June 16, 2024
Secondary Battery Market

Booming Secondary Battery Market is witnessing growth through Increased Adoption of Electric Vehicles

The secondary battery market comprises lithium-ion batteries that are widely used in consumer electronics such as smartphones, tablets and laptops owing to their high energy density and lightweight properties. Secondary batteries find extensive applications in power tools, medical devices, electric vehicles and energy storage systems. Increased penetration of renewable energy has propelled the demand for energy storage worldwide which is escalating the sales of secondary batteries. Lithium-ion technology is chosen for the majority of electronic devices due to its ability to deliver an average voltage of 3.6-3.7 V and provide energy efficient charging cycles.

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 2031.

Key Takeaways

Key players operating in the secondary battery market 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. Increasing demand for portable consumer electronics has surged the consumption of secondary batteries in the past few years. Manufacturers are focusing on expanding their production capacities to cater to the growing needs of lithium-ion batteries from a wide array of industries. Geographical expansion into developing regions of Asia Pacific and Latin America will further aid in augmenting revenue generation for participants in the global secondary battery market.

Growing Secondary Battery Market Demand for electric vehicles is another factor fueling the sales of lithium-ion batteries used extensively in EV applications. Stringent emission norms imposed by regulatory bodies have prompted leading automakers to invest heavily in electric mobility. Secondary batteries provide high energy density and power along with longer lifecycles making them the battery of choice for electric powertrains.

Transition toward clean energy is manifesting the global shift toward renewables with solar and wind power becoming mainstream sources of electricity generation. Large-scale batteries are gaining prominence for stabilizing power grids and managing intermittent renewable power through storage. This has accelerated R&D towards developing advanced battery technologies capable of storing bulk energy economically and efficiently.

Market key trends

One of the key trends gaining prominence in the Secondary Battery Market is increased adoption of lithium-sulfur batteries. Lithium-sulfur battery technology offers nearly 5 times greater energy density compared to lithium-ion making them an attractive prospect for electric vehicles. Researchers across the world are working towards resolving the obstacles around polysulfide shuttling effect and capacity fade to commercialize Li-S batteries. Once commercialized, lithium-sulfur batteries could significantly increase the driving range of EVs and make zero emission transportation viable.

Porter’s Analysis

Threat of new entrants: High capital investment requirements for R&D and manufacturing pose a barrier to entry.

Bargaining power of buyers: Large customers have higher bargaining power due to bulk purchase volumes.

Bargaining power of suppliers: Specialized cell chemistry and component manufacturing provides suppliers with stronger bargaining position.

Threat of new substitutes: Technological advancements introduce new energy storage solutions as substitutes.

Competitive rivalry: Market leaders fiercely compete on performance, durability and pricing to sustain existing market share.

Geographical Regions

North America accounts for the largest share of the secondary battery market in terms of value due to high demand from the automotive as well as industrial sectors. Growth in demand for EVs and energy storage creates opportunities for lithium-ion battery manufacturers in the region.

The Asia Pacific region is expected to be the fastest growing market during the forecast period driven by supportive government policies and initiatives to enhance manufacturing capacity. Strong presence of Chinese battery makers expanding overseas along with growing consumption of portable consumer electronics will drive secondary battery consumption in Asia Pacific economies.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it