28
Oct
13

Fewer, Not More Rechargeable Battery Brands By 2017

sanyo eneloop

A report on the future of the rechargeable battery market is suggesting that there will be only a handful of relevant brands by 2017. Read how fewer rechargeable battery brands could affect you, the consumer.

For quite a long while now, NiMH rechargeable batteries have been mass produced and marketed by a wide range of companies, leading to a rise in accessibility for rechargeables that never existed in the past. Decades ago, when NiCD rechargeable batteries tried to penetrate the marketplace, the issues with the battery design itself, together with the top manufacturers’ unwillingness to commit to a sustainable battery design, kept NiCDs on the periphery. But with NiMH and LiON becoming so universally used, even big brands have gotten into the game, expanding the market considerably.

However, according to a thorough study, the rechargeable battery market is due for a significant contraction of brands and options for consumers.

Currently, there are an endless number of cheap brands of rechargeable batteries — manufactured mostly in China — that consumers can buy at a very low price. However, in spite of their low cost, these battery designs are often both dangerous and ineffective. Among rechargeable battery experts, brands like Sanyo Eneloop and Ansmann clearly offer a better product, albeit with a higher price tag.

And in spite of their premium pricing, it looks like only the strong are going to survive in the rechargeable battery market. According to Evertiq:

“. . . six to eight global players in rechargeable battery business would survive through to 2017, but the analysts say the process of consolidation is progressing quicker than expected. ‘Over the last two years, the industry has seen a number of new players filing for bankruptcy. And the wave of consolidation can only build in strength over the next five years as companies along the entire value chain are confronted by low profits and tight margins. The reason: enormous pressure on prices, slow market growth, strong competition and the need to keep investing in innovation,’ a press release by the analysts states.”

For as much as Asian-based companies have remained competitive through low prices, companies like Sanyo Eneloop have managed to outpace even the inexpensive rechargeable battery brands by offering innovations in battery capacity and performance quality that smaller companies cannot even begin to replicate. Together with robust marketing strategies, the top brands are consolidating the market share, having effectively argued in this high-tech world the environmental and economic sense behind purchasing high-quality rechargeable batteries.

What Do Fewer Rechargeable Battery Brands Mean for The Consumer?

It isn’t hard to understand that if the number of rechargeable battery brands contract over the next five years, it will also lead to a rise in prices. This will be especially true if the last companies standing are big manufacturers like Energizer, Panasonic, Sanyo, and Duracell. From a price point perspective, consumers may find that they have fewer and fewer choices in finding acceptably value-priced rechargeable battery brands.

However, there is an upside to having only the largest battery manufacturers competing for the market share.

With price evened out among the remaining players, quality and innovation will be how these brands differentiate themselves from one another. Rechargeable batteries still have the capability of being further optimised, meaning that we’ll see higher capacity, lower drain, and other innovative features coming out over the next few years that will be beneficial to consumers and their use of electronics.

We may even see new technologies. For example, LiON continues to play an increased role in next-generation electronics. It very well may be that we’ll see further innovations that will eventually replace NiMH and LiON — or at the very least, relegate these designs to a more value-priced subset of the marketplace.

Thanks for reading our article! Are you looking to purchase rechargeable batteries online? Be sure to check out the wide selection that Electronics Warehouse carries. 

 


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