The secondary battery market involves batteries that can be recharged multiple times after use through replenishment of the active materials in the battery by an external source of electric current. These batteries are a key energy storage solution for devices and equipment in various industries such as consumer electronics, automotive, industrial, and grid storage. Advantages of rechargeable batteries include lower operational cost compared to non-rechargeable ones and environmental benefits from reuse. Secondary batteries play a vital role in enabling the transition to more sustainable energy sources by efficiently storing power generated from renewable resources like solar and wind for on-demand use.
The Global Secondary Battery Market is estimated to be valued at US$ 120.19 Bn in 2024 and is expected to exhibit a CAGR of 4.4% over the forecast period from 2024 to 2031.
Key Takeaways
Key players operating in the secondary battery market are 3M, ConvaTec Inc., Coloplast Corp., Salts Healthcare, MEDLINE, Medicareplus International, Essity Medical Solutions, Cardinal Health, Smith & Nephew Plc., Safe n Simple, B Braun Medical Inc., Hollister Inc., and DermaRite Industries, LLC.
The Secondary Battery Market Growth for portable electronic devices and electric vehicles is a major factor driving the need for efficient and compact energy storage solutions. Rechargeable batteries enable the desired portability and power storage capacity for these mobile applications.
Several battery manufacturers are focusing on geographical expansion strategies to capitalize on the large available market for energy storage across developing economies striving for access to clean and reliable energy through sustainable sources and means of transportation.
Market drivers
Increasing investments in renewable energy generation globally is a key driver for secondary batteries. Grid-scale battery storage helps overcome the issues of intermittency of solar and wind power supply and efficiently integrates higher levels of these renewable sources into existing power infrastructure. This supports the energy transition to reduce dependence on fossil fuels.
The geopolitical situation is impacting the growth of the secondary battery market in several ways. Major power outages, supply chain disruptions and sanctions imposed due to ongoing geopolitical conflicts have disrupted production and decreased demand for batteries in affected regions. Manufacturers are facing higher input costs and delays in procurement of raw materials due to sanctions and trade restrictions. This has constrained their production capacities and ability to meet the growing demand for batteries globally. Furthermore, economic uncertainties arising from political instability have reduced disposable incomes and demand for battery-operated consumer devices in some key markets.
To ensure long term sustainable growth, battery manufacturers will need to diversify their sourcing networks and develop alternate supply chains that are less dependent on politically volatile regions. They also need to explore local sourcing and manufacturing opportunities in new emerging markets to reduce risks from geopolitical disruptions. Adopting flexible production models and building strategic inventories of critical raw materials can help companies better manage uncertainties arising from future political risks. Battery makers also need to focus on newer applications and technologies to drive demand, such as energy storage for renewable energy integration and development of electric vehicles.
In terms of value, the secondary battery market is currently concentrated in Asia Pacific, North America and Europe. Within Asia Pacific, countries like China, Japan, South Korea and India account for a major share of the global battery demand and production. This is due to the large consumer electronics and automotive manufacturing industries in these countries. However, the market is growing most rapidly in Central and Eastern Europe, the Middle East & Africa region. Countries in these regions are witnessing higher adoption of technologies like electric vehicles and energy storage systems, driving strong demand for batteries used in such applications.
The secondary battery market is growing fastest in the Central and Eastern Europe region. Countries like Poland, Czech Republic, Hungary and Romania are experiencing substantial economic growth which has increased the disposable incomes and spending on consumer electronics and electric vehicles. Since many global battery manufacturers have established production facilities here to cater to the European market, the easy availability of batteries is also supporting the market growth. The widespread deployment of renewable energy projects is further propelling the demand for energy storage solutions in this region.
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