(EnergyIndustry.Net, July 27, 2022 ) According to a new market research report titled “Solid-State Battery Market by Type (Thin Film Batteries, Bulk Batteries, and Other Batteries), Capacity (Less than 20mAh, 21mAh to 500mAh, and Above 500mAh), Application, and Geography — Global Forecast to 2029”, published by Meticulous Research®, the solid-state batteries market is expected to grow at a CAGR of 58% from 2022–2029 to reach $3.81 billion by 2029. By volume, this market is expected to grow at a CAGR of 71% from 2022 to reach 7.3 GWh by 2029.
Solid-state batteries use both solid electrodes and solid electrolytes instead of liquid or polymer electrolytes found in conventional lithium-ion or lithium polymer batteries. Solid-state batteries are more compact, have longer battery life, and recharge faster. Compared to ordinary batteries, solid-state batteries have a higher energy density, lower flammability, and higher electrochemical stability than liquid electrolyte batteries, which supports the increasing investments in solid-state batteries. Solid-state batteries find their usage in radio-frequency identification (RFID), pacemakers, and wearable devices.
The major factors driving the overall solid-state battery market include the high energy density of solid-state batteries, faster-charging rate compared to Li-ion batteries, and a safer alternative to Li-ion batteries. Challenge for commercialization, challenges with physical properties of ceramic electrolyte, challenge with cell architecture, and business transformation challenges are the major challenges for the growth of the global solid-state batteries market.
Impact of COVID-19 on the Global Solid-State Battery Market
The outbreak of the COVID-19 pandemic caused widespread economic downturn as several countries imposed strict lockdowns to contain the infection, resulting in a massive shift to online and remote working, which consequently led to the rising demand for consumer electronics, such as laptops, PCs, smartphones, and other smart devices. As a result, the consumer electronics segment witnessed a surge in demand in 2020. Furthermore, the rise in COVID-19 cases led to a spike in cardiovascular diseases among patients suffering from COVID-19 infections, which boosted the pacemaker market.
In Europe, companies are stockpiling laptops to prepare the infrastructure for employees. The surge in COVID-19 cases has resulted in consumers buying devices to work from home. During the COVID-19 pandemic, the UK’s National Health Service (NHS) introduced a new solution for automatically tracking sample tubes using Radio Frequency Identification Technology (RFID). This solution removes problems with readability and manual errors. Such acceptance of medical and consumer electronics devices boosts the demand for solid-state batteries in Europe.
Furthermore, the increasing disposable income of consumers coupled with growing interest in smart portable devices is expected to stimulate the solid-state batteries market. Long service life, short recharge times, and enhanced energy storage capacity are key features expected to stimulate industry growth. In addition, the huge potential for providing enhanced safety due to the unique presence of solid electrolytes is expected to boost product adoption in smartphones and action cameras.
The overall solid-state batteries market is segmented based on type, capacity, application, and geography. The study also evaluates industry competitors and analyzes the market at the country level.
Based on type, the thin film batteries segment is expected to account for the largest share of the overall solid-state battery market in 2022. The large share of this segment is mainly attributed to their smaller size, higher average output voltage, lighter weight, higher flexibility, higher energy density, lower chances of electrolyte leakage, tighter packing, and longer life cycle than bulky solid-state batteries. Thin film solid-state batteries can be used in numerous devices, including renewable energy storage devices, smart cards, radio frequency identification (RFID) tags, portable electronics, defibrillators, neural stimulators, pacemakers, and wireless sensors.
Based on capacity, the 21mAh to 500mAh segment is expected to account for the largest share of the overall solid-state battery market in 2022. The large share of this segment is mainly attributed to the rising demand for small energy storage sources and wearable electronics. Solid-state batteries are widely preferred for consumer electronics as they are safer and more stable than liquid li-ion batteries in which the electrolyte is volatile and flammable at high temperatures.
Based on application, the medical devices segment is expected to account for the largest share of the global solid-state batteries market in 2022. The large share of this segment is mainly attributed to technological advancements and the penetration of IoT in the medical field. Several battery manufacturers are designing and offering solid-state batteries to power medical devices, such as neural stimulators, pacemakers, and defibrillators. However, the consumer electronics segment is expected to grow at the highest CAGR during the forecast period. This high growth rate of this segment is attributed to the rising demand for small energy storage sources and wearable electronics. Solid-state batteries are widely preferred for consumer electronics as they are safer and more stable than liquid li-ion batteries in which the electrolyte is volatile and flammable at high temperatures.
Based on geography, North America is expected to account for the largest share of the global solid-state batteries market in 2022. The large share of this region is mainly attributed to the growing application and uptake of solid-state batteries in consumer electronics, electric vehicles, and energy harvesting; and the research & development activities focused on the commercialization of solid-state batteries for electric vehicles. For instance, in September 2020, The Volkswagen Group invested around $300 million in the U.S.-based solid-state battery startup QuantumScape. Additionally, a US-based battery company Solid Power announced its plans to begin pilot production of solid-state batteries suitable for use in electric vehicles by early 2022, after receiving an additional $130 million in funding from existing investors, including Ford, BMW, and Volta Energy Technologies. These initiatives help boost the demand for solid-state batteries during the forecast period.
Europe is expected to grow at the highest CAGR during the forecast period. This high market growth rate in Europe is due to the European Union's ASTRABAT project to accelerate the development of solid-state battery cells for electric vehicles and other applications in Europe. Battery OEMs are increasingly investing in the development of solid-state batteries. For instance, in September 2018, Ilika announced the opening of its new large-format battery facility (Goliath Pre-Pilot Line, or GPPL) for the development and initial production of solid-state batteries in Hampshire. Ilika has established this new facility to support its Goliath program, which underpins its portfolio of industrial collaboration programs. The objective of Ilika's Goliath program is to develop large-format solid-state batteries for electric vehicles.
The key players operating in the global solid-state battery market are QuantumScape Corporation (U.S.), Ilika plc (U.K.), Solid Power, Inc. (U.S.), BrightVolt, Inc., (U.S.), Cymbet Corporation (U.S.), Prieto Battery Inc. (U.S.), Sion Power Corporation (U.S.), Hitachi Zosen Corporation (Japan), ProLogium Technology CO., Ltd. (Taiwan), Johnson Energy Storage, Inc. (U.S.), PJP Eye LTD. (Japan), Factorial Inc. (Spain), Volkswagen AG (Germany), Front Edge Technology, Inc. (U.S.), and I-TEN S.A. (Italy) among others.