April 18, 2024

The Electrochemical Cell Market set to prosper at a CAGR of 16% by 2030 driven by increasing adoption of hybrid and electric vehicles

The electrochemical cell market encompasses a wide range of products used in applications such as portable consumer electronics, industrial, telecommunication, and transportation. From rechargeable lithium-ion batteries in smartphones and laptops to large lithium-ion battery packs powering electric vehicles, electrochemical cells have become an indispensable part of daily lives. They provide a stable and secure source of power while ensuring safety, longevity, and high energy density. Various types of electrochemical cells such as lead-acid, lithium-ion, nickel-metal hydride, and nickel-cadmium batteries are commercially available based on end-use needs. Among these, lithium-ion batteries have emerged as the technology of choice due to characteristics such as no memory effect, high energy density, low self-discharge, and negligible hydrogen outgassing.

The Global Electrochemical Cell Market is estimated to be valued at US$ 23.73 Bn in 2024 and is expected to exhibit a CAGR of 16% over the forecast period 2023 to 2030. This impressive growth can be attributed to the increasing adoption of hybrid and electric vehicles worldwide driven by supportive government policies and regulations toward sustainable transportation. Key players operating in the electrochemical cell market are Panasonic Corporation, Samsung SDI Co., Ltd., LG Chem Ltd., Tesla, Inc., BYD Co. Ltd., Johnson Controls International plc, Saft Groupe S.A., GS Yuasa Corporation, Duracell Inc., Enersys, A123 Systems LLC, Sony Corporation, Bloom Energy Corporation, Toshiba Corporation, and Siemens AG.

Key Takeaways
Key players: Key players operating in the electrochemical cell market are Panasonic Corporation, Samsung SDI Co., Ltd., LG Chem Ltd., Tesla, Inc., BYD Co. Ltd., Johnson Controls International plc, Saft Groupe S.A., GS Yuasa Corporation, Duracell Inc., Enersys, A123 Systems LLC, Sony Corporation, Bloom Energy Corporation, Toshiba Corporation, and Siemens AG. These players are investing heavily in R&D to develop more efficient and powerful electrochemical cells.

Growing demand: With the increasing adoption of electric vehicles and proliferation of portable electronics, the demand for electrochemical cells is growing exponentially. Expanding manufacturing capacity and new product launches are helping key players cater to this growing demand.

Global expansion: To leverage lucrative growth opportunities across regions, leaders in the electrochemical cell market are engaging in mergers and acquisitions and setting up manufacturing facilities in global markets like Asia Pacific, Europe, and South America. This is helping achieve geographical expansion and consolidate their presence.

Market key trends
Solid-state battery technology: A key trend gaining prominence is the development of solid-state batteries as an alternative to conventional lithium-ion batteries. Compared to lithium-ion batteries, solid-state batteries offer higher energy density, improved safety, and faster charging capability. Several automotive OEMs and battery manufacturers are investing heavily in solid-state battery research.

Increased battery lifespan: Battery manufacturers are focusing on developing advanced materials and cell designs to increase the lifespan of electrochemical cells, especially for applications with high cycle counts like electric vehicles. New cathode and anode materials with improved stability are helping achieve this goal.

Advent of lithium-sulfur batteries: Lithium-sulfur batteries have emerged as a promising next-gen technology with up to 5 times higher theoretical energy density than lithium-ion batteries. While commercialization challenges remain, sustained R&D could make lithium-sulfur batteries commercially viable in the coming decade.

Porter’s Analysis
Threat of new entrants: New companies can enter this market with moderate investment required for production and distribution facilities. However, existing big players have established supply chains and brand reputation.
Bargaining power of buyers: Buyers have moderate to high bargaining power in this market as they can choose from various manufacturers for electrochemical cells. They can negotiate on price and demand better quality and after-sales service.
Bargaining power of suppliers: A few big companies dominate the supply of raw materials like lithium, cobalt, and graphite used in electrochemical cells. This gives them a higher bargaining power over manufacturers.
Threat of new substitutes: New energy storage technologies like hydrogen fuel cells, supercapacitors pose a potential threat to electrochemical cells in the long run.
Competitive rivalry: The market is dominated by a few global players. However, new local entrants especially from Asia are increasing competition.

Geographical regions:
North America accounts for the largest share of the Electrochemical Cell Market, valued at US$ xx Bn in 2024, due to high adoption of EVs and energy storage systems.
Asia Pacific is the fastest growing region for electrochemical cells market driven by strong government support for EVS, increasing manufacturing capacities in China and demand from emerging economies.

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