|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
USD
48.16 Billion
|
|
CAGR
(2023-2028)
|
10.25%
|
|
Fastest
Growing Segment
|
Lithium-ion
Battery Technology
|
|
Largest
Market
|
Asia
Pacific
|
Market Overview
Global Automotive Secondary Battery Market was
valued at USD 48.16 Billion in 2022 and is anticipated to project robust growth
in the forecast period with a CAGR of 10.25%through 2028. The global Automotive
Secondary Battery market is a dynamic and growing market, but it is also facing
a number of challenges. Battery manufacturers and governments are working to
address these challenges, but it is important to be aware of the potential
impact on industry and consumers. technological advancements are leading to the
development of more efficient and durable secondary batteries. This is making
EVs more attractive to consumers and is helping to drive the growth of the
automotive secondary battery market. The cost of secondary batteries has been
declining steadily in recent years, making them more affordable for EV manufacturers
and consumers. This is helping to drive the adoption of EVs and the growth of
the automotive secondary battery market. Renewable energy sources, such as
solar and wind power, are becoming increasingly popular, as they offer a clean
and sustainable alternative to fossil fuels. However, renewable energy sources
are intermittent, meaning that they do not produce electricity all the time.
Secondary batteries can be used to store energy from renewable energy sources
when it is available, so that it can be used to power EVs and other devices
when renewable energy sources are not available. EVs are becoming increasingly
popular, as they offer a number of advantages over traditional gasoline-powered
vehicles, such as lower fuel costs, reduced emissions, and a more
environmentally friendly driving experience. EVs require secondary batteries to
power their electric motors, so the growing demand for EVs is driving the
growth of the automotive secondary battery market.
Key Market Drivers
Growing Demand for Electric Vehicles (EVs)
The surge in the adoption of electric vehicles
(EVs) is a prominent driver of the Automotive Secondary Battery market. As the
world shifts towards cleaner and more sustainable transportation solutions to
mitigate the impact of climate change, lithium-ion batteries have emerged as
the primary energy storage solution for EVs. Lithium-ion batteries offer the
high energy density, longer cycle life, and fast charging capabilities
necessary for electric vehicles. The growth of the EV market directly fuels the
demand for secondary batteries, driving technological advancements and
economies of scale, which, in turn, reduce costs and make batteries more
accessible to consumers.
The integration of renewable energy sources, such
as solar and wind power, into the electricity grid is another significant
driver. To manage the intermittency of renewables and ensure a stable energy
supply, energy storage systems (ESS) are required. Secondary batteries play a
crucial role in ESS by storing excess energy when supply exceeds demand and
releasing it when demand surpasses supply. This integration not only promotes
the utilization of clean energy but also enhances grid resilience and reliability,
thereby driving the demand for secondary batteries.
Consumer Electronics and Automotive Devices
The proliferation of consumer electronics and Automotive
devices is a long-standing driver of the Automotive Secondary Battery market.
Smartphones, laptops, tablets, and wearables all rely on rechargeable
lithium-ion batteries, which have become lighter, more efficient, and
longer-lasting over time. Consumer demand for longer battery life and increased
device portability continues to fuel innovation in battery technology, leading
to the development of more advanced and energy-dense batteries.
Energy Storage for Utilities
Secondary batteries are increasingly used by
utility companies for grid-scale energy storage. These large-scale energy
storage projects are instrumental in stabilizing power grids, improving load
management, and facilitating the integration of renewable energy sources. As
utilities strive to reduce reliance on fossil fuels and transition to cleaner
energy options, the demand for secondary batteries in utility-scale energy
storage projects continues to grow.
Government Regulations and Incentives
Government policies and regulations play a pivotal
role in driving the Automotive Secondary Battery market. Many countries have
implemented regulations to reduce greenhouse gas emissions and promote the
adoption of electric vehicles and renewable energy sources. These regulations
often include incentives such as tax credits, subsidies, and emissions targets
that encourage the development and adoption of secondary batteries.
Additionally, regulations regarding the disposal and recycling of batteries
have led to increased research into sustainable battery materials and recycling
technologies.
Advancements in Battery Technology
Continuous advancements in battery technology are a
fundamental driver of the Automotive Secondary Battery market. Researchers and
manufacturers are constantly working to improve battery performance, energy
density, safety, and cost-effectiveness. Innovations such as solid-state
batteries, which promise higher energy density and enhanced safety, have the
potential to revolutionize various industries, including EVs and consumer
electronics.
