Lithium-Ion Battery (LIB) Separator Market Analysis APAC,Europe,North America,Middle East and Africa,South America - US,China,Japan,India,Germany - Size and Forecast 2023-2027

Lithium-Ion Battery (LIB) Separator Market Forecast 2023-2027

The lithium-ion battery separator market size is forecast to increase by USD 2.53 billion during the forecast year. The market is estimated to grow at a CAGR of 10.91% from 2022 to 2027. The growth of the market depends on several factors, including the rising demand for smart devices, the shift in the automotive industry toward EVs, and the drawbacks of lead-acid batteries. This demand is propelled by technological advancements such as improved user interfaces, innovative features, and enhanced network connectivity. These advancements have spurred the innovation of various smart devices, including smartphones, smart wearables, and tablets.

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Largest-Growing Segments 

By Application Analysis

The automotive segment is estimated to witness significant growth during the forecast period. Because of their advantages over other battery technologies, Llthium-ion batteries are majorly used in EVs and other battery-powered vehicles. These batteries have a high energy density, relative performance, and long-life cycle, which make the battery technology more lucrative compared with other batteries. 

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The high costs of EVs compared with conventional vehicles is due to lithium-ion batteries. Moreover, due to high production volumes and ongoing R and D activities to increase reliability, the prices of lithium-ion batteries are declining. As a result, the adoption of EVs.Lead-acid batteries have been primarily used in the automotive industry. Nevertheless, because of their excellent performance, these are being gradually replaced by lithium-ion batteries. Such factors are significantly contributing to the LIB separator market growth. Further, the automotive industry is witnessing a shift from dry separators to wet separators, which will further address the security concerns associated with lithium-ion batteries. The automotive application segment experiences rising competition from fuel cells as a replacement for lithium-ion batteries. In addition, separator inefficiencies hinder market growth as the separator is one of the essential components of lithium-ion batteries.

Market Regional Analysis

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Asia-Pacific accounts for approximately 50% of the global LIB Separator market share. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. APAC is the primary manufacturing hub for both EVs and consumer electronics.  In South Asian countries, some of the world's biggest automotive producers are concentrated. The adoption of electric vehicles has an important influence on the market for car applications. Hence, such factors can positively impact the LIB separator market in the region. Collective efforts are being made by governments in a number of APAC countries and the automotive industry to shift their focus from cars to electric vehicles. Growing concerns about the environment and a need to lower dependence on fossil fuel vehicles are the major reasons behind this change. The market is introducing multiple reforms and is observing an increasing inclination toward R&D to improve the available technologies to promote EV sales. For instance, the Made in China 2025 policy of China aims to shift the country's manufacturing sectors, such as robotics, aerospace, and EVs, to higher value-added sectors with the adoption of industrial upgrading strategies. These factors will fuel the growth of the market in this region during the forecast period.

Market Dynamics and Customer Landscape

The burgeoning demand for Electric Vehicles (EVs) and renewable energy sources is a driving force in the LIB (Lithium-Ion Battery) Separator market. With an increasing focus on reducing greenhouse gas emissions and mitigating the environmental impact of traditional Internal Combustion Engine (ICE) vehicles, governments worldwide are implementing stringent regulations and subsidies to accelerate the transition to electric mobility. As the EV market continues to expand, propelled by technological advancements and shifting consumer preferences toward sustainable transportation solutions, there is a corresponding surge in demand for lithium-ion batteries. These batteries serve as the primary energy storage solution in EVs, offering high energy density and efficient power delivery.

Moreover, the growing deployment of renewable energy sources such as solar and wind necessitates robust energy storage solutions to address intermittency issues and optimize energy utilization. Lithium-ion batteries, coupled with advanced separator technologies, play a pivotal role in storing renewable energy and ensuring grid stability in decentralized energy systems. Furthermore, the ban on ICE vehicles in various regions underscores the urgency for EV adoption and the development of supporting infrastructure, including charging stations. This heightened demand for electric mobility solutions drives the need for high-performance LIB separators capable of enhancing battery efficiency, safety, and longevity. As a result, the LIB separator market is experiencing robust growth, driven by the rapid expansion of the EV and renewable energy sectors, supported by technological advancements and favorable regulatory frameworks aimed at reducing carbon emissions and promoting sustainable energy solutions.

