The battery electrolyte market is expected to register a CAGR of 11.6% over the period of 2022-2027, reaching a market value of USD 17.28 billion by 2027 from USD 8.02 billion in 2020. In 2020, the COVID-19 pandemic caused a negative impact on battery production due to the lower demand from various sectors like energy storage, automobile, and other industrial sectors. Thus, such a scenario had severely impacted the battery electrolyte market in the same year. The awareness about cleaner transportation systems and electric vehicle deployment is growing at a rapid pace worldwide, which is expected to create a huge demand for batteries, thereby providing a huge impetus to the battery electrolyte market. However, the lack of efficient recycling technologies for batteries and rising concerns over the harmful effects of batteries on human health pose a barrier for the market.
The lithium-ion battery segment has dominated the market in the past, and it is expected to be the largest segment of the battery electrolyte market during the forecast period, owing to the increased use of electric vehicles and energy storage systems (ESS) for both commercial and residential applications, declining lithium-ion battery prices, and the increasing sale of consumer electronics.
With the decreasing cost of solar photovoltaic (PV) modules and associated systems, supportive global initiatives to eliminate the carbon emission and promote renewables, and technological innovations in the battery electrolyte market, ample opportunities are spurred for the market players.
Asia-Pacific is the largest market, and it is also expected to be the fastest-growing during the forecast period, with the largest contribution coming from countries like China and India.
The lithium-ion batteries were initially developed to serve the consumer electronics sector as these batteries last for a large number of charging cycles and have a high capacity-to-weight ratio and high energy density, which make them ideal for consumer electronics applications.
The rise in urbanization and consumer spending across the world is expected to drive the demand for technically advanced devices, in turn, leading to an increase in demand for lithium-ion batteries.
Li-ion batteries are gaining more popularity than other battery types, majorly due to their favorable capacity-to-weight ratio. Other factors contributing to its adoption include better performance, higher energy density, and decreasing price.
The price of lithium-ion batteries is usually higher than other batteries. However, leading players in the market have been investing to gain economies of scale and R&D activities to improve their performance and prices.
Furthermore, the emergence of new and exciting markets via electric vehicle and energy storage systems (ESS) has been boosting the demand for Li-ion batteries for both commercial and residential applications. ESS, coupled with renewables, such as wind, solar, or hydro, are technically and commercially viable for significantly increasing grid stability. In 2020, global electric vehicle sales reached 2.9 million units from 0.547 million units in 2015.
Additionally, in recent years, the demand for Li-ion batteries from the data center industry has grown due to technological advancements and declining costs. Increasing investments in data center construction, particularly in the developing countries in Asia, are expected to further support the lithium-ion battery's demand during the forecast period.
LIB manufacturing facilities are majorly located in Asia-Pacific, North America, and Europe. Moreover, major market players, such as BYD Company Limited and LG Chem Ltd, have plans to set up new manufacturing facilities in the Asia-Pacific region, primarily in India, China, and South Korea.
Therefore, owing to the above points, lithium-ion battery is expected to dominate the battery electrolyte market during the forecast period.
The Asia-Pacific region dominated the global market share in 2021. The use of batteries in different sectors such as automobiles, solar PV, electronic appliances, and data centers are a few factors driving the battery electrolyte market in Asia-Pacific.
Among all countries in the Asia-Pacific region, China is expected to be the leading country, with the majority of electronic appliance sales. Moreover, the country is a market leader in solar PV projects (including rooftop and ground-mounted) and automobile sales.
Among all the batteries, the lead-acid battery is one of the prominent batteries in Asia-Pacific. High uses of a lead-acid battery are attributed to lower costs than lithium-ion or flow batteries. Moreover, lead-acid batteries are mostly used in home appliances like home UPS, making the battery the largest segment in the market.
With the increasing adoption of electric vehicles and battery energy storage systems in solar PV projects, the usage of lithium-ion batteries is expected to increase during the forecast period. Thus, such a situation may drive the battery electrolyte market in the region.
India has seen significant growth in the installation of solar and wind power in recent years. During 2010 to 2020, the country's wind power generation capacity increased by over 2.5 times, while the solar power generation capacity during the same period increased by over 400 times.
The country's grid infrastructure quality remains poor, making it difficult for grid companies to assimilate renewable power generation. Despite these problems, the country has mostly been dependent on alternative methods such as alternative power generation sources (generators, ESS, batteries, etc.) to meet the peak demand.
The country also faces problems related to load-shedding, and the inclusion of intermittent sources intensifies these problems. Hence, the grid-scale energy storage market has a significant potential for growth in the country.
Further, with the increasing adoption of EVs and the favorable government policies in China, the use of lithium-ion batteries is expected to increase, which is expected to have a positive impact on the market growth during the forecast period. The increasing penetration of telecommunication services provides an opportunity for the growth of the battery electrolyte market in China.
Moreover, amid the COVID-19 pandemic, in September 2020, the South Korean president announced virtually a USD 17 billion investment in the country to boost the number of electric cars from the current 110,000 in 2020 to 1.13 million by 2025 and increase the number of hydrogen vehicles from 8,000 to 200,000.
Therefore, owing to the above points, Asia-Pacific is expected to dominate and be the fastest-growing region during the forecast period.
The battery electrolyte market is moderately fragmented. Some of the key players are Mitsubishi Chemical Holdings Corporation, Ube Industries Ltd, Shenzhen Capchem Technology Co. Ltd, 3M Co., and Targray Industries Inc., among others.
