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The secondary battery market size is forecast to increase by USD 91.79 billion at a CAGR of 13.7% between 2023 and 2028. The report includes historic market data from 2018-2022. The market is experiencing increasing demand for the development of advanced lead-based secondary batteries, revisions in secondary battery standards, and a rise in the number of microgrid installations. These trends indicate a shift towards more efficient and sustainable energy storage solutions, reflecting evolving standards and technological advancements in the industry. With a focus on innovation and reliability, the market anticipates continued growth opportunities driven by the adoption of advanced battery technologies and renewable energy integration.
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Growing number of microgrid installations is the primary trend shaping the market. Aging grid infrastructure and disparities in power demand and supply pose challenges to electrical grids, leading to frequent outages. Microgrids, comprising small-scale power generation units and energy storage components, offer a solution. They operate independently or in conjunction with the main grid, providing reliable power in areas with unreliable grid supply.
Further, leveraging renewable sources like solar and wind, microgrids ensure continuous power supply, critical for commercial and industrial sectors. Governments endorse microgrid adoption for their resilience during natural disasters. As microgrid installations increase, so does the demand for battery-based energy storage systems, driving growth of the market during the forecast period.
The market is witnessing a dynamic landscape with diverse battery chemistries like nickel metal hybrid (NiMH) batteries and LIB (lithium-ion battery) dominating. With a focus on capacity-to-weight ratio, these batteries power various consumer electronic devices, including mobile phones, notebooks, and PCs. The demand for nickel and copper continues to rise, driving innovation in battery technologies to meet the growing energy needs of modern society.
Lead-acid batteries, renowned for their affordability and widespread availability, serve automotive and stationary applications due to their mature technology. Flooded lead-acid (FLA), enhanced flooded (EFB), absorbent glass mat (AGM), and lead-carbon batteries are prominent variants. FLA batteries offer the lowest cost per ampere-hour, while EFBs enhance performance with carbon additives, suitable for start/stop applications.
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Moreover, AGM batteries offer superior durability and cold-start capabilities, favored in premium vehicles. Lead-carbon batteries excel in long cycle life and are ideal for energy storage in electric grids. With the automotive industry's steady growth and increasing EV adoption, the demand for lead-acid batteries in automotive and UPS applications is set to rise, driving growth in the lead-acid segment of the market during the forecast period.
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APAC is estimated to contribute 45% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. APAC's market is poised for rapid growth, driven by the surge in ICE vehicles, EV adoption, and utility and motive applications' demand for ESSs. Robust economic development in countries like India, China, and Japan will bolster consumer spending, particularly in the automotive and e-commerce sectors, amplifying demand.
Furthermore, government initiatives in China and Japan prioritize EV deployment, fostering market expansion. Notably, India's USD 1.6 billion Tata Group deal signifies efforts to localize battery production, aligning with EV adoption goals. Additionally, Japan's EV and ESS popularity propels the market. Renewable energy integration further augments regional market growth, supported by governmental policies during the forecast period.
The market is experiencing a surge due to the rising demand for lithium-ion batteries driven by the rapid adoption of EVs (Electric Vehicles) and energy storage systems (ESS). With advancements in AI (Artificial Intelligence) and IoT (Internet of Things), the telecommunication sector is also fueling growth. As the focus shifts towards renewable power generation from wind, solar, hydro sources, there's a heightened need for minerals like cadmium, cobalt, copper, cyanide, iron, lead, manganese, mercury, nickel, zinc. Companies like InoBat are innovating to meet the demand while managing challenges such as lithium-ion battery prices and sourcing sustainable materials. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
Technological advancements is the key factor driving the market. Technological advancements in lithium-ion battery chemistry, such as the development of high-nickel cathodes, silicon anodes, and solid-state electrolytes, are leading to improvements in energy density, charging speed, and cycle life. These innovations are driving the adoption of lithium-ion batteries in electric vehicles, consumer electronics, and energy storage systems. Solid-state electrolytes eliminate the risk of thermal runaway and improve battery longevity, making them attractive for automotive, aerospace, and consumer electronics applications.
Additionally, innovations in electrode materials such as high-capacity silicon anodes, sulfur cathodes, and composite materials, are improving battery performance and energy density. Advanced electrode materials offer higher specific capacities, faster-charging rates, and longer cycle life compared to traditional materials, driving efficiency and cost-effectiveness in secondary battery applications. Therefore, technological advancements will boost the growth of the market during the forecast period.
Operational and environmental issues are the major challenges that affect market expansion. Lead-acid batteries hold a cost gain over other battery technologies and, as a result, are desired in a number of applications. However, they are heavier and less durable than substitute batteries such as lithium-ion or nickel batteries. The life expectancy of lead-acid batteries under continuous charge depends on multiple factors such as charging frequency, charging voltage, and depth of discharge, as high temperature reduces the life span. Additionally, the growth of the automotive and other related industries has increased the demand for lead-acid batteries, which are used as a power source.
However, they contain high levels of toxic lead oxide, a hazardous material that poses risks to the environment and human health. Therefore, the increased production has resulted in the emission of lead, often mixed with discharged fumes from manufacturing plants, causing air pollution and health issues. Thus, the disadvantages of lead-acid batteries will restrict their demand across the globe. This, in turn, will hamper the growth of the market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market report also includes detailed analyses of the competitive landscape of the market and information about 25 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market growth and forecasting report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The market is witnessing significant growth driven by the rising demand for mobility aids, boats, and sweeper trucks powered by NiCD and SLI batteries. Additionally, the increasing adoption of hybrid electric vehicles (HEV) and PHEV (plug-in hybrid electric vehicles) is propelling the market forward. With a focus on ESS (energy storage systems) and UPS (uninterruptible power supply) solutions, the industry is transitioning towards ABSLTM lithium-ion (Li-ion) batteries to meet the growing demand for electric vehicles (EVs) and reduce CO2 emissions.
Additionally, the proliferation of renewables and e-mobility is driving investments in charging infrastructure and 5G towers, and 5G services to support the expanding electric car market. Golf carts, HEVs, and petrol-powered two-wheelers utilize power tools batteries to power their operations, while advancements in LIB manufacturing facilities contribute to reducing nitrogen oxides and greenhouse gas emissions, with OEMs driving the adoption of hybrid vehicles to achieve sustainable transportation goals measured in GWh.
Market Scope |
|
Report Coverage |
Details |
Page number |
182 |
Base year |
2023 |
Historic period |
2018-2022 |
Market forecasting period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 13.7% |
Market Growth 2024-2028 |
USD 91.79 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
12.88 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 45% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accumulatorenwerke HOPPECKE Carl Zoellner and Sohn GmbH, Brookfield Business Partners LP, BYD Co. Ltd., Contemporary Amperex Technology Co. Ltd., East Penn Manufacturing Co. Inc., EEMB, EnerSys, Exide Technologies, Furukawa Electric Co. Ltd., GS Yuasa International Ltd., Hitachi Ltd., Leoch International Technology Ltd., LG Corp., Lithium Battery Co., Murata Manufacturing Co. Ltd., Panasonic Holdings Corp., Samsung Electronics Co. Ltd., Shenzhen GMCELL Technology Co. Ltd., Stellantis NV, Tesla Inc., Tata Sons Pvt. Ltd., TianJin Lishen Battery Joint Stock Co. Ltd., TotalEnergies SE, Toyota Motor Corp., and U.S. Battery Manufacturing Co. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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