Northbrook, IL -- (SBWIRE) -- 01/10/2021 -- The power bank market is projected to grow from USD 9.0 billion in 2020 to USD 13.4 billion by 2025; it is expected to grow at a CAGR of 8.1% from 2020 to 2025. Increasing internet-related services through smartphones and tablets, the decline in the price of power banks, frequent electric outages in certain countries, increase in power consumption of smartphones, and sudden shift to work-from-home and remote learning due to COVID-19 resulting in spike in demand for laptops are among the factors driving the market for power banks. The report covers the power bank industry segmented into battery type, price range, capacity, unit of USB port, indicator, application, and geography.
COVID-19 impact on the power bank market
The power bank market has historically been subjected to moderate growth due to the rise in demand for consumer electronics with heavy features and usage. This is expected to drive the growth of the market during the forecast period. The recent COVID-19 pandemic has resulted in a decline in the growth rate.As a result of COVID-19, the expected growth of power bank across applications is expected to decline as the pandemic is restricting the supply chain and adoption due to the severe disruptions to businesses and the global economy. The pandemic has resulted in limited production leading to a serious decline in business inputs. The recovery depends on government assistance as well as the level of corporate debt and how the companies and markets cope with the lower demand. The market for 2020 is witnessing a sudden decrease due to COVID-19, which has majorly affected the R&D and supply chain of power banks. It may also affect the planned investments in this market. In addition, the per capita income of individuals has also been affected due to this pandemic. Thus, the demand for consumer electronics accessories such as power banks has decreased. With the trend of work-from-home, consumers are spending most of the time at their homes with constant access to electricity to power their devices. However, in countries such as India, where power cut is a major issue, power banks have been used to power their device during power shortage.
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Power banks with capacity ranging 10,001–15,000 mAh to witness highest CAGR during the forecast period
Based on capacity, the 10,001–15,000 mAh segment of the power bank market is expected to grow at the highest rate during the forecast period. These power banks have high output efficiency and longer battery life, as well as have LEDs or LCDs to indicate battery level. These power banks are in high demand by consumers as they are priced reasonably than power banks with capacities of more than 15,000 mAh. These power banks are large-sized, come with a lot of additional features such as DC output ports used to recharge laptops, USB Type C ports, and Quick charge functionality. The COVID-19 outbreak has resulted in a substantial slowdown in terms of global economic growth and decreasing per capita income of the population owing to pay cuts. These factors have affected the production of power banks with 10,001–15,000 mAh capacity, as these batteries are high cost and are not affordable for all customers in the current situation. However, the market for this capacity range will grow at a significant rate when the situation becomes stable.
Smartphones application to account for the largest market share during the forecast period
Smartphones are a major application market for power banks. The extensive use of data and internet services over smartphones is among the main factors that attribute to drain the battery power rapidly. This creates a huge demand for power banks to keep smartphones running for a longer duration. Smartphones are equipped with batteries having a short life, which increases the need for power banks. Thus, this creates a vast potential for power banks in the smartphone application. The smartphone industry, which is one of the largest consumers of power banks, is disturbed due to the COVID-19 pandemic. The shutdown of manufacturing facilities is leading to a halt in smartphone production, and decreasing consumer expenditure has affected the demand for power banks. However, the power bank market will gain momentum once the situation becomes stable.
The power bank market in APAC is projected to grow at the highest CAGR during the forecast period.
APAC held the largest share of the power bank market in 2019. Major factors such as increasing adoption of wearables and other consumer electronic products, presence of prominent manufacturers of power banks, and increasing population and economic growth of developing countries are fueling the market growth of power banks in APAC. The market in APAC is most severely impacted by the COVID-19 pandemic. The consumer electronics industry in China is witnessing a decline in production owing to the outbreak of COVID-19. However, continous product launches by leading companies might boost the growth. For instance, in June 2020, Xiaomi launched a massive 30,000 mAh power bank with Quick charge technology despite the COVID-19 situation.