Secondary Battery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
The global secondary battery market was valued at USD 87.82 billion in 2019 and is anticipated to reach USD 174.25 billion by 2026, registering a CAGR of 15.76% during 2021-2026. The outbreak of COVID-19 is expected to hamper the market's growth in the short term due to global economic slowdown and drop in sales of consumer electronics, the market is expected to revive with the widespread availability of a vaccine and opening up of trades and markets across the globe. The market is expected to revive after 2021. Declining lithium-ion battery prices, increasing adoption of electric vehicles are the major factors driving the market during the forecast period. On the other hand, the demand-supply mismatch of raw materials is likely to hinder the market growth.
Lithium-ion Battery Segment to Dominate the Market
- Among different types of battery technology, lithium-ion battery (LIB) is expected to dominate the global battery market in the later part of the forecast period, majorly due to its favorable capacity-to-weight ratio. Also, other factors that play an important role in boosting the LIB adoption include better performance, higher energy density, and decreasing price.
- The price of LIB is usually high as compared to the other batteries. Also, leading players in the market have been investing in order to gain economies of scale, and in R&D activities, to improve LIB's performance and price.
- Asia-Pacific has multiple growing economies with substantial natural as well as human resources, with China and India expected to be major investment hotspots for secondary battery companies in coming years, on account of policy-level support, from the governments for both renewables and Evs, and a growing middle-class population creating demand for consumer electronics.
- India has been witnessing a surge in manufacturing batteries locally, owing to the government’s thrust on e-mobility. The Government of India aims to achieve 30% electric fleet by 2030. Also, in July 2019, the Government of India announced income tax exemptions for prospective EV buyers and reduced goods and services tax (GST) on EVs from 12% to 5%. Also, in March 2019, the Indian government approved to set up a National Mission on Transformative Mobility and Battery Storage for driving clean and sustainable mobility initiatives with a five-year phased manufacturing program (PMP) till 2024.
The global secondary market is higly fragmented. Some of the major players include Contemporary Amperex Technology Co. Limited, BYD Co. Ltd, Duracell Inc., EnerSys, and Tesla, Inc.
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