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The cathode materials market size is forecast to increase by USD 26.96 billion at a CAGR of 15.23% between 2022 and 2027. Market expansion relies on various factors, notably the burgeoning demand for lithium-ion batteries driven by the proliferation of portable electronic devices and electric vehicles. The market landscape is further shaped by the frequent mergers and acquisitions among industry players, leading to consolidation and innovation. These strategic alliances enable companies to leverage complementary strengths, expand their market reach, and drive technological advancements. Moreover, the increased adoption of portable electronic products across various sectors, including consumer electronics, healthcare, and automotive, fuels the demand for lithium-ion batteries. As consumer preferences evolve towards more portable and energy-efficient devices, the market for lithium-ion batteries is poised for significant growth. By capitalizing on these key drivers, stakeholders can navigate the dynamic landscape and position themselves for success in the rapidly expanding lithium-ion battery market.
Market Forecast 2023-2027
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The market is witnessing significant growth, driven by the increasing demand for energy storage devices such as Li-ion batteries in various applications like data centers and UPS systems. Key advancements include lead dioxide cathode materials, renowned for their high power output and efficiency. However, concerns regarding greenhouse gas emissions and exposure to hazardous chemicals like acids and heavy metals such as mercury underscore the need for sustainable solutions in this sector.
This report extensively covers market segmentation by battery type (lead-acid, lithium-ion, and others), application (automotive, consumer electronics, power tools, and others), and geography (APAC, Europe, North America, South America, and the 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.
The lead-acid segment will account for a major share of the market's growth during the forecast period.? Lead-acid batteries are commonly used in various applications such as automotive, industrial, and stationary energy storage. Lead-acid batteries are known for their reliability, relatively low cost, and ability to deliver high surge currents and also have been in use for many years.
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The lead-acid segment was valued at USD 11.94 billion in 2017. In various industrial applications, such as forklifts, material handling equipment, backup power systems, and telecommunications infrastructure lead-acid batteries are commonly used. These batteries are popular because of their features such as relatively low cost and robustness. Factors that are raising the demand for lead-acid batteries include the growth of the automotive industry and the raised demand for energy storage solutions. Hence, the growing demand for lead-acid batteries will boost the growth of the market during the forecast period.
Based on application, the market has been segmented into automotive, consumer electronics, power tools, and others. The automotive segment will account for the largest share of this segment.?With the rising adoption of electric vehicles (EVs) and the shift towards higher energy-density batteries, the demand for cathode materials in the automotive industry has shown rapid growth. The growing adoption of EVs globally has raised the demand for lithium-ion batteries and cathode materials. Hence, these factors will have a positive impact on the growth of the market during the forecast period.
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APAC is estimated to contribute 57% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. APAC dominated the market with the highest market share because China has been at the forefront of the EV revolution. The region has shown rapid growth in EV sales due to government incentives, regulations promoting clean transportation, and consumer demand for sustainable mobility. The rising adoption of EVs in APAC has directly contributed to the demand for cathode materials. However, reduced workforce and travel restrictions impacted the production and availability of raw materials, which is directly affecting the supply of cathodes.
The market plays a pivotal role in energy storage devices like Li-ion batteries, crucial for plug-in hybrid electric vehicles (PHEVs) and data centers. However, concerns persist regarding greenhouse gas emissions and the use of hazardous chemicals, including acids and heavy metals like mercury. Advancements in cathode materials, such as lead dioxide and lithium-ion phosphate, ensure high power output, especially in UPS systems and HEVs. These innovations reflect a growing demand for sustainable energy solutions amid environmental challenges. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
Key Market Driver
Robust demand for lithium-ion batteries is the key driver notably driving the growth of the market. In recent years, there has been a lot of demand for lithium-ion batteries. A wide range of portable electronic devices, including smartphones, tablets, laptops, and wearable devices, are powered by these batteries. The significant demand for lithium-ion batteries is the result of a number of factors, including the expanding market for consumer electronics and the rising demand for batteries that are energy-efficient and long-lasting. Moreover, lithium-ion batteries play an important role in energy storage applications such as grid-scale storage and renewable energy integration.
