|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
USD
39.93 Billion
|
|
CAGR
(2023-2028)
|
11.48%
|
|
Fastest
Growing Segment
|
Lithium-ion
Battery Technology
|
|
Largest
Market
|
Asia
Pacific
|
Market Overview
Global
Industrial Secondary Battery Market was valued at USD 39.93 Billion in 2022 and
is anticipated to project robust growth in the forecast period with a CAGR of 11.48%
through 2028. The global Industrial Secondary Battery market is a dynamic and
growing market, but it is also facing a number of challenges. Battery
manufacturers and governments are working to address these challenges, but it
is important to be aware of the potential impact on industry and consumers.
Key Market Drivers
Renewable
Energy Integration:
The
integration of renewable energy sources, such as solar and wind power, into the
electricity grid is another significant driver. To manage the intermittency of
renewables and ensure a stable energy supply, energy storage systems (ESS) are
required. Secondary batteries play a crucial role in ESS by storing excess
energy when supply exceeds demand and releasing it when demand surpasses
supply. This integration not only promotes the utilization of clean energy but
also enhances grid resilience and reliability, thereby driving the demand for
secondary batteries.
Consumer
Electronics and Portable Devices:
The
proliferation of consumer electronics and portable devices is a long-standing
driver of the Industrial Secondary Battery market. Smartphones, laptops,
tablets, and wearables all rely on rechargeable lithium-ion batteries, which
have become lighter, more efficient, and longer-lasting over time. Consumer
demand for longer battery life and increased device portability continues to
fuel innovation in battery technology, leading to the development of more
advanced and energy-dense batteries.
Energy
Storage for Utilities:
Secondary
batteries are increasingly used by utility companies for grid-scale energy
storage. These large-scale energy storage projects are instrumental in
stabilizing power grids, improving load management, and facilitating the
integration of renewable energy sources. As utilities strive to reduce reliance
on fossil fuels and transition to cleaner energy options, the demand for
secondary batteries in utility-scale energy storage projects continues to grow.
Government
Regulations and Incentives:
Government
policies and regulations play a pivotal role in driving the Industrial
Secondary Battery market. Many countries have implemented regulations to reduce
greenhouse gas emissions and promote the adoption of electric vehicles and
renewable energy sources. These regulations often include incentives such as
tax credits, subsidies, and emissions targets that encourage the development
and adoption of secondary batteries. Additionally, regulations regarding the
disposal and recycling of batteries have led to increased research into
sustainable battery materials and recycling technologies.
Advancements
in Battery Technology:
Continuous
advancements in battery technology are a fundamental driver of the Industrial
Secondary Battery market. Researchers and manufacturers are constantly working
to improve battery performance, energy density, safety, and cost-effectiveness.
Innovations such as solid-state batteries, which promise higher energy density
and enhanced safety, have the potential to revolutionize various industries,
including EVs and consumer electronics.
Global
Push for Energy Independence:
The
desire for energy independence and reduced reliance on fossil fuels is a global
driver that promotes the use of secondary batteries. Individuals and businesses
are investing in solar panels and other distributed energy generation systems
coupled with energy storage solutions to reduce their dependence on centralized
power grids and traditional energy sources.
Electrification
of Industrial Processes:
Industries
are increasingly electrifying their processes to reduce carbon emissions and
improve efficiency. This trend spans various sectors, including manufacturing,
agriculture, and mining. Electrification often involves the use of secondary
batteries to power electric machinery and equipment, leading to increased
demand for robust and long-lasting battery solutions.
Consumer
Awareness and Environmental Concerns:
Growing
consumer awareness of environmental issues, coupled with concerns about
pollution and climate change, has a significant influence on the Industrial
Secondary Battery market. Consumers are increasingly opting for products and
technologies that align with their values, choosing electric vehicles and
renewable energy solutions over traditional alternatives.
Supply
Chain Considerations:
The
global supply chain, particularly for critical raw materials like lithium,
cobalt, and nickel, significantly impacts the Industrial Secondary Battery
market. Geopolitical factors, mining regulations, and the availability of these
materials can affect battery production and pricing. Efforts to diversify the
supply chain and explore alternative materials are ongoing to mitigate supply
chain risks.
In
summary, the global Industrial Secondary Battery market is driven by a
confluence of factors that include the rise of electric vehicles, the
integration of renewable energy, the proliferation of consumer electronics,
utility-scale energy storage, government regulations and incentives,
technological advancements, the pursuit of energy independence, industrial
electrification, consumer awareness of environmental concerns, and supply chain
considerations. These drivers are interconnected and collectively shape the
trajectory of the Industrial Secondary Battery market, making it a dynamic and
rapidly evolving industry with profound implications for sustainability and the
global economy.
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Key Market
Challenges
Energy
Density and Capacity Limitations:
One
of the primary challenges in the Industrial Secondary Battery market is the
limitation in energy density and capacity of current battery technologies.
