An increase in demand for electric vehicles (EVs), as well as renewable energy sources and the need for energy storage systems are three of the key factors driving the global lithium-air battery market, according to a report released Thursday.
Aside from this, the increasing use of lithium-air batteries in consumer electronics, electric vehicles (EVs) and medical equipment is expected to expand the global lithium-air battery market, according to the Lithium-Air Batteries Market Size, Market Share, Application Analysis, Regional Outlook, Growth Trends, Key Players, Competitive Strategies and Forecasts, 2023 report by Research and Markets.
The fact that lithium-air batteries have a lifespan of approximately two months and a low storage capacity, as well as a very low charging rate, are the primary market restraints for lithium-air batteries.
During the forecast period of 2023 to 2031, the lithium-air battery market is expected to grow at a CAGR of more than 8.5%.
Increasing demand for electric vehicles
Numerous governments around the world are concentrating on reducing their carbon footprint. Due to the impending depletion of fossil fuel reserves, major automakers are investing heavily in the development and launch of electric vehicles (EVs). These factors motivate research and development in sustainable energy solutions.
This is anticipated to stimulate the growth of the lithium-air battery market shortly. On a single charge cycle, conventional lithium-ion batteries provide approximately 100 miles of driving range. Consequently, these batteries are regarded as expensive for use in EVs. In comparison to lithium-ion batteries, lithium-air batteries provide superior performance at a lower cost.
Researchers at the National Institute of Materials (NIMS) and Softbank Corp. in Japan announced the development of a lithium-air battery with an energy density of over 500Wh/kg in January 2022. This is significantly greater than the energy density of current lithium-ion batteries.
It is anticipated that the high energy density of lithium-ion batteries will drive the market development of lithium-air batteries in the coming years. By the end of 2020, the global EV stock had reached 11.21 million units, with China accounting for a significant share of 5.4 million units. According to the International Energy Agency (IEA), registrations of electric vehicles rose by 41% in 2020. Consequently, the rise in EV adoption is anticipated to increase lithium-air battery market statistics shortly.
Conventional lithium-ion batteries provide approximately 100 miles of driving range on a single charge cycle and are regarded as the most expensive component in the production of an electric vehicle. As a result, the new and innovative lithium-air batteries are gaining traction in the automotive industry due to their low cost and high performance.
The global demand for electric vehicles is bolstering the advancement of lithium-air battery technology, which uses ambient air as an active cathode for electricity generation, thereby reducing the overall weight of automobiles. Due to its increased environmental relevance, the lightweight design of a new range of engineered EV models and brands would increase sales and demand for electric vehicles.
In addition, Li-O2 batteries can store 700% more energy than standard Li-Ion batteries, allowing an electric vehicle to travel 500 miles on a single charge at an average cost of $10. As a result, the growing preference for battery-powered cars over fuel-powered vehicles has environmental and economic benefits, which would continue to drive innovations and improvements in the lithium-air battery market.
Increasing demand in consumer electronics market
The increasing penetration of lithium batteries in consumer goods and electronic appliances such as smartphones, smart wearables, and smart home appliances, among others, is creating growth opportunities in the global lithium-air battery market. Increasing consumer demand for thinner, more compact, and high-performance battery products is accelerating the adoption of lithium-air batteries in smart devices, laptops, computers, etc. In addition, the miniaturization of mobile electronics is driving the demand for lightweight and less expensive lithium-air battery cells and packs to meet the energy and power needs of the portable device industry.
Increased demand for inexpensive energy storage systems
In the field of energy storage systems, the price of materials with a higher energy density is a major obstacle. This has led to substantial investment in the R&D of less expensive energy storage solutions, thereby fueling the market growth of lithium-air batteries. Researchers at the Massachusetts Institute of Technology (MIT) announced in 2017 the development of an “air-breathing” battery capable of storing electricity for extended periods.
The battery has the potential to store energy at a significantly lower cost than existing technologies (roughly $20 to $30 per kWh as opposed to $100 per kWh). In addition, it could have few location restrictions and zero emissions. The use of lithium-air batteries as an ultra-cheap solution for grid storage is possible. In addition to having a low chemical cost, these batteries are manufactured with inexpensive materials. Consequently, the low price of lithium-air batteries is anticipated to boost market dynamics in the coming years.
Aprotic lithium-air battery to Emerge as fastest growing segment
According to the most recent lithium-air batteries market trends, the aprotic lithium-air battery segment is projected to lead the industry with a CAGR of 10.5% over the forecast period. Since they do not require a cathode material and can use atmospheric oxygen as the oxidant, apriotic lithium-air batteries have a much higher energy density than conventional lithium-ion batteries.
Automotive segment dominates the market
The automotive segment contributed the largest revenue share in 2022 among the end-use segment. The need to reduce transportation’s reliance on imported oil and emissions has spurred the development of electric vehicles (EVs). In addition, governments worldwide are pushing for the widespread adoption of EVs. Several measures have been taken, including a significant decrease in prices and an expansion of the selection of EVs.
On a single charge cycle, conventional lithium-ion batteries provide approximately 100 miles of driving range. Therefore, they are regarded as expensive components in the production of an electric vehicle. As a result, the new and innovative lithium-air batteries are gaining traction in the automotive industry as a result of their high performance and low cost.
In January 2022, researchers from Japan’s National Institute of Materials (NIMS) and Softbank Corp. announced the development of a lithium-air battery with a significantly higher energy density than current lithium-ion batteries.
MIT research indicates that lithium-air and zinc-air batteries are the best options for the next generation of secondary batteries for electric vehicle applications. In addition, the Samsung Advanced Institute of Technology (SAIT) has been conducting extensive research on next-generation LIB electrode materials and post-Lithium-ion battery systems, including all-solid-state and lithium-air battery technologies. This is anticipated to make the range of EVs comparable to that of conventional vehicles. Similarly, other companies, such as Toyota and IBM, have taken a keen interest in developing these batteries for EVs by increasing their R&D expenditures and R&D activities in response to technological advances.
APAC remains global leader
According to the most recent market forecast for lithium-air batteries, Asia Pacific is expected to hold the largest share from 2023 to 2031. In 2022, the region accounted for a 51.5% share. Rapid industrialization and increased demand for lithium-air batteries in the defense and aerospace industries are expanding the region’s market share. China is poised to be the industry’s growth engine in Asia-Pacific, driven by the expansion of its automotive, electronics, and energy sectors. In 2022, North America held a 25% share. In the near future, growth in the automotive and transportation industries is anticipated to drive market revenue in the region. In 2022, Latin America, and Middle East & Africa accounted for a small portion of the market.
Innovation and strategic collaborations key to enhancing market share
A small number of large-scale companies control the majority of the market share worldwide. The majority of businesses are investing significantly in extensive research and development, primarily to develop eco-friendly products. Expansion of product lines and mergers and acquisitions are two of the most important strategies utilized by prominent players.