reduced capacities and stringent safety protocols. The supply constraints eased gradually but the demand kept surging from multiple sectors. Overall, COVID-19 accelerated the shift towards cord-free and portable devices which is expected to drive the rechargeable batteries market post pandemic. The work from home and online learning trends are likely to persist, supporting the future growth prospects.
Geographical Regions with Highest Rechargeable Batteries Market Value
Asia Pacific region dominates the global rechargeable batteries market in terms of value. Countries like China, Japan, South Korea and India have strong manufacturing base for electronic gadgets as well as batteries. Massive population and growing electronics industry boost the demand. North America is another lucrative region owing to a high adoption rate of cord-free devices across industries such as healthcare, automotive and consumer. Countries such as the US and Canada lead the market in this region. Europe holds significant share due to rising sales of electric vehicles which require advanced battery technologies. Germany contributes majorly to the Europe market.
Fastest Growing Region for Rechargeable Batteries Market
South East Asia and Africa region is projected to witness the highest growth rate during the forecast period for the rechargeable batteries market. Countries like Philippines, Vietnam, Indonesia, Nigeria and Kenya have displayed impressive economic growth over the last decade which expanded the purchasing power. Rapid urbanization and rising disposable incomes are fueling the sales of consumer electronics. Also, governments are promoting investments in industries such as automotive which uses batteries on large scale. Overall, improving living standards coupled with economic development of African countries are anticipated to drive the rechargeable batteries demand at the fastest pace among all regions.
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About Author:
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc.
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