April 20, 2024

The Global Electrochemical Cell Market is Estimated to Witness High Growth Owing to Increasing Adoption of Renewable Energy Sources

The electrochemical cell market comprises of batteries that function through an electrochemical reaction. Electrochemical cells are used to power portable devices, electric vehicles, energy storages and other applications. Lithium-ion batteries dominate the electrochemical cell market owing to their high energy density and longer lifespan. Lithium-ion batteries are extensively used in consumer electronics such as smartphones, laptops and power tools. In the automobile industry, electrochemical cells like lithium-ion batteries are increasingly being used in electric vehicles and hybrid vehicles due to stringent emission norms.

The Global Electrochemical Cell Market is estimated to be valued at US$ 23.73 Bn in 2024 and is expected to exhibit a CAGR of 16% over the forecast period 2023 to 2030.

Key Takeaways

Key players operating in the electrochemical cell market are Panasonic Corporation, Samsung SDI Co., Ltd., LG Chem Ltd., Tesla, Inc., BYD Co. Ltd., Johnson Controls International plc, Saft Groupe S.A., GS Yuasa Corporation, Duracell Inc., Enersys, A123 Systems LLC, Sony Corporation, Bloom Energy Corporation, Toshiba Corporation, and Siemens AG. The key players are investing heavily in research and development to develop advanced electrochemical cells with higher energy density and life span.

The growing adoption of electric vehicles around the globe has opened up opportunities for electrochemical cell manufacturers. Countries are providing various incentives and subsidies for electric vehicles to curb emissions from combustion engines. This is expected to drive the demand for lithium-ion batteries in the coming years.

North America, Europe, and Asia Pacific hold a significant share of the global electrochemical cell market. However, other regions are also witnessing an increase in uptake of renewable energy technologies such as energy storage systems and electric vehicles. This is propelling the regional electrochemical cell manufacturers to expand their international footprint.

Market drivers
Stringent emission norms around the world for vehicles is a key factor propelling the electrochemical cell market growth. Both national and local governments are formulating regulations to reduce carbon emissions and improve air quality. This is compelling automakers to increasingly incorporate hybrid and electric powertrains using electrochemical cells. Furthermore, initiatives like renewable portfolio standards by nations are promoting the usage of renewable energy which needs energy storage solutions driven by electrochemical cells.

PEST Analysis
Political: The electrochemical cell market is influenced by various government policies and regulations related to promotion and usage of renewable energy sources. Governments of different nations have introduced supportive policies and initiatives to boost adoption of electric vehicles, which utilize electrochemical cells.

Economic: Continuous drop in prices of lithium-ion batteries along with rising demand from automotive, consumer electronics and stationary storage sectors is fueling growth of the electrochemical cell market. However, fluctuations in prices of raw materials can impact the costs of electrochemical cell production.

Social: Increasing environmental awareness among public regarding use of clean energy is augmenting the demand for electric vehicles and other applications of electrochemical cells. Consumers tend to prefer greener solutions for their automotive and electronic needs.

Technological: Major players are investing heavily in R&D to develop more efficient, durable and affordable electrochemical cell varieties. Technologies like solid-state batteries offer higher energy density and safety. Advances in nanotechnology and materials science are expanding functionality of electrochemical cells.

The regions where the Electrochemical Cell Market is concentrated in terms of value include Asia Pacific, North America, and Europe. Asia Pacific dominates the global market currently, led by countries such as China, Japan, and South Korea. Presence of key battery manufacturers and a large consumer base for various end-use applications drives the Asia Pacific electrochemical cell market.

The fastest growing regional market for electrochemical cells is expected to be Latin America during the forecast period from 2023 to 2030. Government initiatives to promote electric mobility in countries like Brazil and Mexico are contributing to the increased installation of charging infrastructure and adoption of electric vehicles in Latin America. Growing industrial and consumer electronics sectors are also augmenting regional demand for electrochemical cells.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it