| Forecast Period | 2024-2028 |
| Market Size (2022) | USD 35.11 Billion |
| CAGR (2023-2028) | 15.21% |
| Fastest Growing Segment | Lithium-ion Battery Technology |
| Largest Market | Asia Pacific |
Market Overview
Global Portable Secondary Battery Market has valued at USD 35.11 Billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of through 2028.
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The global portable secondary battery market is dynamic and growing, but it is also facing a number of challenges. Battery manufacturers and governments are working to address these challenges, but it is important to be aware of the potential impact on industry and consumers.
Key Market Drivers
Rising Demand for Electric Vehicles (EVs)
One of the main factors propelling the portable secondary battery market is the increase in the use of electric vehicles (EVs). Lithium-ion batteries have become the main energy storage option for EVs as the globe moves toward greener and more sustainable transportation options to lessen the effects of climate change. The high energy density, extended cycle life, and quick charging capabilities required for electric cars are provided by lithium-ion batteries. The need for secondary batteries is directly fueled by the expansion of the EV market, which also spurs economies of scale and technological improvements that lower costs and increase consumer access to batteries..
Renewable Energy Integration
Another important factor is the incorporation of renewable energy sources, including wind and solar, into the electrical system. Energy storage systems (ESS) are necessary to control the intermittent nature of renewable energy sources and provide a steady supply of electricity. Because they may store excess energy when supply exceeds demand and release it when demand exceeds supply, secondary batteries are essential to ESS. The demand for secondary batteries is increased by this integration, which also encourages the use of sustainable energy and improves grid resilience and reliability.
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Consumer Electronics and Portable Devices
The market for portable secondary batteries has historically been driven by the growth of consumer electronics and portable gadgets. Rechargeable lithium-ion batteries, which are used in wearables, computers, tablets, and smartphones, have been lighter, more effective, and more durable over time. More sophisticated and energy-dense batteries are being developed as a result of consumer demand for longer battery life and greater gadget portability, which is driving innovation in battery technology.
Energy Storage for Utilities
Utility firms are using secondary batteries more and more for grid-scale energy storage. Power grid stabilization, load control, and the integration of renewable energy sources are all made possible by these massive energy storage projects. Secondary batteries are becoming more and more necessary in utility-scale energy storage projects as utilities work to lessen their dependency on fossil fuels and switch to renewable energy sources.
Government Regulations and Incentives
The market for portable secondary batteries is largely driven by laws and regulations. Many nations have put laws into place to lower greenhouse gas emissions and encourage the use of renewable energy sources and electric cars. Incentives like tax credits, subsidies, and emissions objectives are frequently included in these rules to promote the creation and use of secondary batteries. Regulations pertaining to battery recycling and disposal have also prompted more study into environmentally friendly battery materials and recycling techniques.
Advancements in Battery Technology
One of the main factors propelling the market for portable secondary batteries is the ongoing development of battery technology. Manufacturers and researchers are always trying to increase the energy density, cost-effectiveness, safety, and performance of batteries. Technologies like solid-state batteries, which offer increased safety and energy density, have the potential to completely transform a number of sectors, including consumer electronics and electric vehicles.
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Global Push for Energy Independence
One major factor encouraging the usage of secondary batteries is the goal for energy independence and a decreased dependency on fossil fuels. To lessen their reliance on traditional energy sources and centralized power grids, people and companies are investing in energy storage devices in conjunction with solar panels and other distributed energy producing technologies.
Electrification of Portable Processes
In an effort to increase efficiency and lower carbon emissions, industries are electrifying their operations more and more. Mining, agriculture, and manufacturing are just a few of the industries affected by this trend. Electric machinery and equipment frequently use secondary batteries for electrification, necessitating the need for durable and long-lasting battery solutions.
Consumer Awareness and Environmental Concerns
The market for portable secondary batteries is greatly impacted by rising consumer awareness of environmental issues as well as worries about pollution and climate change. Customers are increasingly preferring technology and goods that reflect their beliefs, such as renewable energy sources and electric cars, over more conventional options.
Supply Chain Considerations
The market for portable secondary batteries is greatly impacted by the global supply chain, especially for vital raw materials like nickel, cobalt, and lithium. The availability of these materials, mining laws, and geopolitical considerations can all have an impact on battery manufacturing and cost. To reduce supply chain risks, efforts are being made to diversify the chain and investigate substitute materials.
