The global secondary battery market size is valued at USD 94,160.00 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 10.94% from 2023 to 2030. The global Secondary Battery market is expected to gain substantial growth during the forecast period. The growth of the global market is attributed to numerous factors, including technological advancements, a surge in end-user industries, government policy-level support to promote energy storage infrastructure, and increased demand for EVs.
Global Secondary Battery Market: Regional Insights
The global secondary battery market is regionally divided into North America, Latin America, Asia Pacific, Europe, and Middle East & Africa.
Asia Pacific is expected to dominate global secondary battery market over the forecast period, owing to surge in battery manufacturing due to initiatives by governments of countries in the region towards e-mobility. For instance, the government of India is aiming to achieve 30% electric fleet by 2030. Moreover, the demand for rechargeable batteries in China is growing due to rise in adoption of new energy vehicles. These factors thus, are expected to drive growth of the market in Asia Pacific region.
North Pacific is also projected to show substantial growth in the global secondary battery market over the forecast period. This is owing to significant demand for electric vehicles in countries such as the U.S., which is the biggest market for electric vehicles. Manufacturers in this country are focusing on initiatives for catering the growing demand for EVs, such as establishment of battery and vehicle production facilities in the nation. Furthermore, the increasing growth of oil and gas sector in Canada is also expected to propel growth of the secondary battery market in the region.
Figure 1. Global Secondary Battery Market Share (%), By Region, 2022
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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 Opportunities:
Growing use of AI in research and development of batteries is expected to create multiple growth opportunities in the global secondary battery market over the forecast period. Increased battery life is one of the important advancements in batteries. These newer batteries can now last through greater number of cycles. Companies are heavily spending on research and development of batteries with longer life. The use of AI in testing of new batteries is increasing to predict the service life accurately, and reduce the required time and cost. Thus, this in turn is likely to create lucrative environment for growth opportunities in the global secondary battery market.
Rise in growth of telecommunication sector is anticipated to provide market players with several business opportunities in the global secondary battery market over the forecast period. The demand for secondary batteries will benefit from the increasing growth of telecommunication industry in developed region. For instance, Germany is the largest economy in the European Union with strong internet ecosystem. According to Coherent Market Insights, in 2019, the total telecommunications industry revenue in Germany was nearly EUR 57 billion. Thus, growth of telecommunication sector will offer lucrative opportunities in the market.
Secondary Battery Market Report Coverage
|Market Size in 2022:
|US$ 94,160 Mn
|Historical Data for:
|2017 to 2021
|2023 to 2030
|Forecast Period 2023 to 2030 CAGR:
|2030 Value Projection:
|US$ 2,16,060 Mn
TianJin Lishen Battery Joint-Stock Co. Ltd., BYD Co. Ltd., Tesla Incorporation, Contemporary Amperex Technology Co. Limited, Showa Denko K.K., Duracell Inc., Samsung SDI, EnerSys, Saft Groupe SA, GS Yuasa Corporation, Panasonic Corporation, Clarios, and LG Chem Ltd.
|Restraints & Challenges:
Global Secondary Battery Market Trends:
Renewable power is gaining traction in the market
Renewable power generation is increasingly being adopted across several regions around the world. Countries such as Germany and France used to at the forefront of deployment of renewable energy, these countries are however also depend on the net electricity exporters. Several emerging countries are also deploying renewable energy and also are net importers of electricity, as the need for electricity is increasing in these countries. Moreover, the lower grid infrastructure of these countries will create more critical demand for energy storage systems for maintaining the constant supply of electricity. Thus, this trend is likely to drive growth of the global secondary battery market over the forecast period.
Rise in demand for data processing is a growing trend
The use of internet has increased globally, along with rise in data collection and use of technologies such as IoT, and artificial intelligence. This in turn is creating strong demand for data processing. Due to this, several companies in the data center market are heavily investing in data centers, which in turn is boosting the capacity of data centers. The newer data centers offer greater processing capacities. Thus, this trend is likely to drive the demand for secondary batteries, which is expected to propel the market growth in the coming future.
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.
Figure 2. Global Secondary Battery Market Share (%), By Technology, 2022
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Global Secondary Battery Market Segmentation:
The global secondary battery market report is segmented into Technology and Application
Based on Technology, the market is segmented into Lead-acid Battery, Lithium-ion Battery, Other Technologies (NiMh, NiCD, etc.). Out of which, Lithium-ion Battery segment is expected to dominate the global market over the forecast period, owing to the emerging new markets such as energy storage systems and electric vehicles for both residential and commercial applications. The demand for Lithium-ion battery is also increasing in applications such as renewable energy. This is further expected to support growth of the segment in the near future.
Lead-acid Battery is also expected to witness significant growth in the near future and attributed to the wide range use of lead-acid batteries. There are various applications of lead-acid battery including mobility aids, boats, access platforms, sweeper trucks, and golf carts. Thus, demand for these battery is increasing, which is driving growth of the segment.
Based on Application, the market is segmented into 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.). Out of which, Automotive Batteries is expected to dominate the global market over the forecast period and this is attributed to the rise in adoption of electric vehicles in emerging and developed countries. Due to financial support from government the adoption of electric vehicles is growing globally. This further creates demand for various batteries in automotive sector, which is thus likely to drive growth of the market.
Industrial Batteries segment is also expected to witness significant growth in the near future and this is owing to the continuous growth of logistics sector creating demand for intralogistics, material handling equipment, and warehousing to run these operations. As several countries are dependent on imports and services. Thus, this is fueling demand for secondary batteries in industrial sector. Thus, the segment is likely to witness strong growth in the near future.
Global Secondary Battery Market: Key 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 December 2021 ABSLTM Lithium-ion (Li-ion) batteries were successfully integrated into the National Aeronautics and Space Administration (NASA) James Webb Space Telescope launch.
In August 2022, Contemporary Amperex Tech Co., Limited (CATL) announced it would invest 7.34 billion euros in constructing a 100 GWh battery plant in Debrecen, east Hungary. It will be the company's second battery plant in Europe after its German plant.
Global Secondary Battery Market: Key Companies Insights
The global secondary battery market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.
Some of the key players in the global secondary battery market are TianJin Lishen Battery Joint-Stock Co. Ltd., BYD Co. Ltd., Tesla Incorporation, Contemporary Amperex Technology Co. Limited, Showa Denko K.K., Duracell Inc., Samsung SDI, EnerSys, Saft Groupe SA, GS Yuasa Corporation, Panasonic Corporation, Clarios, and LG Chem Ltd.
A secondary battery is a type of rechargeable battery that can be recharged after discharge by passing a current in reverse direction. In the process of recharging, the original active materials at the electrodes are reconstituted chemically and structurally, providing new power.
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