South America Consumer Battery Market - Growth, Trends, and Forecast (2019 - 2024)
The South America consumer battery market is expected to grow at a CAGR of approximately 5.81% during the forecast period of 2019 – 2024. The major factors driving the market studied are improving economic conditions in the region and the declining lithium-ion battery prices. However, the huge tax imposed on telecommunication in Canada and no major investment in the telecommunication sector in the region is likely to restrain the market, since telecommunication is the largest end-user consumer for the market.
Lithium battery dominated the market in 2018 and is expected to be the dominant segment during the forecast period. Moreover, the technological advancement leading to a decline in the price making it more affordable to the consumer and owing to this factor, it is expected to remain the dominant sector during the forecast period.
Moreover, the huge Lithium reserves present in the region is likely to act as an opportunity to increase the domestic production in the near future.
Key Market Trends
Increasing Demand for Lithium-ion Batteries
Advancements in technology and mass production or economies of scale have led to the fall in lithium-ion battery prices. Furthermore, it is forecasted that the lithium-ion batteries prices would keep decreasing, during the forecast period. The sale of consumer electronics, which use lithium-ion battery, has been increasing hand-in-hand with the region's economic growth, positively impacting the consumer battery market.
Due to its high electrode potential, high charge, and power-to-weight ratio, lithium is among the critical components for battery electrolytes and electrodes. Additionally, Lithium-ion batteries are rechargeable and have a high energy density. The demand for this type of batteries has been driven primarily by proliferation of personal technology products, including smartphones, tablets, and laptops.
Moreover, countries in South America are emerging, owing to economic growth and social development during the past ten years. The GDP growth rate in the region is expected to increase at a moderate pace during the forecast period, and when supported by the expected increase in demand of electronic devices due to increasing population, the consumer battery demand is also expected to go up.
Argentina, Chile and Bolivia - Future Global Lithium Hotspot
Lithium is one of the most abundant resources in South America. South America accounts for roughly 55 – 60 % of the global lithium resources. As of 2017, identified lithium resources in Argentina was 9.8 million metric ton, 9 million metric ton in Bolivia and 8.4 million metric ton in Chile. On account of this, South American countries, like Argentina and Chile, are taking efforts to promote and invite countries across the globe to mine these vast resources, to serve the increasing demand for lithium-ion based batteries. For instance, in March of 2018, Argentina approached the Indian government and companies to invest in lithium mines in the South American nation.
On the other hand, Brazil, Argentina, Chile, Colombia, and Peru are a few major countries that are net importers of primary lithium batteries. On average, in 2016, countries in these regions imported 14 times the exported value of primary lithium ion batteries. Hence, overall, the region faces a trade deficit, and the trade balance can be achieved by increasing the domestic production of lithium-ion batteries.
With huge lithium resources, countries in this region may become a new hotspot for lithium-ion battery manufacturing, as making batteries here may prove more profitable than manufacturing it anywhere else in the world. Hence, with a rapid rise in demand for consumer batteries in the region and also across the globe, domestic and foreign companies have a tremendous opportunity for lithium-ion based battery manufacturing in South America.
The South America Consumer Battery Market is fragmented. Some of the major companies include Duracell Inc., BYD Co Ltd, Samsung SDI Co. Ltd, LG Chem Ltd, and Panasonic Corporation
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