The global mobile computing battery market size was valued at USD 9.16 billion in 2022. It is estimated to reach USD 22.29 billion by 2031, growing at a CAGR of 10.39% during the forecast period (2023–2031). The mobile computing battery market is anticipated to experience growth in response to the rising demand for wearables in the foreseeable future.
Mobile computing devices are modern mobile computers with the necessary hardware and software to function with standard desktop and web applications. Mobile computing devices contain processors, random memory and storage, Wi-Fi, an operating system, and other hardware and software components found in personal computers. They differ from PCS in that they are predominantly designed for mobile architecture and mobility.
Laptops, notebooks, Chromebooks, cell phones, tablets, and smartwatches are among the most popular mobile computing devices. A battery is an instrument that stores chemical energy and transmits it to electrical energy via an electrochemical reaction. Batteries used to power mobile computing devices, allowing for portability and other functions, are called mobile computing devices. Lithium-ion batteries are the most prominent type of battery utilized in mobile computing devices.
|Market Size||USD 22.29 billion by 2031|
|Fastest Growing Market||North America|
|Largest Market||Asia pacific|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
Wearable electronics are poised to gain significance in government sectors, healthcare systems, educational institutions, and corporations due to recent technological advances and the global reaction to COVID-19. While these gadgets provide strong new tools to improve labor well-being, healthcare quality, and operational safety, they also signal a significant increase in battery demand.
In recent years, the wearables business has experienced rapid expansion. Manufacturers sold between 120 and 123 million units globally in 2018, which is expected to rise to roughly 190 million units by 2022. Increased demand for wearables is expected to enhance the mobile computing battery market over the forecast period.
Electronic sports or e-sports is a form of competitive gaming in which professional gamers compete. These sports are akin to traditional sports but happen digitally. Individuals can engage in sports as solitary participants or in a multiplayer format, which entails the involvement of multiple individuals. The rising global popularity of esports can be attributed to the multifaceted nature of the activity, which demands a combination of skills, teamwork, strategy, and psychological acumen. The rising popularity of this esports is influencing participation in various mobile esports games, which has boosted the adoption of smartphones and other mobile computing devices.
Furthermore, Counter-Strike, Call of Duty, PUBG, DOTA 2, and League of Legends are popular mobile esports games with much global engagement. Several tournaments are organized yearly, which receive significant participation from gamers worldwide. Events, such as ESL Pro League, DreamHack, and others, are organized to encourage the participation of gamers. These events require mobile computing devices to play these games, thus promoting the demand for mobile-computing batteries.
The trading of natural graphite is not conducted on any commodities market, resulting in prices being determined through contractual negotiations between suppliers and consumers. Carbon content, flake size, level of existing contaminants, and degree of processing influence pricing. In pricing negotiations, proximity to the market is also important. Following basic processing, flake graphite and amorphous graphite are sold as concentrates, with grades of up to 97% and 85% carbon content, respectively.
Furthermore, flake graphite processing, such as thermal and chemical purification, is becoming more common, with higher carbon content fetching significantly higher prices. Other modifications necessary for applications, such as shape, micronization, and expansion, are likewise more expensive. As a result, spikes in graphite cost will directly impact the mobile computing battery market.
The global semiconductor industry registered sales of around USD 439 billion in 2020, witnessing an increase of around 6-7% compared to USD 412 billion in 2019. Since semiconductors are the most commercial raw material used in the production of mobile computing devices, the rising semiconductor market eventually leads to higher and faster production of mobile computing devices. Since these devices require batteries to run, the rising production of these devices, supported by growth in the semiconductor industry, is expected to augment the demand for batteries by OEMs for manufacturing.
Additionally, the semiconductor market in mobile computing devices, such as PCs and servers, is expected to expand 17.3% Y-o-Y to USD 160 billion in 2020, outperforming the worldwide semiconductor industry. It has been estimated that computing devices revenue will grow at around 7-8%, reaching over USD 170 billion by the end of 2021. All such factors are expected to propel the production of mobile computing devices, creating opportunities for the mobile computing battery market.
Based on region, the global mobile computing battery market is bifurcated into North America, EMEA, Asia-Pacific, and Latin America.
Asia-Pacific is the most significant global mobile computing battery market shareholder and is anticipated to exhibit a CAGR of 11.26% during the forecast period. Asia-Pacific accounted for the maximum share of the global mobile computing battery market owing to the presence of electronic device manufacturing hubs, such as China, Japan, Vietnam, South Korea, India, and others. The countries that largely contribute to the mobile computing battery market in the region include China, Vietnam, and South Korea. Small enterprises in India are expected to grow year on year, and the growing number of small and medium enterprises and flourishing manufacturing sectors are leading to a surge in exports, thereby boosting the revenue generated from the sale of mobile-computing batteries. Investments in the Indian IT sector are growing continuously, and companies in the industry are expanding their footprint globally. Moreover, the presence of a well-established ICT infrastructure in South Korea, as is the technology-savvy population, is rising. These factors create favorable conditions for the growth of the mobile computing battery market in Asia-Pacific.
North America is estimated to exhibit a CAGR of 8.94% over the forecast period. North America is the second-largest mobile computing battery market globally, owing to the presence of several mobile-computing device OEMs, including Apple, Microsoft, HP, Dell, and others. The electronics manufacturing industry in North America is a dynamic sector, with the United States holding a significant share. The United States has a rich history of innovation, resiliency, and a substantial reliance on electronics manufacturing. The electronics manufacturing sector is estimated to directly contribute approximately USD 308 billion to the U.S. GDP and employs more than 1.3 million Americans. Since mobile computing devices are a huge segment of electronics manufacturing, significant penetration of electronics manufacturing makes the US a significant contributor to the global mobile computing battery market.
