Power Bank Market Set to Grow at the Fastest Rate- Time to Grow your Revenue

Posted by Steve Stark on September 8th, 2021

The power bank market is projected to grow from USD 9.0 billion in 2020 to USD 13.4 billion by 2025; it is expected to grow at a CAGR of 8.1% from 2020 to 2025.

Driver: Decline in price of power banks

The power bank market has become highly competitive with the presence of a large number of players and increasing number of new entrants in the market. The companies are reducing the prices of their power banks to remain competitive and increase their customer base. For instance, since 2018, the 20,000 mAh Mi Power Bank 2i price in India declined and now retails for USD 21.8. Additionally, companies are innovating their products and focusing on launching power banks with newer technologies, which, in turn, reduce the price for older versions of power banks. Moreover, the drop in prices would not just increase the consumer base but would also affect the pricing of products provided by competitors. However, the COVID-19 had a huge impact on the financial performance of new entrants and small companies of the market. This, in turn, is likely to affect the price range of the power banks offered by these companies.

Restraint: Poor quality of power banks

Recently, a large number of players have ventured into the power bank market and are providing power banks of various capacities, prices, and designs. However, not all power banks are of superior quality as it is observed that a few power banks do not even last for six months. Poor-quality power banks can cause overheating, reduce a phone’s battery life, and in the worst scenario, may even explode. These are mostly priced low to attract consumers. A few manufacturers use recycled batteries, which, in turn, increase the risk of explosion. Thus, poor-quality power banks can hinder the growth of the market.

Opportunity: Development of solar and hydrogen fuel cell-based power banks

Direct electricity is not the only source of power for power banks that are used to recharge the batteries of electronic devices, such as smartphones, tablets, and laptops. Apart from electric power banks, various companies are manufacturing power banks that are powered by solar energy or hydrogen fuel cells. For instance, TW Horizon Fuel Cell Technologies (China) introduced a hydrogen fuel cell-based power bank named MINIPAK. It uses replaceable and refillable fuel cartridges to recharge a device. Its HYDROSTIK cartridge is certified to UN standard for metal hydrides. Uimi Technology Private Limited (India), Elixier Tech Innovatis LLP (India), Volatic Systems (US), EasyAcc (China), and Bonai (China) are among the companies that offer solar power banks. Solar power banks are an effective solution during power outages. Solar power banks are excellent solutions that utilize renewable source of energy and can function without any disruption. It does not contribute to environmental pollution and is user-friendly. These factors are expected to significantly increase the adoption of solar power banks.

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Challenge: Highly competitive market

Power bank manufacturers face fierce competition within the market due to the large number of manufacturers existing in the market. Each manufacturer offers a wide range of power banks with a variety of features that cater to customers’ needs. This makes it difficult for a company to survive in the market unless it periodically upgrades its power bank technology. Manufacturers constantly focus on integrating new technologies into their power bank design to gain a competitive advantage. For instance, in February 2019, Anker Innovations launched PowerCore 10,000 mAh PD power bank with dual USB ports, featured with USB Type-C port delivering power up to 18W, whereas Xiaomi in January 2019 launched the latest version of its power bank Mi Power Bank 3 Pro that supports two-way 45W fast charging through the USB Type-C port and includes low power support for smart wearables and nine layers of circuit chip protection. Furthermore, the power bank market is extremely price competitive. Manufacturers have to price their power bank devices in coordination with prices of other power banks in the market. In such a fiercely competitive market, it is difficult for a new entrant to survive and compete with established players unless they innovate their offerings.