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The lithium-ion battery segment has dominated the market in the past, and it is expected to be the largest segment of the battery electrolyte market during the forecast period, owing to the increased use of electric vehicles and energy storage systems (ESS) for both commercial and residential applications, declining lithium-ion battery prices, and the increasing sale of consumer electronics.
With the decreasing cost of solar photovoltaic (PV) modules and associated systems, supportive global initiatives to eliminate the carbon emission and promote renewables, and technological innovations in the battery electrolyte market, ample opportunities are spurred for the market players.
Asia-Pacific is the largest market, and it is also expected to be the fastest-growing during the forecast period, with the largest contribution coming from countries like China and India.
Key Market Trends
Lithium-ion Battery Expected to Dominate the Market
The lithium-ion batteries were initially developed to serve the consumer electronics sector as these batteries last for a large number of charging cycles and have a high capacity-to-weight ratio and high energy density, which make them ideal for consumer electronics applications.
The rise in urbanization and consumer spending across the world is expected to drive the demand for technically advanced devices, in turn, leading to an increase in demand for lithium-ion batteries.
Li-ion batteries are gaining more popularity than other battery types, majorly due to their favorable capacity-to-weight ratio. Other factors contributing to its adoption include better performance, higher energy density, and decreasing price.
The price of lithium-ion batteries is usually higher than other batteries. However, leading players in the market have been investing to gain economies of scale and R&D activities to improve their performance and prices.
Furthermore, the emergence of new and exciting markets via electric vehicle and energy storage systems (ESS) has been boosting the demand for Li-ion batteries for both commercial and residential applications. ESS, coupled with renewables, such as wind, solar, or hydro, are technically and commercially viable for significantly increasing grid stability. In 2020, global electric vehicle sales reached 2.9 million units from 0.547 million units in 2015.
Additionally, in recent years, the demand for Li-ion batteries from the data center industry has grown due to technological advancements and declining costs. Increasing investments in data center construction, particularly in the developing countries in Asia, are expected to further support the lithium-ion battery's demand during the forecast period.
LIB manufacturing facilities are majorly located in Asia-Pacific, North America, and Europe. Moreover, major market players, such as BYD Company Limited and LG Chem Ltd, have plans to set up new manufacturing facilities in the Asia-Pacific region, primarily in India, China, and South Korea.
Therefore, owing to the above points, lithium-ion battery is expected to dominate the battery electrolyte market during the forecast period.
Asia-Pacific is Expected to Dominate the Market
The Asia-Pacific region dominated the global market share in 2021. The use of batteries in different sectors such as automobiles, solar PV, electronic appliances, and data centers are a few factors driving the battery electrolyte market in Asia-Pacific.
Among all countries in the Asia-Pacific region, China is expected to be the leading country, with the majority of electronic appliance sales. Moreover, the country is a market leader in solar PV projects (including rooftop and ground-mounted) and automobile sales.
Among all the batteries, the lead-acid battery is one of the prominent batteries in Asia-Pacific. High uses of a lead-acid battery are attributed to lower costs than lithium-ion or flow batteries. Moreover, lead-acid batteries are mostly used in home appliances like home UPS, making the battery the largest segment in the market.
With the increasing adoption of electric vehicles and battery energy storage systems in solar PV projects, the usage of lithium-ion batteries is expected to increase during the forecast period. Thus, such a situation may drive the battery electrolyte market in the region.
India has seen significant growth in the installation of solar and wind power in recent years. During 2010 to 2020, the country's wind power generation capacity increased by over 2.5 times, while the solar power generation capacity during the same period increased by over 400 times.
The country's grid infrastructure quality remains poor, making it difficult for grid companies to assimilate renewable power generation. Despite these problems, the country has mostly been dependent on alternative methods such as alternative power generation sources (generators, ESS, batteries, etc.) to meet the peak demand.
The country also faces problems related to load-shedding, and the inclusion of intermittent sources intensifies these problems. Hence, the grid-scale energy storage market has a significant potential for growth in the country.
Further, with the increasing adoption of EVs and the favorable government policies in China, the use of lithium-ion batteries is expected to increase, which is expected to have a positive impact on the market growth during the forecast period. The increasing penetration of telecommunication services provides an opportunity for the growth of the battery electrolyte market in China.
Moreover, amid the COVID-19 pandemic, in September 2020, the South Korean president announced virtually a USD 17 billion investment in the country to boost the number of electric cars from the current 110,000 in 2020 to 1.13 million by 2025 and increase the number of hydrogen vehicles from 8,000 to 200,000.
Therefore, owing to the above points, Asia-Pacific is expected to dominate and be the fastest-growing region during the forecast period.
Competitive Landscape
The battery electrolyte market is moderately fragmented. Some of the key players are Mitsubishi Chemical Holdings Corporation, Ube Industries Ltd, Shenzhen Capchem Technology Co. Ltd, 3M Co., and Targray Industries Inc., among others.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
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Table of Contents
1 INTRODUCTION
4 MARKET OVERVIEW
5 MARKET SEGMENTATION
6 COMPETITIVE LANDSCAPE
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- 3M Co.
- NEI Corporation
- Guangzhou Tinci Materials Technology Co. Ltd
- Mitsubishi Chemical Holdings Corporation
- Mitsui Chemicals Inc.
- NOHMs Technologies Inc.
- Shenzhen Capchem Technology Co. Ltd
- Targray Industries Inc.
- UBE Industries Ltd
Methodology
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