Global primary and secondary battery demand is forecast to climb 4.8 percent per year to $109 billion in 2014. China will remain the world’s largest national battery market by far, as the country’s position as a global leader in portable electronics production supports an $11.5 billion increase in battery demand from 2009 to 2014. India will register the strongest sales growth of any national market, supported by healthy increases in manufacturing activity, personal consumption expenditures and motor vehicles in use. Gains will also be strong in a number of smaller countries with developing economies. Battery demand in the developed areas of the US, Japan and Western Europe is projected to increase at rates below global averages through 2014, but economic recovery in these areas will support a $4.7 billion overall increase in battery sales. 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.
Non-lead-acid secondary battery demand increases will outpace sales of primary and lead-acid secondary batteries through 2014. The market for lithium ion and lithium polymer batteries and, to a lesser extent, nickel-metal hydride batteries will be spurred by the immense popularity of portable electronic devices such as cell phones, digital audio players, gaming systems and laptops. The rapid growth in hybrid vehicle production will also boost demand for these batteries. Manufacturers of secondary lead-acid batteries will benefit from a global recovery in motor vehicle production and continued growth in the number of vehicles in use. Primary battery demand will be bolstered by increased use of electrical and electronic products traditionally powered by these batteries and the ongoing conversion from basic, lower-cost zinc-carbon and zinc-chloride dry cells to more advanced, higher-priced alkaline and lithium types.
Historically, Japan, the US and Western Europe have been the leading producers of batteries, especially of higher-end types. However, since the mid-1990s, manufacturers in developing countries, particularly China and other countries in the Asia, have been accounting for a rapidly growing share of global battery production. In 2004, China surpassed the US to become the world’s leading supplier of batteries and is expected to remain so for the foreseeable future.
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.