Power banks are small and portable chargers that enable the users to charge a number of digital handheld devices such as smartphones, laptops, cameras, and others. These devices come in different battery capacities, different materials, and different types of technology such as wired and wireless.
The global power bank market is projected to witness a healthy growth over the course of the next five years. The major factors driving the demand for power banks is constantly growing penetration of smartphones in both developing and developed economies of the world. The booming penetration of the internet has led to an upsurge in the adoption of the online distribution channels for the purchase of numerous types of convenience products, and power banks are considered to be an integral part of it. Thus, the expansion of distribution channels plays a significant role in shaping up the market growth for power banks in the long run. The rapid innovations in technology have led to the development of various low-cost products as the companies aim to tap the potential customers, and a major population across the developing economies of the globe fall under the middle-income groups. Thus, the constant decline in the prices of power banks has also led to an upsurge in the demand in lower-income countries, thus positively impacting the growth over the coming five years. Additionally, the incorporation of new technology and the development of new products such as wireless power banks and solar power based power banks is one of the key factors that is projected to propel the opportunities for the market to grow in the near future. For example, in May 2020, Gionee announced its re-entry in the tech market announced the launch of its first power bank with wireless charging capabilities for its sale throughout India.
The Tourism Sector Drives the Growth During the Forecast Period
Power banks are considered as one of the most important gadgets for frequent travelers as it offers on the go charging of smartphones and other handheld devices wherever and whenever required. This, a decent growth in the tourism sector throughout the globe is also considered to be a prime factor in fuelling global power bank market growth over the next five years.
Air Transport Passengers Carried, 2010 to 2018, in Units
Source: The World Bank Group
The above graph represents the increase in the number of passengers carried through air transport in India and Thailand. For instance, in Thailand, the passengers carried through air transport reached 76,053,043 by the year 2018 from 28,780,723 in 2010. Similarly, in India, the number of passengers increased from 64,374,254 to 164,035,638 by the year 2018. These countries are well known for their tourism industry. However, the recent advent of the novel coronavirus disease is anticipated to inhibit the demand for power banks to some extent as the various government regulations to control the outbreak of the disease led to a ban on travel in many countries throughout the globe. Thus, anticipated to hamper the growth to some extent during the short run. Thus, the significant growth in the travel and tourism industry around the globe plays a significant role in shaping up the global power bank market growth throughout the forecast period.
The global power bank market has been segmented on the basis of type, application, and geography. By type, the market has been segmented into Lithium-Ion (Li-Ion) Battery, Lithium Polymer (Li-Polymer) Battery. By application, the market has been segmented on the basis of digital camera, laptops, portable media devices, smartphones, tablets, wearable devices, and others. Geographically, the market has been distributed on the basis of North America, South America, Europe, Middle East and Africa, and Asia Pacific.
Lithium Polymer to Witness a Healthy Growth
On the basis of type, lithium polymer segment is expected to show a healthy growth throughout the forecast period on account of the rising adoption of these batteries for various applications on account of considerably lesser weight and highly moldable properties of these batteries. Furthermore, lithium-ion batteries are anticipated to hold a significant share in the market as these have high voltage thus making them suitable for a wider number of applications. Also, these batteries have high conversion rates, energy density, and are also have low manufacturing costs is also one of the key factors bolstering the growth of this segment over the next five years.
Smartphones to Hold a Notable Share
On the basis of application, the digital camera segment is projected to show decent growth in the next five years on account of the rising vlogging trend in various countries around the globe. Thus, vloggers carry portable power banks to charge their various devices such as cameras and laptops on the go. The smartphone segment is projected to hold a significant share in the market on account of the wide adoption of power banks for their use on smartphones along with the growth of the tourism sector throughout the globe.
The Asia Pacific to Show Healthy Growth Opportunities
Geographically, the Asia Pacific region is expected to witness a healthy growth throughout the forecast period on account of the presence of a considerably larger population base in countries like India and China. Also, the rapid penetration of smartphones on account of the rising disposable income also propels the opportunities for the market to grow in the near future. Also, the rapid increase in the urban population has led to a change in the lifestyle of the people, this in turn has resulted in the upsurge for convenience goods, thus amplifying the demand in the next five years. For example, the urban population in India increased from 381763166 in 2010 to 471031528 by the year 2019. Similarly, in China, it reached 842933962 by 2019 from 658498663 in 2010 (Source: The World Bank Group). Furthermore, the presence of various domestic companies in the region is also a key factor bolstering the power bank market growth throughout the forecast period.
Urban Population – India, China
Source: The World Bank Group