2023 Global Small Pouch Cell Shipments Reach 5.48 Billion Units, Declining for Two Consecutive Years
In 2023, global shipments of small pouch cells reached 5.48 billion units, marking a year-on-year decline of 2.6%. This decline is part of a trend, with the industry experiencing a drop for the second consecutive year. The dual impact of decreasing shipments and falling prices led to an 11.6% reduction in the market size for the entire industry in 2023.
2023 Industry Overview of Small Pouch Cells
Key Application Markets: Smartphones and Laptops
Smartphones and laptops remain the largest application markets for small pouch cells, accounting for nearly 50% of the market. However, in 2023, global shipments of smartphones and laptops declined by 4% and 14%, respectively. Despite this, emerging consumer electronics fields, including AR/VR devices, drones, smart home devices, and smart medical devices, are expected to drive new growth in the small pouch cell market.
Competition Landscape
According to a white paper by EVTANK, Japan’s TDK subsidiary ATL was ranked first with over 1.3 billion units shipped. China’s COSMX rose to second place globally, while Ganfeng Electronics rapidly climbed the ranks by shipping large quantities of TWS (True Wireless Stereo) devices, e-cigarettes, and smart wearable batteries. Other top ten companies include LGES, LIWINON, EVE ENERGY, HIGHPOWER TECHNOLOGY, VDL, BYD, AND TMB.
Market Trends and Recommendations
In downstream markets, companies should focus on new growth opportunities for lithium batteries driven by Windows 11 updates and AI PCs. In the smartphone sector, attention should be given to the potential brought by foldable phones and super-fast charging phones. In emerging consumer electronics, the focus should be on AR/VR, smart home devices, smart medical devices, and generative AI systems like ChatGPT. Industry trends to watch include the transformative impact of small pouch battery stacking processes, the industrial application of solid-state batteries in consumer electronics, and the shift in industry dynamics brought by the adoption of metal casing batteries in the iPhone 16.
Key Global Small Pouch Cell Companies
The global small pouch cell companies include ATL, SDI, LGES, COSMX, MURATA, LISHEN, EVE, LIWINON, BYD, TMB, VDL, EVERPOWER, VEKEN, GANFENG ELECTRONICS, HIGHPOWER TECHNOLOGY, BAK, AND GREAT POWER.
What are Small Pouch Cells?
A small pouch cell refers to a type of battery that utilizes a flexible, foil-like casing, flat pouch-shaped design for its cell structure. These batteries are commonly used in portable electronic devices due to their compact size and lightweight nature. Unlike cylindrical or prismatic batteries, pouch cells lack rigid casing and instead use a flexible, sealed pouch to contain the electrolyte and electrodes. Their design flexibility allows for efficient use of space and customization in various electronic applications. Pouch cells are known for their lightweight, high energy density, and adaptability to various shapes and sizes, making them ideal for consumer electronics, portable devices, and other applications where space and weight are critical factors.
Classification of Small Pouch Cell Industry
The small pouch cell industry can be classified based on several criteria, including battery chemistry, application (e.g., consumer electronics, automotive, industrial), and form factor (e.g., prismatic, cylindrical, pouch).
Battery Chemistry:
1. Lithium Cobalt Oxide (LCO):
– Used in consumer electronics such as smartphones, tablets, and laptops.
– Form factors can be pouch or cylindrical.
2. Lithium Iron Phosphate (LFP):
– Commonly used in electric vehicles (EVs), energy storage systems, and power tools.
– Mostly found in pouch or prismatic form factors.
3. Lithium Nickel Manganese Cobalt Oxide (NMC):
– Applications include electric vehicles (EVs), grid energy storage, and power tools.
– Available in pouch, prismatic, and cylindrical form factors.
4. Lithium Manganese Oxide (LMO):
– Used in consumer electronics, power tools, and medical devices.
– Typically in pouch or prismatic form.
5. Lithium Titanate (LTO):
– Primarily used in specialty applications like buses, trucks, and grid storage.
– Often found in pouch or cylindrical form.
Application:
1. Consumer Electronics:
– Utilizes various chemistries including LCO, LFP, NMC, and LMO.
– Form factors can be pouch, cylindrical, or prismatic.
2. Automotive:
– Predominantly employs LFP, NMC, and LTO chemistries.
– Form factors are often pouch or prismatic, occasionally cylindrical.
