Battery Additives Market: Overview
The size of the world market for battery additives was evaluated at USD 1,318.4 million in 2018 and is expected to grow at a CAGR of 8.7% during the projected period. One of the main factors influencing the need for battery additives is the increased use of lithium-ion batteries in various applications, including electric cars, digital cameras, laptops, and computers. Battery usage has increased due to rising industrialization in nations like South Korea, India, China, France, and Germany. This is driving up demand for battery additives over the forecast period. The growing demand for Li-Ion batteries in consumer electronics applications is one of the main driving forces. The adoption of battery-powered electric vehicles has increased recently all around the world. Additionally, it opens up opportunities for lithium-ion batteries, whose demand is growing due to their high energy density. In 2021, 11.3 million battery electric cars (BEVs) were used worldwide. More than four million new battery electric vehicles were added to the global fleet that year, with the number continuously increasing since 2016. With this, the manufacture of these batteries has increased, ultimately fueling the expansion of the battery additives market in the coming years.
Despite efforts to increase electrification through grid connectivity, the number of people without access to electricity in the African region is predicted to increase from 588 million in 2016 to over 602 million in 2030. Particularly in the Sub-Saharan region, off-grid solar efforts are anticipated to flourish. Using off-grid solar power in conjunction with energy storage significantly improves the usage of solar PV units because solar energy is an intermittent source that only produces power during the day. With the growing acceptance of energy storage with solar PV in industrialized nations, the battery market is expected to experience tremendous growth in the near term.
The market for batteries is expanding due to the increased demand for rechargeable batteries for use in military and defense, isolated locations, and places without access to electricity. The market for battery additives is anticipated to increase significantly due to this factor. Furthermore, during the forecast period, businesses active in the worldwide battery additives market should benefit from growth prospects brought on by technological improvements in lithium-ion batteries.
Battery Additives Market: COVID-19 Impact
Almost every industry in the world has suffered difficulties due to the epidemic. This is because each company's production and supply-chain activities have been seriously hampered by the multiple precautionary lockdowns and other restrictions imposed by government authorities worldwide. The global market for battery additives is typical in this regard. Additionally, because this pandemic has adversely affected the majority of people's budgets, individuals are now more concerned with reducing their non-essential spending, which has reduced consumer demand. These variables are anticipated to impact the global battery additives market's revenue trajectory during the forecast period. However, the global battery additives industry is projected to recover as regional regulatory authorities start to loosen these imposed limits.
Battery Additives Market: Drivers
Increasing Li-Ion Battery Demand in Consumer Electronics Applications to Fuel Market’s Growth
Batteries are widely used in consumer electronics. The increased need for battery additives is fuelled further by high usage, increasing battery temperature, faster discharge rates, and increasing consumption. In 2022, there will be 6.648 billion smartphone users globally or 83.72 percent of the world's population. Around the world, 7.26 billion people—91.54 percent of the population—own a smart or feature phone. With the growing penetration of smartphones, the market for battery additives will grow in the coming years.
Moreover, due to the COVID-19 pandemic, working and studying from home have become the new normal for working professionals and students. As a result, this trend is projected to sustain the rising demand for consumer electronics and battery additives in the next years. According to data from research done in March 2020, the coronavirus epidemic caused 70% of internet users worldwide to use their cell phones or mobile phones more. China led the globe by having an overall increase in smartphone users of 86 percent during the pandemic.
Increasing Demand for Renewable Energy to Uplift Market’s Growth
The rise in demand for renewable energy sources is the primary driving factor for batteries and, thus, the market. The need for energy has increased significantly as the world's population has increased and living standards have improved. As a result, mankind has been forced to seek alternative energy sources, and renewable energy has emerged as a viable option for meeting energy demand while also creating a sustainable environment in the long run. Favorable government regulations, rising renewable energy usage, falling solar panel and wind turbine prices, and installation costs are expected to boost the renewable energy business. The continual increase in renewable energy production will boost the demand for batteries and, thus, the battery additives market in the coming years.
Battery Additives Market: Restraints
Inadequate EV Charging Infrastructure to Hamper Market’s Growth
Few EV charging stations may be found in various nations across the world. As a result, public EV charging stations are less accessible, lowering electric vehicle uptake. Although many nations are constructing EV charging infrastructure, a few states have not been able to deploy the necessary number of EV charging stations. With a well-established global EV charging network, demand for EVs is anticipated to rise. The majority of nations have not yet created such charging networks. EV charging stations might only work with specific voltage kinds. In contrast to DC charging stations, which offer fast charging through 480V AC, AC charging stations offer a voltage of 120V AC through level 1 charging stations and 208/240V AC through level 2 charging stations. The usage of these various charging standards globally acts as a hurdle to EV charging station standardization.
