The MarketWatch News Department was not involved in the creation of this content.
Sep 17, 2020 (The Expresswire) —
Battery Materials Market size is forecast to reach $70 billion by 2025, after growing at a CAGR of 8% during 2020-2025. Extensive usage of batteries in electrical gadgets coupled with increase in demand for electric and hybrid vehicles is driving the growth of battery materials market. Harmful effects of diesel and petrol on the environment with their fluctuating prices aids the growth of Battery Materials market share. Moreover, government’s support by reduction of taxes for the purchase of electric vehicles by launching schemes such as Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles (FAME) is also augmenting the growth of battery material market size during the forecast period.
Battery Type – Segment Analysis
Lithium Ion batteries segment is projected to witness a highest CAGR of 11% in the battery materials market during the forecast period. This growth is attributed to the increasing demand of lithium ion batteries from automotive and electrical industry. Li-ion battery have higher energy density, voltage capacity, and lower self-discharge rate than other rechargeable batteries resulting in better power efficiency as a single cell along with longer charge retention. In addition, Deutsche Bank has forecasted that the global battery consumption will increase five-fold in the next 10 years and lithium-ion batteries alone will account for 97 per cent of battery use in energy storage by 2025.
Request for Sample of the Report @ https://www.industryarc.com/pdfdownload.php?id=500044
Report Price: $ 4500 (Single User License)
By Material Type Segment Analysis
Cathode segment has the largest share of more than 25% in the battery materials market in 2019. All materials in the battery possess specific theoretical energy but the key to high capacity and exceptional power delivery primarily lies in cathode. Hence, batteries based on cathode material has had used in a large scale across various industry verticals. However, Cathode materials consists of cobalt, nickel, and manganese in the crystal structure to which lithium is added, forming a multi-metal oxide material. Increasing usage of batteries in electronic gadgets and automobile is increasing the demand of cathode further escalating the battery material market.
Application Segment Analysis
Automobile is the fastest growing segment with a CAGR of around 12% in the battery materials market during the forecast period owing to growing uses in electric vehicles. The need of the hour to minimize the carbon dioxide and sulphur dioxide emissions by the combustion of fuels (petrol and diesel) is increasing the demand of electric and hybrid vehicles which in turn boosts the growth of battery materials market. According to International Energy Agency (IEA), global stock of electric passenger cars increased by 63% reaching 5 million in 2018. Around 45% that is a total of 2.3 million electric vehicles were on the roads of China in 2018 whereas Europe and U.S accounts for 24% and 22% of the global fleet. Whereas, the growing focus by the automotive OEM’s to provide economic and sustainable vehicles has led to use the microporous polypropylene, polyethylene film, ethylene carbonate materials in vehicles for reducing vehicle weight that further propels the growth of this segment.
The coronavirus pandemic has badly hampered the growth of battery materials market. Industries all around the world are shuttered and people stuck in their houses. Companies are facing economic crisis as the production has been stopped due lac of workforce and interruption in the global supply chain. The Society of Indian Automobile Manufacturers (SIAM) has estimated that the auto industry will witness loss of USD 313.77 million per day due to lockdown in year 2020. Thus, due to the outbreak of COVID-19 the world economy along with the various industry verticals are facing declining growth that also restrain the growth of battery material market during the forecast period.
Geography – Segment Analysis
APAC dominated the battery material market with a share of more than 35% in 2019 followed by North America and Europe. Increasing industrialization coupled with rapid urban development, growing disposable income, and high purchasing power are driving the battery materials market in APAC. According to World Bank, total manufacturing values added in East Asia and Pacific was 23.38% of GDP in 2017. According to the United Nation Industrial Developments Organization (UNIDO), developing and emerging industrial economies such as India, Indonesia, Malaysia etc. (excluding China) recorded an increase in manufacturing production of 0.7 per cent in the fourth quarter of 2019. Moreover, rise in popularity of electric vehicles based on lithium ion batteries also plays an important role in boosting the growth of battery materials market in APAC region.
