A power bank is a portable battery charger that can be used to charge a number of handheld devices. There is a vast variety of products available in the market with different capacities and features. These power banks enable users to enjoy all the sorts of conveniences by charging their essential electronic devices anywhere. The market for power banks is projected to witness at a healthy CAGR over the course of the next five years. The major factors supplementing the global power bank market growth include the rapid penetration of smartphones in both developed and developing economies around the globe.
The rapid expansion of distribution channels coupled with the constantly dropping prices of power banks is also leading to a rapid increase in the demand of power banks. The booming travel and tourism sector especially in the developed economies of the world is also one of the key factors that is expected to supplement the power bank market growth in the next five years. For instance, according to the Yearbook of Tourism Statistics, the number of non-residential tourists at the United States country border increased from 66,657,028 in 2012 to 75,607,871 in 2016.
Non-Resident Tourists at National Border, 2012 to 2016, in Units
Source: Yearbook of Tourism Statistics, 2018, World Tourism Organization (UNWTO)
The rising demand for convenience products in the developing countries due to the changing lifestyles is also driving the demand for power banks, thereby propelling the growth throughout the forecast period. Also, the emerging trend of the technology across the consumer electronics sector has led to the integration of various technologies including wireless products, IoT, and AI enables devices. This, combined with the rapid penetration of the internet has led to an upsurge in the demand for electronic gadgets, this, in turn, is also playing a significant role in shaping up the global power bank market growth throughout the forecast period. According to the statistics from the World Bank Group, the number of individuals using the internet (% of population) reached 49.723% by 2017 from 28.753% in the year 2010.
Individual Using the Internet (% of Population)
Source: The World Bank Group
The market may be restrained by the fact that the primary application of power banks is smartphones, and the key players in the smartphone market are constantly investing in the R&D for developing smartphones with extended battery life, thus projected to may inhibit the demand to some extent. Also, the recent outbreak of the novel coronavirus is also anticipated to moderately impact the market growth especially during the short run as the temporary halt in the manufacturing activities has led to a disruption in the supply chain activities across the industry. Additionally, the travel and tourism sector around the globe is also on a temporary halt as the government of various countries across the globe has taken various measures to control the spread of the disease, thus a ban on travel has been imposed in many countries.
Rapid Product Advancements
A key factor that shows the potential for the global power bank market to grow over the course of the next five years is the constant participation by the key market players in the development and launch of new products with various features to cater to the growing consumer requirements. For instance, recently in June 2020, UBON, a leading gadget and consumer electronics company based out of India announced the launch of its latest product X-22 Boss Power 10,000 MAh Power Bank with a price of Rs 2,999 only. Similarly, in May 2020, Realme, a subsidiary under BBK Electronics announced the launch of its latest innovation 10,000 mAh Qualcomm power bank with Quick Charge 4.0 for ultra-fast charging. Additionally, the companies are investing heavily in developing high tech products. For example, Gionee announced its comeback in the tech market and announced a 10,000 MAh wireless power bank.
The global power bank market has been segmented on the basis of type, application, and geography. On the basis of type, the market has been segmented on the basis of Lithium-Ion (Li-Ion) Battery, Lithium Polymer (Li-Polymer) Battery. On the basis of application, the segmentation of the market has been done into the digital camera, laptops, portable media devices, smartphones, tablets, wearable devices, and others. Geographically, the market has been segmented into North America, South America, Europe, Middle East and Africa, and Asia Pacific.
By type, Li-Ion (Lithium Ion) segment is anticipated to hold a considerable market share throughout the forecast period. The major factor supplementing the growth of this segment includes the better characteristics of Li-ion batteries such as high energy density, higher conversion rate, and also these batteries have higher capacity. Furthermore, the manufacturing costs of these batteries are also considerably lesser than the Lithium Polymer batteries. Additionally, these batteries have high voltage thus making them suitable for a wider range of applications such as for laptops and tablets among others. However, the lithium polymer segment is projected to witness a healthy growth over the next five years primarily on account of the various beneficial properties such as lesser weight and moldable features among others.
By application, the smartphone segment is anticipated to hold a major market share throughout the forecast period. The major factors bolstering the growth of this segment include the wide adoption of power bank for charging smartphones on account of the booming travel and tourism sector across various countries around the globe. Furthermore, the development and growing acceptance of wireless power banks is one of the key factors supporting the growth of this segment over the course of the next five years. Furthermore, the growing adoption of streaming services and mobile gaming is also driving the adoption for power banks as requirements for on the go charging is increasing. Furthermore, the rising trend of adventure sports and booming growth of video log trends is one of the major factors supporting the growth of the digital camera segment in the next five years.
Geographically, the market in the Asia Pacific region is anticipated to propel at a healthy rate owing to the rising smartphone penetration in countries like India, China, and Vietnam among others. Also, the rapid urbanization and changing lifestyles of the people in the developing economies of the region is further augmenting the opportunities for the market to grow in the APAC region. Furthermore, the presence of major domestic market players in countries like India and China is further positively impacting the growth in the coming years. However, the North American region is expected to hold a notable market share throughout the forecast period on account of the presence of a well-established semiconductor industry and the presence of key market players in countries like the U.S and Canada among others.