Despite advancements in recent years, lithium-ion batteries, which dominate the
market, still struggle to match the energy density of fossil fuels. This
limitation impacts the range and efficiency of electric vehicles (EVs) and the
duration of energy storage in grid-scale applications. Researchers are actively
working on improving energy density through innovations such as solid-state
batteries, but these technologies are not yet widely available and face their
own set of challenges.
Cycle
Life and Degradation:
Secondary
batteries degrade over time, leading to reduced capacity and performance. This
cycle life issue is especially critical in applications where batteries are
cycled frequently, such as in EVs and portable electronics. Battery degradation
not only affects the user experience but also contributes to increased costs as
batteries need to be replaced more frequently. Research into extending battery
cycle life and minimizing capacity fade is ongoing, but it remains a
significant challenge.
Safety
Concerns
Safety
is a paramount concern in the Industrial Secondary Battery market, particularly
for lithium-ion batteries. These batteries can be prone to thermal runaway,
which can lead to fires or explosions under certain conditions, including
physical damage or overheating. Ensuring the safety of battery technologies is
a constant challenge, necessitating the development of effective thermal
management systems, improved electrolytes, and advanced safety features.
Addressing these safety concerns is essential to building consumer trust and
facilitating the broader adoption of secondary batteries.
Raw
Material Availability and Price Volatility:
The
Industrial Secondary Battery industry relies heavily on critical raw materials
like lithium, cobalt, nickel, and graphite. The availability and price of these
materials can be volatile due to factors like geopolitical tensions, mining
regulations, and supply chain disruptions. As demand for batteries continues to
grow, there are concerns about potential material shortages and price spikes,
which can impact the overall cost and availability of secondary batteries.
Research into alternative materials and recycling techniques is ongoing to
mitigate these supply chain risks.
Environmental
Impact and Recycling:
While
secondary batteries are seen as a more environmentally friendly alternative to
fossil fuels, they are not without environmental challenges. Battery
production, particularly for lithium-ion batteries, can have significant
environmental impacts, including resource extraction, energy-intensive
manufacturing processes, and waste disposal concerns. Additionally, the
recycling rates for batteries are relatively low, and improper disposal can
lead to environmental contamination. The industry faces the challenge of
developing more sustainable battery materials, improving recycling methods, and
establishing a closed-loop supply chain to minimize its environmental
footprint.
Cost
and Affordability:
The
cost of secondary batteries remains a barrier to widespread adoption in various
applications. Electric vehicles, for instance, still have a higher upfront cost
compared to traditional internal combustion engine vehicles, largely due to the
cost of the battery pack. Reducing the cost of batteries is a critical
challenge, as it would make electric vehicles and renewable energy storage more
affordable and accessible to consumers. Economies of scale, technological
advancements, and innovations in manufacturing processes are all contributing
to cost reduction efforts.
Charging
Infrastructure:
In
the case of electric vehicles, the lack of a comprehensive charging
infrastructure is a significant challenge. Range anxiety, or the fear of running
out of battery power without access to charging, remains a concern for
potential EV buyers. Developing a robust and widespread charging network is
essential to the mass adoption of electric vehicles. Governments and private
companies are working to address this challenge by investing in charging
infrastructure, but it remains a work in progress.
Key Market Trends
Rise
of Lithium-ion Dominance:
The
most prominent trend in the Industrial Secondary Battery market is the
continued dominance of lithium-ion batteries. These batteries are favored for
their high energy density, long cycle life, and reliability, making them the
go-to choice for a wide range of applications, from electric vehicles to
consumer electronics and grid-scale energy storage. As lithium-ion technology
continues to improve, it reinforces its position as the industry standard.
The
significance of this trend lies in the fact that lithium-ion batteries have
become the de facto choice for energy storage, which has led to economies of
scale, reduced costs, and accelerated technological advancements. However, it
also highlights concerns about the supply of critical materials like lithium,
cobalt, and nickel, as well as the need for sustainable and safe recycling
methods.
Advancements
in Solid-State Batteries:
Solid-state
batteries are a promising technology that represents a major trend in the Industrial
Secondary Battery market. These batteries replace the liquid or gel electrolyte
in traditional lithium-ion batteries with a solid electrolyte, offering
advantages such as higher energy density, faster charging, longer cycle life,
and improved safety. Solid-state batteries have the potential to revolutionize
various industries, including electric vehicles, consumer electronics, and
renewable energy storage.
The
significance of this trend lies in the potential of solid-state batteries to
address some of the limitations of traditional lithium-ion batteries,
particularly in terms of safety and energy density. However, commercializing
solid-state batteries at scale remains a challenge, and overcoming
manufacturing and cost barriers is crucial for their widespread adoption.
Increased
Focus on Sustainability:
Sustainability
is a growing trend in the Industrial Secondary Battery market, driven by
environmental concerns and regulatory pressure. Manufacturers are increasingly
emphasizing the use of sustainable materials in battery production, as well as
improving recycling processes to reduce the environmental impact of batteries.
This trend is particularly relevant given the massive quantities of batteries
used in electric vehicles and renewable energy storage.
