February 28, 2024

Expanding Demand For Electric Vehicles Expected to Boost the Growth of Electrochemical Cell Market

Market Overview:
Electrochemical cells are devices that convert chemical energy into electrical energy through oxidation-reduction (redox) reactions. They utilize an electrolyte as the ionic conductor to facilitate the transport of charged ions between the electrodes during redox reactions.Common types include lithium-ion batteries used in consumer electronics and electric vehicles, lead-acid batteries used in automobiles, nickel-cadmium batteries used in power tools, and alkaline batteries used in household appliances. Electrochemical cells provide advantages such as high energy density, rechargeability, and portability for many applications. The growing adoption of consumer electronics and electric vehicles has been driving increased demand for electrochemical cells in recent years.

The global Electrochemical Cell Market is estimated to be valued at US$ 23.73 Bn in 2023 and is expected to exhibit a CAGR of 16% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
One of the key trends in the electrochemical cell market is the rising adoption of lithium-ion batteries in electric vehicles. Governments across regions are pushing for higher adoption of electric vehicles to reduce vehicular emissions. Major automakers are aggressively investing in electric vehicles and the supporting charging infrastructure. Lithium-ion batteries provide higher energy density and efficiency compared to other battery technologies, making them ideal for powering electric vehicles. Another trend is the ongoing research and development of newer battery chemistries and materials with improved performance characteristics like higher energy density and longer cycle life. Technologies like lithium-sulfur and solid-state batteries are expected to enable longer driving ranges and faster charging for electric vehicles in the coming years.

Regional analysis
Asia Pacific dominated the global market in 2023, accounting for around 40% of global revenue, due to presence of key players and growing consumer electronics and automotive industries in countries like China and India. North America is expected to grow at a fastest pace during the forecast period.

Key players
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. Key players focus on new product development and partnerships to gain more market share.BYD is rapidly expanding its battery production capacity for electric vehicles and energy storage systems.

Porter’s Analysis
Threat of new entrants: The threat of new entrants is low due to high capital investment required in R&D, manufacturing plants and supply chains. Patent protections also limit competition from new players.
Bargaining power of buyers: The bargaining power of buyers is moderate as buyers have many options from key players. However, switching costs are low.
Bargaining power of suppliers: Key input materials like lithium and graphite are limited resources leading to higher bargaining power of suppliers.
Threat of new substitutes: Threat of substitutes is high as other renewable energy sources like fuel cells pose a threat. Technological innovations can disrupt the market.
Competitive rivalry: The electrochemical cell market is highly competitive due to presence of global players. Players focus on product innovation, cost reduction and strategic partnerships.

Key Takeaways
The global Electrochemical Cell Market is expected to witness high growth, exhibiting CAGR of 16% over the forecast period, due to increasing demand for portable devices and need for storage in renewable energy sector.

*Note:

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