July 13, 2024
Structural Battery Market

Structural Battery Market set to witness explosive growth by 2031 driven by Escalating Demand for Electric Vehicles

Structural batteries refer to batteries that are seamlessly integrated into various load-bearing structures and components of automobiles, aircraft, and buildings. These innovative batteries can be embedded into vehicle body panels, flooring, walls, and other structures to power electronic devices and systems. Structural batteries offer major advantages over conventional batteries such as higher energy density, increased design flexibility, and reduced overall vehicle weight. They enable innovative vehicle and infrastructure design while enhancing battery life.

The global structural battery market is estimated to be valued at US$ 1.84 Billion in 2024 and is expected to exhibit a CAGR of 20% over the forecast period 2024 to 2031.

 Key factors fueling the market growth include rapidly growing electric vehicle industry worldwide and rising demand for lightweight high-performance batteries from automobile manufacturers. Structural Battery Market Size allow automakers to replace heavy vehicle components with lightweight high-capacity energy storage materials. This leads to improved vehicle performance, reduced emissions, and extended driving range of electric vehicles.

Key Takeaways

Key players: Key players operating in the structural battery market are Tesla, Inc. (United States), BMW AG (Germany), Airbus SE (France), Volkswagen AG (Germany), Samsung SDI Co., Ltd. (South Korea), Saft Groupe S.A. (France), Northvolt AB (Sweden), LG Chem Ltd. (South Korea), Farasis Energy, Inc. (China), Solid Power, Inc. (United States), Cadenza Innovation, Inc. (United States), Blue Solutions SA (France), Oxis Energy Ltd. (United Kingdom), Excellatron Solid State, LLC (United States), Amprius, Inc. (United States).

Growing demand: Rapid electrification of the automotive industry and surging sales of electric vehicles worldwide have boosted the demand for advanced high-performance batteries. Structural batteries help automakers meet the rising expectations of customers in terms of driving range and vehicle performance.

Global expansion: Leading battery manufacturers are heavily investing in R&D to expand their structural battery product portfolios. They are also actively collaborating with major automakers and aerospace companies to accelerate the commercialization of these innovative batteries globally. Several pilot projects utilizing structural batteries for electric aircraft and infrastructure are currently underway.

Market Key Trends

One of the major trends gaining momentum in the structural battery market is the shift towards solid-state batteries. Compared to conventional lithium-ion batteries, solid-state batteries provide higher energy density and allow for more flexible design of load-bearing components. Automakers like BMW AG and Toyota Motor Corp. are collaborating with battery startups to develop automotive-grade solid-state structural batteries. Widespread commercialization of solid-state structural batteries is expected after 2025, which will disrupt the energy storage landscape.
Porter’s Analysis

Threat of new entrants: Low requirement of huge capital investment may attract new companies to enter into the structural battery market. However, established players hold major market share limiting new entrants.

Bargaining power of buyers: Increasing demand of structural batteries from automotive and electronics industry increases bargaining power of buyers. However, limited product availability reduces bargaining power.

Bargaining power of suppliers: Presence of numerous suppliers of raw materials and components reduces their bargaining power against battery manufacturers. However, suppliers can bargain on basis of product quality and reliability.

Threat of new substitutes: Continuous innovation in battery technologies may lead to substitutes like flexible batteries. However, superior performance of structural batteries over incumbent technologies reduces threat of substitution.

Competitive rivalry: Intense competition amongst major players to gain market share and to cater increasing demand.

Geographical Regions

North America region accounts for largest value share in Structural Battery Market Size due to high adoption in electric vehicles and consumer electronics segment. U.S and Canada are major revenue contributors.

Asia Pacific region is expected to showcase fastest growth during forecast period owing to significant investment by Chinese battery manufacturers and government support for electric vehicles adoption. Expanding electronics industry and consumer base further supports growth.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it