Product Code: 56585
The market for the primary battery is expected to grow at a CAGR of approximately 4.54% during the forecast period of 2019 - 2024. The demand for primary batteries remains high across the world, owing to the numerous advantages of primary batteries, such as low cost, wide application across consumer electronics, including flashlights, calculators, clocks, and smoke alarms. Adding to this, factors such as rising demand for primary batteries in military applications and increased demand for consumer electronics are expected to drive the market. There has been an increase in the need for a battery that can meet heavy discharge requirements, as consumer electronics power requirement increases. This is also expected to increase the demand for secondary batteries which, in turn, is likely to have a negative impact on the growth of primary battery market over the forecast period.
- The primary alkaline battery has dominated the market and has accounted for around 40% of the market share in 2018.
- With abundant lithium resources, countries in South America are expected to become new hotspots for lithium-ion battery manufacturing, as manufacturing batteries here is proven to be more profitable than manufacturing it anywhere else in the world. Hence, with a rapid rise in demand for consumer batteries in the region and across the globe, domestic and foreign companies are expected to have a huge opportunity for lithium-ion based battery manufacturing in South America.
- Asia-Pacific dominated the market in 2018 with the majority of the demand coming from countries such as China, India, and Japan.
Key Market Trends
Primary Alkaline Battery to Dominate the Market
- The primary alkaline battery has dominated the market in 2018 and is expected to continue its dominance over the forecast period. These type of batteries have high specific energy and are cost-effective, environment-friendly, and leak-proof, even when fully discharged. Alkaline can be stored for up to 10 years, has a good safety record, and can be carried on an aircraft without being subject to UN Transport and other regulations.
- Alkaline batteries offers higher energy output, longer shelf life, and lasts longer than carbon-zinc batteries, and have emerged as a replacement for carbon-zinc batteries, since 1960.
- There have been major advancements in alkaline cell performance over the recent decades. These advancements have been a result of changes in packaging and manufacturing techniques, rather than any improvements to the basic chemical system.
- Moreover, alkaline batteries are environment-friendly, which can be disposed as trash. Moreover, they do not require active collection and recycling. However, the batteries made currently, by almost all major manufactures, are mercury-free and hence, do not pose any environmental pollution or hazard on disposal. This creates a positive demand for these batteries, since other rechargeable consumer batteries need to be properly collected and recycled.
Asia-Pacific to Dominate the Market
- Asia-Pacific has dominated the market in 2018 and has accounted for around 22% of the market in the year. The region is expected to continue its dominance in the forecast period as well.
- On a country level, China dominated the entire global battery market for a very long time and is expected to maintain the leading position in the market during the forecast period as well. China's rise as a manufacturing powerhouse and its bullish consumer electronic product manufacturing growth are expected to drive the growth of the primary battery market in the country in the near future.
- Sale of primary batteries is likely to increase at a strong, but a slower rate than secondary batteries, through 2019. Further, alkaline batteries are expected to strengthen their dominance in the primary battery market, and continue to witness the fastest growth, primarily due to the growing demand for zinc-based batteries. Alkaline batteries are favored for their higher power and a longer lifespan than zinc-carbon/chloride batteries.
- Japan's purchasing parity has increased consistently during 2009-2017. The growing purchasing parity, combined with the introduction of the new primary battery powered electronic devices, has led to the growing demand for primary batteries for consumer electronics in Japan. The aforementioned local manufacturers meet most of the demand for the batteries.
- Japan's military spending is limited and has not registered any significant growth in the recent years. During the forecast, the military spending is expected to register only moderate growth, in turn constraining the demand for primary batteries in the military sector during the forecast period.
- Similarly, India is the fifth largest country in the world in terms of military spending. Owing to geopolitical tensions with the neighboring countries, mainly Pakistan and China, India is expected to continue increasing its military spending during the forecast period, in turn driving the demand for primary batteries in the defense sector.
The global primary battery market is largely fragmented, due to the large number of companies operating in the industry. The key players in this market include Duracell Inc., Excell Battery Co., FDK Corporation, Panasonic Corporation, and Toshiba Corporation.
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Table of Contents
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
- 1.4 Study Deliverables
- 1.5 Research Phases
2 EXECUTIVE SUMMARY
3 RESEARCH METHODOLOGY
4 MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Market Size and Demand Forecast, in USD billion, till 2024
- 4.3 Recent Trends and Developments
- 4.4 Government Policies and Regulations
- 4.5 Market Dynamics
- 4.5.1 Drivers
- 4.5.2 Restraints
- 4.6 Supply Chain Analysis
- 4.7 Porter's Five Forces Analysis
- 4.7.1 Bargaining Power of Suppliers
- 4.7.2 Bargaining Power of Consumers
- 4.7.3 Threat of New Entrants
- 4.7.4 Threat of Substitutes Products and Services
- 4.7.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 Type
- 5.1.1 Primary Alkaline Battery
- 5.1.2 Primary Lithium Battery
- 5.1.3 Other Types
- 5.2 Geography
- 5.2.1 North America
- 5.2.2 Asia-Pacific
- 5.2.3 Europe
- 5.2.4 South America
- 5.2.5 Middle East & Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
- 6.3 Company Profiles
- 6.3.1 Camelion Battery Co. Ltd
- 6.3.2 Duracell Inc.
- 6.3.3 Energizer Holdings Inc.
- 6.3.4 Excell Battery Co.
- 6.3.5 FDK Corporation
- 6.3.6 GP Batteries International Ltd
- 6.3.7 Panasonic Corporation
- 6.3.8 Saft Groupe SA
- 6.3.9 Spectrum Brands Holdings Inc.
- 6.3.10 Toshiba Corporation
7 MARKET OPPORTUNITIES AND FUTURE TRENDS