Solid-state Battery Market

Global Solid-state Battery Market Forecast

• Global market for solid-state batteries slated to reach the revenue of approximately US$1.7 Bn by the end of 2030
• Market valuation all set to experience staggering expansion at a CAGR of 31.3% during 2023 - 2030

Market Analysis in Brief

A solid-state battery has a energy density higher when compared to traditional lithium-ion batteries. In solid-state batteries, there is no chance of explosion or fire, thus there is no need for safety components, which frees up additional room. The battery's capacity can then be increased by adding more active elements because of the additional space. Solid-state batteries provide more efficient and effective battery management since fewer batteries are required with solid-state batteries, energy density per unit space can be increased. Because of this, a solid-state battery is ideal for creating an EV battery system that includes a module and pack and requires a high capacity. Solid-state batteries have the potential to completely replace lithium-ion batteries from numerous end-user industries such as consumer electronics, electric vehicles, medical, and energy storage. However, high manufacturing costs continue be the key hurdle and thus, would require time for commercialisation, globally.

Key Report Findings

• Solid-state batteries have the potential to completely replace lithium-ion batteries from numerous end-user industries such as consumer electronics, electric vehicles, medical, and energy storage.
• The consumer electronics industry more than 35% share which is likely to fall gradually over the next seven years.
• In 2022, the battery capacity of above 20 mAh remains most preferred and accounts for more than 60% share of market.
• Oxide technology led the market in 2022, with around 77% revenue share.
• Asia Pacific dominates the global sold-state battery market, constituting more than 55% share in 2022. Japan, and China remain the leaders especially in heavy-duty solid-state battery technology.

Are Investments by Major Automakers in Solid-state Battery a Potential Threat to Traditional Lithium-ion Battery?

The widespread adoption of batteries in mobile, permanent storage, and other applications is being fuelled by the global transition towards electric transportation. Annual sales of electric vehicles are currently above 10%, and it is anticipated that they will surpass the "tipping point" in the next years. This signifies the entry into a mass market with full market diffusion between 2030 and 2050, implying the emergence of a worldwide battery ecosystem with an increasing demand for lithium-ion batteries of 0.5 to 1.5 TWh by 2025, 2-4 TWh around 2030, and most likely more than 10 TWh in the decades after 2030.

The development of these growing industries has been made possible by lithium-ion batteries based on liquid electrolytes (LIB), which are the most sophisticated, competitive, and well-established battery technology. There are now no technical substitutes that are appropriate for electric vehicles. Any future alternative technology would need to perform better than LIB in at least one of the following areas: energy density, longevity, prices, safety, sustainability, or resource availability.

In the upcoming years, solid-state batteries could compete with LIB in automotive applications, but they could also break into the market through other (niche, premium, unique) applications in the coming years. Benchmarked technology LIB, which is presently undergoing additional optimisation and enhancing its performance, have a true competitor in the form of solid-state batteries.

Solid-state batteries have the potential to completely replace lithium-ion batteries from numerous end-user industries such as consumer electronics, electric vehicles, medical, and energy storage. However, high manufacturing cost remains the key hurdle and thus, would require time once fully commercialised, globally.

Growth Drivers

Investments Pour in with Rising R&D of Cost-effective and Efficient Battery Technology

Demand and investments in solid-state batteries is fuelled by its higher energy density, quick charging, and lower overall weight compared to traditional lithium-ion batteries. Currently, higher cost of production remains the key hurdle. Different solid electrolyte classes have inspired the development of numerous solid-state battery ideas.

According to the roadmap, each of these solid-state battery technologies must overcome a variety of technological obstacles, including those related to production difficulties, component compatibility issues, and scaled-up material production. Which of these technologies will be able to produce the promised KPI is currently being looked upon.

Due to this uncertainty, there must be concurrent development and investment in several strategies, which needs significant sums of money from financing organisations, OEMs, and other investors. Since, Solid-state battery and liquid electrolyte LIB are competitors, their KPI can be used as a benchmark. Liquid electrolyte LIB is continually being developed, the benchmark is thus also getting better.

Additionally, as the initial costs of solid-state batteries may be higher than those of state-of-the-art LIB, the improvements in other KPI must balance off the higher costs. Therefore, it may be more likely that first applications may materialise at the higher end of the market.

Overview of Key Segments

Usage in Electric Vehicle (EVs) to Rise by 2030

In terms of application, the global solid-state battery market has been classified as industrial, consumer electronics, electric vehicle (EVs), energy storage, and others. In 2022, consumer electronics more than 35% share which is likely to fall gradually over the next seven years.

The ‘others’ segment, especially electric vehicles would likely to pick-up and gain additional market share in the upcoming years as numerous companies are targeting usage of solid-sate battery in electric vehicles.

