Redefining Energy Storage: Secondary Batteries Shaping Sustainable Solutions
Redefining Energy Storage: Secondary Batteries Shaping Sustainable Solutions
Sep 13, 2023INTRODUCTION
Secondary batteries, also known as storage batteries or rechargeable batteries, are electrical batteries that can be charged, discharged, and recharged repeatedly. Unlike primary batteries, that are disposable, secondary batteries offer a sustainable and cost-effective solution for various applications by allowing stored energy to be utilized repeatedly. These types of batteries find extensive use in portable consumer electronics, radio-controlled vehicles, and electric vehicles due to its high power-to-weight ratio, high energy efficiency, good high-temperature performance, and low self-discharge attributes.
The growing global adoption of consumer electronic devices, driven by the shift from lead-acid to lithium-ion batteries for space-saving benefits, and rising investment in EVs are some of the key factors that are expected to fuel the demand for a secondary battery in all the key geographies in the forecast period of 2020 to 2027.
The global secondary batteries market is anticipated to reach $137.69 billion in 2027 at a CAGR of 11.4%, up from $79.56 billion in 2022 and $89.32 billion in 2023, respectively.1
Figure 1: Global Secondary Batteries Market.1
1. SECONDARY BATTERY MARKET DRIVERS
A detailed look into the factors fueling the expansion of the global secondary batteries market is as follows:
Increasing Demand for Electric Vehicles:
Increasing demand for EVs will positively impact the secondary batteries market. Secondary batteries are increasingly being used in hybrid vehicles. According to the BNEF report, electric vehicle sales are expected to reach 540 million by 2040, which is around 32% of the world’s passenger vehicles. Therefore, the increasing demand for electric vehicles will drive the secondary batteries market’s growth.2
Decrease in the cost of Lithium-ion Battery cost:
The decline in lithium-ion battery costs is driving the secondary battery market growth. As lithium-ion batteries form a significant part of end-product expenses, lower prices enhance competitiveness against alternatives like lead-acid and NiMH batteries. Prices should further decrease due to rising production capacity driven by EV demand. This cost reduction, combined with strong lithium-ion battery performance, boosts sales and propels global secondary battery market growth. The global lithium-ion battery market size was valued at $48.19 billion in 2022 and is projected to grow at a CAGR of 18.9% from 2023 to 2030.3
Secondary batteries represent a powerful facilitator of sustainable energy systems, positively impacting the environment through their contributions to renewable energy integration, electric transportation, waste reduction, and energy efficiency. As technology advances and environmental consciousness grows, secondary batteries will play an increasingly vital role in driving our collective efforts toward a cleaner, more sustainable planet.
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References
1. Research Markets 2. Business Research 3. Grand View