The global solid-state battery market size was valued at USD 805 million in 2021. It is expected to reach USD 13,156 Million by 2030, registering a CAGR of 36.4% during the forecast period (2022–2030).
Solid-state batteries utilize solid electrodes and a solid electrolyte instead of liquid or polymer gel electrolytes in lithium-ion batteries. A solid-state battery has a high energy density than a Li-ion battery based on a liquid electrolyte solution. There is no need for safety components because there is no danger of explosion or fire, saving space. A solid-state battery can elevate energy density per unit area because only a few batteries are required. As a result, a solid-state battery is ideal for constructing a high-capacity EV battery system that includes a module and a pack.
|Market Size||USD 13,156 Million by 2030|
|Fastest Growing Market||Europe|
|Largest Market||Asia Pacific|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
Compared to lithium-ion batteries, solid-state batteries have high energy density, solid structure, stability, and are safe to use. Although they have a few limitations, such as low ionic conductivity, high reactivity, and higher cost, their demand is burgeoning rapidly. To overcome such limitations, different solid-state electrolytes are made with various materials.
Although solid polymer and inorganic electrolytes are excellent for all-solid-state batteries, they have limitations such as low ionic conductivity and poor mechanical properties, which have been overcome by the discovery of Composite Solid Electrolytes (CSEs) that contain active or passive inorganic fillers and polymer matrices. Many firms are working on developing solid-state batteries, including Robert Bosch, Quantum Scape, Planar Energy Devices, Toyota Motor, etc. Such initiative by significant players is propelling the adoption of solid-state batteries in various verticals.
Today's lithium-ion batteries fall short of what's needed. In addition, they are too heavy and costly and take a long time to charge. On the other hand, solid-state has the potential to stay for a long run, has high energy density, and fast charging, which further makes EVs cheaper.
Silicon has ten times the energy density of graphite, making it a highly desirable anode material. However, as a battery charges and discharges, the silicon anodes expand and degrade rapidly, especially in Li-ion cells that use liquid electrolysis.
Solid-state batteries promise to be safer, less expensive, and last longer. Sodium-ion chemistries are especially promising because sodium is inexpensive and abundant, unlike lithium, which is mined at a high environmental cost. The goal is to generate batteries that can be used in large-scale grid energy storage applications to store power generated by renewable energy sources to reduce peak demand.
A solid-state is the potential to address several issues listed on the current Li-ion batteries. The application of an alkali-metal anode, which is impossible with a conventional battery, burgeons the energy density of the c cathode and delivers long life. The solid-state electrolyte is assumed to be nonflammable or self-ignitable. The non-combustible property of a solid-state battery reduces the risk of thermal runaway and allows tighter cell packaging. This helps to improve design flexibility and volumetric density.
High manufacturing costs are the primary constraint in the solid-state battery market. The development of solid-state batteries necessitates significant investments in R&D as well as the establishment of manufacturing facilities. To produce solid-state batteries, manufacturing facilities must include sophisticated machinery and cutting-edge technologies.
It is challenging to design a stable solid electrolyte, a good conductor of ions, and chemically inert when manufacturing solid-state batteries. They are thus considered to be more expensive to manufacture than lithium-ion batteries. Furthermore, the process is complicated by the risk of cracking due to the brittleness of the electrolytes.
Solid-state batteries are now roughly eight times more expensive than Li-ion batteries. Because the technologies used to create these batteries differ from those used to develop conventional batteries, solid-state battery manufacturers may require separate production line setups. Furthermore, the machinery and technologies needed to develop solid-state batteries require large investments. This is a significant impediment, particularly for newcomers to the solid-state battery market.
The application of solid-state batteries in electric vehicles is one of the significant growth opportunities for the solid-state battery market. Policy changes in countries such as the United States, the United Kingdom, Germany, China, and Japan increase the global demand for electric vehicles.
Electric vehicles have become more common in mobility in the automotive industry. With concerns about oil depletion and the effects of climate change caused by greenhouse gas emissions from tailpipes, the world is looking for alternatives. Due to features such as zero tailpipe emissions, higher power efficiencies, and lower costs compared to gasoline counterparts, EVs can be a viable alternative to petroleum-powered vehicles.
In addition, the Government and cities have introduced regulations and incentives to accelerate the shift towards sustainable mobility. CO2 emissions protocols in the European Union played a critical role in encouraging the sale of electric vehicles. The European Union plans to sell 100% emission-free cars by 2035 to support the net-zero emission initiative. Thus, driving the trend toward electric mobility, which uses brushless DC motors.
Electric car sales reached 3 million in 2021, up 40% from 2019. Although the market was slightly affected by the global pandemic, EV sales bounced back in the first quarter of 2021. According to EV Volumes, all regions and most countries witnessed a substantial increase in EV sales, with a growth rate 3 to 8 times higher than for the total light vehicle markets. The countries like Norway, Netherland, Sweden, China, Germany, France, and the UK have experienced a significant rise in plugin vehicle market share from 2019 to 2020.
