Due to their lower emissions, ability to be charged using renewable energy sources, and eventual reduction in electric costs, structural batteries are predicted to replace fossil fuels like gasoline and diesel in the car sector. Declining battery prices, more knowledge of zero-emission automobiles, and developments in battery technology are predicted to be the main factors driving the rising demand for structural batteries. To promote zero-emission automobiles, manufacturers are primarily concentrating on E.V. technology advancement. Recycling structural batteries and other vehicle parts can also promote a circular economy, which relies on reusable products to close the gap between mining and manufacturing. This will lessen municipal solid waste (MSW) and eventually support market growth over the forecast period.
COVID-19 IMPACT
The COVID-19 pandemic greatly affected the market expansion for structural batteries. Due to difficulties with the extraction of elements like lithium, cobalt, nickel, and aluminum during the pandemic, the battery’s manufacture was delayed. Additionally, the lack of raw materials disturbed the supply chain and manufacturing facilities, ultimately leading to a fall in the sales of electric vehicles.
DRIVING FACTORS
Strict Emission Regulations Encourage Structural Battery Adoption to Drive Market Growth
Due to the absence of emissions from transportation and the opportunity to use and expand renewable energy sources, E.V.s have a significant pollution advantage over conventional fuel-based vehicles. Additionally, as people become more aware of climate change, regulatory agencies are now required to enact strict fuel efficiency laws and actively promote the development of E.V.s through subsidies and programs like those that support the production of battery cells. Therefore, it is anticipated that worries about vehicle emissions would spur structural battery adoption, which is likely to accelerate market growth in the next years.
RESTRAINING FACTORS
Concern Over the Handling and Storage of Used Batteries is Growing to Limit Market Growth
Hazardous compounds in used structural batteries include acids and heavy metals like mercury and lead. According to a report from the Environmental Protection Agency, lithium metal or lithium-ion batteries have been the cause of 254 fire occurrences at 64 water facilities. Structural batteries must be stored away from other flammable and combustible materials in watertight containers. A Class D extinguisher and sand should also be kept nearby as a safety precaution in a fire.
SEGMENTATION
By Type
Based on type, the structural battery market is segmented into embedded batteries and laminated structural batteries. The embedded batteries category dominated the market in 2021. Lithium-ion battery cells are effectively integrated into composite constructions, more frequently sandwich structures, to create multifunctional embedded batteries. The multifunctional structure can then serve as a material for energy storage as well as load-bearing.
By Battery Form
By battery form, the market is segmented into pouch, cylindrical, and prismatic. The pouch category dominated the market in 2021 ascribed to a better energy density than prismatic cells with a similar weight, improved safety capabilities, and decreased internal resistance. A pouch cell can store far more energy in a given physical area than a cylindrical cell. Top automotive and battery OEMs are investing in pouch cell forms to power the forthcoming Evs.
By Material
Based on material, the market is segmented into carbon fibers, lithium fibers, and lithium oxides. The lithium oxides category dominated the market in 2021. Reversible lithium ion reduction is used to store energy in a lithium oxide battery, a rechargeable battery. The majority of portable consumer devices and electric cars use this kind of battery.
REGIONAL INSIGHTS
The Asia Pacific is projected to hold the largest share of the structural battery market over the forecast period. Lithium-ion structural batteries are anticipated to increase significantly in the region due to the expanding use of electric vehicles in nations like China, Japan, and India, as well as rising urbanization, increasing power purchase parity, and strong demand for vehicles. Additionally, favorable regulations, such as energy efficiency standards, rising peak demand charges, and technological advancements, have also caused project developers to pay more attention to the commercial and industrial (C&I) sector. This is primarily due to China's and India's robust economic growth, which is expected to fuel the demand for lithium-ion-based energy-storing structural batteries in the area.
On the other hand, North America structural battery market is anticipated to grow significantly over the forecast period. The main elements that are anticipated to have a significant impact on the growth of the structural battery market in the near future include strict government regulations regarding emissions and the adoption of electric vehicles, high disposable income, increased consumer awareness of the benefits of structural batteries, high environmental consciousness, and the presence of top auto manufacturers in the area.
LIST OF KEY COMPANIES PROFILED:
- Tesla
- General Motors
- BYD
- Contemporary Amperex Technology
- Others
KEY INDUSTRY DEVELOPMENTS:
- April 2021: To lower the cost of lithium-ion battery life cycles, Hitachi Ltd. developed an organic solid electrolyte. Due to their safety, compactness, and extended lifespan, these batteries are required for electric vehicles, stationary use, etc.
| Attributes | Details |
| Study Period | 2016-2028 |
| Base Year | 2021 |
| Estimated Year | 2022 |
| Forecast Period | 2022-2028 |
| Historical Period | 2016-2020 |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Type, By Battery Form, By Material and By Geography |
| By Type |
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| By Battery Form |
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| By Material |
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| By Region |
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