3. Industrial and Energy Storage:
– Includes applications like grid energy storage, backup power, and industrial equipment.
– Uses various chemistries such as LFP, NMC, LTO.
– Form factors vary but are commonly pouch or prismatic.
Form Factor:
1. Prismatic:
– Used across multiple applications including automotive, consumer electronics, and energy storage.
– Compatible with various chemistries like LFP, NMC, and LMO.
2. Cylindrical:
– Commonly used in consumer electronics and automotive applications.
– Compatible with chemistries such as LCO and NMC.
3. Pouch:
– Versatile form factor used in consumer electronics, automotive, and energy storage.
– Compatible with chemistries including LCO, LFP, NMC, and LMO.
These classifications highlight how different battery chemistries, applications, and form factors intersect in the realm of small pouch cells.
Current Industry Development
In 2023, the global market for small pouch cells faced significant challenges. The combined effects of reduced demand in key sectors and price declines led to an 11.6% reduction in market size. Despite this, the overall value of the industry remains substantial due to its broad application range and the increasing integration of advanced technologies.
Regionally, the value and performance of small pouch cell enterprises vary. Leading regions include East Asia (particularly China and Japan), North America, and Europe. These regions host major players who drive innovation and production scale, contributing to the overall market dynamics.
The second half of 2023 saw a gradual recovery in consumer demand, particularly in emerging markets. This recovery was driven by the resurgence of consumer confidence and increased spending on electronic devices and appliances.
Features of the Development of Small Pouch Cells
Demand for Pouch Cells Recovered from the Second Half of 2023
The demand for small pouch cells has shown significant recovery from the second half of 2023. This resurgence is attributed to several factors, including the rebound in consumer electronics sales, the expansion of electric vehicle (EV) markets, and the growing adoption of renewable energy storage solutions. As economies worldwide stabilized post-pandemic, consumer confidence increased, driving sales of smartphones, laptops, tablets, and other electronic devices that rely heavily on small pouch cells for power.
Moreover, the push towards sustainable energy solutions has heightened the need for efficient battery storage, with small pouch cells being integral to home energy systems and portable power units. The automotive industry’s focus on electric vehicles, including hybrid and plug-in hybrids, further bolstered the demand for small pouch cells, as these batteries are crucial for providing the necessary energy density and power output.
Continuous Improvement of the Stacking Process in Small Pouch Cells
The stacking process in small pouch cells has undergone continuous improvement, significantly enhancing the performance, reliability, and efficiency of these batteries. The stacking process involves layering the battery’s components, such as the electrodes and battery separators, in a precise and controlled manner. Innovations in this process have led to better alignment and uniformity of the layers, reducing internal resistance and increasing the overall energy density of the cells.
Advancements in automation and precision manufacturing techniques have also played a pivotal role. These improvements ensure that each layer is consistently produced to exact specifications, minimizing defects and enhancing the longevity and safety of the batteries. Enhanced stacking processes have also enabled the production of thinner and more compact pouch cells, which are crucial for modern electronic devices requiring high energy density in limited space.
Small Pouch Cells in Other Electronic Devices and Vacuums
Small pouch cells have increasingly found applications in a diverse range of electronic devices and household appliances, including vacuums. The versatility and high energy density of pouch cells make them ideal for powering portable and handheld devices, which require lightweight and compact energy sources.
In the realm of electronic devices, beyond smartphones, laptops, and tablets, small pouch cells are now commonly used in wearable technology, such as smartwatches and fitness trackers, as well as in true wireless stereo (TWS) earphones. These applications benefit from the high energy density and customizable shapes of pouch cells, allowing for extended battery life without compromising the device’s form factor.
In household appliances, particularly vacuum cleaners, the use of small pouch cells has been transformative. Cordless vacuums, which rely on rechargeable batteries, benefit from the high power output and lightweight nature of pouch cells, offering users greater mobility and convenience. The improved energy density and discharge rates of modern pouch cells ensure that these vacuums can operate for extended periods, providing strong suction and consistent performance.
As technology progresses, small pouch cells will continue to play a crucial role in powering the next generation of portable and efficient devices.
Competitive Landscape
The global market share is dominated by a few key players. ATL, a subsidiary of TDK, leads the market with over 1.3 billion units shipped. COSMX from China has ascended to the second position, showcasing the competitive prowess of Chinese manufacturers. Other significant players include LGES, EVE Energy, and Highpower Technology.
