The global power bank market is estimated to reach at a high CAGR of 17.8% during the forecast period 2022-2029.
A power bank is an additional portable battery that uses circuitry to control any power in and power out. The device charges different electronic devices such as smartphones, portable speakers, cameras, and tablets. Lithium-Ion and Lithium-Polymer batteries are most commonly used for power banks owing to their superior energy density. They can charge up using a USB charger when power is available and then charge battery-powered items like mobile phones and a host of other devices that normally use a USB charger. As the need has increased, the charge level that can be stored in power banks has increased. One of the key things to be charged by them is smartphones, and the battery capacity has improved dramatically in recent years to provide longer charging times.
Older power banks had capacities of maybe 1000 mA hours, where massive capacities of 25000 mA hours can be provided as some of the latest available ones. The current that they can supply is also high. They can also deliver 2.5A, allowing them to provide several electronic devices with a quick charge.
The global power bank market is driven by adopting electronic devices and power consumption of these devices due to easy affordability and growing continuous technological advancements. Rising internet and smartphone consumption is another factor driving the growing market of power banks in recent times.
Increasing adoption of different electronic devices and power consumption of these devices due to easy affordability and growing continuous technological advancements.
The rise in electronic devices' power consumption can be due to advances in technology and the rapid growth of online shopping platforms. The number of internet users worldwide rose from just 413 million in 2000 to more than 3.4 billion in 2016. That barrier of one billion was reached in 2005. In last five years, an average of 640,000 people has gone online for the first time every day. Thus it is anticipated that rising internet consumption and insufficient battery capacity of smartphones and other portable consumer electronic products will continue to be driving factors for the growth of power bank sales.
Furthermore, the affordable prices of power banks are another booster for industry growth in recent times. The rising domestic production and assembly of power banks and new suppliers' introduction have led to lower prices. In addition, strong producer competition leads to the aggressive pricing of power banks. Thus the fast-moving consumer electronics and demand for lower capital investment for setting up a manufacturing facility create huge opportunities for the power banks to accelerate their growth even further in the forecast period.
For instance, in March 2020, Xiaomi came up with a masterpiece, a 10,000 mAh wireless power bank in the Indian market, which supports up to 10W fast wireless charging. The device also supports two-way fast charging and 18W wired charging at a much cheaper cost than its major competitors.
Rising internet and smartphone consumption is another factor driving the growing market of power banks in recent times.
As per recent studies, globally, the number of smartphone users is projected to amount to nearly 2.7 billion by 2019. It is expected that, by 2017, almost a third of the total global population will use a smartphone. Owing to China’s rapid growth, the country has become a distant leader in the smartphone market, leaving the U.S., which previously held the top position, far behind. In China, smartphone users already accounted for 38 percent of the population of the country in 2015. Thus these big numbers create lucrative opportunities for the power bank market to grow in nearly all the major parts of the globe. Besides, businesses are innovating their products and concentrating on introducing new technology power banks, which, in turn, minimize the price of older power bank models. The decrease in prices would raise the customer base and impact the cost of competitors' goods.
For instance, Xiaomi is one of the leading producers and distributors of power banks globally. The company is currently active in nearly all 90+countries and regions worldwide, with a monthly active user of nearly 291 million.
Poor quality reduced the battery life of a phone, and increasing global competition severely hamper the power bank market's growth.
Many players have recently entered the power bank market and supply power banks with different capacities, prices, and designs. However, not all power banks present in the market are of superior quality, as it is observed that a few power banks do not last six months. Poor-quality power banks can cause overheating, reduce the phone's battery life, and even explode in the worst scenario. In addition, constantly draining batteries is another restraint hurdling the growth of the power bank market. The presence of various global players has increased the bar of competition. Companies such as Xiaomi, Lenovo, and others continuously offer the latest product with excellent features at a much cheaper cost than a customer can't deny. Many local players follow the same strategy by lowering the product's cost and compromising the quality of the product, thus decreasing the customer base and hence the market of the product.
