Global Consumer Battery Market - Growth, Trends, and Forecast (2018 - 2023)
Over the past few years, with technological advantages, the price of smart gadgets (including smartphones, tablets, and laptops, among other technically advanced gadgets) has witnessed a significant reduction of prices, making them more accessible to the public. Consequently, it has significantly increased the demand for consumer batteries and is expected to witness significant growth in demand, during the forecast period of 2018-2023. Factors, such as growing disposable income amid strengthening of global GDP and the increased repeatability cycle for in-hand equipment renewal are expected to increase the demand for consumer batteries across the globe. Furthermore, reduction in the cost of lithium-ion batteries, particularly in Asia-Pacific, is expected to boost the demand for consumer batteries during the forecast period. By type, the alkaline battery segment accounted for the largest share of the market in 2016. However, owing to better wide-scale application, performance, and decreasing battery prices, the lithium-ion battery segment is expected to witness the highest growth rate during the forecast period.
Growing Penetration of Smartphones and Tablets Driving the Market
Since the global financial crisis of 2008, strengthening of economies of major nations across the globe has resulted in increased disposable income among households. Furthermore, during the same period, the price tag associated with consumer electronics, such as smartphones and tablets, has witnessed a significant reduction, thus driving an increased purchase of smartphones and tablets. Over the years, the purchase of smartphones and tablets has witnessed tremendous growth and is expected to increase even further. India, in particular, is home to approximately 1 billion people without smartphones access. Stiff competition among existing market players has resulted in significant reduction in smartphone prices. This is expected to result in a 50% hike in the sale of smartphones in India. As the demand for consumer batteries market is directly dependent on the sale of electronic goods, the demand for consumer batteries is expected to witness a significant increase during the forecast period.
Falling Cost of Lithium-ion Bolstering Demand in Asia-Pacific
Although alkaline batteries constituted the majority share by technology type, the demand for consumer batteries is expected to record a boost in Asia-Pacific, due to the decreasing cost of lithium-ion batteries. The costs of lithium-ion batteries have fallen drastically, from approximately USD 1000 per kWh in 2010 to USD 273 in 2016, and are expected to decrease further. Furthermore, India is expected to aggressively ramp up the domestic production of lithium-ion batteries. The India lithium-ion battery market is expected to register a robust CAGR of 29.26% during the forecast period, amid increased uptake of electric vehicles, energy storage, and renewables-based initiatives. This is expected to result in further reduction of lithium-ion battery prices. As the lithium-ion batteries find regular application in cell phones, tablets, and laptops, among other gadgets, the demand for consumer batteries is expected to benefit from the same, during the forecast period.
Brazil to Witness Modest Demand
Over the long term, the Brazilian economic outlook is expected to get better, with increased urbanization and positive GDP growth rate, thus resulting in a significant increase of domestic disposable income per household. The country has emerged from a recession in 2015. The country's GDP growth rate was -3.5%. However, supported by an ambitious reform agenda undertaken by the Brazilian government, the country is expected to witness a growth rate of 1.9% in 2018. Factors, such as improving economy, increasing urbanization activities, and growing disposable income are expected to result in an increased demand for household gadgets that require batteries, thus bolstering the growth of the market studied.
Key Developments in the Market
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