In conclusion, a number of factors, such as the growth of electric vehicles, the incorporation of renewable energy, the proliferation of consumer electronics, utility-scale energy storage, government incentives and regulations, technological advancements, the desire for energy independence, portable electrification, consumer awareness of environmental issues, and supply chain considerations, are driving the global market for portable secondary batteries. These factors work together to influence the market for portable secondary batteries, which is a dynamic and quickly changing sector with significant effects on sustainability and the world economy.
Key Market Challenges
Energy Density and Capacity Limitations
The energy density and capacity limitations of current battery technologies are one of the main issues facing the portable secondary battery business. Even with recent improvements, the market-dominant lithium-ion batteries are still unable to match fossil fuels' energy density. In grid-scale applications, this constraint affects the duration of energy storage as well as the efficiency and range of electric vehicles (EVs). Solid-state batteries are one of the advances that researchers are actively attempting to improve energy density through, but these technologies are not yet commercially available and come with their own set of difficulties.
Cycle Life and Degradation
Over time, secondary batteries deteriorate, losing capacity and functionality. In devices like EVs and portable electronics, where batteries are regularly cycled, this cycle life issue is particularly important. In addition to impairing user experience, battery degradation raises expenses because it necessitates more frequent battery replacements. Although research into reducing capacity fade and increasing battery cycle life is still ongoing, it is still quite difficult.
Safety Concerns
In the market for portable secondary batteries, safety is of utmost importance, especially for lithium-ion batteries. Under some circumstances, such as physical harm or overheating, these batteries may be vulnerable to thermal runaway, which can result in fires or explosions. It is always difficult to ensure the safety of battery technologies, which calls for the creation of sophisticated safety measures, better electrolytes, and efficient thermal management systems. Resolving these safety issues is crucial to gaining the confidence of customers and promoting the wider use of secondary batteries.
Raw Material Availability and Price Volatility
Lithium, cobalt, nickel, and graphite are vital raw materials used in the production of portable secondary batteries. Because of things like supply chain disruptions, mining laws, and geopolitical tensions, the price and availability of these minerals might fluctuate. The overall cost and availability of secondary batteries may be impacted by possible material shortages and price increases as the demand for batteries keeps rising. To reduce these supply chain concerns, research into substitute materials and recycling methods is still going on.
Environmental Impact and Recycling
Although secondary batteries are thought to be a greener option than fossil fuels, there are still some environmental issues with them. Resource extraction, energy-intensive manufacturing procedures, and waste disposal issues are only a few of the major environmental effects that battery production, especially for lithium-ion batteries, can have. Furthermore, batteries have comparatively low recycling rates, and incorrect disposal can contaminate the environment. To reduce its environmental impact, the industry must create a closed-loop supply chain, enhance recycling techniques, and create more environmentally friendly battery materials.
Cost and Affordability
Secondary batteries are still expensive, which prevents their broad use in many applications. For example, the initial cost of electric vehicles is still higher than that of conventional cars with internal combustion engines, primarily because of the battery pack. Battery cost reduction is a crucial issue since it would increase consumer access to the affordability of renewable energy storage and electric vehicles. Cost-cutting initiatives are being aided by advances in production techniques, economies of scale, and technology breakthroughs.
Charging Infrastructure
One major issue with electric vehicles is the absence of a comprehensive charging infrastructure. Potential EV purchasers are still concerned about range anxiety, or the dread of running out of battery power without access to charging. For electric vehicles to be widely used, a strong and extensive charging network must be established. Although it is still a work in progress, governments and private businesses are investing in charging infrastructure in an effort to alleviate this issue.
Key Market Trends
Rise of Lithium-ion Dominance
The ongoing domination of lithium-ion batteries is the most noticeable trend in the market for portable secondary batteries. These batteries are the preferred option for a variety of applications, including consumer electronics, grid-scale energy storage, and electric cars, because to their high energy density, extended cycle life, and dependability. Lithium-ion technology solidifies its standing as the industry standard as it keeps getting better.
This development is significant because lithium-ion batteries are now the standard option for energy storage, which has sped up scientific advancements, decreased costs, and created economies of scale. But it also draws attention to issues with the availability of vital components like nickel, cobalt, and lithium as well as the requirement for secure and sustainable recycling techniques.
Advancements in Solid-State Batteries
In the market for portable secondary batteries, solid-state batteries are a significant trend and a promising technology. These batteries offer benefits like increased energy density, quicker charging, longer cycle life, and enhanced safety by substituting a solid electrolyte for the liquid or gel electrolyte used in conventional lithium-ion batteries. Consumer electronics, renewable energy storage, and electric cars are just a few of the industries that solid-state batteries have the potential to completely transform.
