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The binder market for lithium-ion batteries is estimated to grow at a CAGR of 25.42% and the size of the market is forecast to increase by USD 3,703.98 million between 2022 and 2027. The growth of the market depends on several factors, including the shift of the automotive industry toward EVs, the rising demand for smart devices, and the increased government support for EVs.
This report extensively covers market segmentation by type (cathode binders and anode binders), application (power battery, energy storage battery, digital battery, and others), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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In 2017, in terms of market size, APAC dominated the market with a share of USD 624.07 million. Additionally, China was the largest contributor of market share USD 404.83 million. The market segment cathode binders recorded the largest contribution in market share of USD 645.44 million and continues to grow.
The shift of the automotive industry toward EVs is notably driving the market growth, although factors such as the presence of several substitutes for lithium-ion batteries may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Binder Market For Lithium-Ion Batteries Driver
The automotive industry's transition to electric vehicles is a key factor driving the growth of the global lithium-ion battery binders market. The objective of moving toward a sustainable ecosystem in the automotive industry has led to a spurt in demand for EVs and HEVs. Stringent regulations are being imposed, which ensure compliance with the Paris Agreement on Climate Change. Electric cars are the most suitable way to reduce the carbon footprint. They are considered an environmentally friendly solution to reduce carbon dioxide emissions in the transport sector.
On average, electric cars emit half the greenhouse gases emitted by traditional vehicles. HEVs combine the benefits of both gasoline and electric engines and can be configured to meet specific goals, such as better fuel economy, more power, or extra power for tools and electronics. Sales of electric cars have been steadily increasing since 2016. To further promote their sales, governments in many countries set targets and provide incentives in the form of monetary and non-monetary benefits. This will increase the confidence of producers and other stakeholders in future policy frameworks and investment mobilization. The increase in sales of electric cars increases the demand for lithium-ion batteries and thus accelerates the growth of the lithium-ion battery connector market.
Significant Binder Market For Lithium-Ion Batteries Trend
The rising adoption of wearable technology is a major trend in the global lithium-ion battery binders market. Wearable technology includes smart electronic gadgets and devices that can be combined into clothing or worn as an accessory or implant. Some of the most commonly used wearable devices are smartwatches and activity trackers. The wearable market is expected to experience advancements in wearable technology in applications such as in professional sports, healthcare, fashion, and others over the forecast period.
Some of the major vendors of lithium-ion batteries are introducing new products for use in smart wearables. In January 2019, VARTA Microbattery GmbH launched new flat lithium-ion cell micro batteries that can be used in the wearables CP 0854, CP9440, and CP7840. Thus, the availability and adoption of new lithium-ion batteries for wearable products are likely to positively impact the growth of the global binder market for lithium-ion batteries, which will support the demand for binders in lithium-ion batteries during the forecast period.
Major Binder Market For Lithium-Ion Batteries Challenge
The presence of multiple substitutes for Li-ion batteries is a major challenge to the growth of the global lithium-ion battery binders market. Lithium-ion batteries are widely used in automotive, consumer electronics, and energy storage applications mainly due to their lightweight and high energy storage. However, there are many substitutes for Li-ion batteries in the market, which is likely to hinder the growth of the market. These substitute batteries have applications in almost all major end-user industries, such as automotive, consumer electronics, and energy storage.
Moreover, several other battery technologies are being developed for use in the automotive industry, such as solid-state and sodium batteries. Sodium is a more abundant raw material than lithium. In addition, significant R&D efforts are underway to develop solid-state batteries because they have a high energy density and are safer than lithium-ion batteries. However, production costs are higher than other batteries, such as lead-acid batteries and nickel-metal hydride batteries. Therefore, the cost and availability of many substitutes affect the use of Li-ion batteries and thus hinder the growth of the Li-ion battery connector market.
Key Binder Market For Lithium-Ion Batteries Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Binder Market for Lithium-Ion Batteries Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
apvcoatings.com - The company offers binders for lithium-ion batteries made up of high-speed reactors, dual shaft mixers, three roll mills, horizontal mills, and ball mills. Also, the company offers products such as water-based and solvent-based adhesives.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
Based on type, the market is segmented into cathode binders and anode binders. The global lithium-ion battery binders market share growth by the cathode binders segment will be significant during the forecast period. Cathode binders are bonding materials used to hold the active cathode materials in lithium-ion batteries. These materials have high adhesion properties. Lithium-ion batteries are mainly used in the automotive industry and electronic equipment due to their high specific energy-to-weight ratio. Cobalt, nickel, lithium manganese oxide, phosphate, and nickel-cobalt manganese are the most common cathode active materials in lithium-ion batteries.
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Active material, solvent, additives, and binders are used in the manufacture of the lithium-ion battery cathode electrode. A mixed slurry of these materials is passed through a coating machine to form a uniform slurry on the aluminum foil. The coated aluminum foil is calendered to produce a more uniform electrode. Choosing the right cathode binder is critical for Li-ion batteries, as binders play a key role in the electrical control and mechanical stabilization of Li-ion batteries.
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APAC is estimated to accout for 62% of the global market share growth during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The heating, ventilation, and air conditioning equipment market in APAC is expected to grow rapidly during the forecast period.
The major revenue contributors include China, Japan, and India. APAC accounts for the largest share in the market as the region is a major manufacturing hub for both mobile products and EVs. Some of the largest automotive manufacturers globally, such as Mitsubishi Motors Corporation, Toyota Motor Corporation, and Honda Motor Company, Ltd, are based in the region. The market for automotive applications is highly reliant on the adoption of EVs. Governments and automotive manufacturers in the region are making collective efforts to shift to EVs because of growing environmental concerns and the need to reduce the dependence on fossil fuel-powered vehicles.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. COVID-19 led to an upsurge in the demand for APAC. However, the lifting of travel restrictions, the restart of the manufacturing sector, and the launch of large-scale vaccinations against COVID-19 in 2021 have increased the demand for lithium-ion batteries. Li-ion battery connectors are versatile connectors with excellent properties such as high energy density, high efficiency, and relatively light and portable. During the forecast period, the ever-increasing share of renewable energy among energy sources will play an important role in the growth of the regional market. Thanks to favorable policies of governments in the Asia-Pacific region, the installation of renewable energies is increasing. Therefore, increasing demand for consumer electronics, automobiles, and government policies supporting the adoption of electric vehicles and installation of renewable energy sources will drive the growth of the regional lithium-ion battery market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Type (Cathode binders and Anode binders), Application (Power battery, Energy storage battery, Digital battery, and Others), and Geography (APAC, North America, Europe, South America, and Middle East and Africa).
Binder Market For Lithium-Ion Batteries Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 25.42% |
Market growth 2023-2027 |
USD 3,703.98 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
23.39 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 62% |
Key countries |
US, China, South Korea, Japan, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
APV Engineered Coatings LLC, Arkema Group, Ashland Inc., BASF SE, Crystal Clear Electronic Material Co. Ltd., Daikin Industries Ltd., DuPont de Nemours Inc., FUJIAN BLUE OCEAN Co. Ltd., Fujifilm Corp., Indigo Technology Co. Ltd., JSR Corp., Kureha Corp., MTI Corp., NANOGRAFI Co. Inc., Sinochem Group Co. Ltd., Solvay SA, Targray Technology International Inc., Ube Corp., AOT Battery Equipment Technology Co. Ltd., and Zeon Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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