Key Market Driver

Rising demand for smart devices is the major factor notably driving the market growth. The steadily growing demand for smart devices with technological advances such as enhanced user interfaces, new characteristic additions, and enhanced network connectivity. These new features have led to the innovation of numerous smart devices such as smartphones, smart wearables, and tablets.

Factors such as affordability, digital literacy, and content relevance propel the demand for such devices. Moreover, factors such as an increase in internet penetration, disposable income, and the purchasing power of the consumer support the steady growth of smart devices. Due to the entry of Chinese manufacturers into emerging markets across the world, smartphones, and other devices are available at cheaper prices. In addition, rising health awareness among consumers has boosted the adoption of smart wearable devices. Furthermore, smart devices use lithium-ion batteries as the power source owing to their high energy density and low discharge rate. Due to their compactness and performance, Lithium-ion batteries have become the primary choice for powering smart devices. The demand for lithium-ion batteries will rise with the continuous growth of the consumer electronics market. This will drive the global market during the forecast period.

Major Market Trends 

Declining prices of lithium-ion batteries is an emerging trend supporting market growth. Lithium-ion batteries contribute to a significant portion of the overall vehicle and equipment cost. Lithium-ion batteries are comparatively more costly than lead-acid batteries or NiMH batteries.

In the automotive segment, lithium-ion batteries account for a major portion of the overall cost of devices that are used. Moreover, the manufacturing cost of lithium-ion batteries is declining significantly, and in the past years, the cost of battery packs has fallen as the scale of production has increased tremendously, contributing to the LIB separator market growth. This can be attributed to the increased adoption by the automotive industry and the development of cost-effective production methods by vendors. The prices are anticipated to decline further in the forthcoming years as the production capacity is rising every year. These cost declines, associated with government support, will expand the sales of lithium-ion-powered vehicles, which, in turn, will fuel the growth of the global market during the forecast period.

Significant Market Challenge

Safety concerns due to the inefficiency of separators are the major challenge that may impede market growth. These batteries are generally used in all types of electronic devices and automotive owing to their high energy density and superior electrochemical performance over traditional batteries.

Also, it offers better environmental compatibility, intrinsic stability, and capacity. The three important functional components of lithium-ion batteries are the cathode, anode, and electrolyte. The separators play an extremely important role as it mediates the flow of lithium ions between the electrodes through their pores during the process of charging and discharging. Moreover, the separators do not take part in the cell reactions, but their physical properties determine the performance of the batteries. Incidents such as cell reactions have a very low chance of happening; however, they can turn out to be fatal in certain situations. Thus, separator inefficiency is one of the significant safety concerns for lithium-ion batteries and, therefore, requires utmost precision. This is expected to hinder the growth of the global LIBs markets during the forecast period.

Customer Landscape

The market trends and analysis 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 Market Customer Landscape

Who are the key players in the LIB Separator market?

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.

Asahi Kasei Corp. - The company offers lithium-ion battery separators such as Celgard dry-process lithium-ion battery separators.

This market growth and trends, market analysis and report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• Asahi Kasei Corp.
• BenQ Materials Corp.
• Coperion GmbH
• Entek International LLC
• LG Chem Ltd.
• Mitsubishi Paper Mills Ltd.
• MOD PLAST INDUSTRIES
• Semcorp.
• SK Innovation Co. Ltd.
• Solvay SA
• Sumitomo Chemical Co. Ltd.
• Targray Technology International Inc.
• TDK Corp.
• Teijin Ltd.
• Thermo Fisher Scientific Inc.
• Toray Industries Inc.
• Ube Corp.
• W-SCOPE Corp.
• Xiamen Lith Machine Ltd.
• Yasui Seiki Co. Ltd.

Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

This market research and growth 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. 

• Application Outlook (USD Million, 2017 - 2027)
  • Automotive
  • Non-automotive
• Material Outlook (USD Million, 2017 - 2027)
  • Polyethylene
  • Polypropylene
  • Nylon
  • Others
• Geography Outlook (USD Million, 2017 - 2027)
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile
    • Brazil
    • Argentina
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

In recent years, advancements in technology have propelled the Lithium-Ion Battery (LIB) Separator Market forward, with significant developments and innovations taking place. Countries like Australia have been at the forefront of these developments, contributing to the growth of the separator industry. Within this market, the LIB separator business has seen remarkable progress, with companies specializing in LIB separators experiencing a surge in stock value. The separator market's expansion has paralleled the growth of the broader LIB market and LIB industry, with increasing demand for LIBs across various sectors. As a result, separator markets are becoming increasingly competitive, with companies vying for market share and striving to meet the growing demand for high-quality separators.

Battery design plays a crucial role in various sectors, including battery-operated medical devices and the car manufacturing market. With the global push for renewable energy sources and stringent emission regulations, energy storage solutions (ESS) have gained prominence, particularly in the context of electric vehicles (EVs) and new energy vehicles (NEVs). Governments worldwide are offering grants and implementing programs to incentivize investment decisions in infrastructure development, including charging station infrastructure. This is essential to support the charging needs of EVs and enhance the charging infrastructure.

The development of lithium-ion batteries (LIBs), known for their long cycle life and high energy density, has revolutionized the energy storage battery market. However, safety concerns such as the risk of fire and overheating remain, prompting industry players to implement safety mechanisms in battery design. Porosity and ion transport within battery separators, typically made from polymer materials like polyethylene (PE) and polypropylene (PP), are critical factors affecting battery performance and safety.

In the healthcare sector, battery-operated medical devices like infusion pumps, pacemakers, and portable ventilators rely on reliable energy storage solutions. Safety is paramount in such devices, as any malfunction can have severe consequences. Therefore, battery design must prioritize safety features to mitigate risks. Moreover, as consumer demand for smart devices like smartphones, laptops, and smartwatches continues to rise, so does the demand for high-performance batteries. Manufacturers strive to enhance battery life, charging speed, and efficiency to meet consumer expectations.

The Li-ion Battery Separator Market has seen significant growth, driven by advancements in separator technology to improve ion transport and battery performance. Government regulations and international organizations like the International Energy Agency (IEA) play a crucial role in shaping the energy landscape. Measures to reduce greenhouse gases (GHGs) and NOX emissions drive innovation in battery technology and promote the adoption of energy-efficient solutions. Incentives such as rebates encourage consumers to embrace eco-friendly options and support the transition towards sustainable energy systems.

Lithium-Ion Battery (LIB) Separator Market Scope
Report Coverage	Details
Page number	166
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 10.91%
Market growth 2023-2027	USD 2.53 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	9.91
Regional analysis	APAC, Europe, North America, Middle East and Africa, and South America
Performing market contribution	APAC at 50%
Key countries	US, China, Japan, India, and Germany
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Asahi Kasei Corp., BenQ Materials Corp., Coperion GmbH, Entek International LLC, LG Chem Ltd., Mitsubishi Paper Mills Ltd., MOD PLAST INDUSTRIES, Semcorp., SK Innovation Co. Ltd., Solvay SA, Sumitomo Chemical Co. Ltd., Targray Technology International Inc., TDK Corp., Teijin Ltd., Thermo Fisher Scientific Inc., Toray Industries Inc., Ube Corp., W-SCOPE Corp., Xiamen Lith Machine Ltd., and Yasui Seiki Co. Ltd.
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period.
Customization purview	If our market 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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2023 and 2027
• Precise estimation of the size of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Market Growth Analysis industry across APAC, Europe, North America, Middle East and Africa, and South America
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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