Understanding the Impact of Micro Batteries on Emerging Markets

Key Highlights

·         The micro battery market generated a value of USD 489.3 million in 2023, which will increase to USD 2,060.2 million, powering at a 23.3% compound annual growth rate, by 2030. 

·         The growth can be attributed to the increasing adoption of wearable devices and improvements in technology like the Internet of Things (IoT) and AI along with robotics and automation.

·         The rising need for micro batteries across different sectors, including residential, consumer electronics, and automotive is aiding the expansion of the industry.

·         The rising accessibility and growing acceptance of electronic devices like wearable gadgets, medical monitoring equipment, wireless communication chips, and smart cards are driving the demand.

·         The arrival as well as the progress of smart wearable devices is a key factor driving the growth of this industry.

·         Such devices like fitness trackers, health monitoring systems, and smart wearables, need energy-efficient and compact power sources to run while still being visually pleasing and lightweight in nature. 

·         These comprise Li-ion batteries, in particular, offering a win-win situation that combines high-energy density with improved lifecycle as well as a compact size. 

·         With the continuously increasing demand for wearables, the micro battery industry will also continue to advance in the years to come.

Key Insights

APAC is likely to advance at the fastest CAGR, of 25%, in the coming years.

This is primarily because of the rising need for medical devices and the increasing acceptance of wearable devices, with their capability to sync with cloud or mobile and update info in web browsers or apps. 

Their suitability as well as ease of data access have also assisted in the increasing use of micro batteries in this region.

North America is the second-largest contributor to the industry. This can be mainly because of the high development in the packaging sector in this continent. 

The requirement for such batteries is rising with more interactive displays popping up in packages, as smart labels and RFID tags are utilizing thinner and light film batteries.

The lithium category was the largest contributor to the industry in 2023, with approximately 40% share. 

This can be because of its high-energy density among all types of batteries with relatively small and lightweight packaging, which makes it suitable for microelectronics functioning.

The 10–100 mAh category is the largest contributor to the industry. 

This is because of their versatile range offering power to different applications, such as remote controls, small electronic devices, IoT sensors, key fobs, and wearables; compact size; balanced energy density; and longer runtime.

The rechargeable micro batteries category will advance at a higher CAGR in the years to come. This is mainly because of some of the consequent profits such as reusability.

Micro batteries are major components of consumer electronics; as a result, this category is the largest contributor to the industry. The requirement for dependable and compact power solutions is increasing around the globe. 

The micro battery industry is consolidated in nature. Major companies have been involved in product introductions to enhance their presence in the industry. 

Source: P&S Intelligence