Advanced Battery Market Report - Market Analysis, Size, Share, Growth, Outlook - Industry Trends and Forecast to 2028

The advanced battery market is being driven by an increase in the number of grid stability ESS projects that provide ancillary services, as well as the increasing intermittency of variable renewable energy sources such as wind and solar, growing deployment of electric vehicles (EVs), and rising adoption of electronic gadgets are driving the demand for advanced batteries.

Drivers:

• Decreasing the prices of advanced batteries has increased their applications in energy storage
• Increasing demand for uninterrupted power supply in data centres, telecommunications, etc
• Solar plus storage is becoming increasingly popular in the residential market
• Time-shifting avoids high tariffs on electricity by utilising stored energy at times of the day when electricity use is at its highest
• Launch of new plug-in models by major EV manufacturers
• Stringent Emission Regulations and incentives to promote EVs
• Increasing urbanisation and new employment opportunities have significantly increased consumer spending worldwide, which has increased the demand for alkaline batteries
• Increasing demand for Backup systems, Remote sensing, and IOT are driving the need for alkaline batteries
• Increasing investments in R&D by BEV OEMs in North America and Europe
• Growing requirement for lower cost and clean transportation solutions in the Asia Pacific
• Increasing demand for premium electric vehicles in the Middle East & Africa

Advanced batteries are the upgraded version of existing batteries or new technology batteries with higher efficiency and cheaper unit cost. Advanced Batteries are batteries that are small, cost less, charge faster, and last longer than traditional lead batteries. Commercial implementation, however, has been non-existent due to its small, non-standard size until now.

Advanced batteries have unique properties such as high energy density, better performance, fast charging, low cost, lower emissions, and longer lifespan. They can be efficiently used with electrical grids, renewable energy, electric vehicles, and electronic devices.

Advanced Batteries in Energy Storage Systems:

A Battery Energy Storage System (BESS) is an electrochemical device that charges (or collects energy) from the grid or a power plant. It then discharges that energy later to provide electricity or other grid services.

Applications of Advanced Batteries in Energy Storage Systems:

Key Barriers in the development of Advanced Batteries in Energy Storage Systems:

Regulatory Barriers:

• Lack of rules, regulations, and intensives for the development of BESS.
• Lack of clarity or limitations regarding storage usage across generation, transmission, and distribution.

Market Barriers:

• Lack of market for battery services
• Lack of discernment in quantity and quality of services procured.

Advanced Battery Energy Storage Systems in Utilities:

Electric power generation is moving away from fossil fuels with high carbon density and adopting renewable power plants to reduce carbon footprint, which helps countries across the region to meet their Net Zero targets by 2050.

Utility-scale energy storage systems can enable a greater feed-in of renewables into the grid by storing excess generation and firming renewable energy output. On the other hand, increasing renewable energy generation by supporting energy storage helps reduce electricity prices and different transmission systems.

Advanced Battery Energy Storage Systems in Industrial:

Advanced Battery Energy Storage Systems is expected to play a significant role in decarbonizing the world, including the industrial sector. Energy-intensive industries such as iron, steel, paper, chemicals, fertilizers, and pharmaceuticals help reduce pollution and meet the targets set by regulatory bodies by adopting energy storage systems.

Advanced Battery Energy Storage Systems in Residential:

Renewable Energy Storage System is one of the niche markets within the Energy Storage Systems with a high growth potential due to feed-in tariff policies and also to increase the reliability of electricity. Residential ESS networks generally work with photovoltaic systems, where DC voltages are not that high and usually not superior to 500V DC.

Advanced Battery Market in Electric Vehicles:

The emergence of Lithium ion battery technology has increased the growth rate for batteries over the last two decades. Initial hybrid electric vehicles used nickel metal hydride (NiMH) batteries, but Li-ion batteries have proven to be the primary source of energy for battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs).

Increasing lithium metal prices and its scarcity in various countries is increasing the demand for alternative battery solutions. So the automobile OEMS are investing in the R&D of advanced battery technologies that have accelerated the growth of the advanced batteries market in EV. Automobile manufacturers introduced advanced batteries in BEVs, PHEVs, and HEVs in the EV battery market to further enhance the advanced battery technology and are anticipated to offer advanced battery solutions as a primary power source in their vehicles.

Unlike PHEVs (Plug-in Hybrid Electric Vehicles) and HEVs (Hybrid Electric Vehicles), BEVs are powered solely by an electric battery, with no gas engine parts, and are considered a zero-emission vehicles. BEVs include electric motorcycles, electric scooters, electric bikes, electric cars, electric trucks, electric buses, electric railcars, electric watercraft, and forklifts. In the present scenario, BEVs dominate the global EV market.

