The portable battery pack market is projected to grow at a CAGR of 12.35% during the forecast period to reach US$17.684 billion by 2027, from US$7.825 billion in 2020.
The changing structure and revolutionized use of technology have opened the gates for new opportunities and for new and better technological advancements. The evident need for electronic devices to stay connected with the outside world gave birth to the need to keep those devices functional and charged for a larger portion of time. Henceforth, to aid the need for fully charged and functional electronic devices, portable batteries are used to supply power through an inbuilt battery that can be recharged as per the requirement. A portable battery pack is a rechargeable electrical device that can hold power, charge, and discharge when required. This device is mostly used in the end-user industry to charge devices like mobile phones, cameras, laptops, and tablets among others. Additionally, these battery packs have witnessed a substantial surge in their scope of application across various industry verticals, which has helped in revolutionizing the portable battery pack market.
The prime factor propelling the market of the portable battery pack is the increasing adoption of mobile devices, rising urbanization, and urban population.
The increased use of smartphones and smart devices is the prime factor for the growth of the portable battery pack market. A large variety of operations can be easily done with the help of smartphones and/or smart devices. Functions like online shopping, online fund transfer, banking, social networking, online education, and working among others are made possible with the help of smartphones and smart devices. Additionally, the recent breakthroughs to improve connectivity for the smartphone industry are further increasing the demand for smartphones. For instance, the adoption of 5G technology that aids faster data speed is expected to create a higher demand for these smart devices. Henceforth, with the rising adoption of smartphones and smart devices, it is expected that the demand for portable battery packs and rechargeable batteries will increase simultaneously.
Furthermore, the growing urban population and urbanization are playing a vital role in the growth of the portable battery pack market. Owing to the rising disposable income across multiple geographies and in urban areas has further propelled the growth of the smartphone segment in the past few years. According to the World Bank, the urban population as a percentage of the total population has increased from 52% in 2011 to 57% in 2021. The total urban population accounts for 4.43 billion in 2021. Also, the World Bank estimates that the trend of urbanization will continue, and the total urban population will double than its current size by 2050. At that point, nearly 7 out of 10 people are expected to live in cities. Furthermore, urbanization is being fueled by the growth of the urban population, shifting lifestyle norms, and increasing use of smart devices, which in turn is boosting demand for portable electronic devices that use rechargeable batteries and portable chargers. Henceforth, it is expected that the growing urbanization will propel the demand for portable battery packs during the forecast period.
The lithium-ion battery holds a dominating share in the portable battery pack market
By technology, the portable battery pack market is segmented into Nickel metal hydride, Ni-Cd (Nickel Cadmium) batteries, Li-Polymer (Lithium Polymer) batteries, and Li-ion (Lithium-ion) batteries. The lithium-ion battery segment holds a prominent share in the portable battery pack market, owing to the extensive use of these batteries in most portable consumer electronics devices such as cell phones, laptops, etc. These batteries have high energy per unit mass relative to other electrical energy storage systems. Additionally, they also have high energy efficiency, a high-power-to-weight ratio, good high-temperature performance, and low self-discharge. Furthermore, the lack of alternatives to these lithium-ion batteries has further helped this segment to have a considerable share in the portable battery pack market during the forecast period. These characteristics of lithium-ion batteries are expected to propel the market for portable batteries under this segment.
According to analysts, the Asia-Pacific region is expected to have the largest share of the portable battery pack market in the upcoming years.
Based on Geography, the portable battery pack market is divided into North America, South America, Europe, and the Asia Pacific. Analysts anticipate that the Asia-Pacific region will have the largest market share owing to the increasing innovations in technology in countries like China, and India. Furthermore, the presence of these countries and the huge population residing in this region acts as a key factor driving the portable battery pack market. According to the National Blueprint for Lithium Batteries 2021-2030 report, China is expected to have about 1,811 GWh of lithium cell production capacity in 2025, which is efficient to support the cost-competitive EV production up to the equivalent of one-quarter of 2020 global passenger EV sale.
Furthermore, China dominates the supply chain for the manufacture of lithium-ion batteries, which also includes the processing of minerals and raw materials. Moreover, these bright statistics are indicating China’s leadership in the battery sector and that the demand for portable battery packs in the country is likely to rise over the next ten years, the country’s portable battery pack market is anticipated to have a promising future. The market for portable battery packs for computers, phones, and tablets becomes increasingly significant. Additionally, the Indian government is also taking steps to prepare a road map for other options for high-quality batteries for electric vehicles. For instance, the Ministry of Mines posted a report in August 2021, which says that the Government has approved the Production Linked Incentive Scheme (PLI) for the manufacturing of Advance Chemistry Cell (ACC) in the country. The scheme makes provision for building a competitive ACC battery manufacturing facility in the nation (50 Giga Watt hour-GWh). These strategic developments in this region with government support are playing a vital role in the growth of the portable battery pack market in this region.
Additionally, the North American region is also a particularly lucrative market for manufacturers of portable battery packs, and demand there is driven by the region’s high consumer purchasing power and growing interest in high-tech goods. Furthermore, the United States is also taking steps to develop its lithium battery manufacturing value chain. For instance, the National Blueprint for Lithium Batteries by the Federal Consortium for Advanced Batteries is expected to guide the investments to develop the domestic lithium-battery manufacturing value chain in the US. These developments are expected to support the growth of the portable battery market in this region.