COVID-19 Impact Analysis
The global power bank has shown a slight decline due to the COVID-19 pandemic, as several manufacturing plants were shut for months. As a result of COVID-19, it is expected that the expected growth of the power bank through applications will decrease as the pandemic restricts the supply chain and acceptance due to significant disruptions to companies and the global economy. As a result of the pandemic, production has been limited, resulting in a significant drop in company inputs. The market for 2020 has experienced a sharp drop as a result of COVID-19, which has had a significant impact on power bank R&D and supply chain. In addition, Flipkart, Amazon. Limits market expansion by halting non-essential deliveries by e-commerce giants. The direction and length of operation lockdowns will be decided by developing large-scale prevention and cure programs by countries.
The global power bank market is segmented based on battery type, capacity range, type, forms, application and region.
Lower self-discharge, more electrical charge storage, high energy density, and low maintenance coupled with a high market share of lithium-ion batteries are building the segment's recent market.
The global battery range market is bifurcated into lithium-ion batteries and lithium polymer batteries in power banks. Out of the two battery types, lithium-ion batteries dominated the power bank market and shared over 80% of the global market revenue in 2019. Li-ion batteries have many benefits, such as lower self-discharge, electrical charge storage, high energy density and low maintenance. However, due to high manufacturing costs and the complex preparation processes involved, lithium-ion batteries are costly to manufacture.
Lithium polymer batteries, on the other side, are growing with growing technological advancements. These batteries are lightweight, moldable, and are flat in shape, allowing compact and sleek power banks to be made. These batteries are also increasingly favored because, compared to other batteries, they are considered safer. Many key players, such as Hitachi Maxell, OnePlus, Panasonic Corporation, and Xiaomi, promote lithium polymer batteries over lithium-ion, thus adding opportunities for the growing market segment in the forecast period.
Increasing consumers' base of smartphones and increased penetration of e-commerce, mobile gaming, and smart devices connected with mobiles contributes significantly to the growth of the power banks market in Asia-Pacific.
Booming digital economies in countries such as China, South Korea, and Japan drive power banks' sales. Increasing consumers' base focusing on their smartphones for almost anything, particularly now during the prevailing pandemic in these countries, is the prime factor driving the market of Asia-Pacific in recent times. This reduces the life of the battery and raises the need for energy banks. Increasing penetration of e-commerce, mobile gaming, and smart devices connected with mobiles contributes significantly to the growth of East Asia's power banks market. The presence of key players such as Lenovo, AUKEY, Xiaomi and Anker Innovations in the regions is creating a larger customer target base and competition globally, thus increasing the region's global market.
North American countries hold the second position of power bank due to increased connectivity of multiple devices such as home appliances, security systems, and intelligent accessories.
The power bank market is highly consolidated with the presence of local as well as global companies. Some of the key players contributing to the market's growth include Anker Innovations, Xiaomi, AUKEY, RAVPower, ADATA, Lenovo, INTEX, AMBRANE, Panasonic Corporation, Sony Corporation and among others.
The major players are adopting several growth strategies such as product launches, acquisitions, and collaborations, contributing to the global growth of the power bank market. The global key players are favoring product launches as the growth strategy to build revenue for the company.
Overview:Xiaomi Corporation was established in April 2010 and went public on the Hong Kong Stock Exchange's Main Board on July 9, 2018. (1810.HK). Xiaomi is an internet firm with an Internet of Things (IoT) platform at its core that connects smartphones and smart gadgets. The company entered the Fortune Global 500 list for the second time in August 2020, placing 422nd, up 46 places from the previous year. Xiaomi was also ranked 7th on the list of internet firms.
Product Portfolio: The company has a product portfolio of power bank includes:
The global power bank market report would provide access to an approx: 69 market data table, 64 figures and 261 pages.
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