Market Trends of Asia Power Tool Batteries Industry
This section covers the major market trends shaping the Asia Power Tool Batteries Market according to our research experts:
The Lithium-ion Type is Expected to Dominate the Market
- Lithium-ion batteries are the advanced battery solutions used in power tools. Li-ion batteries are lightweight with high energy density and are environment-friendly. The increasing demand from end-user sectors like construction, automotive, and industrial is expected to drive the market.
- However, Li-ion batteries are rechargeable batteries equipped with safety circuits for protecting them from overheating, ease of use, longer run times, flexible charging, etc. Lithium-ion batteries are commonly used for portable electronic applications, and there has been a growing prominence for cordless power tools.
- Lithium-ion batteries quickly replace conventional nickel-cadmium (Ni-Cd) and nickel-metal hydride (Ni-MH) as a power source for power tools. Advancements in battery technologies are also contributing to the increasing adoption of cordless power tools with high-density batteries that can last longer once charged.
- Further, Asia produces the most amount of lithium batteries owing to massive manufacturing capacity in various countries such as China, South Korea, Japan, Vietnam etc.
- Therefore, owing to the above points, the lithium-ion technology type is expected to witness dominant growth during the forecast period.
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China going to dominate the Geographical segment
- China is the largest economy in the region, and globally, the country has the largest battery manufacturing capacity owing to the availability of lithium and supporting infrastructure. Further, the country remains a pioneer in the research and innovation in the power tool batteries market.
- China remains one of the largest consumers of power tool systems due to factors such as increased electric vehicle deployment, increased spending on consumer electronics, and increased consumer and manufacturing activities.
- An increase in public spending on infrastructure is expected to be a significant driver, supported by continued positive growth in the residential and non-residential sectors in the construction industry. For instance, according to the National Bureau of Statistics of China, the output value of construction work increased rapidly from CNY 14.11 trillion in 2013 to about CNY 25.92 trillion in 2021.
- Therefore, China is expected to be the dominant region in the power tool batteries market during the forecast period, supported by increasing adoption in numerous end-user applications.
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