Advanced Battery Technology Market Size and Share Analysis by Product Type (Advanced Lead-Acid Battery, Lithium-Polymer Battery, Smart Nano Battery, Sodium Metal-Halide Battery, Sodium-Sulfur Batte), Application (Automobiles, Consumer Electronics, Energy Storage Systems, Industrial) - Global Industry Revenue Estimation and Demand Forecast to 2030

Advanced Battery Technology Market Outlook

The advanced battery technology market size stood at USD 1,724.2 million in 2023, and it is expected to grow at a compound annual growth rate of 7.8% during 2024–2030, to reach USD 2,871.5 million by 2030.

The continuous rise in the inclination toward energy-efficiency and technological advancements in various electrical setups as well as applications are some of the major factors propelling the market expansion.

• Advanced battery technology is essential to meet the growing requirements for energy storage for electrified vehicles, as well as the power grid.
• Scientists are researching to advance extended-duration storage technologies, which hold considerable importance in facilitating the integration of renewable energy sources into electricity generation systems and mitigating the dependence on fossil fuels.

Additionally, a long life, tolerance for low- and high-temperature conditions, large storage capacity, and enhanced safety features are some of the major benefits that the next generation of battery technology has over the traditional one. Moreover, their potential to remain durable for a longer duration, whilst remaining safe to use, is crucial.

Surging Demand for Electronic Devices Drives Market Growth

Globally, the electronic system design and manufacturing (ESDM) industry is continuously transforming lives, businesses, and economies. Energy is crucial for the day-to-day functioning of modern society, but its overconsumption, or exploitation, is contributing to the increasing levels of greenhouse effect. Consequently, the popularity of rechargeable batteries has been witnessing considerable growth over recent years. These technologies play an essential role in storing and releasing energy as electricity, for meeting diverse, needs through various electrical setups and devices essential for sustaining human life.

• Electronic devices are a trend that has been observed for several years and is likely to continue in the foreseeable future.
• The various aspects propelling this trend are the growing connectivity requirements, rising usage of IoT across applications, existence of remote working conditions, introduction of smart appliances, boom e-commerce platforms, and inclination of consumers to upgrade or replace existing devices.
• The awareness regarding health and wellness devices, roll out of the 5G technology, gradual shift towards electric vehicles, and growth in the affordability of the modern devices, especially in the developing economies, also power the electronics industry’s advance.

Advanced variants of batteries have numerous advantages in terms of cost-effectiveness, sustainability, as well as the usage of safe materials. For instance, rechargeable lithium–polymer batteries are used in commercial drones for their lower weight and improved power capacities. Additionally, the essential function of these systems of storing the energy produced via renewable sources, to be used later as per requirements, would boost the market’s growth. This factor will propel the demand for advanced battery technology in EVs, smart devices, as well as the renewable energy sector.

Rising Inclination toward Adoption of Energy-Efficient Technologies

New technologies are being introduced globally to increase the efficiency of electrical devices and automobiles, whilst maintaining the comfort of the user. The use of lithium-ion batteries in both EVs and hybrid vehicles is quite common in this scenario.

• Technological advancements are enabling the introduction of various other types, such as solid-state and lithium–sulfur batteries.
• Solid-state batteries have solid electrolytes as an alternative to liquid or gel-based electrolytes, thereby making them durable, efficient, and safe.
• Similarly, those based on the lithium–sulfur chemistry tend to have higher energy storage capabilities compared to the traditional Li-ion ones.

Reducing the usage of energy is crucial for battling climate change and decreasing its impact on the overall environment. Moreover, utilizing energy-efficient tools and technologies is essential for improved energy security as well as having a cleaner environment to live. Additionally, the utilization of upgraded technologies aids in enhancing the overall user experience for customers. Hence, the gradual inclination toward the integration of advanced technological setups will boost the revenue in the advanced battery technology market growth in the coming years.

Lithium–Polymer Category Is Likely To Dominate Market

The lithium-polymer category, under the segment by product, held the largest share in 2023 and is likely to retain its position in the coming years. Moreover, it is likely to exhibit substantial growth, of 8%, during the projection period.

• The growth can be ascribed to the advantages of these products in terms of safety, weight, and capacity.
• Lithium–polymer (LiPo) batteries have about four times higher energy density than nickel–cadmium as well as nickel-metal hydride batteries.
• Similarly, lithium–iron phosphate (LFP) batteries are commonly used in electric vehicles, especially in China.

Furthermore, advanced lead–acid batteries hold a significant share. The addition of certain materials or alloys can be advantageous for their performance and durability during long-term use or exposure to high temperatures.