Global Push for Energy Independence:
The desire for energy independence and reduced
reliance on fossil fuels is a global driver that promotes the use of secondary
batteries. Individuals and businesses are investing in solar panels and other
distributed energy generation systems coupled with energy storage solutions to
reduce their dependence on centralized power grids and traditional energy
sources.
Electrification of Automotive Processes:
Industries are increasingly electrifying their
processes to reduce carbon emissions and improve efficiency. This trend spans
various sectors, including manufacturing, agriculture, and mining.
Electrification often involves the use of secondary batteries to power electric
machinery and equipment, leading to increased demand for robust and
long-lasting battery solutions.
Consumer Awareness and Environmental Concerns:
Growing consumer awareness of environmental issues,
coupled with concerns about pollution and climate change, has a significant
influence on the Automotive Secondary Battery market. Consumers are
increasingly opting for products and technologies that align with their values,
choosing electric vehicles and renewable energy solutions over traditional
alternatives.
Supply Chain Considerations:
The global supply chain, particularly for critical
raw materials like lithium, cobalt, and nickel, significantly impacts the Automotive
Secondary Battery market. Geopolitical factors, mining regulations, and the
availability of these materials can affect battery production and pricing.
Efforts to diversify the supply chain and explore alternative materials are
ongoing to mitigate supply chain risks.
In summary, the global Automotive Secondary Battery
market is driven by a confluence of factors that include the rise of electric
vehicles, the integration of renewable energy, the proliferation of consumer
electronics, utility-scale energy storage, government regulations and
incentives, technological advancements, the pursuit of energy independence, Automotive
electrification, consumer awareness of environmental concerns, and supply chain
considerations. These drivers are interconnected and collectively shape the
trajectory of the Automotive Secondary Battery market, making it a dynamic and
rapidly evolving industry with profound implications for sustainability and the
global economy.
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Key Market Challenges
Energy Density and Capacity Limitations
One of the primary challenges in the Automotive Secondary
Battery market is the limitation in energy density and capacity of current
battery technologies. Despite advancements in recent years, lithium-ion
batteries, which dominate the market, still struggle to match the energy
density of fossil fuels. This limitation impacts the range and efficiency of
electric vehicles (EVs) and the duration of energy storage in grid-scale
applications. Researchers are actively working on improving energy density
through innovations such as solid-state batteries, but these technologies are
not yet widely available and face their own set of challenges.
Cycle Life and Degradation
Secondary batteries degrade over time, leading to
reduced capacity and performance. This cycle life issue is especially critical
in applications where batteries are cycled frequently, such as in EVs and Automotive
electronics. Battery degradation not only affects the user experience but also
contributes to increased costs as batteries need to be replaced more
frequently. Research into extending battery cycle life and minimizing capacity
fade is ongoing, but it remains a significant challenge.
Safety Concerns
Safety is a paramount concern in the Automotive Secondary
Battery market, particularly for lithium-ion batteries. These batteries can be
prone to thermal runaway, which can lead to fires or explosions under certain
conditions, including physical damage or overheating. Ensuring the safety of
battery technologies is a constant challenge, necessitating the development of
effective thermal management systems, improved electrolytes, and advanced
safety features. Addressing these safety concerns is essential to building
consumer trust and facilitating the broader adoption of secondary batteries.
Raw Material Availability and Price Volatility:
The Automotive Secondary Battery industry relies
heavily on critical raw materials like lithium, cobalt, nickel, and graphite.
The availability and price of these materials can be volatile due to factors
like geopolitical tensions, mining regulations, and supply chain disruptions.
As demand for batteries continues to grow, there are concerns about potential
material shortages and price spikes, which can impact the overall cost and
availability of secondary batteries. Research into alternative materials and
recycling techniques is ongoing to mitigate these supply chain risks.
Environmental Impact and Recycling
While secondary batteries are seen as a more
environmentally friendly alternative to fossil fuels, they are not without
environmental challenges. Battery production, particularly for lithium-ion
batteries, can have significant environmental impacts, including resource
extraction, energy-intensive manufacturing processes, and waste disposal
concerns. Additionally, the recycling rates for batteries are relatively low,
and improper disposal can lead to environmental contamination. The industry
faces the challenge of developing more sustainable battery materials, improving
recycling methods, and establishing a closed-loop supply chain to minimize its
environmental footprint.
