Secondary batteries, also known as rechargeable batteries, have revolutionized portable electronics and electric vehicles. Batteries like lithium-ion can be charged and discharged multiple times, making them ideal for powering applications that require recharging. They provide high energy density and require low maintenance. The global secondary battery market is dominated by lithium-ion batteries due to their high energy density and no memory effect. They are widely used in consumer electronics and electric vehicles. 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:
The growing demand for electric vehicles is a key factor fueling growth of the secondary battery market. Lithium-ion batteries are the primary power source for electric vehicles due to their high energy density and long lifespan. Stringent regulations targeting vehicle emissions and various government incentives and subsidies for electric vehicle adoption are encouraging consumers to switch from gasoline-powered to electric vehicles. For instance, the Inflation Reduction Act introduced in the U.S. in 2022 provides tax credits up to $7,500 for purchasing new electric vehicles. This is expected to significantly boost electric vehicle sales, thereby driving the demand for secondary batteries in the coming years.
SWOT Analysis
Strength: Secondary battery market has growing demand for electric vehicles which is driving the market growth. Established supply chain for key components further aids the market.
Weakness: High production cost of lithium-ion batteries acts as a barrier for mass adoption. Requirement of rare earth materials import dependence is also a concern.
Opportunity: Increasing investments by governments worldwide for promoting clean energy sources will accelerate the battery market growth. Rapid expansion of consumer electronics will magnify the opportunities.
Threats: Safety issues associated with battery storage and fire hazards curb the battery usage. Trade war between nations can disrupt supply chains of battery materials.
Key Takeaways
The global Secondary Battery Market Growth is expected to witness high growth. Faster adoption of electric vehicles across regions is expected to propel the market. Asia Pacific currently dominates the market due to presence of leading battery manufacturers and electric vehicle producers in countries like China and Japan. China has emerged as the global leader in lithium-ion battery production owing to large domestic automotive industry and presence of top battery players like BYD and CATL.
Key players operating in the secondary battery market are TianJin Lishen Battery Joint-Stock Co. Ltd., BYD Co. Ltd., Tesla Incorporation, Contemporary Amperex Technology Co. Limited, Showa Denko K.K., Duracell Inc., Samsung SDI, EnerSys, Saft Groupe SA, GS Yuasa Corporation, Panasonic Corporation, Clarios, and LG Chem Ltd. BYD Co. Ltd. and CATL are anticipated to dominate the market owing to their extensive geographic presence and robust supply chain for batteries and electric vehicles.
The global secondary battery market size was valued at US$ 104461.1 Mn in 2023 and is projected to reach US$ 124590.23 Mn by 2030, expanding at a CAGR of 10% during the forecast period. Increased demand for power backups and rising consumer electronics industry will drive the market opportunities over the next decade.
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