Secondary Battery Market, By Technology (Lead-acid Battery, Lithium-ion Battery, Other Technologies (NiMh, NiCD, etc.)), By Application (Automotive Batteries (HEV, PHEV, and EV), Industrial Batteries (Motive, Stationary (Telecom, UPS, Energy Storage Systems (ESS), etc.), Portable Batteries (Consumer Electronics, etc.), and Other Applications (Power Tools Batteries, SLI Batteries, etc.)), By Region (North America, Latin America, Europe, Asia Pacific, and Middle East & Africa) -

Published In : Feb 2023

Code : CMI5556

Pages :163

Formats :

Excel and PDF

Industry : Semiconductors

Market Challenges And Opportunities

Global Secondary Battery Market Drivers:

Declining cost of lithium-ion battery to boost the market growth

Over the past ten years, the cost of lithium-ion batteries has declined significantly. In 2020, there was a 12.73% decline in the price of lithium-ion battery, compared to the previous year. This was mainly due to the constant enhancement in the performance of battery that is achieved through sustained research and development, and growing production volume, specifically in China. This is helping to achieve the economies of scale in manufacturing of lithium-ion battery. Moreover, the competition among manufacturers has increased due to addition of large capacity, which has led to reduction in the prices of these batteries. Thus, this factor is anticipated to push growth of the global secondary battery market over the forecast period.

Rise in adoption of Electric Vehicles to augment the market growth

Consumer electronics sector has been a major consumer of lithium-ion batteries. However, in recent years, manufacturers of electric vehicles have become the biggest lithium-ion battery consumers due to rise in sales of these vehicles. The use of EVs helps reduce CO2, NOX, emission or any other type of greenhouse gases. Thus, the environmental impact of these vehicles compared to traditional vehicles is lower. Due to such advantages of electric vehicles, various governments across of the world are promoting adoption of EVs. This in turn is anticipated to fuel growth of the global secondary battery market over the forecast period.

Global Secondary Battery Market Restraints:

Mismatch demand and supply of raw materials to impede the market growth

The cost of lithium-ion batteries is declined, which further is creating strong demand for these batteries and minerals needed for manufacturing them. As a result cost of these minerals is growing and also creating shortage of the mineral supply. The manufacturing of electric vehicles has increased due to rise in investment. Due to this the consumer electronics segment is in competition with the EV industry for Li-on batteries. Thus, this mismatched supply and demand along with rising cost of these raw materials is expected to restrain growth of the global secondary battery market over the forecast period.

Stringent government regulations to hamper growth of the market

Stringent government regulations for manufacturing of secondary battery is limiting growth of the market, as the process of manufacturing batteries generates wastewater and emits pollutants such as cobalt, cadmium, cyanide, copper, lead, iron, nickel, manganese, zinc, and mercury. The battery manufacturers are advised usually to reduce the number of hazardous substance put out into the environment. These regulations thus complicate the process of manufacturing batteries, which further hinders the market growth. However, with growing awareness regarding the environmental impact of battery manufacturing, market players are seeking solutions and are abiding by the regulations, which is likely to support the market growth.