The
significance of this trend is twofold. First, it addresses the environmental
concerns associated with battery production and disposal, aligning with global
efforts to reduce carbon emissions. Second, it helps ensure a stable and
sustainable supply chain for critical battery materials by promoting recycling
and responsible sourcing.
Segmental Insights
Technology Insights
Among different
types of battery technologies, lithium-ion battery (LIB) is expected to
dominate the Industrial Secondary Battery market in the latter part of the
forecast period, majorly due to its favourable 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. Due to its
high energy density, the price of lithium-ion batteries decreased considerably
from USD 668/kWh in 2013 to USD 123/kWh in 2021, making it a lucrative choice
among all batteries. Lithium-ion batteries have traditionally been used in
consumer electronic devices, such as mobile phones, notebooks, and PCs.
However, they are increasingly being redesigned for use as the power source of
choice in hybrid and the complete electric vehicle (EV) range, owing to factors
such as low environmental impact, as EVs do not emit any CO2, nitrogen oxides,
or any other greenhouse gases. LIB manufacturing facilities are majorly located
in Asia-Pacific, North America, and Europe. Major market players, such as BYD
Company Limited and LG Chem Ltd, have plans to set up new manufacturing
facilities in the Asia-Pacific region, primarily in India, China, and South
Korea. Therefore, based on such factors, lithium-ion battery technology is
expected to dominate the Industrial Secondary Battery market during the
forecast period.
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Regional Insights
Asia
Pacific is expected to dominate the market during the forecast period. The Asia-Pacific battery market as a
whole is expected to grow significantly over the coming decade due to increased
electrification activities in the region. The Battery Recycling has not yet
penetrated the market on a significant level. The battery market in this region
is mainly driven by developments in the electronics manufacturing, power
generation, communication, and information industries in countries like India,
China, Japan, and South Korea. Developing countries, like India, lack a firm
grid infrastructure, which causes power cuts and blackouts frequently, mostly
in rural areas. Thus, the lack of grid infrastructure, high demand for steady
power, and the need for power backup solutions are expected to drive the demand
for industrial dual carbon batteries. Moreover, the governments of various
countries have taken initiatives to finance energy storage projects to fulfill
the energy requirements in their countries. China and a few South Asian
countries are coming up with new business models and associated financing
instruments to invest capital in battery energy storage projects. In a
short-term scenario, however, the region is likely to witness challenges from
rising prices of graphite carbon, which is a major raw material used in the
Battery Recycling manufacturing process. Rising prices of graphite carbon are
majorly a result of a sharp cut in the supply of graphite electrodes from
China. In the present scenario, the demand for graphite electrodes is
significantly higher compared to the supply.
Research on Battery Recycling technology is also underway in the region.
For instance, in April 2021, researchers at IIT Hyderabad, India, developed a
Battery Recycling that can cut the overall battery cost by as much as 20-25%,
along with being environment-friendly. Further research is underway to increase
the energy density of the battery. Therefore, based on the above-mentioned
factors, Asia-Pacific is expected to witness significant growth during the
forecast period.
Recent 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
April 2021, researchers at IIT Hyderabad, India, developed a 5V Battery
Recycling utilizing self-standing carbon fiber mats as both electrodes (cathode
and anode). This new model sets aside the requirement for toxic, costly, and
heavy transitional metals.
Key Market Players
- Umicore
- Retriev Technologies
- American Battery Technology Company
(ABTC)
- Li-Cycle
- Aqua Metals
- Battery Solutions
- Recupyl
- Gopher Resource
- Glencore Recycling
|
By Technology
|
By Region
|
|
- Lead-acid Batteries
- Lithium-ion Batteries
- Other
|
- North America
- Europe
- South America
- Middle East & Africa
- Asia Pacific
|
|
Report
Scope:
In
this report, the Global Industrial Secondary Battery Market has been segmented
into the following categories, in addition to the industry trends which have
also been detailed below:
- Global Industrial Secondary Battery
Market, By Technology:
o
Lead-acid
Batteries
o
Lithium-ion
Batteries
o Other
- Global Industrial Secondary Battery
Market, By Region:
o North America
§ United States
§ Canada
§ Mexico
o Asia-Pacific
§ China
§ India
§ Japan
§ South Korea
§ Indonesia
o Europe
§ Germany
§ United Kingdom
§ France
§ Russia
§ Spain
o South America
§ Brazil
§ Argentina
o Middle East & Africa
§ Saudi Arabia
§ South Africa
§ Egypt
§ UAE
§ Israel
Competitive
Landscape
Company
Profiles: Detailed
analysis of the major companies presents in the Global Industrial Secondary
Battery Market.
Available
Customizations:
Global
Industrial Secondary Battery Market report with the given market data, Tech Sci
Research offers customizations according to a company's specific needs. The
following customization options are available for the report:
Company
Information
- Detailed analysis and profiling of
additional market players (up to five).
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Secondary Battery Market is an upcoming report to be released soon. If you wish
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