South America Consumer Battery Market - Growth, Trends, and Forecast (2018 - 2023)
Due to its better performance and decreasing price, the lithium-ion segment is registering robust growth. The price of lithium-ion batteries is usually higher than that of other batteries. Most of the major leading players in the market have been investing in research and development (R&D) activities, to reduce the prices of lithium-ion batteries. Furthermore, the countries in South America are economically emerging regions witnessing increased urbanization and industrialization activities, resulting in increased GDP growth rate. The increasing GDP growth rate in the region is expected to increase the disposable income, resulting in the increased demand for electronics goods, such as smartphones and tablets in the region. As the electronics sector is considered as the major end user of consumer batteries, the demand for consumer batteries is expected to witness increased demand in the South American region during the forecast period.
Increasing Consumer Expenditure Driving the Market
In the region, consumer expenditure is expected to increase, and when supported by increase in urbanization and earnings per household, an increase in disposable income is likely. High consumer confidence is reflected by increasing consumer expenditure, which is a positive economic indicator. Moreover, the rise in urbanization is expected to boost the demand for technically advanced devices, due to the benefits provided by the devices. The demand for technically advanced household devices or smart gadgets is expected to increase the demand of consumer batteries. Furthermore, over the forecast period, with technological advancements, the price of smart gadgets (such as smart phones, tablets, and laptops, among other technically advanced gadgets) is expected to go down, making them more accessible to the public. Consequently, it is expected to drive the growth of the regional consumer battery market.
Demand in Brazil Projected to Increase
Over the past five years, Brazil’s economic growth was significantly affected by corruption scandals. However, in the long run, with increased urbanization and a positive GDP growth rate, the domestic disposable income per household is likely to increase. Additionally, the country has witnessed an increase in urbanization. In 2016, around 85.93% of the country's population lived in urban areas, which was 85.69% in the previous year. It is projected that the urbanization activities would witness a significant growth. Urbanization, when coupled with higher disposable income, is expected to increase the demand for household gadgets, including electronics, thus boosting the demand for consumer batteries. The consumer battery market is expected to record sluggish growth over the short term, but it is likely to gain momentum in the long run.
Key Developments in the Market