The US household battery market is expected to register a CAGR of over 5% during the forecast period, 2020 - 2025. With the increasing population and economic growth, the use of the electronic appliance in the country is expected to grow over time. Household battery includes portable batteries that are mostly used in electronic goods, like smartphones, camera, and many other electronic devices. The primary driver of the market studied is the growing use of electronic devices, along with technological development, for longer duration backup capabilities. However, the demand-supply mismatch for raw material supply to manufacturing the batteries is expected to hinder the market growth during the forecast period.
- Alkaline batteries are the most common type of battery that has a significant presence in the US market. These batteries are built-in different sizes and shapes and are used in radios, toys, flashlights, and many more electronic goods.
- With an estimated population of around 398 million by 2050, the electronic market in the United States is expected to expand significantly. Technologies, such as developments in cell phone technology, and the implementation of artificial technology on electronic goods, are expected to transform the digital technology to the way ahead. Moreover, the economy of the United States is expected to increase to USD 71,000 billion by 2050. Growth in the economy indicated growth in the lifestyle of people, thereby, having a huge possibility for the adoption of updated technology, which is expected to create an opportunity for the market to grow in the near future.
- Declining lithium-ion battery price and technological developments is expected to drive the the US household battery market during the forecast period.
Key Market Trends
Lithium-Ion Battery to Dominate the Market
- The lithium-ion battery is a type of rechargeable battery, majorly used in electronic devices, electric vehicles, and it has been growing in popularity in various military and aeronautical uses. During 2018, the lithium-ion battery in the United States had a major market share in the household battery market, on account of increased uses of electronic device uses.
- Lithium-ion batteries are commonly used in electronic devices, such as smartphones, laptops, clocks, watches, and remote controls. Sales of consumer electronics are very much dependent on the population and disposable income. The increasing disposable income of the United States has led to rising living standards, in turn, driving the demand for consumer electronics in the country.
- Li-ion battery has been gaining more popularity compared to other battery types, majorly due to its favorable capacity-to-weight ratio. Other factors that contribute to boosting its adoption include better performance, higher energy density, and decreasing price.
- Mobile phones are the most commonly used electronic devices, which use lithium battery. It is estimated that sales of mobiles phones in the United States has exceeded USD 70 billion in 2018, and is likely to increase further with technological development, and drop in price of mobile phones.
- Due to the high competition in the consumer electronics market, the prices of technology have been reducing, while the disposable income of people has also been increasing, resulting in increased penetration levels of the devices. Similar the growth over the forecast period is expected to drive the demand for batteries used in these devices.
Declining Lithium-ion Battery Price and Technological Development to Drive the Market
- The price of lithium-ion batteries has fallen steeply over the past ten years. In 2018, the lithium-ion battery price was USD 176 per kWh. Lithium-ion battery prices have been falling continuously, and the price decreased by 17.75% in 2018, when compared to the price in 2017.
- This sharp and sustained cost reduction is expected to help cement lithium-ion, as the battery chemistry of choice in all energy storage markets, including grid-scale, behind-the-meter storage, residential storage, and micro-grids.
- Lithium-ion batteries are expected to dominate the overall battery market over the next ten years, as they are widely used in cell phones, tablets, and laptops, among other gadgets, whose demand has been increasing at a significant rate, globally and in the United States.
- Furthermore, the decline in average lithium-ion battery prices is expected to continue and reach approximately USD 100/kWh by 2025, in turn, making it much more cost-competitive, with respect to other battery types. The trend is expected to result in an increased application of lithium-ion batteries in many other consumer electronics, with decrease in the price of the household electronic goods during the forecast period.
The household battery market in the United States is fragmented. The key owners in the market studied include Duracell Inc., Energizer Holdings Inc., HBL Power Systems Ltd, BYD Company Ltd., Panasonic Corporation, Power-Sonic Corporation, and Zeus Battery Products, among others.
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