April 15, 2024
Secondary Battery Market

Secondary Battery Market is Estimated to Witness High Growth Owing to Increasing Demand for Electric Vehicles

The global secondary battery market is expected to witness significant growth over the forecast period owing to the increasing sales of electric vehicles worldwide. Secondary batteries are widely used in a variety of electronic devices such as smartphones, laptops, and electric vehicles. Some of the key advantages of secondary batteries include high energy density, lightweight, ability to be recharged and recycled. The increasing demand for cost-effective and eco-friendly transportation has boosted the adoption of electric vehicles which is driving the growth of the secondary battery market.

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 2030.

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 key opportunities in the secondary battery market size include increasing investments by governments worldwide to promote clean energy initiatives and growing collaborations between battery manufacturers and OEMs for continuous advancements in battery technology.
Advancements in lithium-ion battery technologies such as solid-state batteries and lithium-sulfur batteries are expected to provide higher energy density and improved safety features which will drive the secondary battery market growth over the forecast period.

Market drivers
The increasing sales of electric vehicles worldwide is a major driver of the secondary battery market. According to the International Energy Agency (IEA), the global electric car stock exceeded 10 million in 2021 which further reinforced the ongoing transition from internal combustion engine vehicles to electric vehicles. Additionally, favorable government policies and subsidies to promote electric vehicles adoption across different countries are also fueling the secondary battery demand.

Current Challenges in Secondary Battery Market
The secondary battery market faces various challenges such as rising costs of raw materials, instability in prices due to economic uncertainties and technological changes, and complex manufacturing processes. Moreover, increasing awareness about environmental hazards of battery disposal and recycling is putting pressure on manufacturers to adopt greener production techniques. Strict environmental regulations around the world for battery recycling and safe disposal are adding to compliance burdens on companies. Additionally, developing economies lack organized collection and recycling infrastructure for post-use batteries, leading to improper disposal.

SWOT Analysis
Strength: Secondary batteries have high energy density and longer shelf life compared to primary batteries. They can be recharged multiple times, reducing overall cost of ownership.
Weakness: Complex manufacturing processes increase costs. Secondary batteries have limited number of charge cycles before capacity declines significantly.
Opportunity: Rising demand for EVs and portable consumer electronics is driving innovation in battery chemistries for improved performance. Governments globally are supporting R&D in advanced battery technologies.
Threats: Commoditization of chemistries increases competition. Fluctuating precious metal prices impact battery production costs. Natural disasters and geopolitical risks can disrupt raw material supply chains.

Geographical Regions with Highest Market Value
Currently, Asia Pacific accounts for the largest share of the global secondary battery market in terms of value, led by countries like China, Japan, and South Korea. This is due to the presence of a strong manufacturing base for consumer electronics and electric vehicles in these countries. North America is another major region bolstered by high demand for EVs.

Fastest Growing Regional Market
The secondary battery market is expected to grow the fastest in Europe over the forecast period, driven by supportive government policies and initiatives encouraging battery cell manufacturing and adoption of EVs. Countries like Germany, France, and the UK are seen as future hubs for battery production to cater to the domestic auto industry. Initiatives like the European Battery Alliance aim to develop a competitive battery industry and value chain in Europe.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraaged AI tools to mine informaation and compile it