The burgeoning demand for wearable devices, escalating usage of compact batteries, and rising adoption of internet of things (IoT) technology in medical devices will fuel the micro battery market growth at 18.4% CAGR during the forecast period (2019–2024). The market stood at $0.418 billion in 2018 and it is projected to reach $1.1 billion by 2024. Further, the increasing adoption of smart meter has become a market trend. It is an electronic device that records electric energy consumption and assists electricity supplier for monitoring and billing by using micro batteries.
One of the key factors facilitating the micro battery market growth is the rising adoption of IoT solutions in medical devices. The healthcare sector is swiftly marching toward high-tech solutions, due to the booming geriatric population and increasing prevalence of chronic ailments. For example, medical devices like cardiac monitoring systems and insulin pumps are now connected with IoT to ensure remote monitoring of the patients. These advancements assist in providing real-time information of the patient’s health. With the advent of IoT, the adoption of micro batteries has significantly surged in the medical industry.
Moreover, the escalating support from government organizations is expected to boost the market growth. For example, the Energy Efficiency Services Limited (EESL), a joint venture of the Government of India and the Ministry of Power signed two memorandums of understanding (MoU) with South Bihar Power Distribution Company Limited and North Bihar Power Distribution Company Limited for installing smart meters in nearly 130 cities and in rural areas of Bihar. As micro batteries are a vital source of power for smart meters, largescale adoption of these meters will add to their high demand.
Categories under the application segment of the micro battery market include automotive, consumer electronics, wearable devices, medical devices, and others (including smart meters and wireless sensor networks). Among these, the medical devices category held the largest market share in 2018, due to the growing installation of micro batteries in devices such as insulin pumps, glucometers, drug delivery systems, and thermometers. Whereas, the wearable devices category is expected to register the fastest growth throughout the forecast period, owing to the high demand for wearable devices like watches, fitness bands, and headphones.
The rechargeability segment of the micro battery market is bifurcated into rechargeable and non-rechargeable. Of these, the non-rechargeable category generated the higher revenue in 2018, on account of the low cost of these batteries in comparison to the rechargeable ones. Non-rechargeable batteries are widely used in electronic devices, calculators, and remote-control devices. However, in the coming years, the rechargeable category will display the faster growth due to the longer life span of such storage devices and high demand for memory backup applications.
Geographically, the Asia-Pacific (APAC) region dominated the micro battery market in 2018 and it is expected to maintain the lead in the forecast years. This can be owed to the escalating demand for medical devices and burgeoning adoption of wearable devices in the region. Additionally, growing enthusiasm for technologically advanced products among adults and increasing innovations in battery technology are expected to propel the market growth. China, Indonesia, and India are the prime countries driving the regional market, as these generate extensive demand for fitness trackers, primarily by the young population.
Thus, the growing demand for medical devices and wearable devices and the increasing installation of smart meters are expected to steer the market in appositive direction in the coming years.