Global Next-Generation Advanced Battery Market Grows Steadily at a CAGR of 7.04%

Introduction

Advanced batteries consist of cells that can be integrated into a pack, module, or system for energy storage applications like electric vehicles and the electric grid. The term "next-generation advanced batteries" refers to developing and incorporating cutting-edge technology into battery systems to improve energy storage capacity and performance. Next-generation advanced batteries are designed to circumvent the disadvantages of conventional batteries, including their low energy density, lengthy charging times, and short lifespan

Market Dynamics

Growing Adoption of Electric Vehicles Drives the Global Market

Automobile manufacturers have relied heavily on battery technology to meet the worldwide demand for electric vehicles. To improve the performance of their vehicles and increase their profits, manufacturers of electric vehicles are investing heavily in developing more cost-effective, lightweight, and dense batteries. Solid-state batteries, similar to lithium-ion batteries, are rechargeable storage batteries with comparable operational characteristics. However, it is a solid battery rather than one containing liquid, allowing it to be denser, provide a longer range, and charge more quickly.

In addition, a solid-state battery has a lower fire risk than a lithium-ion battery, and the benefit above is likely to increase demand for solid-state batteries in electric vehicles. Toyota Motors introduced its first solid-state battery to the market in 2022 and is now developing hybrid vehicles utilizing solid-state batteries. According to the International Energy Agency, the number of plug-in electric vehicles will increase rapidly from 0.58 million units in 2015 to approximately 6.70 million units in 2021, which is anticipated to positively impact the market for next-generation advanced batteries.

Increasing Research and Development Creates Tremendous Opportunities

Numerous institutes and research centers are researching more to develop new battery technologies, accelerating market expansion. For instance, in May 2022, the Joint Center for Energy Storage Research (JCESR), an Innovation Hub of the United States Department of Energy (DOE) led by Argonne National Laboratory, is leading the way in developing new battery technologies needed to enable a renewable electricity grid and to decarbonize heavy-duty transportation, such as long-distance trucking, marine shipping, and aviation. JCESR researchers have developed over 30 patents in the "beyond lithium-ion" space, focusing on flow, lithium-sulfur, multivalent, and solid-state batteries.

Regional Analysis

Asia-Pacific is the most significant global next-generation advanced battery market shareholder and is expected to expand substantially during the forecast period. China, India, and Japan are potential markets for the next generation of advanced battery technology in the Asia-Pacific. In March 2022, China's battery energy storage capacity reached 3 GW, a 76.5% increase from the capacity of 1.7 GW in 2019. According to the country's authorities, battery storage capacity in China is predicted to reach 100 GW by 2030. Such conditions generate vast opportunities for developing next-generation advanced batteries in the region.

Furthermore, India authorized four companies to receive Advanced Chemistry Cell (ACC) Battery Storage Manufacturing Incentives under the PLI Scheme in March 2022. Reliance New Energy Solar Limited, Hyundai Global Motors Company Limited, Ola Electric Mobility Private Limited, and Rajesh Exports Limited have received subsidies for India's INR 181 billion program to increase local production of battery cells. Within two years, the program required certain ACC battery storage manufacturers to establish a production facility. These government-backed incentives are anticipated to encourage the development of the next-generation advanced battery market.

North America is one of the largest regions adopting the most recent battery technologies and advancements in next-generation advanced batteries. Due to rising investments in renewable energy infrastructure, rising demand for efficient and safe battery technologies, and rising adoption of electric vehicles (EV), etc., battery systems in the region have experienced significant growth in recent years. In the United States, the total stock of electric vehicles reached approximately 2.06 million in 2021, a 16% increase from 1.77 million in 2020, and it has experienced exponential growth over the past decade.

Canada has also seen a significant increase in wind energy installations over the past few years, which is anticipated to increase the demand for energy storage in the country to maintain grid stability and reliability. The government's Wind Vision 2025 aims to increase wind power capacity to 55 GW by 2025 to meet 20% of the nation's energy needs. The country must add more than 42 GW of new capacity to meet the targets. This will create investment opportunities for the next-generation advanced battery market players.

Key Highlights

• The global next-generation advanced battery market was valued at USD 65 billion in 2022. It is estimated to reach USD 3.04 billion by 2031, growing at a CAGR of 7.04% during the forecast period (2023–2031).
• Based on technology, the global next-generation advanced battery market is segmented into solid electrolyte batteries, magnesium ion batteries, next-generation flow batteries, metal-air batteries, lithium-sulfur batteries, and other technologies. The metal-air battery segment owns the highest market share and is expected to expand substantially during the forecast period.
• Based on end-users, the global next-generation advanced battery market is bifurcated into consumer electronics, transportation, industrial, energy storage, and other end-users. The transportation segment dominates the global market and is projected to exhibit a CAGR of 8.44% over the forecast period.
• Asia-Pacific is the most significant global next-generation advanced battery market shareholder and is expected to expand substantially during the forecast period.

Competitive Players

Competitive Players

The key global next-generation advanced battery market players are Pathion Holding Inc., GS Yuasa Corporation, Johnson Matthey PLC, PolyPlus Battery Co. Inc., Sion Power Corporation, LG Chem Ltd., Saft Groupe SA, Contemporary Amperex Technology Co. Ltd, and Ilika PLC.

Recent Developments

Market News

• In September 2023, Enevate and NantG Power, two battery innovation pioneers enabling high-speed charge and energy density battery technologies for electric vehicles (EVs) and other markets, announced a strategic partnership to manufacture a next-generation battery.
• In September 2023, Toyota publicly declared its intention to establish a novel factory dedicated to producing battery electric vehicles. This facility is projected to commence manufacturing operations in the year 2026, with the aim of introducing fresh car types to the market.

Segmentation

Global Next-Generation Advanced Battery Market: Segmentation

By Technology

• Solid Electrolyte Battery
• Magnesium Ion Battery
• Next-generation Flow Battery
• Metal-Air Battery
• Lithium-Sulfur Battery
• Other Technologies

By End-User

• Consumer Electronics
• Transportation
• Industrial
• Energy Storage
• Other end-users

By Regions

• North America
• Europe
• Asia-Pacific
• South America
• The Middle East and Africa