The battery electrolyte market relies on increased usage of lithium-ion batteries in a wide variety of applications including consumer electronics, electric vehicles, energy storage systems, and others.
The global battery electrolyte market is estimated to be valued at US$ 26.22 Bn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2024 to 2031.
The Global Battery Electrolyte Market Share play a crucial role in batteries as they allow the flow of lithium ions between the anode and cathode during the charging and discharging process. Liquid electrolytes are commonly used in lithium-ion batteries due to their high ionic conductivity. The growing demand for lithium-ion batteries from the automotive and energy storage industries is expected to drive the battery electrolyte market over the forecast period.
Key Takeaways
Key players operating in the battery electrolyte market include Mitsubishi Chemical Corporation, BASF SE, Solvay SA, LG Chem Ltd., UBE Industries Ltd., Sumitomo Chemical Co., Ltd., Toda Kogyo Corp., Shenzhen Capchem Technology Co., Ltd., TOMIYAMA Pure Chemical Industries, Ltd., Merck KGaA, Targray Industries Inc., 3M Co. , Advanced Electrolyte Technologies, LLC, Umicore, Toray Industries Inc., POSCO, Hitachi Chemical, American Elements, Gelest, Inc, and Daikin America Inc. The increasing demand for electric vehicles and energy storage systems is expected to drive the growth of the battery electrolyte market. Key players are also expanding their production capacities across regions to capitalize on the growing opportunities.
Market key trends
One of the key trends gaining traction in the battery electrolyte market is the increasing adoption of solid-state electrolytes. Solid electrolytes offer several advantages over liquid electrolytes such as improved safety due to non-flammability and higher energy density. Researchers are focusing on developing sulfide and oxide-based solid electrolytes with high ionic conductivity at room temperature. Both battery manufacturers and electrolyte suppliers are investing in pilot and commercial production facilities for solid state batteries. The solid-state technology has the potential to revolutionize the energy storage industry in the coming years.
Porter’s Analysis
Threat of new entrants: The battery electrolyte market has moderate threat as the manufacturing process requires high technical knowledge and capital investments. However, growth prospects attract new companies.
Bargaining power of buyers: Buyers have moderate bargaining power as there are several established players supplying electrolytes. However, differentiated products increase switching costs.
Bargaining power of suppliers: Electrolyte suppliers have low to moderate bargaining power due to availability of substitute raw materials and intensity of competition.
Threat of new substitutes: Threat is moderate as alternate electrolyte chemistries are being researched but none match the performance of current lithium salt based ones.
Competitive rivalry: Intense as major players compete on pricing, product development and supply contracts. Proprietary know-how and recurring customers lower risks of price wars.
Geographical Regions
North America accounts for over 35% share currently due to large consumer battery and EV markets. Supported by government initiatives and investments in energy storage, the region is expected to maintain its dominance through 2031.
The Asia Pacific region holds the second largest share and is witnessing the fastest value growth at a CAGR of 13.5% during the forecast period. Proliferation of battery and electronics manufacturing clusters in China, South Korea and Japan drive electrolyte demand growth in the region.
Geographical Regions
North America accounts for over 35% share currently due to large consumer battery and EV markets. Supported by government initiatives and investments in energy storage, the region is expected to maintain its dominance through 2031.
The Asia Pacific region holds the second largest share and is witnessing the fastest value growth at a CAGR of 13.5% during the forecast period. Proliferation of battery and electronics manufacturing clusters in China, South Korea and Japan drive electrolyte demand growth in the region.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it