North America is home to some of the world's most industrialized countries. Many companies with a global reach and a large workforce are headquartered in the US and Canada. The continuous improvement of technology will likely drive demand for mobile-computing batteries from OEMs and aftermarkets throughout the forecast period.
In EMEA, Europe generated higher revenue for mobile-computing batteries, with Germany leading the market. This is due to some OEMs such as Nokia, Fairphone, Blloc, Gigaset, etc. However, most mobile computing devices manufactured in Europe are not globally popular and hence witness very small demand. As a result, these devices are produced for local use and in low volume. This has led to a smaller share of Europe generating demand for mobile-computing batteries. Nokia, which was once a leading OEM for mobile computing devices, has lost its popularity globally, which in turn has adversely impacted demand for mobile-computing batteries from Europe.
Furthermore, the Middle East and Africa account for a small proportion of the global mobile computing battery market, owing to the absence of the manufacturing industry and the lack of mobile computing device OEMs in the region. Several poor African countries also affect the market's demand for batteries. However, increasing investments in digital infrastructure and rising internet penetration are anticipated to boost the demand for batteries in the region.
Latin America is the lowest revenue-generating region in the global mobile computing market, with Brazil and Mexico being the leading countries generating the highest demand. This is mostly due to the sluggish economic conditions, lack of awareness of technology, fewer investments in manufacturing, and tough competition from other developed nations. Nonetheless, the region is anticipated to experience significant growth over the forecast period, bolstered by the expanding manufacturing sector and government initiatives to improve digital infrastructure. Due to the development potential of developing economies, such as Brazil and Mexico, the market offers mobile computing battery manufacturers tremendous potential and opportunities. Rapid industrialization and increasing relocation of smartphone production to developing countries like Mexico present mobile computing battery suppliers with enormous growth opportunities.
The global mobile computing battery market is segmented by application, end-user, and distribution channel.
Based on application, the global mobile computing battery market is bifurcated into portable PCs, cellular phones, tablets, wearables, and others.
The portable PCs segment dominates the global market and is projected to exhibit a CAGR of 10.18% over the forecast period. Mobile-computing batteries for portable PCs include laptops, notebooks, and Chrome books. These batteries are referred to as rechargeable hardware devices that are used to generate and store electricity, enabling the laptop to operate without a power cord. In addition, lithium-ion batteries are the most prevalent form of laptop batteries. They are available in various configurations, depending on the CPU speed, screen size, RAM, workload weight, and other specifications to keep the laptop running for several hours. Major factors leading to market expansion can be attributed to rapid urbanization, backed by increased customer preference for portable devices, which drives the market expansion.
Cellular phones are other major devices that use mobile computing batteries, significantly contributing to the market. The vast majority of developed nations exhibit mobile phone penetration rates of at least 90%. This trend has persisted for nearly forty years from the inception of the initial mobile phone. Consumers accept mobile phones as they have become a part of their daily lives. This huge acceptance and penetration of mobile phones and the advent of smartphones have fueled the mobile computing battery market.
Based on end-users, the global mobile computing battery market is divided into OEMs and aftermarkets.
The OEM segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 10.73% over the forecast period. Lithium-ion batteries are critical to the success of mobile computing battery OEMs' goals in increasing device efficiency, battery life, and price competitiveness. Even before the COVID-19 crisis, there were increasing reports of OEMs having production concerns due to battery and cell shortages. Following the initial wave of the pandemic's global shutdowns and subsequent restarts, mobile computing device production felt the strain as demand increased, affecting the output of crucial items. Since batteries account for 8% to 10% or more of the value of mobile computing devices, established OEMs and battery suppliers desire tighter control over the supply chain rather than seeing revenues and jobs transfer to other companies and locales.
Products provided as replacements for an original part, mostly identical to the original, are called aftermarket or replacement products. Aftermarket refers to purchasing and selling replacement parts or equipment for a product after its initial sale. Consumers are increasingly resorting to aftermarket batteries. In addition, aftermarket batteries are OEM-equivalent batteries meant to meet or surpass original standards for a fraction of the price. Even aftermarket battery makers continue to provide batteries for older, more obsolete mobile phones. The aftermarket for mobile-computing batteries, especially for cellular phones, is significant as these batteries have a small life span.
Based on distribution channels, the global mobile computing battery market is divided into online and offline channels.
The offline segment is the largest revenue contributor and is expected to exhibit a CAGR of 10.89% throughout the forecast period. Regarding offline distribution channels, mobile computing batteries are distributed through B2B brick-and-mortar stores, such as wholesalers, retailers, branded shops, hypermarkets, and more. The most prevalent offline distribution in the market includes distribution to OEMs and wholesalers through dealers and distributors. In addition, most vendors sell their products directly through dealers or distributors. Almost all OEMs have stores spread across the globe and offer mobile-computing batteries as accessories in the aftermarket. Other multi-brand stores and independent stores act as the face of the company and are the point of purchase for customers in the market.
Online sales channels are a critical aspect of the value chain in the global mobile computing battery market. Digitalization has enabled numerous vendors to concentrate on capitalizing on this opportunity and directly engaging end-users via proprietary websites and other digital channels. Online sales provide buyers with various convenient options to purchase their preferred products remotely. In addition, the online distribution channel includes sales of mobile-computing batteries for both OEMs and aftermarkets. Batteries that are sold from vendor's websites are purchased by mobile computing device manufacturers, as well as by aftermarket service providers. It also includes sales to end-users of batteries.