The secondary battery market size is forecast to reach USD 408.30 billion by 2030, after growing at a CAGR of 22.63% during the forecast period 2024-2030. The market for secondary batteries is expanding significantly as a result of several causes, such as consumer electronics, energy storage solutions, environmental consciousness, growing demand for environmental integrity projects, and developments in battery technology. The market for secondary batteries was mostly driven by the automotive sector. The industry expanded as a result of the rising demand for electric vehicles and the increasing usage of portable electronics including laptops, tablets, smartphones, and wearables. The demand was driven by consumers' dependence on these gadgets and their ongoing need for energy storage solutions.
By Battery Type: Lithium-Ion Battery, Nickel-Metal Hydride Battery, Nickel - Cadmium Batteries, Lead-Acid Battery, Others
By End Use Industry: Automotive, Consumer Electronics, Industrial, Energy Storage Systems, Others.
By Geography: North America, South America, Europe, APAC, and RoW.
For instance, The Inflation Reduction Act (IRA) in the United States has led international electromobility companies to swiftly expand their US manufacturing plants. Major EV and battery manufacturers announced cumulative post-IRA investments of $52 billion in North American EV supply chains between August 2022 and March 2023. Of these, 50% is allocated to battery
manufacturing and around 20% to EV and battery component manufacturing.
Invest KOREA claims that by manufacturing small lithium-ion batteries, which are primarily used for mobile devices, Korea has become globally competitive in the secondary battery market. Additionally, the nation is leading the way in the development of high-nickel lithium-ion secondary battery technologies, including as NCM and NCA, which are primarily utilized in electric vehicles. The quality of its products has been acknowledged in the global market.
Production is predicted to decline because of shifts in the supply and demand for nickel and copper, as well as unpredictability in the Democratic Republic of the Congo's mining sector. Cadmium, cobalt, copper, cyanide, iron, lead, manganese, mercury, nickel, and zinc are only a few of the contaminants released throughout the battery-making process in addition to wastewater. Reducing the number of harmful compounds emitted into the environment is usually the advice given to manufacturers. For the duration of the projected period, these factors are expected to limit market growth.
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Report Coverage
The report “Secondary Battery Market - Forecast (2024-2030)”, covers an in-depth analysis of the following segments of the secondary battery market.By Battery Type: Lithium-Ion Battery, Nickel-Metal Hydride Battery, Nickel - Cadmium Batteries, Lead-Acid Battery, Others
By End Use Industry: Automotive, Consumer Electronics, Industrial, Energy Storage Systems, Others.
By Geography: North America, South America, Europe, APAC, and RoW.
Key Takeaways
- APAC held the largest market share with 35% in 2023. APAC has emerged as a key hub for the development and use of electric vehicles, especially in nations like China. Secondary battery demand has surged as a result of the region's commitment to lowering carbon emissions and enhancing air quality, which has led to large investments in the EV industry.
- In 2023, The Japanese government announced that it would provide up to $2.2 billion in subsidies to boost the manufacturing of storage batteries. The action intends to support the growth of domestic battery production capacity and improve economic supply chain security. To boost Toyota and other manufacturers, about $1 billion of the subsidies would be allocated, indicating Tokyo's commitment to increasing battery production.
- According to the International Energy Agency (IEA), Battery demand for automobiles increased by over 80% in the United States, despite electric car sales growing by only around 55% by 2022.
