Yahoo Finance Next Generation Advanced Battery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The next-generation advanced battery market is expected to register a CAGR of 7. 24% during the forecast period, 2022-2027, registering market value of USD 2314 million in 2027 from USD 1455 million in 2020.
New York, July 06, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Next Generation Advanced Battery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" - https://www.reportlinker.com/p06290931/?utm_source=GNW
The COVID-19 pandemic affected the market ranging from the supply chain issues owing to difficulties in sourcing the raw materials, shutdown of manufacturing facilities, and transportation of finished products. The pandemic also resulted in declining demand for equipment that uses next-generation advanced batteries, in turn affecting the market. The next-generation advanced batteries are the upgraded version of existing batteries that have higher efficiency and cheaper unit cost. Factors such as rising adoption of electric vehicles, rising focus on clean energy usage, and growth in demand for consumer electronic gadgets are likely to drive the market during the forecast period. However, longer recharge time, high manufacturing and R&D costs, short cycle life span, etc., are likely to restrain the market growth during the forecast period.
Key Highlights
The transportation segment is expected to dominate the next-generation advanced battery market, owing to the rising demand for electric vehicles all over the world.
The increasing deployment of renewable energy infrastructure along with developing manufacturing facilities are anticipated to provide huge business opportunities for for next-generation batteries, which is a big boost for the next-generation advanced battery market in the coming years.
Asia-Pacific is expected to dominate the market, with the majority of the demand coming from the countries such as India and China, etc.
Key Market Trends
Transportation Segment Expected to Dominate the Market
The electrification of the transportation system is gaining popularity, and various government mandates have accelerated the adoption of electric vehicles, which directly aids the growth of next-generation advanced batteries in the transportation sector. ?
In 2021, automobile giants announced that General Motors will stop selling petrol and diesel models by 2035, and Audi AG plans to stop producing such vehicles by 2033. The carmakers are rushing to electrify their electric cars, which has led the company to invest in advanced batteries for more efficient and profitable electric vehicles.?
In April 2022, Honda Motors announced that it would invest USD 39.84 billion in electrification and software technologies to accelerate its business globally for the next ten years. It will also build a demonstration production line for all-solid-state batteries in North America, allocating approximately USD 342.65 million. The investment company plans to launch two mid-to-large-scale electric vehicle (EV) models by 2024 with a partnership with General Motors. ?
According to the International Energy Agency (IEA), the global electric vehicle stock increased globally from 1.25 million in 2015 to about 10.2 million in 2020. In 2020, battery-electric vehicles accounted for most of the electric vehicles at about 6.85 million, and plug-in hybrid electric vehicles were about 3.35 million. ?
Furthermore, aluminum-air batteries have an advantage over the conventional lithium-ion battery as aluminum acts as a fuel where air reacts with the metal via an electrolyte to produce power. It has a travel range similar to gasoline-powered cars and a higher energy density than the lithium-ion battery. However, it lacks government policy support and attention from automakers to make it a popular battery energy storage system for electric vehicles. ?
In December 2021, Mercedes Benz, a German car manufacturer announced to invest USD 100 million in a wide range of electric cars. The company also intends to integrate solid-state battery technology into a limited number of vehicles within the next five years. Mercedes Benz plans to invest tens of millions into Factorial Energy, a battery company to develop solid-state batteries. ?
In April 2022, Nissan Motor Company planned to bring laminated solid-state batteries to the market by 2028, with the beginning of a prototype production facility. It is a part of Nissan’s Ambition 2030 strategy, plus an investment of USD 17 billion for the four new electric vehicle concepts. ?
Overall, automobile manufacturers are investing heavily in developing solid-state batteries and metal-air batteries, making automobiles one of the major sectors of the next-generation advanced battery market.
Asia-Pacific to Dominate the Market
As of 2021, China, India, and Japan were the potential markets for the next generation advanced battery technology in the Asia-Pacific region.
As of March 2022, China’s battery energy storage capacity reached 3 GW, representing an increase of 76.5% compared to 1.7 GW in 2019. Furthermore, the Chinese Government is expected to increase its battery storage capacity to 100 GW by 2030. Such scenarios are creating vast opportunities for various next-generation advanced battery developers in the region.
According to the China Energy Storage Alliance (CNESA), the refinement of policy related to grid ancillary services – energy storage’s primary application – as well as policy developments in regions including Qinghai, Guangdong, Jiangsu, inner Mongolia, and Xinjiang, have created a wave of energy storage construction and development in China. Such government policies will likely boost the demand for advanced battery technologies during the forecast period.
At present, various development projects and investments in the next generation advanced battery technologies are happening in China. In July 2021, CATL unveiled the first next-generation sodium-ion battery and its AB battery pack solutions. Also, CATL’s quest to shift the electric vehicle market toward a sodium-ion cell received a boost from the central government after the Ministry of Industry and Information Technology announced the creation of standards for such battery types.
In addition to the scenario in China, in January 2022, Japan’s National Institute for Material Science (NIMS) and the Softbank Corp. developed a lithium-air battery with an energy density of over 500Wh/kg—significantly higher than currently lithium-ion batteries. The research team confirmed that this battery could be charged and discharged at room temperature. The battery developed by the team shows the highest energy densities and best cycle life performances. These results signify a major step toward the practical use of lithium-air batteries.
The lithium-air batteries are expected to have the potential to be the ultimate rechargeable batteries: they are lightweight and high capacity, with theoretical energy densities several times that of currently available lithium-ion batteries. Because of these potential advantages, they may use various technologies, such as drones, electric vehicles, and household electricity storage systems.
Further, "Make in India"is a high-priority movement for India and has already provided incentives to produce electric cars. Batteries for cars and grid storage are high on the agenda for manufacturing in India. The EV market for two-wheelers, three-wheelers, cars, and minibusses is more price-sensitive than performance sensitive. If the next generation advanced batteries have a price advantage over a comparable lithium-ion battery whose performance parameters are marginally higher, it would still find a better market opportunity in India than elsewhere. The advanced batteries made with economies of scale have huge market potential in India.
In March 2022, India approved bids for four companies to avail incentives under the PLI Scheme for the Advanced Chemistry Cell (ACC) Battery Storage Manufacturing. Reliance New Energy Solar Limited, Ola Electric Mobility Private Limited, Hyundai Global Motors Company Limited, and Rajesh Exports Limited received incentives under India’s INR 181 billion program to boost local battery cell production. Under the scheme, selected ACC battery storage manufacturers were expected to set up a production facility within two years. Such government-supportive incentives are expected to create an environment for the future development of the next generation advanced battery market.
Therefore, the above-mentioned factors are expected to drive the next-generation advanced battery market in the Asia-Pacific region during the forecast period.
Competitive Landscape
The next-generation advanced battery market is moderately consolidated. Some of the major companies include Sion Power Corporation, Contemporary Amperex Technology Co. Ltd, PolyPlus Battery Co. Inc., GS Yuasa Corporation, and Saft Groupe SA.
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