April 23, 2024

Electrochemical Cell Market is Anticipated to Witness High Growth Owing to Increasing Application of Renewable Energy Storage

The electrochemical cell market involves the production and use of devices that convert stored chemical energy into electrical energy. Electrochemical cells find application in portable devices, electric vehicles, backup power solutions and large-scale energy storage projects due to their ability to efficiently store electrical energy and deliver it on demand. In addition, advantages such as longer life, lower maintenance and portability make electrochemical cells a preferred energy storage option compared to other technologies.

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. These players are focusing on investments in research and development activities to develop advanced electrochemical cell technologies and expand their manufacturing facilities globally.

Key opportunities in the electrochemical cell market include growing requirement for grid-scale energy storage solutions, increasing deployment of electric vehicles, and advancements in portable battery technologies. Several governments across regions have introduced favorable policies and initiatives to promote the usage of renewable energy, which is spurring investments in large-scale energy storage projects utilizing electrochemical cells.

The global expansion of key players in the electrochemical cell market is driven by the rising energy demands from developing economies of Asia Pacific and Middle East & Africa. Major players are focusing on partnerships, acquisitions and joint ventures with regional players to establish manufacturing facilities in high growth markets and cater to the local requirements.

Market drivers: Growing electric vehicle sales and increasing renewable energy integration are the major market drivers. According to IEA, global electric car stock exceeded 10 million in 2020 and is expected to grow exponentially in the coming years.

Market restraints: High initial costs and safety concerns related to manufacturing electrochemical cells restrain market growth. The raw materials used in lithium-ion batteries are scarce and expensive. Issues such as overheating and short circuiting can also increase risks during production and transportation.

Segment Analysis
The lithium-ion segment dominates the electrochemical cell market with a share of over 60% in 2024. This high adoption can be attributed to its high energy density, lightweight, and compact nature which make lithium-ion batteries ideal for powering consumer electronics like smartphones and laptops. The expanding market for electric vehicles worldwide is also fueling the demand for lithium-ion batteries over others.

Global Analysis
Regionally, Asia Pacific holds the largest share of the global Electrochemical Cell Market and is projected to maintain its dominance during the forecast period. The high presence of key battery manufacturers and low production costs in countries like China and Japan have been driving the APAC market. Additionally, the rapid adoption of EVs and consumer electronics in emerging economies of India, South Korea, and Southeast Asia is supporting the regional market growth. North America is expected to exhibit the highest CAGR during the forecast period attributable to government initiatives and policies promoting clean energy technologies like battery storage systems in the region.

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