Chinese companies have made substantial inroads in the global market, leveraging cost advantages and rapid scalability. Companies like COSMX and Ganfeng Electronics have significantly increased their market shares, positioning themselves as formidable competitors to established international brands.
Competition in Key Areas
Smartphones
The smartphone segment remains a crucial battleground for small pouch battery manufacturers. Market leaders are focusing on innovations such as fast charging and longer battery life to differentiate their products.
Laptops and Tablets
In the laptop and tablet market, battery performance is a critical factor. Companies are investing in developing batteries that can support higher energy demands and extended usage times.
Wearable Devices (Including TWS)
The wearable device market, including TWS, is rapidly growing. Small pouch cells are ideal for these applications due to their compact size and high energy density.
Competitive Features in 2023
Gradual Market Capture from Leading Company ATL
While ATL continues to lead the market, its dominance is being challenged by emerging competitors. These companies are capturing market share by offering innovative products and competitive pricing.
Increased Competitiveness of Chinese Companies
Chinese manufacturers have enhanced their competitiveness through strategic investments in technology and capacity expansion. This trend is expected to continue as they aim to consolidate their positions in the global market.
Stable Yet Changing Competitive Landscape
The competitive landscape of the small pouch cell industry remains stable yet dynamic. While leading companies maintain their positions, emerging players are continuously challenging the status quo with new technologies and market strategies.
Key Application Areas of Small Pouch Cells
Small pouch cells are versatile and efficient, finding applications in various high-demand industries. These applications include smartphones, laptops, tablets, wearable devices (including TWS), drones, e-cigarettes, automotive start-stop systems, power tools and vacuum cleaners, and EVOLT systems. Each application area has distinct market demands, major battery companies, key specifications.
1. Smartphones
Market Demand: The demand for small pouch cells in smartphones is driven by the need for longer battery life, faster charging, and slimmer device profiles.
Major Battery Companies: SCUD, Samsung SDI, LG Chem, XPERIA, ATL (Amperex Technology Limited), and Panasonic, DESAY, GENVANA are key players in this sector.
Major Specifications: Typical capacities range from 2000mAh to 5000mAh, with voltages between 3.7V and 4.2V. High energy density, fast charging, and slim form factors are crucial.
2. Laptops
Market Demand: The demand for small pouch cells in laptops is driven by the need for high performance, longer battery life, and lightweight designs.
Major Battery Companies: Sunwoda, Panasonic, LG Chem, Samsung SDI, and Sony, BYD are prominent in this market.
Major Specifications: Capacities range from 4000mAh to 10000mAh, with voltages typically around 11.1V to 14.8V. High capacity, reliability, and safety are critical.
3. Tablets
Market Demand: Tablets require batteries that offer a balance between performance, battery life, and lightweight design.
Major Battery Companies: ATL, Samsung SDI, LG Chem, EVE, and Panasonic are leading suppliers.
Major Specifications: Capacities generally range from 3000mAh to 8000mAh, with voltages from 3.7V to 7.4V. Key specifications include high energy density and compact size.
4. Wearable Devices (Including TWS)
Market Demand: Wearables and true wireless stereo (TWS) devices require compact, lightweight batteries with long life and fast charging capabilities.
Major Battery Companies: VARTA, ATL, Samsung SDI, and LG Chem are major players.
Major Specifications: Capacities range from 50mAh to 500mAh, with voltages typically around 3.7V. High energy density, compact size, and safety are crucial.
5. Drones
Market Demand: Drones require batteries that provide high power output, lightweight, and long flight times.
Major Battery Companies: DJI, Panasonic, Samsung SDI, and LG Chem are significant suppliers.
Major Specifications: Capacities range from 1000mAh to 10000mAh, with voltages from 7.4V to 22.2V. High power output, lightweight, and safety are essential.
6. E-Cigarettes
Market Demand: E-cigarettes demand compact batteries with long life and quick recharge capabilities.
Major Battery Companies: Samsung SDI, LG Chem, and ATL are key players.
Major Specifications: Capacities typically range from 250mAh to 2000mAh, with voltages around 3.7V. Key features include high energy density, safety, and reliability.
7. Automotive Start-Stop Systems
Market Demand: Automotive start-stop systems require reliable batteries that can handle frequent cycling and provide quick bursts of power.
