The wireless earphone market has tripled in 3 years… Samsung and LG compete for micro-batteries

Input 2021.01.27 06:00

As the popularity of wireless earphones grows, sales of micro-batteries surge
Industry “Micro-miniature batteries help high value-added products and profit improvement”

As the sales of wireless earphones increased, centering on Apple’s’AirPods’, ultra-small batteries emerged as a new source of revenue for the battery industry. The market size of micro-batteries for wireless earphones is not as large as batteries for electric vehicles, but the demand is steadily increasing every year, and the battery industry is also seeing it as a’niche market’ with great potential, and is accelerating its market penetration. In particular, Barta in Germany, which has led the micro-battery market, and LG Energy Solutions in Korea, Samsung SDI (006400)The competition to preoccupy the market is expected to intensify.

According to market research firm Counterpoint Research, the global wireless earphone market, which was about 120 million units in 2019, surpassed 220 million units last year, and grew by more than 50%. This year with Apple Samsung Electronics (005930)It is expected to grow to 370 million units as manufacturers such as, etc., are releasing new wireless earphones. Following the recent release of Samsung Electronics’ wireless earphone’Galaxy Buzz Pro’, it is predicted that Apple will introduce a new’AirPod Pro 2’in April as early as possible.

As wireless earphones become more popular, the sales of micro-batteries for wireless earphones are also increasing. The battery industry predicts that the global demand for wireless earphone batteries from 300 million cells in 2019 will grow by an annual average of 26% to 1.2 billion cells in 2025.

A total of three batteries go into the wireless earphone. There are two batteries for the left and right earbuds that you can plug in your ears and one for the charging case. The battery for the charging case is not much different from the battery of the existing IT device, while the battery for the earbud is a high value-added product that requires ultra-compact and lightweight technology. In the case of battery for earbuds, the volume is only 1/20th of 18650 lithium-ion batteries installed in electric vehicles, laptops, and smartphones. While reducing the size, energy density and performance must be increased so that functions such as noise canceling (noise removal) and long playback time can function properly. In addition, battery manufacturers such as LG Energy Solution and Samsung SDI, which have accumulated battery technology and production experience for a long period of time, are showing prominence because safety must be secured so that there is no problem such as overheating or exploding as long as the battery is used close to the body.

Ultra-small batteries for earbuds are largely divided into’cylindrical’ batteries and’coin cells’ batteries in the form of coins. LG Energy Solutions is leading the market for cylindrical batteries that are mounted on open-type wireless earphones. It is known that a cylindrical battery of LG Energy Solutions (at the time, LG Chem’s battery business division) was installed in the bean sprout-shaped’airpot’ that Apple first launched in 2016.

However, as Apple used coin cell batteries in’AirPods Pro’ from last year, the market leadership in the micro-miniature battery market is shifting from cylindrical to coin cells. An official from the battery industry said, “Recently, wireless earphone designs have been diversified, and the use of coin cell batteries has the advantage of being able to design freely. If a cylindrical battery is applied, the earbuds are limited to a design that lengthens vertically.” He explained.

Germany’s Varta, which dominates the coin cell battery market, plans to respond to rapidly increasing demand by raising its battery production capacity to 200 million cells per year by next year. In an interview with Forbes last year, Chairman Michael Toner Barta said, “In 10 years, consumers will have one wireless earphone per smartphone.” “The wireless earphone battery market has great growth potential.”

Founded in 1887, Barta has dominated the coin cell battery market for kernel-type wireless earphones with technology that has made coin cell batteries for hearing aids. The industry estimates that Barta’s market share reached about 30% last year. Barta’s major customers are Apple, Jabra, and Samsung Electronics.

Samsung SDI and LG Energy Solutions are also planning to expand their share in the coin cell battery market. Samsung SDI began supplying coin cell batteries to Samsung Electronics’ wireless earphone’Galaxy Buzz Live’ from last year. An official from Samsung SDI said, “It is expected that the demand for coin-type batteries (coin cells) will grow by more than 50% this year.” .

It is known that LG Energy Solution, which has only produced cylindrical batteries, is also considering entering the coin cell battery market. A company official said, “Although the proportion of micro-batteries in the overall battery business is small, demand is steadily increasing every year.”