Thin Film Battery Market Size - By Product (Rechargeable, Non-Rechargeable), By Application (Wearable Devices, Medical, Smart Cards, Consumer Products), & Forecast, 2024 - 2032

Thin Film Battery Market Size

Thin Film Battery Market size exceeded USD 303.1 million in 2023 and is projected to expand at more than 41.3% CAGR from 2024 to 2032, driven by the surging spending on consumer electronics.
 

Thin film batteries combine the benefits of solid-state batteries and thin-film manufacturing process to offer high power density, longer battery life, low self-discharge rate, and higher safety than their traditional Li-ion counterparts. These properties makes thin film batteries highly suitable for consumer electronics, which often need to boast of long battery life to attract customers. With rising disposable incomes, more consumers are spending on electronics for education, work, and other purposes, proliferating the demand for thin film batteries.
 

Meanwhile, the market is also expected to draw growth from public investments in the electronics sector. Many government agencies across the globe are rolling out favorable policies and investment schemes for their electronics sector, to use the industry as a crutch to recover from the COVID-19 economic slump. As per India’s Press Information Bureau, production of electronics in the country for 2021-2022 was valued at USD 80 billion.

Thin Film Battery Market Trends

Despite an expanding scope for product adoption, the industry faces a major challenge in the form of the steep initial investments associated with the production and distribution of thin film batteries. The production of thin film batteries relies upon rare earth elements such as lithium, making it highly cost intensive. High cost of lithium also further adds to the overall price of a thin film battery, which takes it out of reach for many small to medium scale consumer electronics manufacturers. These costs redirect revenues towards the more easily available low-cost alternatives, hampering growth further.
 

Thin Film Battery Market Analysis

In terms of application, thin film battery market size from wearable devices segment is anticipated to reach over USD 73.5 million in 2022. Thin film batteries are widely used in wearable devices such as smartwatches and fitness bands owing to their improved recharging rate and compactness. The consumer electronics sector has been reporting growing demand for wearable devices, which are becoming more compact and energy intensive due to novel innovations. Back in September 2022, Apple Inc. an American multinational technology company, released Apple Watch Series 8, and the new Apple Watch SE equipped with an innovative temperature sensor and crash detection capability.
 

This is bolstering the demand for lithium-based thin film batteries due to their longer battery life, low self-discharge rate.
 

On the basis of product, the thin film battery market from non-rechargeable segment is poised to witness 40% growth rate between 2023 and 2032. Escalating demand for non-rechargeable thin film batteries in smart cards, consumer electronics, medical sensors, and other applications is supplementing the segment outlook. Non-rechargeable batteries also cost less than their rechargeable counterparts, which makes them more affordable and widespread. Additionally, these batteries also offer superior capacity and high initial voltage, making them ideal for the aforementioned applications.
 

Asia Pacific thin film battery market valued at more than USD 89 million in 2022, driven primarily by the region’s flourishing e-commerce sector. Growing disposable incomes and B2C e-commerce boom is fostering the adoption of consumer electronics such as RFID, smart cards, and other wearable devices, which is subsequently augmenting the demand for thin film batteries in the region. As per India’s IBEF, the country’s appliances and consumer electronics industry is slated to surpass a valuation of more than USD 21.18 billion by 2025, creating ample growth opportunities for thin film batteries in the process.
 

Thin Film Battery Market Share

Top companies operating in the global thin film battery market are :

• STMicroelectronics
• Ion Storage Systems
• Molex, LLC
• Prieto Battery Inc
• Enfucell Flexible Electronics LTD
• and Imprint Energy

Many of these firms are focusing on product innovations to keep ahead of the competition. Citing an instance, in August 2021, Prieto Battery, a Colorado-based battery manufacturer, announced an investment of over USD 5.7 million to accelerate the manufacturing of solid-state advanced rechargeable thin film batteries.
 

This strategic move helped the company expand its battery architecture while offering superior power capabilities, high energy density, fast charging, and high and low-temperature operation capabilities.
 

Impact of COVID-19 Pandemic

The COVID-19 pandemic had a negative impact on thin film battery market on account of disruptions in global supply chains. Furthermore, prolonged lockdowns led to factory closures, further affecting the production of consumer electronics and impeding industry growth. The pandemic caused a substantial decline in the sales of electrical devices and electronics in low and middle-income economies in the first three quarters of 2020. However, with remote working and distance study becoming more prominent due to COVID-19, the market has been witnessing a steadily growing demand from consumer electronics such as smartphones, laptops, and tablets.
 

The thin film battery market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million” from 2019 to 2032, for the following segments:

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Market Insights, By Product

• Rechargeable
• Non-Rechargeable

Market Insights, By Application

• Wearable Devices
• Medical
• Smart Cards
• Consumer Products
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Austria
  • Sweden
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
• Rest of World
  • Brazil
  • UAE
  • Saudi Arabia