Rechargeable Battery Market

The Global Rechargeable Battery Market is valued at USD 111.72 Billion in 2022 and is projected to reach a value of USD 183.53 Billion by 2030 at a CAGR of 6.40% over the forecast period.

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Rechargeable batteries have been the preferred choice among consumers since they save money on energy costs, reduce landfill trash, and can be charged using a common battery charger. Lithium-ion batteries are in high demand worldwide because their performance has been enhanced thanks to continual advancements in material sciences. For instance, hybrid electric vehicles have seen a growth in the use of cutting-edge lithium-air and -copper batteries. In addition, a novel type of rechargeable battery called a "flow battery" is now under development; this battery has the potential to double the power output of traditional batteries without increasing their footprint. In February 2025, renewable energy sources will account for 70% of world electricity generation.

The increasing demand for electric vehicles and other applications, such as portable medical devices, mainly drives this growth. The premium segment is expected to account for the largest share of the market during the forecast period. In 2021, more than 1.2 million electric cars were on the road worldwide, accounting for almost half of all new car sales. This number is projected to proliferate, reaching nearly 10 million by 2025. The range of electric vehicles and the time between cell phone charges could be increased with the help of this technology. The growing trend of electric vehicles is expected to increase demand for rechargeable batteries, as these vehicles need high-quality batteries that can last long. In addition, global warming and climate change awareness are also likely to increase interest in renewable energy sources, leading to increased demand for rechargeable batteries used in these systems. This growth is due to increasing government initiatives for green energy and the demand for electric vehicles. The increasing demand for electric vehicles and other consumer electronics is also supported by government initiatives such as the Mission 2020 campaign launched by the US government, which seeks to achieve a 50% reduction in emissions from transportation by 2030.

The premium segment of the rechargeable battery market is expected to grow faster than the rest due to increased demand from advanced applications such as autonomous driving and renewable energy storage. Some of the key markets that are expected to grow the fastest are China, India, and the United States. China is expected to account for the largest share of the global rechargeable battery market in 2024, owing to its large population and growing industrial base. The country has also announced ambitious plans to invest $360 billion in renewable energy by 2030 and expand its electric car fleet. India is also estimated to snowball due to its population size and rising income levels. The main factors restraining the growth of the rechargeable battery market are the high cost associated with raw materials such as lithium-ion batteries and limited production capacity. The biggest challenge facing the rechargeable battery market is the need for more awareness among consumers about its benefits and potential applications. Many people still need to become familiar with recharging batteries, and they view them as a hassle instead of an advantage. Another challenge faced by the rechargeable battery market is that many batteries are susceptible to damage if not handled properly. This can lead to problems such as leakage or fire when batteries are used in devices that require high levels of reliability, such as medical implants or drones. Another challenge faced by rechargeable battery users is that their devices typically have limited ranges due to the need for frequent charging sessions. This can be a problem if users carry their devices to use them effectively throughout the day. Opportunities in the market include the development of new chemistries for rechargeable batteries, expansion into new geographies, and an increase in the uptake of EVs.

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The rising demand for hybrid and electric vehicles is one of the key reasons for this growth. Furthermore, the increasing awareness about environmental issues is also encouraging manufacturers to develop rechargeable batteries. Some of the major players in the rechargeable battery market are Panasonic Corporation, Samsung SDI Co., Ltd., Sony Corporation, Lenovo Group Limited, and LG Chem Ltd. These companies are focusing on various segments of the market, such as portable electronics, automotive, storage and communication devices, among others. Some companies are investing in new technology platforms such as a lithium-ion polymer (LIP) and nickel-metal-hydride (NiMH). The growing demand for renewable energy sources is also fuelling the growth of the rechargeable battery market.

Top Market Trends

• Expansion of the market for rechargeable batteries in automotive applications. Increase in demand for rechargeable batteries in industrial and commercial applications.
• Increasing awareness of environmental benefits: As consumers become more aware of the environmental impact of traditional battery usage, they are beginning to prefer rechargeable batteries over non-rechargeable batteries. This is particularly evident in the consumer electronics industry, which accounts for a large share of the rechargeable battery market. The growth of hybrid and electric vehicles contributes to increased demand for rechargeable batteries.
• Advances in technology: Advances in technology, such as miniaturization, new materials, and improved cell chemistries, are helping to drive growth in the rechargeable battery market. These advances have allowed manufacturers to develop smaller, lighter batteries that can be used in a wider range of applications. Additionally, electronic engineering advancements enable manufacturers to develop smart charging systems that optimize performance and help prolong battery life.
• Growing demand from end users: End users such as automobile companies, mobile phone companies, electric utilities, and industrial enterprises are driving growth in the rechargeable battery market. These end users see advantages, including reduced energy costs, enhanced safety features, and improved product reliability when using rechargeable batteries instead of traditional ones.
• Increased demand from military applications: The increasing demand for advanced military equipment such as drones.

