July 23, 2024
Sodium Ion Battery Market

Sodium-Ion Battery Market (High Growth Due To Increasing Use In Transportation Sector)

Market Overview:
Sodium-ion batteries utilize sodium instead of lithium as the charge carrier within the battery. Sodium has a lower redox potential than lithium, resulting in a lower cell voltage but greater storage capacity. Sodium-ion batteries are a suitable alternative to lithium-ion batteries for large-scale stationary energy storage due to abundant sodium resources and low material costs.

Market key trends:
One of the key trends driving the growth of sodium-ion battery market is the increasing adoption in the transportation sector. Sodium-ion batteries have the potential to be used in electric vehicles (EVs) due to their competitive cost profile as compared to lithium-ion batteries. The total cost of sodium-ion batteries is estimated to be 40-60% lower than lithium-ion. Several EV manufacturers are investing in developing sodium-ion batteries for EVs which is expected to boost the adoption rate over the forecast period. The growing EV industry is thus estimated to significantly contribute to the growth of the global sodium-ion battery market during the forecast period.

Porter’s Analysis

Threat of new entrants: Low capital requirement and availability of second-use materials lowered the barriers of entry. However, established players have significant technological know-how and production capacities.

Bargaining power of buyers: Large automobile manufacturers have significant influence over battery suppliers due to their massive purchase volumes and demand.

Bargaining power of suppliers: A few companies dominate the cathode and electrolyte materials supply chain, giving them pricing power over battery manufacturers.

Threat of new substitutes: Hydrogen fuel cells and supercapacitors pose a threat, but sodium-ion batteries have advantages over lithium-ion in terms of cost and abundance of sodium.

Competitive rivalry: Intense competition exists among major players to gain market share and reduce costs through technological innovation.

SWOT Analysis

Strengths: Abundant availability of sodium makes these batteries cheaper to produce. They also allow for higher energy densities.

Weaknesses: Sodium-ion technology is still at a nascent stage with commercialization challenges around cycling stability and safety issues. High costs remain a key barrier.

Opportunities: Growing demand for large-scale energy storage from utilities and increasing sales of EVs offer a huge market potential.

Threats: Declining lithium-ion battery prices and technological advances reduce the cost competitiveness of sodium-ion batteries.

Key Takeaways

The Sodium-Ion Battery Market Demand is expected to witness high growth, exhibiting CAGR of 15.3% over the forecast period, due to increasing demand for cost-effective stationary energy storage from the utilities sector. Asia Pacific dominates the market currently due to presence of major battery manufacturers in China, South Korea and Japan.

Regional analysis: North America is the fastest growing regional market owing to supportive government policies promoting the adoption of renewable energy. China dominates currently with major producers of sodium-ion battery materials and components located in the country.

Key players: Key players operating in the sodium-ion battery market are Natron Energy Inc., Faradion Limited, Altris AB, AMTE Power PLC, Contemporary Amperex Technology Co. Limited, NGK Insulators Ltd., and TIAMAT SAS. Natron Energy and Faradion are at the forefront of the technology commercialization.

Note:

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