By Product Type - Segment Analysis
Lithium-ion batteries dominated the secondary battery market with a market share of 30% in 2023. The market for lithium-ion batteries has been experiencing substantial growth in recent years due to the increasing demand for portable electronic devices, the rising adoption of electric vehicles, and the growing need for energy storage solutions. For instance, according to Electronics Hub, lithium-ion battery use is now prevalent in more than 50% of the consumer market. and are mostly used in laptops, cell phones, cameras, and other devices. The rising demand from the electronics industry is also anticipated to drive the market growth. Additionally, in 2023, The ReCell Center will handle the $2 million in grants for the revitalization, recycling, and reuse of lithium-ion battery projects that the U.S. Department of Energy announced in 2023. The growing government support is also projected to drive the market growth.By End User - Segment Analysis
Consumer electronics dominated the secondary battery market with a market share of 32% in 2023. The key driver for the secondary battery market in consumer electronics is the increasing demand for portable electronic devices. With the rise in smartphone and tablet usage, consumers are increasingly looking for devices that offer longer battery life and faster charging capabilities. Rechargeable batteries provide the necessary power for these devices and allow users to conveniently charge their devices whenever needed. The U.S. Department of Energy (DOE) declared the ongoing existence of the Lithium-Ion Battery Recycling Prize, the establishment of a developed battery research and development, or R&D, consortium, and the allocation of more than $192 million in additional funding for the recycling of batteries from consumer goods in 2023. Moreover, the growing awareness about environmental sustainability has also led to an increased preference for rechargeable batteries. Consumers are now more inclined towards reducing waste and minimizing their carbon footprint. This has resulted in a shift towards rechargeable batteries as they can be reused multiple times, reducing the need for disposable batteries.By Geography - Segment Analysis
APAC region dominated the secondary battery market with a market share of 35% in 2023. According to China Energy Storage Alliance, China's new energy storage sector continued to grow rapidly in the first half of 2023, with 850 projects (including planned, under construction, and commissioned projects) - more than twice as many as in the same time the previous year. In January 2022, Honda Motor Co., Ltd. headquartered in Japan announced that it has entered into a cooperative development agreement in the field of lithium-metal secondary batteries with SES Holdings Pte. Ltd. ("SES"), an American EV battery research and development business with headquarters in Boston. The India Energy Storage Alliance (IESA) projects that by 2025, the country's energy storage industry will have grown to over 300 GWh. Many companies have announced intentions to establish Li-ion battery production operations in India to take advantage of the market opportunity. India is now the primary location for the assembly of lithium battery packs; however, the nation must support domestic advanced battery production.Drivers - Secondary Battery Market
- The rise in the adoption of electric vehicles is driving the market growth
For instance, The Inflation Reduction Act (IRA) in the United States has led international electromobility companies to swiftly expand their US manufacturing plants. Major EV and battery manufacturers announced cumulative post-IRA investments of $52 billion in North American EV supply chains between August 2022 and March 2023. Of these, 50% is allocated to battery
manufacturing and around 20% to EV and battery component manufacturing.
- Lithium-ion battery technology is driving the market for secondary batteries
Invest KOREA claims that by manufacturing small lithium-ion batteries, which are primarily used for mobile devices, Korea has become globally competitive in the secondary battery market. Additionally, the nation is leading the way in the development of high-nickel lithium-ion secondary battery technologies, including as NCM and NCA, which are primarily utilized in electric vehicles. The quality of its products has been acknowledged in the global market.
Challenges - Secondary Battery Market
A mismatch between raw material supply and demand could hinder market expansion
There is a growing demand for lithium-ion batteries and the minerals used in their production due to the decreasing cost of these batteries. Because of this, the price of certain minerals is rising and the supply of minerals is becoming less. An increase in investment has led to a growth in the production of electric automobiles.Production is predicted to decline because of shifts in the supply and demand for nickel and copper, as well as unpredictability in the Democratic Republic of the Congo's mining sector. Cadmium, cobalt, copper, cyanide, iron, lead, manganese, mercury, nickel, and zinc are only a few of the contaminants released throughout the battery-making process in addition to wastewater. Reducing the number of harmful compounds emitted into the environment is usually the advice given to manufacturers. For the duration of the projected period, these factors are expected to limit market growth.
Market Landscape
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the secondary battery market. in 2022, The major players in the Secondary Battery market are CATL, Clarios International, BYD, East Penn Manufacturing, LG Energy Solution, Panasonic, EnergSys, GS Yuasa Corporation, Duracell, SK Innovation Co Ltd, Samsung SDI, and others.Developments:
- In November 2023, With the goal of deploying 10GWh+ of CATL's advanced storage solutions over the next five years, Quinbrook and CATL signed a Global Framework Agreement in stationary storage, indicating both companies' commitment to advancing the energy transition by deploying the most cutting-edge storage solutions.
- In August 2023, Clarios purchased the power division of Paragon GmbH & Co. KGaA, which manufactures batteries and battery management solutions for the automotive sector. The parent business of Europe's top transportation battery brand, VARTA® Automotive, is Clarios.
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Table of Contents
1. Secondary Battery Market - Market Overview
3. Secondary Battery Market - Landscape
4. Secondary Battery Market - Startup companies Scenario Premium
5. Secondary Battery Market - Industry Market Entry Scenario Premium
6. Secondary Battery Market - Market Forces
7. Secondary Battery Market -Strategic analysis
8. Secondary Battery Market - Battery Type (Market Size - $ Million)
9. Secondary Battery Market - By End User Industry (Market Size - $ Million)
10. Secondary Battery Market - By Geography (Market Size - $ Million)
11. Secondary Battery Market - Entropy
12. Secondary Battery Market Share Analysis
14. Secondary Battery Market Company Analysis
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- CATL
- Clarios International
- BYD
- East Penn Manufacturing
- LG Energy Solution
- Panasonic
- EnerSys
- GS Yuasa Corporation
- Duracell Inc
- Samsung SDI
Methodology
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