Published Date : 30 Nov 2023
The global advanced battery market size reached USD 75.7 billion in 2022 and is projected to be worth around USD 175.13 billion by 2032, growing at a CAGR of 8.8% during the forecast period from 2023 to 2032.
Advanced battery is a type of rechargeable battery that incorporates advanced technologies and materials to improve performance, energy density, safety, and other key attributes compared to traditional batteries. Advanced batteries are a crucial component in various applications, including portable electronics, electric vehicles, renewable energy systems, and grid storage.
The advanced battery market is experiencing immense growth, driven by technological advancements and the increasing demand for clean energy solutions. Lithium-ion batteries are gaining traction. Solid-state batteries, flow batteries, and other emerging technologies are pushing the boundaries of energy storage, promising higher energy density, longer lifespan, and improved safety. The increasing advancement of technology in the energy sector is driving the demand for advanced battery solutions.
Asia Pacific accounted for the most prominent share in 2022 owing to the increasing demand for next-generation batteries. China's capacity for battery energy storage as of March 2022 was 3 GW, a 76.5% growth from 1.7 GW in 2019. It is also anticipated that the Chinese government will raise battery storage capacity to 100 GW by 2030. Such circumstances are opening up a plethora of prospects for regional inventors of sophisticated batteries of the future.
Rising development projects in China in advanced battery technologies are driving the growth of the industry. Moreover, the National Institute for Material Science (NIMS) in Japan and Softbank Corp. created a lithium-air battery in January 2022 that has an energy density of more than 500 Wh, which is considerably greater than the present lithium-ion batteries. The battery's ability to be charged and discharged at room temperature was verified by the study team.
The demand for lithium-air batteries is also gaining significant growth owing to the various benefits such as they are lightweight, and high-capacity. For instance, India accepted proposals in March 2022 for four businesses to receive incentives under the PLI Scheme for the manufacturing of Advanced Chemistry Cells (ACC) for battery storage. Under India's INR 181 billion program to increase domestic battery cell manufacture, Reliance New Energy Solar Limited, Ola Electric Mobility Private Limited, Hyundai Global Motors Company Limited, and Rajesh Exports Limited were given incentives.
|Market Revenue in 2023
|USD 81.98 Billion
|Projected Forecast Revenue by 2032
|USD 175.13 Billion
|Growth Rate from 2023 to 2032
|CAGR of 8.8%
|2023 to 2032
|North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa
Growing demand for electric vehicle
Rising environmental concerns due to the extensive usage of fossil fuels are driving the demand for alternative and sustainable sources of energy. The demand for electric vehicles is experiencing a significant increase owing to the increasing government initiatives and various incentives.
Ongoing advancements in battery technology have improved the range and performance of electric vehicles. As battery costs decrease, the overall cost of producing EVs becomes more competitive with traditional vehicles. Many automotive manufacturers have committed to producing more electric vehicles and phasing out internal combustion engine vehicles. This commitment from major industry players has a significant impact on shaping consumer choices.
Increasing consumer demand
The demand for high-performance batteries in consumer electronics, including smartphones, laptops, and wearables, continues to grow. Consumers seek longer battery life and faster charging capabilities, driving the development of advanced battery technologies.
As the need for grid stability and reliability increases, advanced batteries are being used for grid energy storage applications. They help store excess energy during periods of low demand and release it during peak demand, contributing to a more efficient and resilient power grid. Moreover, Industries are also adopting energy storage systems to improve energy efficiency, reduce costs, and enhance grid stability. Advanced batteries are used in energy storage systems for various industrial applications, such as backup power and load leveling.
Advanced battery technologies often involve significant research, development, and initial manufacturing costs, which can be a barrier to entry for some market players. The cost of advanced batteries, especially in comparison to traditional energy storage solutions, may be a limiting factor for widespread adoption, particularly in large-scale applications.
The adoption of electric vehicles, which are a significant market for advanced batteries, may be hampered by insufficient charging infrastructure, particularly in certain regions. As the demand for electric vehicle increases, the need for charging infrastructure experience a significantly increase. However, the development of charging infrastructure requires significant investment which is further limiting the growth of the industry.
Advanced batteries may require intricate manufacturing processes and specialized materials, leading to challenges in scalability and cost-effectiveness. Evolving regulations related to environmental standards, safety, and disposal of batteries can pose challenges for manufacturers and may require additional investments in compliance measures.
Integration of advanced battery systems into existing power grids may face challenges due to regulatory and technical issues. Some advanced battery technologies may still face technical challenges, such as limited energy density, cycle life, or safety concerns, which can impede their adoption.
Research and development
Ongoing research in battery chemistry, materials science, and engineering provides opportunities for breakthroughs in performance, cost reduction, and environmental impact. Many governments around the world were investing in research and development programs to accelerate advancements in battery technology. These initiatives aimed to support the growth of electric vehicles, renewable energy, and grid-scale energy storage. As the use of batteries increased, there was a growing emphasis on developing sustainable and environmentally friendly battery technologies. Recycling and second-life applications were areas of focus to address the environmental impact of battery production and disposal.
Energy storage system
Advanced batteries play a crucial role in storing renewable energy, such as solar and wind power, for use during periods of low generation. This is important for creating more sustainable and reliable energy grids.
Energy storage at the grid level helps balance supply and demand, providing stability to power grids. Advanced batteries can contribute to more efficient energy distribution and grid resilience. The growth of smart cities and the Internet of Things (IoT) requires advanced batteries to power sensors, devices, and infrastructure components, ensuring continuous and reliable operation.
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