World Battery Demand to Reach $132 Billion in 2016

World demand for primary and secondary batteries is forecast to rise 8.1 percent per year to $132 billion in 2016.  China will remain the largest national market for batteries, bolstered by an over 12 percent annual increase in product sales through 2016 as consumer electronics, electric bicycle, and motor vehicle output and use continue to climb.  Battery demand in India will expand faster than in any other nation, as the nation’s manufacturing base and personal incomes grow further.  South Korea will also record strong market advances, driven by expanding motor vehicle and electronics output.  Battery demand in Japan, the US, and Western Europe will rise at a rate below the world average through 2016, but suppliers in these markets will benefit from revitalized manufacturing industries and higher consumer spending.  These and other trends, including market share and product segmentation, are presented in World Batteries, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.  

Demand for secondary batteries is expected to rise at a faster rate than demand for primary batteries.  Many common electronic devices utilize secondary batteries.  In addition, use of grid storage systems to regulate electrical generation system output is expected to increase quickly, further bolstering secondary battery sales.  Lithium-based secondary batteries are expected to register the fastest demand gains of any type of battery due to their high performance characteristics.  Primary battery suppliers will see a shift away from low-cost, low-performing battery types toward higher output, more expensive primary batteries, which will contribute to value growth through 2016.  Demand for these batteries will be spurred by greater use of devices traditionally powered by primary types -- such as flashlights and electronic lanterns, clocks, and radios -- as income levels climb in developing nations. 

Battery sales to industrial and other markets will post the fastest gains of any market through 2016.  Advances will be stimulated by increasing gross fixed investment, expanding global manufacturing output, and ongoing industrialization activity in developing nations.  The automotive battery market will also record strong increases based on expanded output and use of conventional and hybrid motor vehicles, with replacement batteries accounting for more than two-thirds of the 2016 demand total.  Rising incomes in developing nations will drive greater use of basic battery powered devices, while increased use of portable, high-drain electronics will fuel growth in the consumer market. 

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.