Lithium-Air batteries are undergoing rigorous research & development since they hold immense potential for energy storage applications to address issues associated with energy & the environment. Due to their high energy & power density, they have drawn interest as energy storage devices. In fact, with the emergence of Electric & Hybrid Vehicles worldwide, Lithium-air batteries are projected to revolutionize the automobile sector in the coming years.
The Global Lithium-Air Battery Market is projected to grow at a CAGR of around 9.5% during the forecast period, i.e., 2021-26. Lithium-Air Batteries are believed to have five times greater storage capacities than Lithium-ion batteries and are undergoing rapid research & development globally. Once mainstreamed, these batteries are all set to observe rapid adoption across different verticals in smartphones, laptops, computers, medical devices, smart home appliances, electric vehicles, grid storage, etc.
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Regions Covered||North America: USA, Canada|
|Europe: Germany, UK, France|
|Asia-Pacific: China, India, Japan, South Korea, Australia|
|South America: Brazil|
|Middle East & Africa:|
|Key Companies Profiled||Tesla Inc., Mullen Technologies, Poly Plus Battery Company (PPBC), Lithium Air Industries, Inc. etc.|
|Unit Denominations||USD Million/Billion|
In addition, these batteries would be lighter & cheaper than Lithium-ion batteries and provide high performance & safety. Alongside that, governments of different countries worldwide are readily encouraging the adoption of renewable resources for power generation and laying out several incentives, norms, policies, regulations, etc., for the same.
These aspects are anticipated to infuse the demand for Lithium-Air batteries for energy storage. Furthermore, the adoption of Lithium-Air batteries is also projected to expand across different industrial applications like drones, robots, etc., and generate lucrative growth opportunities for the leading players during 2021-26.
Impact of Covid-19 on the Global Lithium-Air Battery Market
The advent of Covid-19 in 2020 had a decelerating effect on most industries globally, where the Lithium-Air Battery Market was no exception. Owing to the imposition of stringent movement restrictions & frequent lockdowns by the governments of different countries to curb the spread of this dreadful disease, research & development activities associated with lithium-air batteries were interrupted & put on a temporary hold. As a result, no new advances could take place.
However, the gradual improvement in the pandemic situation, with a reducing number of Covid-19 cases, enabled governments to uplift the restrictions and recommence research operations. Currently, Europe is observing a rapid adoption of Electric Vehicles (EVs), which would create remunerative growth opportunities for the lithium-air battery market in the coming years.
Based on the Application:
Amongst them all, the Automotive sector is anticipated to lead the market with the largest share during the forecast period. It owes principally to the growing global concerns over the rapidly rising carbon emissions & stringent regulations by governments worldwide to curb these levels, i.e., encouraging the adoption of Battery-powered Electric Vehicles (BEVs).
With rapid research & developments, the demand for Lithium-Air Batteries is likely to surge notably to meet the mounting EV production in the coming years. In addition, several countries are seeking different ways to reduce dependencies on imported oil & immensely promote the mass adoption of EVs with a significant price reduction. It can be attained easily through Lithium-Air batteries since they are believed to be relatively lightweight than their competitors like Lithium-ion batteries.
Besides, innovations in Lithium-Air batteries have made them offer better driving ranges for EVs on a single charge. Hence, owing to the high performance of EVs to be made available at lower costs, the demand for Lithium-Air batteries shall significantly surge across the automotive sector in the coming years.
According to several researchers worldwide, Lithium-Air batteries are one of the most suitable alternatives to next-generation EV batteries. Hence, prominent brands like Toyota & IBM are showing keen interest in developing such batteries and investing substantially in their research & technological developments.
Based on the Type of Battery:
Here, Solid-State Lithium-Air Batteries shall dominate the market with the largest share in the future, owing to their greater theoretical air density & less space they take. These batteries are gaining immense popularity worldwide as they eliminate the chances of ignition, which makes them non-flammable, and it shall attract several end-user industries. Moreover, flat discharge voltage profile, high operating voltage, environmental friendliness, & relatively long storage life are other prominent features of Solid-State Lithium-Air Batteries projected to augment their demand and drive the global market in the years to come.