Based on region, the global solid-state battery market share is segmented into North America, Europe, Asia-Pacific, the Middle East and Africa, and Central and South America.
Asia-Pacific is the most dominant region and is expected to grow at a CAGR of 37.9% by 2030. The rapid growth of the automotive industry in India, China, Japan, and South Korea is expected to boost demand for solid-state batteries. In addition, the growing population in India and China, coupled with favorable government regulations, pointed to demand in the region. In addition, the growth of the solid-state batter is attributed to the growing presence of consumer and portable electronics consumer base, the evolution of the renewable energy sector, and the rising adoption of battery energy storage systems. Countries such as India, China, Japan, South Korea, and Australia are equally responsible for the growth of the solid-state battery market.
Europe is the second-largest region. It is estimated to reach a value of USD 2,075 million by 2030 at a CAGR of 33.9%. Growing EU funding and supportive measures taken by governments, including subsidies, tax breaks, and incentives, are expected to augment the production of electric vehicles in the region. Increasing investments in eco-friendly solutions, including electric bikes, cranes, and forklifts, will aid industry expansion. Growing demand for e-bikes and solar power systems in the UK, Germany, and the Netherlands will also likely stimulate industry growth.
The presence of prominent battery manufacturers and the growing demand for end-use industries are the primary driving factors in North America. The US is the most dominant North American solid-state battery market region and is anticipated to progress at the fastest rate over the forecast period. Canada is another important solid-state battery market in North America. A robust manufacturing base and rapid growth of electric vehicle production in the US are expected to augment the demand for solid-state batteries in the upcoming years. North America is expected to witness a moderate market growth over the forecast period owing to the growing sales of electric vehicles and consumer electronics in the US and Canada.
The global solid-state battery market share has been classified based on capacity, application, and regions.
By capacity, the global solid-state battery market is segmented into Below 20mAh, 20mAh–500mAh, and Above 500mAh.
The 20mAh-500mAh capacity segment acquires the largest share of the global solid-state battery market. It is expected to grow at a CAGR of 36.5%. This segment of batteries is used to power products such as IoT devices, smartwatches, and many more. This segment's diverse and expanding application scope is expected to drive the market in the coming years. A wide range of electronic products can be powered using 20 mAh–500 mAh solid-state batteries, including medical patches, wearables, and micro wireless sensors.
Below 20mAh is the fastest-growing segment. The batteries in this category are primarily thin-film batteries that cater to a broad application range, including wireless sensors, cosmetic and medical patches, packaging, and others. Limited compact size, internal space, and usage across reduced drain devices that do not need large battery capacity are significant factors bolstering the demand for batteries below 20 mAh of power.
The Above 500 mAh segment accumulated a market of 19.6% in 2021 due to the increased usage of solid-state batteries in the electric vehicles market. Government policies favoring clean energy transportation are boosting the current segment demand. Additionally, the growing demand for battery energy storage systems across commercial and industrial sectors is further expected to augment the segment growth.
By application, the global solid-state battery market is segmented into Consumer & Portable Electronics, Electric Vehicles, Energy Harvesting, Wearable & Medical Devices, and Others.
Consumer and Portable Electronics applications acquire the largest share of the global solid-state battery market. It is expected to grow at a CAGR of 35.6%. Solid-state batteries are incorporated in portable and consumer electronic devices. The applications of such batteries range from mobile phones, laptops, computers, tablets, torches or flashlights, LEDs, vacuum cleaners, digital cameras, and calculators. The growth of the consumer electronics industry in Asia-Pacific and the Middle East and Africa is likely to boost the consumption of solid-state batteries by the end of 2030. Asia-Pacific is projected to offer lucrative market prospects for the sale of consumer electronics. Population expanse and more consumer spending on household appliances and electronics in key Asia-Pacific countries, including India, are estimated to intensify the consumption of solid-state batteries in the future.
Wearable & Medical Devices is the second-largest market shareholder. Solid-state batteries match the die attach mechanisms and handling with the integrated circuits used in electronic medical devices. Therefore, these batteries are ideal for co-packaging with ICs used in medical devices. Solid-state devices can offer patients, doctors, and healthcare workers safety by replacing lithium-ion batteries, mainly used in medical applications.
Growth in advanced equipment used for various surgeries and medical purposes is expected to drive the demand for solid-state batteries in the near future. The requirement for safer devices in the industry is expected to replace lithium-ion batteries with solid-state ones. GDP growth and rising healthcare expenditure will drive various sectors, such as medical. The above trend is projected to promote market growth over the coming years.
Electric Vehicle is the fastest-growing segment. This is due to growing awareness about the benefits of battery-operated vehicles and increasing fossil fuel prices, particularly in the emerging markets of Asia-Pacific and Central and South America. Electric and hybrid vehicles are expected to be the primary consumers of solid-state batteries. Government incentives and subsidies to encourage the adoption of electric cars have considerably reduced their prices. Besides, publicly accessible charging booths have also spiked the popularity of these vehicles, particularly in Europe and North America.