Impact of COVID-19 on the Global Portable Battery Market
COVID-19 has affected the global economy, and the operations of various sectors have come to a standstill. In the consumer electronics sector, many companies are dealing with several challenges due to a decline in resources and human resources. As a result of pandemic and containment measures globally, the target for manufacturing portable batteries has almost come to a halt. However, all the corrective measures are being taken to stimulate market growth, post-COVID-19. This slowdown in the economies worldwide has impacted the portable battery market, owing to the declined demand from the end users. Moreover, a 10% lithium-ion battery supply reduction has been expected to be witnessed due to a slowdown in production activities in China. However, China and many other Asian countries, including Japan and South Korea, have begun producing 60% to 70% of pre-virus levels after lifting the restrictions on production facilities. Even though the risks of battery supply are mitigated, the recession of 2020 is likely to foresee a further decline in demand as consumers are likely to spend less on consumer electronics, which is affecting the global portable battery market.
FIGURE: LITHIUM ION BATTERIES EXPORTERS, USD MILLION (2018)
The smartphone market has suffered some production disruptions, and substantial changes in use patterns as the global lockdown has impacted the demand from consumers. The disruption in China has impacted the supply and shipment of mobile sets as the country is one of the largest producers and exporter of electronic gadgets. Additionally, the market has been facing disruptions in the supply chain and consumer demand. Many smartphone manufacturers have facilities in China or rely on the country to supply components and have, therefore, faced delays due to the pandemic. Although the smartphone market was expected to recover in the long term, it now faces new challenges on multiple fronts as the world slowly adjusts to and recovers from COVID-19. For instance, the pandemic has affected the global smartphone shipments, which has fallen to almost 13% to 272 million units in the first quarter of FY’2020 worldwide. All these factors are likely to affect the portable battery market as they are an integral part of smartphones and other electronic items.
Source: Primary Experts, Secondary Sources, and MRFR Analysis
Source: Secondary Sources