Drivers Battery Materials Market
Growing demand from end use industries
Raising demand of batteries from end users such as electronics and medical is driving the growth of battery materials market. Increase in disposable income coupled with high standard of living is escalating the use of portable and electrical gadgets which uses lithium ion batteries for uninterrupted power supply. According to U.S Census Bureau, total revenue of $1,826,598 was generated by U.S in 2019 by exporting computer and its accessories only to China. The need to store the electrical power fuels the demand of batteries in invertors and generators, substantially augmenting the growth of battery materials market.
Increasing CO2 emissions and government initiatives to support EV
With the rise in environmental concerns, world is heading towards environment friendly vehicles like electrical and hybrid which has low or zero carbon dioxide emissions. Whereas the worldwide increase in demand for electric vehicles due to its low environmental impact is driving the growth of battery materials market. Furthermore, government supports to increase the usage of electric vehicle is also boosting the battery materials market. According to International Energy Agency, the value of government incentives for the purchase of electric vehicles rose by 72% in 2018. Due to the rise in government support, global spending on electric vehicle (EV) purchases grew more than 70% in 2018 to USD 82 billion, subsequently increasing the battery materials market. Also, the U.K government has doubled the funding to $ 13 million for installations of charging stations in 2020.
Talk to one of our sales representative about the full report by providing your details in the link below:
Challenges Battery Materials Market
Volatile prices of raw material and harmful effects of Lion batteries
Although batteries have found its applications in almost every end use industries but their harmful effects on human health acts as a restraint for the market. According to U.S. federal regulations, Li-ion batteries are classified hazardous due to their lead (Pb) content. Exposure to high levels of lead may cause anemia, weakness, and kidney or brain damage. In 2017 the Institute for Health Metrics and Evaluation (IHME) has estimated that lead exposure accounted for 1.06 million deaths. Additionally, the trade war between China and U.S has impacted the growth of battery materials market. The U.S has imposed 10 % tariffs on $200 billion worth of Chinese products which include plastics and chemical products, substantially increasing the prices of raw materials and hampering the market growth.
Technology launches, acquisitions and RandD activities are key strategies adopted by players in the battery materials market report. In 2019, the market of battery materials top 10 companies accounting for xx% of the share. Major players in the battery materials market industry outlook are, BASF, DOW Chemical, Hitachi Chemical, Johnson Matthey, Mitsubishi Chemical Holdings, Mitsui Mining and Smelting Company, POSCO, Showa Denko, Sumitomo Corporation, Toray, Umicore, Kureha Corporation, among others.
In May 2019, Umicore and Glencore have entered into a long-term agreement for the supply of cobalt hydroxide (cobalt) to Umicore’s battery materials value chain. Additionally, the agreement also provides Glencore long-term market access for its cobalt raw materials in line with Umicore’s cathode materials sales.
In January 2018, Mitsubishi Chemical Corporation and Ube Industries, Ltd. had agreed to a tie-up for joint operations of their lithium-ion battery electrolyte businesses in China. The joint venture will further enhance their technologies and strengthen cost competitiveness.
Increasing usage of portable electronic devices for computer and tablets due to its rechargeable properties are driving the growth of battery material market.
The outbreak of COVID-19 has led to the downfall of the economy and proved to be a nightmare for battery material manufacturers.
The onset of BS VI engines and restrictions on the use of diesel engines propels the growth electric vehicles, which in turn drives the growth of this market.
Increase in environmental concerns due to the emissions of greenhouse gases has led the world to adopt electric and hybrid vehicles. According to Bureau of Transportation Statistics, total sales of electric vehicles in United States jumped to 238,800 in 2018.
Related Reports :
A. Flexible Battery Market
B. Sulphuric Acid Market
About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to [email protected] to discuss more about our consulting services.
Press Release Distributed by The Express Wire
To view the original version on The Express Wire visit Battery Materials Market Size Forecast to Reach $70 Billion by 2025
Is there a problem with this press release? Contact the source provider Comtex at [email protected] You can also contact MarketWatch Customer Service via our Customer Center.
The MarketWatch News Department was not involved in the creation of this content.