Asia-Pacific Primary Battery - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2024 - 2029

The Asia-Pacific primary battery market is expected to register a CAGR of more than 5.5% during the forecast period.

In 2020, COVID-19 negatively impacted the market. Presently, the market has reached its pre-pandemic level.

Key Highlights

• Over the long term, the demand for primary batteries remains high worldwide, owing to the numerous advantages of primary batteries, such as their low cost and wide range of applications in consumer electronics, including flashlights, calculators, clocks, and smoke alarms. Factors such as rising demand for primary batteries in military applications and increased demand for consumer electronics are expected to drive the market over the forecast period.
• On the other hand, the growing use of secondary batteries is likely to slow the growth of the market.
• The domestic production of primary batteries and the replacement of carbon-zinc batteries with alkaline batteries can create immense opportunities for the primary battery market in the coming years.

China should see a lot of demand because it is a major centre for making and exporting portable electronic devices.

APAC Primary Battery Market Trends

Primary Alkaline Battery to Dominate the Market

• Primary alkaline batteries are among the most popular battery chemistries in the non-rechargeable battery market. It has a high specific energy and is cost-effective, environment-friendly, and leak-proof, even when fully discharged. Alkaline can be stored for up to 10 years, has a good safety record, and can be carried on an aircraft without being subject to UN Transport and other regulations. Further, alkaline batteries are the type of disposable batteries that have zinc and manganese dioxide as electrodes. The alkaline electrolyte used in these batteries is either potassium or sodium hydroxide. These batteries have a steady voltage, offering better energy density and leakage resistance than carbon-zinc batteries.
• In addition, primary alkaline batteries have become an indispensable part of daily life, especially for products with low energy demands. Alkaline batteries come in various sizes ranging from AAA, AA, 9V, and others, where AAA and AA are suited for low-drain applications like consumer electronic remotes, whereas C, D, and 9V are used for high-drain applications. Micro alkaline coin cells and button cells, on the other hand, are used in a few industrial and medical applications.
• Alkaline batteries are environment-friendly and can be disposed of as trash. Moreover, they do not require active collection and recycling. However, the batteries made currently by almost all major manufacturers are mercury-free and, hence, do not pose any environmental pollution or disposal hazards. This creates a positive demand for these batteries since other rechargeable consumer batteries must be appropriately collected and recycled.
• In 2021, the sales quantity of primary alkaline batteries in Japan's cells and batteries industry increased by 0.03 billion units (+2.42%) from 2020. In total, the sales quantity amounted to 1.27 billion units in 2021.
• Moreover, in December 2021, Volt Resources Ltd. entered a strategic collaboration with advanced primary alkaline battery producer Urban Electric Power (UEP) to develop new technologies to improve alkaline battery performance and reduce costs. Volt Resources and Urban Electric Power (UEP) work together to create new technologies that are likely to use non-spherical pure graphite for conductivity enhancement and ultra-high-purity graphite-based coatings to improve alkaline battery performance.

China to Witness Significant Demand

• Asia-Pacific, being home to a few of the fastest-growing economies, is expected to witness high sales of consumer electronics, resulting in an increased demand for primary batteries. Further, the region, especially in China, is expected to be a major hotspot for battery manufacturing units over the forecast period.
• On a country level, China has dominated the entire global battery market for a very long time and is expected to maintain the leading position in the market during the forecast period as well. China's rise as a manufacturing powerhouse and its bullish consumer electronic product manufacturing growth are expected to drive the growth of the primary battery market in the country soon.
• In the future, the sale of primary batteries will increase enormously, but at a slower rate than secondary batteries, through 2021. Further, alkaline batteries are expected to strengthen their dominance in the primary battery market and continue to witness the fastest growth, primarily due to the growing demand for zinc-based batteries.
• In addition, China's military spending increased to USD 293.35 billion in 2021 from USD 257.97 billion in 2020.China is expected to increase its defence spending further to strengthen its military during the forecast period, which will drive the demand for primary batteries for military-related portable devices.
• In January 2022, Hefei Institutes of Physical Science (HFIPS), the Chinese Academy of Sciences (CAS), and Donghua University collaborated to integrate nanoscale zero-valent iron with conductive carbon paint to fabricate a primary battery nanosystem and found that the nanocomposite removed Cd(II) from water quickly.
• Moreover, in March 2022, FDK Corporation announced the consolidation of domestic production plants to strengthen its production system for high-capacity cylindrical-type primary lithium battery production plants at a single location. FDK will terminate production at Washizu Plant and consolidate the production plant at Tottori Plant. The restart of operations at the production facilities at the Tottori Plant after the relocation is expected by the end of June 2022.
• So, based on the things we've talked about so far, the primary battery market in China is likely to see a lot of growth over the next few years.

APAC Primary Battery Industry Overview

The Asia-Pacific primary battery market is fragmented. Some of the major players (in no particular order) include Camelion Battery Co. Ltd, Duracell Inc., Energizer Holdings Inc., FDK Corporation, and Panasonic Corporation.

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