US Sales of Batteries to Reach $16.7 Billion in 2015

US sales of primary and secondary batteries are expected to rise 4.8 percent annually to $16.7 billion in 2015.  Gains will be driven by healthy demand for replacement batteries in numerous electronic devices and a shift in the product mix toward more expensive, better-performing batteries.  These and other trends, including market share and product segmentation, are presented in US Batteries, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Demand for primary batteries is forecast to advance 3.1 percent per year to $5.4 billion in 2015.  The growing popularity of battery-powered portable devices will spur strong replacement demand.  Increased use of more powerful and expensive batteries will support value gains.  Alkaline batteries will remain the most prevalent type of primary battery, accounting for 70 percent of demand.  Sales of most other battery chemistries, most notably primary lithium, are expected to register stronger advances through 2015. 

The US market for secondary batteries is projected to climb 5.7 percent annually to $11.3 billion in 2015.  Overall gains will be fueled by solid growth in sales of lead-acid batteries, driven by a strong rebound in motor vehicle production following an extended period of decline.  However, a moderation in lead-acid battery prices will prevent sales from increasing at an even faster rate. 

Shipments of batteries from US facilities are expected to advance at a 4.8 percent annual pace to $13.0 billion in 2015.  Growth will be supported by the increasing popularity of hybrid and electric vehicles, which will encourage domestic suppliers to dramatically boost production of Li-Ion batteries.  However, gains will be limited by the strong leadership positions of foreign suppliers, which dominate the output of many advanced battery types.  As a result, imports of secondary batteries are expected to continue representing over half of demand for these products.  On the other hand, exports of secondary batteries are forecast to advance at a faster pace than imports as US suppliers ramp up production efforts.  Nevertheless, the US trade deficit in batteries is forecast to widen to over $3.7 billion through 2015 despite the small trade surplus in primary batteries.  

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.