May 27, 2024
Ict

The Rise of Renewable Energy Sources is Driving the Electrochemical Cell Market

Electrochemical cells, commonly known as batteries, are devices that convert stored chemical energy into electrical energy and are used to power various electronic devices. Some of the main applications of batteries include powering smartphones, laptops, electric vehicles, and energy storage systems. Lithium-ion batteries are the most commonly used type of rechargeable batteries today owing to their high energy density and relatively lightweight nature. The rising adoption of electric vehicles and increasing use of renewable energy is driving the demand for sophisticated battery energy storage systems. Furthermore, advancements in battery chemistries are helping improve performance attributes such as power density, cycle life, and safety. The global electrochemical cell market is an integral part of the global transition towards renewable energy sources and cleaner transportation.

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, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends in the electrochemical cell market is the rising demand for lithium-ion batteries from the electric vehicle industry. Stringent emission norms and government policies promoting clean mobility are accelerating the sales of EVs globally. As EVs require large and powerful batteries to achieve longer driving ranges, battery makers are focusing their R&D efforts on developing higher energy density lithium-ion batteries with reduced costs. Furthermore, the integration of lithium-ion batteries in renewable energy storage applications is expected to open new growth opportunities. As the share of solar and wind power increases in the overall energy mix, large-scale battery storage systems are playing a critical role in ensuring grid stability and maximizing the use of intermittent renewable resources. Advancements in battery chemistries such as lithium-sulfur and solid-state batteries also hold promise to revolutionize the energy storage industry in the coming years.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the electrochemical cell market is moderate. High capital requirements for manufacturing plants act as a barrier.

Bargaining power of buyers: The bargaining power of buyers is high due to the presence of various established players providing a variety of options. However, specialized buyers have less influence.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as key raw materials require specific technical capabilities from suppliers. Supplier switching costs are also moderate.

Threat of new substitutes: The threat of substitutes is moderate as other energy storage technologies like lithium-ion batteries and supercapacitors are emerging but cannot replace all electrochemical cell applications.

Competitive rivalry: The competitive rivalry is high due to the presence of numerous domestic and international players competing on performance, pricing, and product differentiation.

Key Takeaways

The global Electrochemical Cell Market is expected to witness high growth over the forecast period supported by increasing demand for portable devices and electric vehicles. 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.

Regional analysis: Asia Pacific dominates the global market and is expected to grow at the fastest pace during 2023-2030 led by China and Japan. Growth in the region will be backed by extensive manufacturing capabilities and a large consumer base adopting new technology.

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.

*Note:

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