Bangladesh Lithium-Ion Battery Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Bangladesh Lithium-Ion Battery Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Bangladesh lithium-ion battery (LIB) market is expected to register a CAGR of more than 7% during the forecast period of 2022-2027. The COVID-19 pandemic caused disruptions in the market as Bangladesh is an import-dependent market for lithium-ion batteries, and most of the demand is met by imports from China. The pandemic caused several lockdowns and halted manufacturing processes, which led to a ripple effect throughout the supply chain, negatively impacting the market.

Factors such as the government incentives for renewable power (which work more effectively when used with LIBs), legalization of electric three-wheel vehicles, and the increasing shift of telecom operators toward LIBs from lead-acid batteries are likely to drive the market in Bangladesh during the forecast period. However, the import dependency on other countries (not self-reliant in lithium-ion battery production) is likely to restrain the Bangladesh lithium-ion battery market during the forecast period.

The telecommunication sector is likely to experience significant growth during the forecast period due to an increasing number of mobile subscribers in the country.

Bangladesh is planning to phase out internal combustion engine vehicles and replace them with electric vehicles to limit emissions and reduce dependence on fossil fuels. EVs use lithium-ion battery technology primarily for propulsion over other kinds of batteries. This is likely to present opportunities in the market soon.

The increasing demand for consumer electronics is likely to drive the Bangladesh lithium-ion battery market.

Bangladesh has undergone massive economic growth recently, which has led to an increase in people's incomes, thereby raising their living standards. The rising income has also led to the rapid adoption of mobile phone subscriptions in the country, increasing the number of telecommunication towers.

The telecom infrastructure requires a power source to operate. Sometimes, the telecom tower is in remote and isolated areas, which are usually far from any electrical grid and depend on on-site power generation to run. Both wireless service providers and base transceiver station (BTS) tower operators are turning to solar PV and PV/hybrid power solutions to achieve their business objectives.

The BTS system is part of a GSM network that is responsible for the reception and transmission of radio signals from mobile phones. A base transceiver station is a general description of equipment consisting of the telecommunication technology and the air interface of the mobile network (GSM, UMTS, etc.).​ These solar PV and PV/hybrid power solutions generally use lithium-ion batteries for storage purposes.

The LIB batteries offer significant advantages over lead-acid batteries ranging from higher energy density to lower toxicity. The cost of LIB reduced significantly from USD 917/kWh in 2011 to USD 137/kWh in 2020, making it the ideal choice over any other battery technology.

Moreover, lithium-ion batteries have a relatively long cycle life, respond quickly to demand, and have high volumetric and gravitational energy densities. With these advantages, lithium-ion batteries are commonly used as the power source for telecommunication towers. ​Also, the infrastructure of mobile networks needs reliable monitoring, which requires a steady and constant supply of electricity to emit signals. Hence, lithium-ion batteries are proven to be the most reliable storage technology.

Based on the above-mentioned factors, the telecommunication application is expected to dominate the Bangladesh lithium-ion battery market during the forecast period.

In Bangladesh, the consumer electronics market is in a state of development, as smart electronic devices continue to replace traditional products and the income level of people increases. This has led to an increased demand for consumer electronics applications.

The gross national income of Bangladesh saw an upward accelerating trend by touching USD 5,310 PPP (Purchasing Power Parity) in 2020. This rise in the gross national income resulted in the demand for consumer electronics such as computers, mobile phones, peripheral devices, TV, radio, multimedia systems, etc.

Such consumer electronics primarily contain lithium-ion battery systems as they possess high specific energy, higher efficiency, long life, and are lightweight.

In 2020, the consumer electronics market stood at 102.6 million pieces compared to 92.6 million pieces in 2019, showing a rapid upward trend. Additionally, the declining cost of lithium-ion battery technology has aided the market growth in the past, and it is likely to do so in the future. The lithium-ion battery pack costs stood at USD 137/kWh as compared to USD 917/kWh in 2011. The prices are likely to decline further down the line.

Thus, based on the above-mentioned factors, the increasing demand for consumer electronics is likely to drive the Bangladesh lithium-ion battery market during the forecast period.

The Bangladesh lithium-ion battery market is moderately consolidated. Some of the key companies in the market under consideration are BASE Technologies Ltd, Dongjin Group, SARBS Communications Ltd, Okaya Power Pvt. Ltd, and Karacus Energy Pvt. Ltd.

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