The global battery materials market size was valued at US$ 50.28 billion in 2021 and it is expected to hit US$ 82.3 billion by 2030 with a registered CAGR of 5.63% during the forecast period 2022 to 2030.
The demand for the battery materials is expected to grow at a significant rate during the forecast period owing to the rapidly growing demand for the electric vehicles across the globe. The rising government initiatives to reduce carbon footprint and reduce the emission of greenhouse gases to attain sustainability is fueling the adoption of the electric vehicles. The surging demand for the consumer electronics among the population and rising government efforts to make regulatory changes to boost the adoption of electric vehicles is the prominent factors that are significantly augmenting the growth of the global battery materials market. The rising preference for the rechargeable and lightweight batteries is playing a crucial role in the market growth. The rapidly boosting demand for the lightweight and rechargeable batteries is attributed to the rising adoption of the consumer electronics such as laptops, desktops, and smartphones, which extensively needs the lightweight batteries. The rising trend of miniaturization of the electronic gadgets is a major factor that boosts the demand for the lightweight batteries.
The surging investments by the manufacturers in the processing, mining, and manufacturing of the battery materials is expected to boost the production of batteries to meet the rapidly surging demand for the batteries across the globe. The rising awareness pertaining to the sustainably sourced battery materials, efficient disposal of wastes, and recycling of wastes are expected to boost the demand for the battery materials. The manufacturers are increasingly adopting the certifications such as EU-Batteries Directive, DOT, and PHMSA to ensure safety and quality of the batteries to lure the customers in the market. Furthermore, the rising adoption of the technologies such as Nano-filtration system, solvent extraction method, and rotary kiln electric furnace method are increasingly being adopted by the manufacturers to improve the efficiency and performance of the battery materials based on the requirements.
Report Scope of the Battery Materials Market
|Market Size by 2030||USD 82.3 Billion|
|Growth Rate from 2022 to 2030||
CAGR of 5.63%
|Largest Market||Asia Pacific|
|Fastest Growing Market||North America|
|Forecast Period||2022 to 2030|
|Segments Covered||Material, Battery Type, Application, Region|
|Companies Mentioned||Celgard, Hitachi Chemicals, Umicore, GS Yuasa Corp., Coda Energy, Panasonic Corporation, Envia System Inc., Duracell International Inc., GP Batteries international Ltd., Ford Motor Company, Toda Kogyo|
Based on the material, the NCM was the dominating segment in the global battery materials market in 2021. It is one of the most precious combination of metals that offers continuous discharge of 20 A at around 2,000mWh. The various superior properties such as specific power and high specific energy has led to the growth of this segment. The lithium-ion batteries along with the NMC are used in electric vehicles. Its low rate of self-heating makes it feasible for use in the electric vehicles. Therefore, the surging demand for the electric vehicles is expected to boost the growth of this segment in the forthcoming years.
Battery Type Insights
Based on the battery type, the lithium-ion batteries segment dominated the global battery materials market in 2021. This growth is majorly attributed to the rising demand for the lithium-ion batteries owing to the rapid adoption of electric vehicles across the globe. Moreover, the extensive utilization of the lithium-ion batteries in the portable electronic devices has significantly fostered the growth of this segment. The various properties of lithium ion batteries such as low self-discharge, tint memory effect, and high energy density has made it popular across the various applications. The rising demand for the lithium-ion batteries in the automotive, industrial, and consumer electronics industries has led to the dominance of the segment in the global battery materials market.
The lead acid is expected to be the fastest-growing segment during the forecast period. This is attributed to the rising demand for the lead acid batteries due to its properties such as ease of purchase, high reliability, tolerance to overcharge, and higher ability to deliver high currents. It is considered safer and reliable than the lithium-ion batteries and hence is expected to gain a rapid traction in the forthcoming years.
Based on the application, the consumer electronics segment led the global battery materials market in 2021. The huge demand for a wide variety of consumer electronics among the global population has led to the growth of the consumer electronics segment. Changing lifestyle of the consumers, rising disposable income, technological advancements, and rising expenditure on the home improvement products are some of the major factors that are significantly boosting the demand for the various consumer electronic products across the globe. The rising adoption of the batteries in the consumer electronics and growing demands for various electronic devices is expected to boost the growth of this segment during the forecast period.
Automotive is expected to be the most opportunistic segment during the forecast period. The rising demand for the electric vehicles across the globe and extensive usage of batteries in the electric vehicles is the most prominent factor that drives the growth of this segment. The rising pollution levels and climate change issues have forced the government to switch to the more sustainable transport solutions. The rising reforms in the regulations to boost the adoption of the electric vehicles are expected to have a significant and positive impact on the growth of the market in the foreseeable future.
Asia Pacific captured the highest market share in 2021. Asia Pacific is the largest manufacturer of electric vehicles and consumer electronics. The presence of huge number of manufacturing facilities of various industrial, electronics, and automotive products in the region makes it the largest consumer of the battery materials. The rising government initiatives to boost industrialization have made Asia Pacific the manufacturing hub of the world. China is the largest producer and consumer of electric vehicles as China has abundant supply of lithium-ion. The presence of cheap factors pf production and favorable government policies has significantly attracted huge FDIs and the presence of large number of manufacturing facilities led to the dominance of this region in the global battery materials market.
North America is expected to witness significant growth rate during the forecast period. This is mainly attributed to the extensively rising demand for the electric vehicles and advanced consumer electronics among the population. High consumer awareness regarding the sustainabilit5y and environment protection, strict government regulations pertaining to the emissions from vehicles, and high disposable income of the consumers has led to the rapid growth of the North America battery materials market.
Key Market Developments
The various developmental strategies adopted by the key market players such as business expansion and agreement is expected to have a significant and positive impact on the global battery materials market in the forthcoming future.
Segments Covered in the Report
By Battery Type
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