Cost and Affordability
The cost of secondary batteries remains a barrier
to widespread adoption in various applications. Electric vehicles, for
instance, still have a higher upfront cost compared to traditional internal
combustion engine vehicles, largely due to the cost of the battery pack.
Reducing the cost of batteries is a critical challenge, as it would make
electric vehicles and renewable energy storage more affordable and accessible
to consumers. Economies of scale, technological advancements, and innovations
in manufacturing processes are all contributing to cost reduction efforts.
Charging Infrastructure:
In the case of electric vehicles, the lack of a
comprehensive charging infrastructure is a significant challenge. Range
anxiety, or the fear of running out of battery power without access to
charging, remains a concern for potential EV buyers. Developing a robust and
widespread charging network is essential to the mass adoption of electric
vehicles. Governments and private companies are working to address this
challenge by investing in charging infrastructure, but it remains a work in
progress.
Key Market Trends
Rise of Lithium-ion Dominance
The most prominent trend in the Automotive Secondary
Battery market is the continued dominance of lithium-ion batteries. These
batteries are favored for their high energy density, long cycle life, and
reliability, making them the go-to choice for a wide range of applications,
from electric vehicles to consumer electronics and grid-scale energy storage.
As lithium-ion technology continues to improve, it reinforces its position as
the industry standard.
The significance of this trend lies in the fact
that lithium-ion batteries have become the de facto choice for energy storage,
which has led to economies of scale, reduced costs, and accelerated
technological advancements. However, it also highlights concerns about the
supply of critical materials like lithium, cobalt, and nickel, as well as the
need for sustainable and safe recycling methods.
Advancements in Solid-State Batteries
Solid-state batteries are a promising technology
that represents a major trend in the Automotive Secondary Battery market. These
batteries replace the liquid or gel electrolyte in traditional lithium-ion
batteries with a solid electrolyte, offering advantages such as higher energy
density, faster charging, longer cycle life, and improved safety. Solid-state
batteries have the potential to revolutionize various industries, including
electric vehicles, consumer electronics, and renewable energy storage.
The significance of this trend lies in the
potential of solid-state batteries to address some of the limitations of
traditional lithium-ion batteries, particularly in terms of safety and energy
density. However, commercializing solid-state batteries at scale remains a
challenge, and overcoming manufacturing and cost barriers is crucial for their
widespread adoption.
Increased Focus on Sustainability
Sustainability is a growing trend in the Automotive
Secondary Battery market, driven by environmental concerns and regulatory
pressure. Manufacturers are increasingly emphasizing the use of sustainable
materials in battery production, as well as improving recycling processes to
reduce the environmental impact of batteries. This trend is particularly
relevant given the massive quantities of batteries used in electric vehicles
and renewable energy storage.
The significance of this trend is twofold. First,
it addresses the environmental concerns associated with battery production and
disposal, aligning with global efforts to reduce carbon emissions. Second, it
helps ensure a stable and sustainable supply chain for critical battery
materials by promoting recycling and responsible sourcing.
Segmental Insights
Technology Insights
Among different types of
battery technologies, lithium-ion battery (LIB) is expected to dominate the Automotive
Secondary Battery market in the latter part of the forecast period, majorly due
to its favourable capacity-to-weight ratio. Also, other factors that play an
important role in boosting the LIB adoption include better performance, higher
energy density, and decreasing price. Due to its high energy density, the price
of lithium-ion batteries decreased considerably from USD 668/kWh in 2013 to USD
123/kWh in 2021, making it a lucrative choice among all batteries. Lithium-ion
batteries have traditionally been used in consumer electronic devices, such as
mobile phones, notebooks, and PCs. However, they are increasingly being
redesigned for use as the power source of choice in hybrid and the complete
electric vehicle (EV) range, owing to factors such as low environmental impact,
as EVs do not emit any CO2, nitrogen oxides, or any other greenhouse gases. LIB
manufacturing facilities are majorly located in Asia-Pacific, North America,
and Europe. Major market players, such as BYD Company Limited and LG Chem Ltd,
have plans to set up new manufacturing facilities in the Asia-Pacific region,
primarily in India, China, and South Korea. Therefore, based on such factors,
lithium-ion battery technology is expected to dominate the Automotive Secondary
Battery market during the forecast period.
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Regional Insights
Asia Pacific is expected to dominate the market
during the forecast period. The
Asia-Pacific battery market as a whole is expected to grow significantly over
the coming decade due to increased electrification activities in the region.
The Battery Recycling has not yet penetrated the market on a significant level.
