The Pakistani lithium-ion battery market is projected to register a CAGR of greater than 1.2 during the forecast period of 2021-2026. The coronavirus crisis has triggered significant economic disruptions around the world, including in Pakistan. Due to this, the demand for commodities such as consumer products is likely to steadily decline.
In current economic situations, battery prices in Pakistan are constantly going up, this will show you how can you benefit from this market and penetrate this non-competitive world of electronics where inflation and load-shedding are always on the peak.
Factors like an exponential increase in the purchase of electric vehicles as well as government initiatives to encourage the lithium-ion battery manufacturing market as a result of the development of electric vehicles and renewable energy will propel the market during this time. However, the rupee devaluation and price increases in interest rates will hinder the lithium-ion battery market in Pakistan.
The electronics sector is anticipated to witness considerable expansion throughout the forecast period, as a direct result of the strong surge in sales and demand for electronic devices, including smartphones, smartwatches, televisions, electric motors, and so on.
Based on the One Belt One Road initiative, battery companies are likely to see the OBOR plan as a great opportunity to fulfill demand for energy storage and increase its FDI.
With the rising implementation of electric vehicles and renewable energy resources in Pakistan, the country’s lithium-ion battery market is expected to grow in the coming years. The government plans direct subsidies and other benefits to encourage EV adoption and foster the country’s domestic battery manufacturing industry.
The consumer electronics and their usage witness
Batteries using lithium-ion chemistry are used in a variety of electronic devices, such as smartphones, laptops, watches, and clocks. The sale of consumer electronics is highly dependent on the population’s number of wealthy people and the disposable income it possesses. There is a growth here in Pakistan as a result of increasing disposable incomes, which is resulting in an increasing number of consumers of consumer electronics.
The consumer electronic product segment in 2019 accounted for the majority of the country’s total Li-ion battery market. This segment is projected to dominate during the forecast period, on account of the substantial production and demand for electronics, such as smart phones, cooling equipment, electric motors, TVs, watches, and electronic security alarms.
Additionally, Dawlance, one of the leading manufacturer of consumer electronics products in Pakistan, was ranked number one by IPSOS (the Institute for Public Feedback Opinion Surveying Section) in late November 2020. It began manufacturing as a domestic brand in 1974 and is now certainly one of the main corporations on the market with three manufacturing plants.
During his talk at Electric Aryan, one of the biggest electronic shops in Pakistan, Daraz, one of the site’s owners, mentioned that 1.7 million customers purchased products and 4 million orders were placed on the site, resulting in more than five million items being sold. Furthermore, smart TVs, washing machines, traditional laptops, LED televisions, smart watches, refrigerators, and food prep equipment were among the products bought.
Surge in electric vehicle usage
Li-Ion battery (LIB) is a frequently used sort of battery and is also a vital component of electric vehicles. Moreover, LIB is increasing in popularity in favor of application in electric vehicles due to its economic benefit.
The Pakistani government is working to promote the integration of EVs in the nation’s auto industry, with a target of 30 electric vehicles currently running on battery batteries by 2030.
Pakistan’s transport sector is growing rapidly. Almost all the sector is petroleum-based, costing the country nearly USD 13 billion in yearly oil imports. If this sector continues to expand at the current rate, oil imports in our country are expected to cost USD 30 billion by 2020.
The cost of running electrical vehicles is equal to one-third of the overall flexible-fuel vehicle (FFV) price, but the upfront costs are quite high. Additionally, the infrastructure for EVs in Pakistan is insufficient, which has led to the government planning to provide financial incentives to encourage EV adoption and the development of EVs. The five captive EV manufacturers joined hands to accomplish an agreed-upon manufacture plan.
In addition, the increase in the popularity of solar power amongst homeowners is expected to bolster the demand for battery products. Net-metering has allowed households to use more solar power, which increases demand for household batteries.
Thus, such a substantial expansion of renewable power supply comes from sources mainly, including wind and solar. Although electricity from renewable power-sources is not constant, batteries are essential for storage (particularly lithium-ion batteries) when excessive power is generated and then later to deliver power when power generation from renewable power drops.