Home Semiconductor & Electronics Battery Materials Market Demand, Share, Report to 2031

Battery Materials Market

Battery Materials Market Size, Share & Trends Analysis Report By Battery Type (Lead-acid, Lithium-ion, Others), By Material Type (Cathode, Anode, Electrolyte, Separator, Others), By Application (Automotive, Consumer Electronics, Power Storages, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Report Code: SRSE1395DR
Study Period 2019-2031 CAGR 15.30%
Historical Period 2019-2021 Forecast Period 2023-2031
Base Year 2022 Base Year Market Size USD 56.3 Billion
Forecast Year 2031 Forecast Year Market Size USD 202.76 Billion
Largest Market Asia-Pacific Fastest Growing Market Europe
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Market Overview

The Total Addressable Market (TAM) for Battery Materials was valued at USD 56.3 billion in 2022. It is projected to reach USD 202.76 billion by 2031, growing with a CAGR of 15.30% during the forecast period (2023–2031). 

The battery refers to the device which comprises the electrochemical cell that generates the electricity from the chemical reaction. The materials used in the battery are the components or materials used to manufacture primary and secondary batteries. Different types of materials are used in manufacturing different rechargeable batteries. The materials used are selected based on the battery application, although the working principle of the battery is the same irrespective of the material used. As the application of batteries is increasing, the demand for battery materials is also rising. Batteries find their application in the car, electric vehicles, laptops and mobile phones, drilling machines, medical equipment, backup power system, and many more. Therefore, the demand for battery materials is expected to witness robust growth during the forecast period due to the escalating demand for batteries in various sectors globally.

However, stringent safety requirements for batteries during operation may hinder the growth of the market to some extent. In addition to this, inadequate charging infrastructure for electric vehicles across the globe is acting as a major challenging factor to the electric vehicle market growth, which in turn, is creating a challenge for the growth of the global battery materials market.

Market Dynamics

What are the factors driving the market growth?

Growing Demand for Automobiles

The growing demand for batteries in automobiles is expected to boost the demand for battery materials during the forecast period. The growing need to minimize the carbon dioxide and sulfur dioxide emissions by the combustion of fuels (petrol and diesel) is increasing the demand for electric and hybrid vehicles, which in turn is anticipated to propel the growth of the battery materials market. Additionally, the support and initiatives by the various governments to increase the usage of electric vehicles are also augmenting the battery materials market. Furthermore, the rising production and exports of automobiles in various countries are projected to create a surge in battery materials due to the use of the battery.

Rising Demand from End-Use Industries

The growing demand for batteries from end-users, such as the electronics industry, is driving the growth of the battery materials market. In addition to this, an increase in disposable income coupled with a high standard of living is escalating the use of portable and electrical gadgets, which majorly use lithium-ion batteries for uninterrupted power supply.

Thus, the requirement to store electrical power fuels is leading to the demand for batteries in invertors and generators, substantially augmenting the growth of the battery materials market. Furthermore, the growing technology-friendly population and rising consumer awareness towards wearable smart devices are further increasing the adoption of portable batteries, which is expected to push the battery materials market growth higher.

What are the factors restraining the market growth?

Harmful Effects of Batteries

The harmful effects of batteries on human health due to their toxic properties are expected to act as a restraint for the growth of the global battery materials market. As per US federal regulations, Li-ion batteries are categorized as hazardous due to their lead (Pb) content. It is found that exposure to high levels of lead may cause weakness, anemia, and kidney or brain damage. The Institute for Health Metrics and Evaluation (IHME) estimated that lead exposure accounted for 0.9 million deaths in 2019. Additionally, various restrictions and regulations have been set up with regard to the packaging, marking, labeling, and transporting of batteries, which is anticipated to restrict market growth.

Regional Analysis

Based on geography, the Battery Materials market is categorized into North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific is expected to hold the largest market share in the global battery materials market during the forecast period. The growth can be attributed to the growing demand from the regional automotive industry due to the increase in the use of electric vehicles in the region. Rapid industrialization and urbanization in developing countries have led to an increased demand for automobiles. In addition to this, the growing population and a shift in the focus of manufacturers to manufacture in this region because of the availability of cheap labor and low-cost manufacturing facilities has led to a significant presence of leading automobile manufacturers, which is helping in the large production, sales, and export of automobiles in the region and has accelerated the demand for batteries and battery materials. Some of the major automobile-producing countries in the Asia-Pacific are China, Japan, India, and South Korea, with China leading in the growth of the automotive industry. According to the International Energy Agency (IEA), 7.2 million electric cars were seen on the roads in 2019, compared to 17,000 electric cars in 2010. In addition, batteries in the electronics and industrial sectors powered by usage in telecom, railways, and other industrial applications are also driving the battery materials market in the Asia-Pacific.

Europe is anticipated to hold the second-largest market share in the global battery materials market. European countries such as Germany, France, Italy, and Spain have been home to some of the top automotive brands in the world. Thus, the region is expected to witness a high growth potential over the forecast period. The growth of commercial vehicles in this region has boosted the demand for batteries and, therefore, is driving the battery materials market. As per the European Automobile Manufacturers Association, commercial vehicle registrations across the European Union saw an increase of 5.7% in December 2019. In addition to this, the increasing production of passenger cars, along with an increase in exports, is also augmenting the demand for battery materials in this region. Furthermore, the growing demand for electric and hybrid vehicles is also positively impacting the growth of battery materials in the region.