Major Battery Companies: VARTA, Panasonic, OPTIMA, EXIDE, and HB are major suppliers.
Major Specifications: Capacities range from 20Ah to 70Ah, with voltages typically at 12V. High cycle life, reliability, and safety are critical.
8. Power Tools and Vacuum Cleaners
Market Demand: Power tools and vacuum cleaners require batteries with high power output, long life, and quick recharge capabilities.
Major Battery Companies: Bosch, DeWalt, Makita, and LG Chem are key players.
Major Specifications: Capacities range from 1500mAh to 5000mAh, with voltages from 12V to 18V. High power output, long cycle life, and safety are essential.
9. EVOLT Systems
Market Demand: EVOLT systems, or Electric Vehicle On-Load Tap-changing systems, require robust batteries that can provide high power and reliability for automotive applications.
Major Battery Companies: Tesla (with Panasonic), LG Chem, CATL, and BYD are prominent in this market.
Major Specifications: Capacities range from 20Ah to 100Ah, with voltages typically around 3.2V to 4.2V. High energy density, reliability, and safety are crucial.
Development Trends of Small Pouch Cells
The overall shipment of small pouch cells is expected to recover and grow, driven by emerging applications and technological advancements. Growth is expected in areas such as AR/VR devices, drones, smart home devices, and smart medical devices.
The development trends of small pouch cells are marked by significant advancements aimed at enhancing their performance, efficiency, and application range. Here are some key trends shaping the future of small pouch cells:
1. Increased Energy Density
Researchers and manufacturers are continually working to improve the energy density of small pouch cells. This involves the development of new electrode materials, such as silicon-based anodes and high-nickel cathodes, which offer higher energy storage capacity. Increased energy density means longer battery life and more power in a compact form, making these cells ideal for high-demand applications.
2. Enhanced Safety Features
Safety is a critical concern in battery technology. Innovations in electrolyte formulations, such as solid-state electrolytes and non-flammable liquid electrolytes, are being explored to enhance the safety of small pouch cells. These developments aim to reduce the risk of thermal runaway and improve the overall stability of the batteries under various operating conditions.
3. Faster Charging Capabilities
The demand for quicker charging times is driving advancements in fast-charging technologies for small pouch cells. Researchers are focusing on optimizing the charging algorithms and improving the ionic conductivity of electrolytes to enable rapid charging without compromising battery life or safety.
4. Cost Reduction
Reducing the cost of small pouch cells is essential for their widespread adoption. Efforts are being made to streamline manufacturing processes, utilize cheaper raw materials, and scale up production to achieve economies of scale. Advances in recycling technologies also contribute to cost reduction by enabling the reuse of valuable materials.
5. Improved Lifespan
Extending the lifespan of small pouch cells is a key focus area. This involves enhancing the cycle life through better material selection and advanced battery management systems (BMS). Improved lifespan reduces the frequency of battery replacements, making the technology more sustainable and cost-effective in the long run.
6. Integration with Smart Technologies
The integration of small pouch cells with smart technologies is on the rise. This includes embedding sensors and communication modules within the cells to enable real-time monitoring and data analytics. Such integration allows for predictive maintenance, optimized performance, and improved user experience.
7. Environmental Sustainability
Environmental considerations are driving the development of more eco-friendly small pouch cells. This includes the use of sustainable materials, reducing the carbon footprint of the production process, and enhancing recyclability. Companies are also exploring second-life applications for used batteries, repurposing them for less demanding applications once their primary use is over.
8. Customization for Specific Applications
There is a growing trend towards the customization of small pouch cells to meet the specific needs of various applications. Whether it’s for portable electronics, medical devices, or specialized industrial equipment, manufacturers are tailoring cell designs to provide optimal performance characteristics, such as specific energy, power density, and form factor.
The global small pouch cell market experienced a second consecutive year of decline in 2023, with shipments totaling 5.48 billion units—a 2.6% decrease from the previous year. This drop, coupled with falling prices, led to an 11.6% reduction in market size.
Despite the downturn in key sectors like smartphones and laptops, emerging markets in consumer electronics, such as AR/VR devices and smart home products, show potential for future growth.
Competitive dynamics are shifting, with companies like COSMX and Ganfeng Electronics rising in prominence. Looking ahead, the industry is poised for recovery driven by technological advancements and expanding applications, though the competitive landscape remains dynamic and challenging.
