Powering the Future: The Soaring Trajectory of IoT Battery Market
Posted by Tom C on November 30th, 2023
In the era of interconnected devices and the Internet of Things (IoT), the demand for reliable and long-lasting power sources has never been more critical.
The battery market for IoT applications is projected to soar from USD 9.2 billion in 2020 to an estimated USD 15.9 billion by 2025, exhibiting a compelling Compound Annual Growth Rate (CAGR) of 11.6% during the period between 2020 and 2025.
Battery Market for IoT Dynamics:
Driver: Multifold rise in use of IoT and increase in adoption of IoT-enabled devices
The increasing adoption of wearable devices is leading the growth of the battery market for IoT. Wearable devices include eyewear, such as smart and virtual reality wearable glasses; footwear, such as athletic, fitness, and sports shoes; and wristwear, such as smartwatches and wristbands. People wear wearable devices to keep track of their daily activities, as well as their body movement and heart rate. Wearable devices are available in different shapes and forms. Most wearable applications require li-ion or li-polymer and ultra-thin durable batteries, creating a significant market demand for micro batteries. The application areas of wearable devices are growing from consumer electronics and medical devices to wireless communication devices.
Restraint: Ecological implications of disposing of battery wastes
A rapidly increasing number of IoT-enabled devices generates colossal volumes of chemical waste. Disposing of these wastes, as well as batteries after use, causes a severe environmental impact. Spent batteries, heavy metals, metal and plastic shells, cathode-anode separators, and other battery components can be hazardous and toxic to the environment if not disposed of properly. Therefore, the sustainable development of batteries has been the most daunting challenge. Though the demand for lithium-ion batteries is increasing globally, developing a real cost-effective, environment-friendly recycling process with high recycling efficiency remains challenging.
Opportunity: Development of new revenue streams for manufacturers of batteries owing to the launch of new IoT-enabled devices
The increasing adoption of IoT technology globally has enabled the development of controls to regulate the use of connected devices through a single, smart interface. There is increasing global penetration of this technology as several IoT-enabled devices are being launched daily. Several manufacturers that, include LG Chemical (South Korea), Samsung SDI (South Korea), and Panasonic (Japan), are scrambling to take advantage of IoT technology and enter the battery market for IoT. That results in developing new revenue streams for these large OEMs and ODMs.
Challenge: Development of cost-effective batteries
Batteries used in IoT-enabled devices are generally costlier than conventional batteries, especially the ones used in industrial applications. The manufacturing process of these batteries requires complex equipment and the cost of fabrication of the cells used by these batteries is high. Moreover, the prices of materials used for developing batteries used by IoT-enabled devices also play an important role in their overall costs. Developing cost-effective electrodes used by these batteries is a challenge for manufacturers to develop economical batteries. Hence, integrating these batteries into consumer electronics, wearable devices, etc., is a costly process.