Secondary Battery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Secondary Battery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The secondary battery market was valued at USD 87.82 billion in 2019, and it is anticipated to reach USD 174.25 billion by 2026, registering a CAGR of 15.76% during 2021-2026. The outbreak of COVID-19 is expected to hamper the market's growth in the short term due to the global economic slowdown and drop in sales of consumer electronics. The market is expected to revive with the widespread availability of a vaccine and the opening up of trades and markets across the world. The market is expected to revive after 2021. Declining lithium-ion battery prices and increasing the adoption of electric vehicles are the major factors driving the market. On the other hand, the demand-supply mismatch of raw materials is likely to hinder the market growth.

Key Highlights

• The lithium-ion battery is expected to dominate the market during the forecast period, majorly due to its favorable capacity-to-weight ratio. Moreover, other factors boosting LIB adoption include better performance, higher energy density, and decreasing price.
• The use of artificial intelligence in the R&D phase of battery manufacturing is likely to provide huge opportunities for the market studied.
• Asia-Pacific is expected to be the largest market, with the majority of the demand coming from China, Japan, and India.

Key Market TrendsLithium-ion Battery Segment to Dominate the Market

• Among different types of battery technologies, lithium-ion battery (LIB) is expected to dominate the global battery market in the latter part of the forecast period, majorly due to its favorable capacity-to-weight ratio. Also, other factors that play an important role in boosting the LIB adoption include better performance, higher energy density, and decreasing price.
• The price of LIB is usually high as compared to the other batteries. Also, leading players in the market have been investing in order to gain economies of scale and in R&D activities to improve LIB's performance and price.
• Lithium-ion batteries have traditionally been used mainly in consumer electronic devices, such as mobile phones, notebooks, and PCs. Still, they are increasingly being redesigned for use as the power source of choice in hybrid and the complete electric vehicle (EV) range, owing to factors, such as low environmental impact, as EV does not emit any CO2, nitrogen oxides, or any other greenhouse gases.
• Currently, China is the largest market for electric vehicles, as the country accounted for around 50% of the global sale in 2019. China is making efforts to reduce the air pollution level in the country, and it is expected to register a high growth rate in electric vehicle sales, consequently leading to increased demand for LIB.
• South America accounts for roughly 55-60% of the global lithium resources.
• Moreover, LIB manufacturing facilities are majorly located in Asia-Pacific, North America, and Europe. Moreover, major market players, such as BYD Company Limited and LG Chem Ltd, have plans to set up new manufacturing facilities in the Asia-Pacific region, primarily in India, China, and South Korea.

Asia-Pacific to Dominate the Market

• Asia-Pacific has multiple growing economies with substantial natural as well as human resources, with China and India expected to be major investment hotspots for secondary battery companies in coming years, on account of policy-level support from the governments for both renewables and EVs and a growing middle-class population creating demand for consumer electronics.
• India has been witnessing a surge in manufacturing batteries locally, owing to the government’s thrust on e-mobility. The Government of India aims to achieve a 30% electric fleet by 2030. Also, in July 2019, the Government of India announced income tax exemptions for prospective EV buyers and reduced goods and services tax (GST) on EVs from 12% to 5%. Also, in March 2019, the Indian government approved to set up a National Mission on Transformative Mobility and Battery Storage for driving clean and sustainable mobility initiatives with a five-year phased manufacturing program (PMP) till 2024.
• Moreover, lithium-ion batteries are being considered as an attractive alternative to lead-acid batteries by EV owners in the country. Though lithium-ion batteries are expensive compared to lead-acid batteries, they have several advantages over lead-acid batteries. For instance, in a typical scenario, lead-acid batteries have a shorter lifespan and need to be replaced every year, are heavy at around 120 kilograms (kgs), and require a longer charging time of about 10 hours for an e-rickshaw application.
• According to the International Energy Agency (IEA), in 2019, China was the largest electric car market and sold more than 1.10 million electric cars. China is further expected to dominate with a 57% share of the global EV market by 2030. The adoption of EVs in the country is further being propelled by the development of charging infrastructure. According to the IEA, China aims to deploy 1,200 stations for swapping batteries and 500,000 publicly accessible chargers in order to serve 5 million EVs by 2020.
• As of October 2020, Chayora Limited announced that they had begun live operations at its first hyper-scale data center in China. The company also stated that the data centers are featuring up to 25,000 racks and accessing over 300 MVA of power available to serve the company’s hyper-scale requirements on its wider Chayora campus, thus, creating positive demand in the secondary battery market in the region.
• Therefore, based on the above-mentioned factors, Asia-Pacific is likely to dominate the secondary battery market during the forecast period.

Competitive Landscape

The secondary market is highly fragmented. Some of the major players include Contemporary Amperex Technology Co. Limited, BYD Co. Ltd, Duracell Inc., EnerSys, and Tesla, Inc.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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