The global solid-state battery market is forecast to reach approximately $1.7 billion by 2021, surging at a compound annual growth rate (CAGR) of more than 72% over the forecast period, according to a recent report from Technavio. Solid-state batteries contain a solid electrolyte, which makes them very compact. These batteries have a longer lifespan, making them suitable for use in consumer electronics such as smartphones and other gadgets. These batteries can meet any abrupt rise in energy demand, as well as the need for renewable energy storage, power conversion, and remote power systems.

“Consumer spending is a significant economic factor since it usually matches with the overall consumer confidence in a nation’s economy,” said Thanikachalam Chandrasekaran, a lead analyst at Technavio for energy storage research. “High consumer confidence indicators typically translate to increased sales of high-drain electronics, boosting the demand for solid-state batteries.”

The growth in global consumer spending is expected to accelerate during the forecast period, primarily due to the recovery of the cost involved in key emerging markets. In addition, rising incomes are contributing to a higher consumption rate in Asia. Developing economies such as China and India offer a lucrative market for solid-state battery vendors.

Smart wearables, such as smartwatches, smart bands, and smart glasses, have been revamped and introduced with added functionalities pertaining to health and wellness, security, and payment portals. Startups such as Pebble are launching products catering to the interest of technology enthusiasts, creating impressive revenues to the wearable devices market. In addition, reductions in manufacturing costs have led to increased sales. The rising demand for wearables has established a stable revenue generation channel for solid-state batteries.

Existing technologies are being pushed to the limits of their functionality to improve their energy condition across the globe. The limitations in existing technologies are driving the development of newer technologies, which can perform tasks more efficiently by using alternate sources and other breakthrough technologies.

“The technological innovations have drawn R&D investments,” said Thanikachalam. “This trend is witnessed in the transportation sector, where the rising fuel prices and limited oil reserves have led to an increased focus on alternate fuel vehicles, and improvement in battery technology and electric vehicles.”

For more information, visit www.technavio.com.