|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
USD
98.18 Billion
|
|
CAGR
(2023-2028)
|
16.33%
|
|
Fastest
Growing Segment
|
Lithium-ion
Battery Technology
|
|
Largest
Market
|
Asia
Pacific
|
Market Overview
Global
Secondary Battery Market has valued at USD 98.18 Billion in 2022 and is
anticipated to project robust growth in the forecast period with a CAGR of 16.33%
through 2028. The global 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
Rising
Demand for Electric Vehicles (EVs):
The
surge in the adoption of electric vehicles (EVs) is a prominent driver of the
secondary battery market. As the world shifts towards cleaner and more
sustainable transportation solutions to mitigate the impact of climate change,
lithium-ion batteries have emerged as the primary energy storage solution for
EVs. Lithium-ion batteries offer the high energy density, longer cycle life,
and fast charging capabilities necessary for electric vehicles. The growth of
the EV market directly fuels the demand for secondary batteries, driving
technological advancements and economies of scale, which, in turn, reduce costs
and make batteries more accessible to consumers.
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 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 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 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 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 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 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
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 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 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
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 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
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 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
Lithium-ion
Battery Technology Insights
Among different
types of battery technologies, lithium-ion battery (LIB) is expected to
dominate the 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 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
- Retech Recycling Technology AB.
|
By Technology
|
By
Application
|
By
Region
|
|
- Lead-acid
Batteries
- Lithium-ion
Batteries
- Other
Technologies NiMh
- NiCD
|
HEV PHEV EV Motive Stationary (Telecom, UPS Energy Storage Systems (ESS) Others Consumer Electronics Others
|
- North
America
- Europe
- South America
- Middle
East & Africa
- Asia
Pacific
|
|
Report
Scope:
In
this report, the Global Secondary Battery Market has been segmented into the following
categories, in addition to the industry trends which have also been detailed
below:
- Global Secondary Battery Market, By Technology:
o
Lead-acid
Batteries
o
Lithium-ion
Batteries
o
Others
- Global
Secondary Battery Market, By Application:
o Automotive Batteries
§ HEV
§ PHEV
§ EV
o Industrial Batteries
§ Motive
§ Stationary (Telecom, UPS, Energy Storage
Systems (ESS), Others)
o Portable Batteries
§ Consumer Electronics
§ Others
- Global 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 present in the Global Secondary Battery Market.
Available
Customizations:
Global
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).
Global Secondary
Battery Market is an upcoming report to be released soon. If you wish an early
delivery of this report or want to confirm the date of release, please contact
us at [email protected]