This trend is significant because solid-state batteries have the potential to overcome some of the drawbacks of conventional lithium-ion batteries, especially with regard to energy density and safety. Solid-state battery commercialization at scale is still difficult, though, and removing financial and production obstacles is essential to their broad use.
Increased Focus on Sustainability
The market for portable secondary batteries is seeing a rise in sustainability due to regulatory pressure and environmental concerns. In an effort to lessen batteries' negative environmental effects, manufacturers are placing more emphasis on using sustainable materials in battery manufacturing and enhancing recycling procedures. Given the enormous amounts of batteries used in renewable energy storage and electric vehicles, this trend is especially pertinent.
This pattern is significant for two reasons. It first tackles the environmental issues around the manufacture and disposal of batteries, supporting international initiatives to lower carbon emissions. Second, by encouraging recycling and ethical sourcing, it contributes to a steady and sustainable supply chain for vital battery components.
Segmental Insights
Technology Insights
Because of its advantageous capacity-to-weight ratio, lithium-ion batteries (LIB) are anticipated to lead the portable secondary battery market in the latter half of the forecast period among other battery technologies. Better performance, increased energy density, and falling costs are further aspects that significantly contribute to the use of LIBs. The cost of lithium-ion batteries dropped significantly from USD 668/kWh in 2013 to USD 123/kWh in 2021 due to its high energy density, making it a profitable option among all batteries. Historically, consumer electronics like PCs, laptops, and cell phones have used lithium-ion batteries. However, because to features including their low environmental impact—EVs don't generate any CO2, nitrogen oxides, or other greenhouse gases—they are increasingly being adapted for use as the preferred power source in hybrid and fully electric vehicle (EV) ranges. The majority of LIB manufacturing plants are found in North America, Europe, and Asia-Pacific. Prominent industry participants, including BYD Company Limited and LG Chem Ltd, intend to establish new production plants in the Asia-Pacific area, mainly in China, South Korea, and India. Lithium-ion battery technology is therefore anticipated to dominate the portable secondary battery market over the course of the forecast period based on such considerations.
Regional Insights
Over the course of the forecast period, Asia Pacific is anticipated to dominate the market. Because of the region's rising electrification efforts, the Asia-Pacific battery industry as a whole is anticipated to expand dramatically over the next ten years. Battery recycling has not yet made a substantial impact on the market. Developments in the electronics manufacturing, power generation, communication, and information sectors in nations like China, Japan, South Korea, and India are the primary drivers of the battery market in this region. Due to their weak grid infrastructure, developing nations like India frequently experience power outages and blackouts, primarily in rural areas. Therefore, it is anticipated that the market for portable dual carbon batteries would be driven by the absence of grid infrastructure, the high demand for consistent power, and the requirement for power backup solutions. In order to meet their nations' energy needs, the governments of several nations have also taken steps to fund energy storage projects. In order to invest funds in battery energy storage projects, China and several South Asian nations are developing new business models and related finance tools. However, in the near future, the region is probably going to face difficulties due to the growing cost of graphite carbon, a significant raw material required in the production of batteries for recycling. The primary cause of the steep decline in the supply of graphite electrodes from China is the rising cost of graphite carbon. In the current situation, there is a much greater demand for graphite electrodes than there is supply. In the area, research is also being done on battery recycling technology. For example, in April 2021, scientists from IIT Hyderabad, India, created a battery recycling system that is both environmentally benign and can reduce the total cost of batteries by as much as 20–25%. To improve the battery's energy density, more research is being done. Asia-Pacific is therefore anticipated to experience substantial growth throughout the projection period based on the aforementioned considerations.
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Recent Developments
- In December 2021, Reliance New Energy Solar Limited entered an agreement with Faradion to acquire 100% of the equity shares for a total value of USD 117 million. Faradion is a UK-based leading battery technology company with an extensive IP portfolio covering many aspects of sodium-ion technology.
- In December 2021, Northvolt produced its first lithium-ion battery cell at its factory in Skelleftea, Sweden. The facility is expected to have a yearly output of 60 GWh, which is enough to supply batteries for around 1 million EVs. It had planned to begin commercial delivery in 2022.
- In April 2021, researchers at IIT Hyderabad, India, developed a 5V Battery Recycling utilizing self-standing carbon fiber mats as both electrodes (cathode and anode). This new model sets aside the requirement for toxic, costly, and heavy transitional metals.
Key Market Players
- Umicore
- Retriev Technologies
- American Battery Technology Company (ABTC)
- Li-Cycle
- Aqua Metals
- Battery Solutions
- Recupyl
- Gopher Resource
- Glencore Recycling
- Retech Recycling Technology AB.
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