Geographically, the Global Lithium-Air Battery Market expands across:
Of all regions globally, North America is anticipated to acquire a significant market share during 2021-26, primarily due to the increasing participation of leading players in several research & development projects toward developing Lithium-Air batteries for various electronic appliances like wearable devices, smartphones, home appliances, laptops, & computers, etc.
In addition, the rising prevalence of Battery Electric Vehicles (BEVs) across the US, owing to numerous benefits like lower carbon emissions to address several environmental issues, shall also display an opportunistic prospect for the Lithium-Air Battery Market across North America.
Besides, EVs are relatively more expensive than Internal Combustion Engines (ICE) vehicles, mainly due to the additional battery costs. Yet, Lithium-Air batteries would be relatively cost-efficient, lightweight, & sufficient enough to power an EV. Hence, these batteries are projected to experience significant demand in the US, which would drive the regional market in the years to come.
On the other hand, Asia-Pacific is leading the Global Lithium-Air Battery Market. It owes primarily to the well-established automotive & manufacturing industries across countries like China, India, & several South-East Asian countries, coupled with increasing research & development initiatives to develop Lithium-Air batteries for their application in EVs, consumer goods industries, etc. Moreover, the surging setups of wind power capacities are also soaring the need for Lithium-Air energy storage systems.
Furthermore, the Lithium-Air Battery Market across South America is projected to observe increasing investments in EV manufacturing due to stringent government regulations to curb carbon emissions. As a result, it shall generate profitable opportunities for the companies involved in developing lithium-air batteries over the forecast years.
Similarly, across the Middle East & Africa, the active focus of governments on infrastructure developments for renewable energy generation to diversify the economy away from oil is the prime aspect contributing to the overall growth of the Lithium-Air Battery Market.
Key Driver: Burgeoning Need for Power Backup Systems with High Energy Storage Capacities
With the rapidly increasing energy requirements in different applications, the need for power backup systems to balance the energy consumption levels during working hours is rising substantially. It, in turn, would fuel the production of Lithium-Air batteries for better off-grid renewable energy storage. Moreover, across the residential sector, these batteries would come in handy for setting up rooftop solar panels & sometimes just as a backup. On the other hand, in the Military & defense sector, these batteries can act as an efficient power source to run technically advanced systems used at remote locations. These aspects are projected to significantly boost the Global Lithium-Air Battery Market during 2021-26.
Possible Restraint: High Production Costs of Lithium-Air Batteries & Strong Foothold of Alternatives like Lithium-Ion Batteries
The technology required for the production of Lithium-Air Batteries is costly & undergoing numerous developments, which would increase their overall prices and is a crucial aspect that might act as a prominent growth restraint for the Global Lithium-Air Battery Market during 2021-26. Moreover, with better stability, commercialization, and rapid growth, Lithium-ion batteries have acquired a strong foothold across different verticals, which is another crucial threat to the market expansion of Lithium-Air batteries in the coming years.
Growth Opportunity: Mounting Inclination toward Renewable Power Generation Resources
With the globally rising focus on adopting renewable energy sources like wind & solar for power generation, the demand for high energy storage systems is likely to surge significantly, which, in turn, would boost the need for lithium-air batteries in the years to come.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Global Lithium-Air Battery Market is projected to grow at a CAGR of around 9.5% during 2021-26.
A. The Automotive sector is anticipated to emerge as an area of remunerative growth opportunities `for the leading players in the Global Lithium-Air Battery Market through 2026.
A. Lithium-Air batteries are expecting an increasing demand as power backups across industrial & residential sectors in the future. Besides, these batteries would also benefit as a great power source to run technically advanced systems used in military operations at remote locations. These aspects are lucrative growth opportunities projected to drive the Global Lithium-Air Battery Market during 2021-26.
A. In the coming years, the Global Lithium-Air Battery Market is anticipated to observe substantial growth owing to increasing investments by leading players in the research & development of Lithium-Air batteries for enhanced performance, coupled with the growing prevalence of Electric Vehicles (EVs) in different regions worldwide.