North America is anticipated to witness substantial growth over the forecast period. Consumer electronics consumption and production have both increased significantly in the area. Major market participants are now concentrating on mergers and acquisitions to create new products and broaden their reach internationally. Manufacturers are creating new goods to satisfy the escalating demand from the electrical and gadgets sector, which is anticipated to provide profitable prospects for the expansion of the North American battery material market in the years to come. During the anticipated term, the rising demand for electronic devices would also support market expansion in the area. The market for battery materials in North America is dominated by the US. The expanding popularity of electric cars and trucks and the rising demand for smart electronic devices are the main factors propelling market expansion in the nation. The US government issued an executive order in 2021 aiming for the sale of 50% electric vehicles by 2030. As a result, the growing market for battery materials in the US is being driven by the demand for electric vehicles, which increases the need for batteries and various battery materials.

The LAMEA region is also anticipated to grow substantially. It is anticipated that factors like the expansion of strategic actions taken by market participants in the region, the presence of significant lithium reserves, and the rise in demand and adoption of consumer electronics and home appliances for expanding the deployment of various types of batteries will all contribute to its expansion. The high level of automotive manufacturing, as well as the numerous product introductions and advances by market players, are significant drivers of the battery industry's expansion in Brazil. Mexico is the sixth-largest auto producer in the world. Additionally, exports, mainly to the US, account for a sizeable portion of the automobile industry. It is projected that Mexican automakers will increase their production of electric vehicles as the US automotive market shifts in favor of electric vehicles. Additionally, due to the growing population, the construction and building sector continues to be among those with the fastest growth rates. The country is anticipated to experience booming industrialization and building, which is anticipated to increase demand for batteries for things like backup, lighting, and power tools.

Report Scope

Report Metric Details
By Battery Type
  1. Lead-acid
  2. Lithium-ion
  3. Others
By Material Type
  1. Cathode
  2. Anode
  3. Electrolyte
  4. Separator
  5. Others
By Application
  1. Automotive
  2. Consumer Electronics
  3. Power Storages
  4. Others
Company Profiles Umicore N.V Asahi Kasei Corporation Mitsubishi Chemical Holdings POSCO Johnson Matthey Hitachi Chemical Co Ltd Kureha Corporation Sumitomo Corporation Toray Industries Inc Mitsui Mining & Smelting Co Ltd Showa Denko K. K DOW Chemical Company BASF SE Shanshan Technology Nichia Corporation.
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

By type, the market is segmented into lithium-ion, lead-acid, and others.

Lithium-ion batteries dominated the market for battery materials. The fast adoption of electric vehicles worldwide is largely responsible for this surge in demand for lithium-ion batteries. Additionally, the widespread use of lithium-ion batteries in portable electronic gadgets has greatly aided this market's expansion.

Based on material type, the market is segmented into cathode, anode, electrolyte, separator, and others.

The cathode sector with the most share is the market's top performer. Lithium manganese oxide, lithium cobalt oxide, lithium nickel cobalt aluminum oxide, lithium nickel manganese oxide, and lithium iron phosphate are the different cathode types.

By applications, the market is segmented into automotive, consumer electronics, power storage, and others.

The consumer electronics sector leads the global market. Consumers' changing lifestyles, increased disposable income, technical breakthroughs, and rising spending on home renovation items are key elements driving global demand for diverse consumer electronic devices.

Market Size By Battery Type

Recent Developments

  • November 2021- SES, a leader in the design and development of high-performance hybrid lithium-metal rechargeable batteries for electric vehicles, unveiled Apollo. Apollo is the largest Li-Metal battery in the world, with a 107 Ah capacity, and represents a significant development for the auto sector.
  • September 2022- Advanced Battery Concepts has introduced a battery that periodically releases energy, allowing for more sustainable battery utilization. The product's "re-manufacturability" was considered during design to allow for better rates of properly recycled products.

Top Key Players

Umicore N.V Asahi Kasei Corporation Mitsubishi Chemical Holdings POSCO Johnson Matthey Hitachi Chemical Co Ltd Kureha Corporation Sumitomo Corporation Toray Industries Inc Mitsui Mining & Smelting Co Ltd Showa Denko K. K DOW Chemical Company BASF SE Shanshan Technology Nichia Corporation. Others

Frequently Asked Questions (FAQs)

What is the estimated growth rate (CAGR) of the Battery Materials Market?
Battery Materials Market size will grow at approx. CAGR of 15.3% during the forecast period.
Some of the top prominent players in Battery Materials Market are, Umicore N.V, Asahi Kasei Corporation, Mitsubishi Chemical Holdings, POSCO, Johnson Matthey, Hitachi Chemical Co Ltd, Kureha Corporation, Sumitomo Corporation, Toray Industries Inc, Mitsui Mining & Smelting Co Ltd, Showa Denko K. K, DOW Chemical Company, BASF SE, Shanshan Technology, Nichia Corporation., etc.
In the Battery Materials Market, Asia-Pacific has established itself as the market leader with a significant market share.
The Europe region is projected to exhibit the highest rate of growth in the Battery Materials Market.
The global Battery Materials Market report is segmented as follows: By Battery Type, By Material Type, By Application

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