The sodium–sulfur category is to grow at a CAGR of 10% during the projection period.

• This will be owing to the utilization of solid electrolytes in them and their stability in high temperatures.
• These attributes make them perfect for various applications, such as power supply through renewable energy sources, including solar, and the power grid.

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Consumer Electronics Category To Hold Major Share

The consumer electronics category, under segmentation by application, is likely to hold the largest share of the market and advance at a CAGR of 7% during the projection period. This can be ascribed to the growing application of advanced batteries in various electronic products, such as smartphones, laptops, remote controlled vehicles, and drones. India is one of the largest mobile manufacturers in the world, with the domestic production of electronics increasing considerably over the last 5–6 years.

Additionally, the automotive category is expected to witness a CAGR of 9% during the projection period.

• Automobile manufacturers are investing in developing and deploying the latest technologies to ensure the smooth functioning of vehicles, whilst maintaining favorable economics and reliable power system operations.
• These manufacturers have a growing inclination to convert their current portfolio or introduce electrified variants of vehicles in the coming years.
• Electric vehicles can either be powered by electricity or a combination of conventional combustion engines and electricity.
• They offer numerous advantages over conventional vehicles, such as low running and maintenance costs, zero or minimal greenhouse gas emissions, tax incentives, ease of driving, and minimal noise.

Thus, the growing focus on the leveraging modern and evolving to augment the safety, durability, capacity, and stability of traction energy storage systems in low and high temperatures is likely to significantly propel the demand for advanced batteries among automotive OEMs over the next 7–8 years.

Asia-Pacific Region To Exhibit Substantial Growth

The Asia-Pacific region held the largest market share in 2023, and it is expected to grow at a CAGR of 10% during the projection period.

• The market expansion can be attributed to the growing popularity of both EVs and hybrid vehicles, rising investments in the associated infrastructure, increasing usage of innovative technologies, and the fact that the region is home to several electronic device and component manufacturers.
• It is expected to grow further owing to the increasing adoption of vehicles EVs due to the changing lifestyles and modernization.
• People want to own their personal vehicles for easier mobility; thus, the lifespan and performance of automobile components are being enhanced, to appeal to customers looking for such attributes.

In various countries of the APAC region, technological advancements focusing on improved durability and low maintenance costs are being tested. Thus, innovative battery technologies that offer benefits in terms of lifecycle, sustainability, and ease of integration with renewable energy sources are being explored. These batteries may be used as a replacement or in combination with the conventional ones for improved performance.

• According to an article published by Invest India, India is likely to become a USD 1-trillion digital economy by 2026.
• As of now, the electronics market in the country is valued at USD 155 billion, wherein the share of domestic production is about 65%.
• According to data from e-AMRIT (a government web portal on EVs), the number of electric vehicle manufacturers in India stood at about 380 in July 2021.
• Similarly, approximately 350,000 electric vehicles were exported from China to European countries in the first half of 2023.

The deployment of superior batteries is likely to enhance the performance of electronic devices and electrified vehicles. Thus, benefits offered in terms of implementation of various government regulations and standards for adoption of EVs, adoption of the latest technologies for automobiles, the ever-growing electronics industry across countries, and the changing lifestyles of people is expected to considerably drive the market growth in the next 7-8 years.

Competitive Landscape

• The competitive landscape of the advanced battery technology market is shaped by a combination of brand reputation, cost efficiency, and regulatory compliance.
• Manufacturers of advanced batteries have adopted several strategies, the most significant among which is research & development, to introduce modern versions.
• Several businesses and startups are engaged in designing, manufacturing, and developing modern energy storage systems for electric vehicles.

Top Advanced Battery Technology Providing Companies:

• PATHION Holdings Inc.
• PolyPlus Battery Company Inc.
• GS Yuasa Corporation
• Samsung SDI Co. Ltd.
• Johnson Matthey plc
• Ilika plc
• Sion Power Corporation
• LG Chem Ltd.
• Saft Groupe SA

Market Size Breakdown by Segment

This report offers deep insights into the advanced battery technology market, with size estimation for 2017 to 2030, the major drivers, restraints, trends and opportunities, and competitor analysis.

Based On Product Type

• Advanced Lead–Acid Battery
• Lithium–Polymer Battery
• Smart Nano Battery
• Sodium Metal–Halide Battery
• Sodium–Sulfur Battery

Based On Application

• Automobiles
• Consumer Electronics
• Energy Storage Systems
• Industrial

Region/Countries Reviewed for this Report

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • U.A.E.