Battery Additives Market: Segment Overview
With Enhanced Reduced Self Discharge Rate, Nucleating Additives to Dominate Market
The nucleating additives segment is anticipated to have a sizably large revenue share in the worldwide battery additives market. These battery additives have advantages, including increasing the capacity of batteries to keep a charge and reducing self-discharging loss. Nucleating additives have a surface charge in opposition to the partial charge of the polymer moiety, which speeds up the crystallization process. In injection molding, where various polymers encounter challenges, nucleating agents' quick crystallization rate is indicated to enable new application possibilities for polypropylene and PET (polyethylene terephthalate). The nucleating additives are anticipated to grow, opening up various commercial and research opportunities. Current research is focused on discovering new application areas for nucleating additives and integrating the role of various plastic additives in a single additive.
Growing EV Automobile Industry is Boosting Demand for Lithium Ion Battery
The segment for lithium-ion is anticipated to have the greatest growth rate over the forecast period. Numerous appliances, including smartphones, wearable technology, computers, tablets, and numerous home applications, use these batteries. Lithium-ion batteries are more stable and may be recharged frequently. These batteries have increased power efficiency due to longer charge retention in a single cell compared to other battery types. They also have higher voltage capacity, energy density, and a lower self-discharge rate than other rechargeable batteries. In the global market, the aforementioned aspects fuel segment growth. Additionally, the EPA restrictions on lead contamination and the related environmental risks, along with the regulations on lead-acid battery storage, disposal, and recycling, have decreased demand for lead-acid batteries and increased demand for lithium-ion batteries.
Battery Additives Market: Regional Landscape
With Increased Production of Electric Vehicles, Asia Pacific to Acquire Largest Market Share
With a major revenue share, the Asia Pacific to lead all regions in the forecast period. Numerous developing economies in Asia-Pacific are supported by abundant natural and human resources. With the legislative assistance from the respective governments that support the manufacturing industry, China and India are anticipated to be important investment hotspots for battery firms in the upcoming year. In China and India, where the use of electric vehicles and the construction of renewable energy facilities is growing quickly, it is anticipated that there will be a huge need for batteries. With more than 1.15 million electric vehicles (EVs) sold in China in 2020, it is anticipated that China will continue to be the world's largest EV market. In 2020, China accounted for about 40% of all electric vehicle sales worldwide.
In the absence of grid electricity being available 100% of the time, the telecom industry is shifting toward renewable energy sources, primarily solar, to reduce greenhouse gas emissions. The need for batteries in the telecom industry is rising due to issues with renewable energy's intermittency. The Indian Department of Telecommunications gave telecom service providers instructions to deploy energy-efficient technologies and renewable energy sources in February 2020. Consequently, due to the aforementioned developments, Asia-Pacific will likely continue to hold a dominant position in the global battery market. This is supported by rising urbanization and consumer spending across several nations, including China and India, which is anticipated to increase demand for technologically advanced devices and vehicles due to their benefits.
Over the anticipated timeframe, North America is anticipated to have tremendous growth. The regional market is primarily driven by falling Li-ion battery prices, rising consumer electronics sales, quick adoption of electric cars, and a developing renewable sector. Additionally, North America continues to be a leader in battery research and development, as well as one of the world's biggest consumers of batteries. From 2020 to 2021, the number of new plug-in electric vehicle sales in the US almost doubled. From 308,000 in 2020 to 608,000 in 2021, sales of new light-duty plug-in electric vehicles, including all-electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs), then doubled. Policy assistance is crucial in the current market environment for accelerating EV adoption. Policy support also enables market expansion by increasing consumer interest in vehicles, lowering stakeholder risks, and motivating manufacturers to create EVs on a wide scale.
Global Battery Additives Market: Competitive Landscape
In May 2022, Fuchs Group, a German independent lubricant manufacturer, joined the battery business by purchasing 28% of E-Lyte Innovations GmbH, a start-up that develops and manufactures electrolytes for high-performance batteries in the industrial and automotive industries. E-Lyte Innovations was created in May 2019 as a spin-off from the University of Muenster's MEET Battery Research Center in Germany. In December 2021, Koura announced ambitions to take the lead in the fast-expanding lithium-ion battery sector by developing a new brand for its next-generation electrolyte solutions. Koura's Koflyte electrolyte additions and co-solvents improve performance and safety in Li-ion batteries.
Few of the players in the Battery Additives Market include Cabot Corporation, Hammond Group, Orion Engineered Carbons, MERYS, 3M, ALTANA, Borregaard, HOPAX, PENOX, and SGL Group
Global Battery Additives Market is Segmented as Below:
Key Elements Included In The Study: Global Battery Additives Market
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