BEVs are set to be a more common sight on the world's roads. The need for more sustainable vehicles has pushed almost all the vehicle segments (two-wheeler, three-wheeler, light-duty vehicles, etc).

After a decade of rapid growth, in 2020, the global electric car stock hit the 10 million mark, a 43% increase over 2019 and representing a 1% stock share. Battery electric vehicles (BEVs) accounted for two-thirds of new electric car registrations and two-thirds of the stock in 2020. With 4.5 million electric cars, China has the largest fleet, though, in 2020, Europe had the largest annual increase to reach 3.2 million.

Two/three-wheelers are lightweight vehicles and used for short driving distances; therefore it requires relatively small batteries, raising fewer issues related to charging infrastructure. On a total cost of ownership basis, electrification already makes economic sense in some regions.

At more than 20%, today, two/three-wheelers are the most electrified road transport segment. The global electric two-wheeler market is expected to witness exponential growth.

The heavy-duty vehicle segment is also moving swiftly towards sustainability. Fully electric trucks are gaining momentum. Along with North America, Europe currently has the most BEV heavy-duty truck models available as manufacturers are positioning themselves because of the European Union's net-zero emissions target in 2050. Its heavy-duty CO2 emissions standards also incentivise zero-emission trucks.

The municipal level policies to make public transport sustainable drive the adoption of BEV Buses worldwide. Europe is leading in this aspect. Electric bus registrations in Europe have seen a 7% increase. The FAME II program is expected to generate demand for 7000 BEV buses in India. Under this program, the government has approved the addition of 5,595 new BEV buses in various states.

Advanced Battery Market Trends:

• The growing use of solid-state batteries in residential energy storage systems
• Rising Interest in transmission and distribution deferral systems
• The increasing number of partnerships for large scale renewable projects
• Increasing market from low speed electric vehicles such e-bikes, e-rickshaws etc

Advanced Battery Market Opportunities:

• Increasing demand for EV charging stations
• The market growth in China, Japan, the USA, and India can be attributed to the increasing renewable energy generation and grid stability
• Increasing urbanisation and new employment opportunities have significantly increased consumer spending worldwide, which will increase the demand for advanced batteries
• Increasing demand for Backup systems, Remote sensing, and IOT are driving the need for alkaline batteries

Advanced Battery Market Restraints:

• Increasing the fuel cell market will decrease the demand for ESS
• Growing P2G projects are reducing the need for advanced ESS
• Increasing competition from other energy storage technologies

Regional Market Analysis

The global Advanced Battery market report is segmented based on geography into North America, including the United States, Canada, Mexico, and the Rest of North America; Europe, including Germany, France, United Kingdom (UK), Italy, Russia, and the Rest of Europe; Asia Pacific (APAC) including China, India, Japan, South Korea, Australia, Indonesia, and Rest of APAC; South America including Brazil and Rest of South America; and the Middle East and Africa including Saudi Arabia, Brazil, Nigeria, South Africa, and other countries.

Asia-Pacific is expected to be the leading region in the Advanced Battery market during the forecast period, followed by North America, Europe, the Middle East, and South America.

China, India, Japan, and South Korea are the major countries in Asia-Pacific with Advanced Battery and a strong order book.

Asia Pacific:

The Asia Pacific region has countries that have both developing and established advanced battery markets. For instance, countries such as China, India, South Korea, Japan, Australia, and others have an established advanced battery market, while Indonesia, Pakistan, and Bangladesh are developing their advanced battery market.

The Asia Pacific is expected to be the largest region for the advanced battery market during the forecast period. With a target to reduce emissions, the advanced batteries market will rise in the Utilities, Automotive, and consumer electronics especially in China, Japan, India, and other Southeast Asia such as Thailand, the Philippines, Indonesia, and Malaysia.

The publisher's Advanced Battery Market report provides insights into the current market demand environment and prognosis.

The study offers a thorough examination of the many factors that impact the development of Advanced Battery. The study also comprehensively analyses the Advanced Battery by segmenting it based on region (Asia Pacific, North America, Europe, South America, Middle East, Africa), based on technology (Lithium batteries, Flow battery, Sodium Batteries, Solid State Batteries, and Others) and by end-use (Utilities, Industrial and Commercial, Automotive, and others).

The report also discusses current and future market possibilities, market trends, advancements, the effect of Covid-19 and the Ukraine and Russian War on the Advanced Battery, essential developments, regions, and segments poised for the fastest growing competitive landscape. Further, the Advanced Battery market size, and demand forecast, growth rates will also be provided in the report.


This product will be delivered within 5-7 business days.