The worldwide air electrode battery market size reached USD 1.1 billion in 2020 and is projected to be valued USD 2.01 billion by the end of the forecast period 2021-2027, exhibiting a CAGR of over 9% throughout.
Notably, stable discharge voltage, extended service life, and high energy density are key characteristics stimulating the demand for air electrode batteries in applications such as portable electronic devices, electric vehicles, and utility-scale energy storage systems.
Experts claim that upward trend in the demand for electric vehicles is spurring the market growth. In fact, International Energy Association (IEA) claims that sales of electric cars reach 2.1 million worldwide in 2019, and subsequently boosted the total stock to 7.2 million EVs.
Further, as per Statista, global sales revenue of wearable devices increased to USD 44.42 billion in 2020 from USD 33.78 billion in 2019. This proliferating sales of portable consumer electronics is strengthening global air electrode battery market demand.
Moreover, rising application of battery energy storage systems due to increasing renewable energy production is enhancing the industry outlook. For instance, Center for Climate and Energy Solutions cites that solar generation is estimated to climb from 11% of total U.S. renewable generation in 2017 to 48% by 2050, indicating a strong demand for air electrode batteries in the upcoming years.
Apart from the aforementioned factors, government initiatives aimed at accelerating the adoption of renewable resources will continue to support the industry expansion. However, increasing regulations pertaining battery production may hinder overall remuneration scope in the forthcoming years.
Regional analysis summary:
North America, Asia Pacific, Latin America, and Europe are the key regional contributors to global air electrode battery industry growth. Among these, Asia Pacific market is anticipated to showcase a robust growth rate throughout 2018-2027. This can be accredited to government initiatives encouraging EV adoption and rapidly progressing electronics manufacturing sector due to presence of large consumer base in APAC region.
Prominent players influencing the competitive dynamics are LG Chem Ltd., Panasonic Corp., BASF SE, Sanyo Electric Co. Ltd., Volkswagen AG, Hitachi Maxell Ltd., Tesla Inc., and Poly Plus Battery Co. among others.
Emphasis on R&D to improve air electrode batteries in terms of power, performance, and cost will help businesses improve their standing in the marketplace. Besides, strategies such as mergers, partnerships, and product capacity expansion will also play a major role in generating strong returns.