Further, as renewable energy sources like solar and wind power become more common, the basic need for efficient energy storage solutions, such as lithium-ion batteries, continues to increase. The significant demand for lithium-ion batteries is attributed to the extensive adoption of portable electronics such as the surge in electric vehicle production, the storing the renewable energy, and the desire for mobility and convenience in consumer products. Hence, the rising demand for lithium-ion batteries will grow the market during the forecast period.
Increased application in consumer electronics is the primary trend in the market. The powerful demand for cathode materials is shown due to the extensive adoption of portable electronics, the surge in electric vehicle production, the growth of grid energy storage, the need for renewable energy storage, and the desire for mobility and consumer products. In smartphones and tablets, lithium-ion batteries with cathode materials such as lithium cobalt oxide or nickel manganese cobalt oxide (NMC) are commonly used.
Moreover, these cathode materials have the characteristics to provide high energy density and good overall performance, also allowing for longer battery life and faster charging times. Besides, digital cameras commonly use lithium-ion batteries such as lithium cobalt oxide or lithium iron phosphate. These materials offer a balance between energy density, power delivery, and safety, which will result in the growth of the global market in focus during the forecast period.
The high cost associated with raw materials is the major challenge for the growth of the market. Factors such as the cost and availability of raw materials, especially cobalt, nickel, and lithium, can negatively impact the growth of the market. Factors such as price volatility, limited availability, and geopolitical risks can result in supply chain disruptions and higher production costs. Moreover, the price of metals used in cathode materials, such as cobalt, nickel, and lithium, contributes to the overall cost.
Further, owing to limited global supply and concentration of production in a few countries like the Democratic Republic of Congo, cobalt prices have been historically volatile. Likewise, due to factors such as supply-demand dynamics, production disruptions, and policy changes the price of nickel is volatile in major nickel-producing countries like Indonesia. Concerns regarding the environmental impacts of cobalt and nickel mining have further impacted the supply chain and contributed to price fluctuations for the raw materials which may impede the growth of the market in focus during the forecast period.
Companies 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.
We also have detailed analyses of the market’s competitive landscape and offer information on 15 market companies, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market 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 is propelled by the growing demand for energy storage devices in various sectors, including automotive and renewable energy. While NMC lithium-ion batteries gain traction for their high energy density and efficiency, concerns about occupational diseases among battery workers highlight the need for safer materials. Innovations in lead dioxide cathode materials and lead-acid batteries continue to play a vital role, although environmental concerns about lead dioxide and lead plates persist due to their potential pollution impact. Alternative options, such as Li-ion Cathode Materials, offer promising solutions, particularly for applications in plug-in vehicles and renewable energy storage device. Collaboration with gas and oil suppliers and advancements in materials like calcium lignosulfonate contribute to the development of sustainable cathode solutions for both public EV charging infrastructure and private charging stations.
Further, the market is experiencing significant growth driven by the increasing demand for energy storage devices, particularly in the automotive and renewable energy sectors. Traditional lead acid batteries remain prevalent, but advancements in lead dioxide materials are paving the way for more efficient and sustainable solutions. Innovations in chemistry type are optimizing cathode performance, especially in applications like internal combustion engines and televisions. The development of positive electrode materials, including lead-acid cathode materials, is crucial for enhancing battery performance and longevity. Additionally, the expansion of public charging stations is driving the need for high-quality cathode materials to support the growing electric vehicle market.
Market Scope |
|
Report Coverage |
Details |
Page number |
156 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 15.23% |
Market growth 2023-2027 |
USD 26.96 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
14.01 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 57% |
Key countries |
US, China, Japan, South Korea, and Germany |
Competitive landscape |
Leading Companies, Market forecasting, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Advanced Lithium Electrochemistry Cayman Co. Ltd., ALTMIN, Ascend Elements Inc., BASF SE, Himadri Speciality Chemical Ltd, Hitachi Ltd., Malvern Panalytical Ltd., NEI Corp., Nichia Corp., Nippon Chemical Industrial Co. Ltd., NOVONIX Ltd., POSCO holdings Inc., Samsung SDI Co. Ltd., Sumitomo Metal Mining Co. Ltd., Targray Technology International Inc., TODA KOGYO CORP., Umicore NV, and Xiamen TOB New Energy Technology Co. Ltd. |
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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Battery Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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