Furthermore, the automotive market represents the driving force behind solid-state battery developments and is expected to be the main application area for solid-state battery in the medium and long term. Toyota Motor aspires to release an electric vehicle powered by an all-solid-state battery as early as 2027 is likely to drive sales of solid-state batteries in the years to come.

Prospects of High Capacity Batteries Elevate, EVs Contribute

In terms of capacity, the global Solid-state battery market has been segmented into below 20 mAh, and above 20 mAh. In 2022, above 20 mAh constituted more than 60% share. Below 20 mAh capacity batteries are suitable for consumer electronics such as mobile devices, earbuds, sensors, pacemakers, wearables, RFID’s, etc. but not for industrial, energy storage, and automotive, where higher capacity or heavy-duty batteries are utilized. Above 20 mAh capacity batteries are used more in industrial and automotive sectors.

Oxide Solid-state Battery Technology Dominant

In terms of technology, the global Solid-state battery market has been fragmented into polymer, offshore oxides, and sulphides. In 2022, the global Solid-state market was dominated by oxide technology which constituted 77% share. Due to their potential toughness, oxide Solid-state batteries are expected to find their initial application in the automobile industry, maybe concurrently with industrial heavy-duty equipment and equipment for hostile environments.

Three SE material groups-oxide electrolytes, sulphide electrolytes, and polymer electrolytes-are to be the most promising at this moment. Oxide electrolytes typically have good mechanical and chemical stability but are brittle, process at high temperatures (sintering), and have a low ionic conductivity.

Sulphide electrolytes are simpler to manufacture (no sintering is required) and mechanically softer and more pliable than oxide SE. However, the materials are currently only accessible on a research scale, and there is only a limited amount of chemical compatibility with Li metal and high-potential CAM.

In terms of material accessibility and manufacturing techniques, polymer electrolytes are the most established SE. The road to a wider market application is paved with obstacles including low limiting current densities due to the ionic conduction mechanism, low ionic conductivities at room temperature, and poor chemical compatibility with high-potential CAM. Halides, for example, are another sort of SE that is being created, but they are still in the early stages of study.

Growth Opportunities Across Regions

Asia Pacific Leads, Europe to Register Strong Growth in Both Production and Consumption

Geographically, in Asia Pacific (Japan, South Korea, and China), and in North America, the US dominate solid-state battery R&D, particularly in terms of cell ideas, production processes & equipment, and pilot production. The EU has some skills, particularly in the R&D of materials, but, with an exception of polymer solid-state battery, it now lags far behind in industrial level and pilot production.

Currently, Asia Pacific dominates the market and constituted more than 55% share in 2022. Japan and China remain the leaders in heavy-duty solid-state battery technology. Over the past ten years, Japan has been the country with the most SSB patents, followed by the USA, South Korea, the EU, and China. Publishing scholarly articles in the field of SSB is particularly active in China, the USA, the EU, Japan, and South Korea.

The organisation with the most publications during the past five years (2016–2020) is the Chinese Academy of Sciences (806), followed by the US Department of Energy (572), and the German Helmholtz Association (380).

Asian businesses have a clear advantage, as seen by the top 15 firms in SSB-related patent applications. Only two companies in the top-15 are not based in one of these two nations (Bosch 38 - Germany, and Nanotek Instr. 28 - USA), with companies from Japan (Panasonic 113, Fuji Film 67, Toyota 39, TDK 35, Showa Denko 34, Murata 31, Idemitsu 29, Mitsui 29, NGK Insulators 28) and South Korea (LG 138, Samsung 66) taking up most of the positions.

Solid-state battery Market: Competitive Landscape

Major players in the global solid-state battery market include Toyota Motor Corporation, QuantumScape, Factorial Energy, BASQUEVOLT, ProLogium, Solid Power, LG Chem, Samsung SDI, Albemarle, Hyundai, and BrightVolt.

Recent Notable Development

With an amazing 745-mile range in 2023, Toyota's breakthrough in solid-state battery technology, which has the potential to redefine electric mobility and revolutionise the auto industry. Toyota anticipates starting to produce solid-state batteries for use in electric vehicles as early as 2027.

The Global Solid-state Battery Market is Segmented into-

By Application

• Industrial
• Consumers Electronics
• EVs
• Energy Storage
• Others

By Technology

• Polymer
• Oxides
• Sulphides

By Capacity

• Below 20 mAh
• Above 20 mAh

By Geographic Coverage

• North America 
  • U.S.
  • Canada 
• Europe 
  • Germany
  • U.K.
  • France
  • Italy
  • Russia
  • Rest of Europe 
• Asia Pacific 
  • China
  • Japan
  • South Korea
  • India
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America 
  • Brazil 
  • Mexico 
  • Rest of Latin America 
• Middle East & Africa  
  • GCC 
  • South Africa
  • Rest of the Middle East & Africa