Structural batteries are rechargeable batteries that use lightweight, load-bearing materials as both their container and electrodes. They eliminate the need for a separate battery housing by embedding the battery components and chemistry into the vehicle’s structural components like frames, panels or load floors. This integrated design approach helps significantly reduce vehicle weight and enables greater energy storage capacity compared to traditional lithium-ion battery packs.
As structural batteries incorporate load-bearing and energy storage functionalities into a single system, they help automakers free up interior space and upgrade vehicle design flexibility. The rising adoption of electric vehicles globally has created substantial demand for innovative battery solutions that enhance electric range and efficiency.
The Global Structural Battery Market is estimated to be valued at US$ 1.84 Bn in 2024 and is expected to exhibit a CAGR of 20.% over the forecast period from 2024 to 2030.
Key Takeaways
Key players operating in the Structural Battery market are Tesla, Inc. (United States), BMW AG (Germany), Airbus SE (France), Volkswagen AG (Germany), Samsung SDI Co., Ltd. (South Korea), Saft Groupe S.A. (France), Northvolt AB (Sweden), LG Chem Ltd. (South Korea), Farasis Energy, Inc. (China), Solid Power, Inc. (United States), Cadenza Innovation, Inc. (United States), Blue Solutions SA (France), Oxis Energy Ltd. (United Kingdom), Excellatron Solid State, LLC (United States), Amprius, Inc. (United States).
The growing demand for next-generation batteries to boost electric vehicles’ driving range and reduce weight is propelling the structural battery market. Various automakers are investing heavily in developing innovative structural battery prototypes to transition to all-electric lineups over the next decade.
With stricter emission norms and zero-emission vehicle mandates in many countries, global automakers are expanding their electric portfolios and manufacturing capabilities internationally. This is likely to drive the structural battery market during the forecast period as electric vehicles see widespread adoption worldwide.
Market Key Trends
One of the primary trends spurring the development of structural batteries is the push for electric vehicle massification. As EVs need to meet consumers’ expectations of comparable driving range and performance to combustion vehicles, integrating high-capacity batteries without compromising interior space or adding weight is critical. Structural battery design enables this without making concessions. Ongoing R&D in nanotechnologies, solid-state electrode materials, and new battery chemistries will lead to cheaper, safer, and more durable structural battery packs scaling up for diverse mobility applications over the next decade.
Porter’s Analysis
Threat of new entrants: Low barrier for startups to enter into structural battery market by acquiring battery technology. However, existing players have established distribution channels and manufacturing facilities.
Bargaining power of buyers: Large automotive companies have significant bargaining power as buyers due to volume procurement. However, limited number of structural battery manufacturers limits switching options.
Bargaining power of suppliers: Cell manufacturers and raw material suppliers have moderate bargaining power due to dependence of battery manufacturers on consistent supply. However, global presence of raw material suppliers mitigates the risk.
Threat of new substitutes: Alternatives like solid-state batteries pose potential threat, however structural batteries still have advantages in terms of manufacturing cost and energy density.
Competitive rivalry: Intense competition between global battery manufacturers to gain market share through product innovation, strategic partnerships and geographic expansion.
North America dominates the Structural Battery Market Size currently with a share of over 35% in terms of value due to presence of major automotive OEMs and technology companies in the region.
Asia Pacific is expected to witness the fastest growth during the forecast period owing to expanding electric vehicle market and investments by Chinese battery manufacturers to increase lithium-ion production capacity in the region. Countries like China, South Korea and Japan are focusing on localized battery manufacturing to reduce import dependence.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
