It goes without saying that Paleblue Earth is bullish on lithium-ion batteries. Developing, producing, and marketing industry-leading USB rechargeable batteries is what we do. But it is good to know that the market supports our endeavors. And in fact, a recently released market report portends good things for lithium-ion batteries in the coming years.
The report, produced by Mordor Intelligence, predicts a compound annual growth rate (CAGR) in the consumer lithium-ion battery sector of more than 6% through 2025. This is impressive on two fronts. First, consumer batteries do not include industrial and commercial batteries. Add these in and who knows? Second, such robust growth despite the fact that billions of alkaline batteries are still being produced shows demand is on the rise. We’d like to see rechargeable batteries start to replace the single-use battery market in the years ahead.
Mordor Intelligence cites three specific reasons for their positive outlook:
Lithium-ion is expected to dominate the consumer battery market
The demand for new energy storage will push lithium-ion technology further
Increased demand for lithium-ion batteries is expected in the Asia-Pacific region.
There is no reason for us to suspect that the Mordor Intelligence report is off base. By all accounts, it looks like our industry has plenty to look forward to over the next five years, at least. We expect to do quite well for a lot longer.
Consumers Appreciate Lithium-Ion
Lithium-ion batteries were a tough sell for the consumer market in the early years. Consumers were so used to alkaline, NiCad and NiMH batteries that they were uninterested in trying something new. But as the intelligence report reveals, things have changed. Customers appreciate rechargeable lithium-ion batteries now more than ever before. The report cites four reasons:
Higher Energy Density
Modern li-ion batteries offer a higher energy density than other battery types. Basically, you can pack an awful lot of power into a single cell.
Higher energy density also allows manufacturers to make lithium-ion batteries lighter. Lightweight batteries are important to the consumer market.
Is the technology has improved, so has battery performance. Our USB rechargeable batteries are on par with any alkaline competitor.
Improved technology and a wider market are combining to reduce prices on lithium-ion batteries. Customers obviously appreciate that.
It takes a while for any new industry to mature. Clearly, the lithium-ion consumer market has since reached maturity. We are now in the position of concentrating on improving market share by convincing consumers to trade in their disposal batteries for USB rechargeable products.
The Asian-Pacific Market
The most fascinating aspect of the report is its prediction that the Asian-Pacific market will lead the way in lithium-ion battery demand in the coming years. Once again, the report cites multiple reasons.
First and foremost, there are several countries in the region that offer a combination of growing economies and a good supply of natural resources. Those countries are seen as hot markets for battery manufacturers inasmuch as consumers in emerging economies are likely to want more battery-powered devices.
India is specifically cited by the report as a hotspot for future battery production. According to the report, India is aggressively ramping up lithium-ion battery production in order to meet demand there. Simply put, consumers want lithium-ion batteries to power their devices.
All of this is excellent news for our industry. It is certainly great news for Paleblue Earth, as we continue our efforts to introduce people to USB rechargeable batteries. If you have not tried them yet, we encourage you to take the plunge. We trust that trying them just once will convince you to never use alkalines again.