The global Battery Additives market size was valued at USD 1.71 billion in 2022 and is projected to reach a value of USD 3.6 billion by 2031, registering a CAGR of 8.8% during the forecast period (2023-2031).
Additives are the key components of the batteries, which reduce sulfation and corrosion of batteries and enhanced performance and life span of battery. Additive treatments are the most effective with the older battery models, expanding their life by few months until a replacement is on hand. Increasing demand of new technological batteries already include additives that reduce the sulfation and corrosion. The development in batteries have led to find the two fronts, reflecting in increased specific energy for longer runtimes and improved specific power for high-current load requirements. The growth in the market is due to increasing investment in renewable energy and high adoption of Hev, Phev, and Ev in the automotive industry.
Growing Adoption of plug-in hybrid Electric vehicles in the automotive industry triggers market growth.
The demand of lead acid and li-ion batteries are gaining a huge traction among the application such as consumer electronics, high adoption of HEV, PHEV, and EV in the automotive industry. Recently, lithium-ion battery market has experienced strong growth, owing to increasing application in EVs, and solar electric system. The batteries consist of four components, namely electrode, cathode, anode, and separator. Lithium has the greatest electrochemical potential and provides the largest specific energy per weight, thus may raise the demand of battery additives and their end user in market.
The increasing adoption of plug-in hybrid electric vehicles (PHEVs), hybrid electric vehicles (HEVs), and electric vehicle (EVs) in the automotive industry is expected to fuel the growth of the global battery additives market owing to reduction of greenhouse gas emissions. According to U.S. Energy Information Administration, driving on electricity emits 54.55% fewer carbon dioxide emissions per mile than the average new gasoline car. Lithium-ion battery is safe but with millions of consumers using batteries, failures are bound to happen. Battery key players are also focusing on the safety concerns regarding the battery.
Global battery additives market is segmented by type, and application.
By type, the battery additives market is segmented into conductive additive, porous additive, and nucleating additive. The conductive additive segment led the highest market share in the recent year, due to its increasing use in the manufacturing of lead acid batteries.
By application, the battery additives market is segmented into lead acid and li-ion. Li-Ion batteries are sub-segmented into industrial application, portable devices, EVs, and others. Lead acid is the largest application and held the largest share in the market, due to the increasing use of lead-acid batteries in the automotive, consumer electronics, and industrial, also these batteries are use in standby application such as telecommunication, burglar, fire alarms, and emergency lighting. The battery has superior characteristic such as better electrochemical performance, high power and efficiency, low self-discharge, and long shelf life. Additionally, ongoing R&D programs are focusing to reduce the cost and environmental impact of these batteries which may led the market to grow. For instance, the DOE's Energy Storage Program are investing on research and testing to enhance the performance and lower the cost of lead-acid batteries.
Geographically, the global battery additives market is segmented into five regions: North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Asia Pacific is estimated to be the largest battery additives market due to high consumption portable devices and automotive applications in emerging nations such as China, India and Japan. Growing population, increasing disposable incomes, and growing end-use industries have led to innovation and development, which in turn, gain a traction in region. China is both the biggest manufacturer and the biggest market for cars globally, the International Energy Agency(IEA) says China buys more than half of the world's new electric cars. Though, the China Association of Automobile Manufacturers (CAAM) says 601,000 NEVs were sold in the first three quarters of 2018, and China accounted for about 35% of all the electric cars sold in the world. The country has largest wind and solar PV installed capacity is presently witnessing a continuous rise in the renewable energy installed capacity. The growth in high-speed rail networks across the world will gain traction in the lead-acid battery in Southeast Asia.
North America battery additives market is on upsurging end due to the contribution by the developed economies of the United States and Canada. The major key players from the region such as Battery Equaliser expands the automobile sales in these two countries mainly due to the superior performance and longevity of lead-acid batteries. The increased deployment of solar off-grid power systems uses batteries for energy storage, so their increased instalments of such systems across the region will drive the lead-acid battery market in the region.
Europe battery additives key players continue to scout for emergent and dynamic new markets to bolster their European business. Electrification and hybridization in the market offers to grow in importance for the de-carbonization of other transport modes. As per European Union, Norway is aiming to sell only electric cars by 2025, while India is aiming to be all electric by 2031. Europe’s EV market rises 40% from 2020 to 2021, albeit from a small sales base. Many factors contributed, such as the ongoing headwinds for diesel technology and increasing consumer interest in EVs. Norway is leading country for the EVs market, followed by Germany.
Latin America is expected to grow in the foreseen decades, because of its developing economy. The growth in the region is coming from the both automotive and industrial sectors powered by usage in telecom, railways, power and other industrial applications.
MEA is expected to witness steady growth in the industrial sector due to growing awareness among users of lower quality batteries, implementation of policies across the emerging nations, several initiatives taken by organized battery key players. Furthermore, expanding 5th Generation based telecommunication network and implementation of vision documents in Saudi Arabia, UAE, Qatar and Kuwait are expected to further aid the region battery additives market in the forecast period.
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