Market Segmentation

The global Rechargeable Battery Market is segmented based on Battery Type, Capacity, Application, and Region. Based on the Battery Type, the market is segmented into Lead-acid batteries, Li-Ion Batteries, NiMH Batteries, NiCd Batteries, and Other Battery Types. Furthermore, based on Capacity, the market is segmented into 150 - 1000 mAh, 1300 - 2700 mAh, 3000 - 4000 mAh, 4000 - 6000 mAh, 6000 - 10000 mAh, and More than 10000 mAh. Additionally, based on Application, the market is segmented into Consumer Electronics, Industrial, Automobile, Defense, and Other Applications. Likewise, based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on the Battery Type

The market for lead-acid batteries is expected to grow slower than the other rechargeable batteries due to their high upfront cost and limited replacement cycle. Li-ion batteries will exhibit the highest growth rate during the forecast period as these batteries have good performance and high energy density. NiMH and NiCd batteries are also growing in popularity due to their ability to provide longer runtime compared to lead acid batteries. NiMH batteries are expected to grow at a slower pace than other types of rechargeable batteries due to their lower energy density. NiCd batteries are projected to decline in market share during the forecast period as they are no longer manufactured commercially.

Based on Capacity

The 150-1000 mAh segment is expected to be the largest by 2022 and 2024. This segment is dominated by battery manufacturers such as Panasonic and Samsung. 1300-2700 mAh segment is expected to grow at a higher CAGR due to increasing demand for portable devices and the increasing number of electric vehicles. The 3000-4000 mAh segment is expected to grow at a higher CAGR due to increasing demand for gaming devices and drones. The 4000-6000 mAh segment is expected to grow at a higher CAGR due to increasing demand for portable all-purpose batteries, drones, and electric vehicles. The 6000 – 10000 mAH capacity market is forecast to grow significantly over the next eight years. This is owing to the increasing demand for electric vehicles and other portable electronic devices that require high power output. The 10000 mAh segment is expected to account for more than 50% of the total rechargeable battery market by 2028. This segment is witnessing an increasing demand for high-capacity batteries in portable devices owing to their increased usage across various sectors, such as automotive, medical, and industrial applications.

Based on Application

The consumer electronics segment is the largest application of rechargeable batteries and is expected to generate the highest revenue during 2021-2028. The increasing demand for electric vehicles and their associated charging infrastructure is expected to drive market growth. The industrial segment is the second-largest application of rechargeable batteries and is expected to account for a significant market share during 2021-2028. Increased investment in renewable technologies, such as wind and solar power, increases demand for rechargeable batteries across industrial applications such as smart grids and sensors. The defense segment is the third-largest application of rechargeable batteries and is projected to grow at a higher rate than the other two segments over the forecast period. This growth can be attributed to the increased adoption of drones and unmanned aerial systems (UASs), which require high-capacity batteries for long-range operations.

Based on Region

North America is estimated to account for the largest share of the global rechargeable battery market in revenue, followed by Europe. Asia Pacific is estimated to be the fastest-growing regional market, followed by Latin America. The Middle East & Africa region is projected to grow slower than other regions due to limited development opportunities and high investments in renewable energy.

Competitive Landscape

The key players in the Global Rechargeable Battery market include- East Penn Manufacturing (US), Enersysl (US), Exide Technologies (US), Johnson Control (Ireland), LG Chemicals (South Korea), SAFT Groupe SA (France), Samsung SDI (South Korea), Panasonic Corporation (Japan), Apple Inc. (US), STMicroelectronics NV (Switzerland) and others.

Recent Developments

• In June 2021, Elon Musk’s Tesla unveiled its Model, the first electric vehicle with the capacity to recharge on solar energy. The Model is designed to be more efficient and cheaper than traditional vehicles and will help reduce emissions from the automotive industry. This groundbreaking technology could significantly impact how we commute and lead to a more sustainable future for our planet.
• The Massachusetts Institute of Technology (MIT) introduced a new concept for lithium-ion batteries in January 2021. The new battery, called the "liquid metal battery,” is made of a liquid metal substance that can be recharged multiple times. This would make it much more powerful and efficient than current lithium-ion batteries.
• In September 2021, a battery storage unit with more power than a hydrogen fuel cell was introduced. This new battery storage unit can store more energy than any other battery and power cars, homes, and other devices. This new battery storage unit is a major innovation in the rechargeable battery market and will help improve energy consumption efficiency.
• Toyota has announced plans to manufacture electric cars that can be recharged through wind power. This is a major development in the rechargeable battery market, as it opens up new opportunities for renewable energy sources. The company says that its cars will have a range of 100 miles and can be recharged using traditional electricity networks or by connecting to wind turbines. Toyota says this is a response to concerns about climate change and the need to reduce carbon emissions.

Segmentation of the Global Rechargeable Battery Market