The secondary battery market comprises rechargeable batteries that are designed for reuse. These batteries are commonly used in electric vehicles, battery backup systems, industrial applications, and consumer electronics. Secondary batteries provide advantages such as reusability, high charge retention, and longer service life as compared to primary batteries. The growing adoption of electric vehicles worldwide due to stringent emission norms is fueling the demand for lithium-ion batteries, which is the dominant type of secondary battery used in EVs. Additionally, increasing sales of smartphones, laptops, power tools, and other portable consumer electronic devices are driving the uptake of secondary batteries globally.
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 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 growing adoption of electric vehicles worldwide is generating significant opportunities for secondary battery manufacturers to expand their production capacities and cater to the increasing demand from the automotive industry. Manufacturers are focusing on developing low-cost and high-performance lithium-ion batteries through continuous R&D investments.
Global expansion of the Secondary Battery Market Size is supported by the growing electronics industry in developing regions of Asia Pacific and Latin America. Countries such as China, India, Brazil, and Mexico are witnessing rapid urbanization which is propelling the sales of consumer electronics. This is encouraging secondary battery manufacturers to set up production facilities in these markets to cater to the regional demand.
Market drivers
Stringent government regulations on vehicle emissions are encouraging automobile manufacturers to shift toward electric vehicles. This is positively impacting the sales of lithium-ion batteries used in electric vehicles. Governments of various countries are offering attractive subsidies on electric vehicles to accelerate their adoption and meet environmental targets, which is anticipated to drive the demand for secondary batteries over the forecast period.
PEST Analysis
Political: Regulations around battery disposal and recycling are becoming stricter in many countries to reduce environmental impact. Some governments provide subsidies to promote usage of secondary batteries in electric vehicles.
Economic: Slower global economic growth in some regions can negatively impact sales of consumer electronics where secondary batteries are used. However, demand from industrial sectors using electric vehicles remains relatively stable.
Social: Rising environmental consciousness is increasing preference for sustainable and recyclable battery technologies. Social media trends also influence consumer purchasing of newer portable electronic devices that require secondary batteries.
Technological: Continuous R&D is allowing higher battery capacities and lifespans through new chemistries and materials. Manufacturers focus on thinness, safety, and fast charging capabilities to meet consumer needs.
Geographical regions with high concentration
The Asia Pacific region accounts for the largest share of the global secondary battery market in terms of value. Countries such as China, Japan, South Korea are major manufacturing hubs for consumer electronics, electric vehicles and industrial applications – key end-users of secondary batteries. North America and Europe also have sizable markets driven by developed electronics and automotive industries.
Fastest growing region
The secondary battery market is expected to witness the highest growth in the Asia Pacific region during the forecast period. This is attributed to rising living standards, disposable incomes, and sales of consumer electronics. The region is also a key market for electric vehicles where demand for advanced batteries continues to increase strongly, supported by government initiatives and investments in developing charging infrastructure.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