The battery market in this region is mainly driven by developments in the
electronics manufacturing, power generation, communication, and information
industries in countries like India, China, Japan, and South Korea. Developing
countries, like India, lack a firm grid infrastructure, which causes power cuts
and blackouts frequently, mostly in rural areas. Thus, the lack of grid
infrastructure, high demand for steady power, and the need for power backup
solutions are expected to drive the demand for Automotive dual carbon
batteries. Moreover, the governments of various countries have taken
initiatives to finance energy storage projects to fulfill the energy
requirements in their countries. China and a few South Asian countries are
coming up with new business models and associated financing instruments to
invest capital in battery energy storage projects. In a short-term scenario,
however, the region is likely to witness challenges from rising prices of
graphite carbon, which is a major raw material used in the Battery Recycling
manufacturing process. Rising prices of graphite carbon are majorly a result of
a sharp cut in the supply of graphite electrodes from China. In the present
scenario, the demand for graphite electrodes is significantly higher compared
to the supply. Research on Battery
Recycling technology is also underway in the region. For instance, in April
2021, researchers at IIT Hyderabad, India, developed a Battery Recycling that
can cut the overall battery cost by as much as 20-25%, along with being environment-friendly.
Further research is underway to increase the energy density of the battery.
Therefore, based on the above-mentioned factors, Asia-Pacific is expected to
witness significant growth during the forecast period.
Recent Developments
- In December 2021, Reliance New Energy Solar Limited
entered an agreement with Faradion to acquire 100% of the equity shares for a
total value of USD 117 million. Faradion is a UK-based leading battery
technology company with an extensive IP portfolio covering many aspects of
sodium-ion technology.
- In December 2021, Northvolt produced its first
lithium-ion battery cell at its factory in Skelleftea, Sweden. The facility is
expected to have a yearly output of 60 GWh, which is enough to supply batteries
for around 1 million EVs. It had planned to begin commercial delivery in 2022.
- In April 2021, researchers at IIT Hyderabad, India,
developed a 5V Battery Recycling utilizing self-standing carbon fiber mats as
both electrodes (cathode and anode). This new model sets aside the requirement
for toxic, costly, and heavy transitional metals.
- In June 2023, Tesla announced plans to invest USD1.5
billion in a new battery factory in Texas. This factory is expected to produce
enough batteries for 2 million EVs per year.
- In May 2023, Panasonic announced plans to invest USD
1 billion in a new battery factory in Japan. This factory is expected to
produce enough batteries for 500,000 EVs per year.
- In April 2023, LG Chem announced plans to invest USD
2 billion in a new battery factory in Michigan. This factory is expected to
produce enough batteries for 1 million EVs per year.
- In March 2023, SK On announced plans to invest $2.6
billion in two new battery factories in Georgia. These factories are expected
to produce enough batteries for 1.2 million EVs per year.
Key Market Players
- Umicore
- Retriev
Technologies
- American
Battery Technology Company (ABTC)
- Li-Cycle
- Aqua
Metals
- Battery
Solutions
- Recupyl
- Gopher
Resource
- Glencore
Recycling
- Retech
Recycling Technology AB.
|
By Technology
|
By Type
|
By Region
|
- Lead-acid
Batteries
- Lithium-ion
Batteries
- Other
Technologies
|
|
- North
America
- Europe
- South America
- Middle East
& Africa
- Asia Pacific
|
|
Report Scope:
In this report, the Global Automotive Secondary
Battery Market has been segmented into the following categories, in addition to
the industry trends which have also been detailed below:
- Automotive Secondary Battery Market, By Technology:
o
Lead-acid
Batteries
o
Lithium-ion
Batteries
o
Other
Technologies
- Automotive
Secondary Battery Market, By Type:
o HEV
o PHEV
o EV
- Automotive Secondary Battery Market, By
Region:
o North America
§ United States
§ Canada
§ Mexico
o Asia-Pacific
§ China
§ India
§ Japan
§ South Korea
§ Indonesia
o Europe
§ Germany
§ United Kingdom
§ France
§ Russia
§ Spain
o South America
§ Brazil
§ Argentina
o Middle East & Africa
§ Saudi Arabia
§ South Africa
§ Egypt
§ UAE
§ Israel
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Global Automotive
Secondary Battery Market.
Available Customizations:
Global Automotive Secondary Battery Market report with
the given market data, Tech Sci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
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report or want to confirm the date of release, please contact us at [email protected]