Global Battery Electrolytes Market to Reach $4.2 Billion by 2024

Batteries represent an indispensable power source for power-hungry equipment and electronic devices. Driven by changing portable energy needs, battery makers have been developing newer and more powerful battery chemistries for today`s high-tech devices. Battery, as defined is a single cell or a collection of cells encased in continuity, having terminals that produce electricity from chemical energy. It is a stand-alone power source that provides electrical energy without a generator, power socket or a cord. All batteries are made up of cathode, anode, and an electrolyte. The electrodes, comprising anode and cathode are submerged into the electrolytic solution, while externally connecting through a conducting wire. When dissolved into the solvent, ions are released by these electrolytes, eventually producing electric current through the movement of released ions. The two electrodes, namely the negative and the positive, allow the current flow while an electrolyte chemically acts on them as conductor of electrons. Electrolyte is defined as a chemical composition of salts and solvents that dissociates into ions to transport electric charge. Based on the state of electrolyte, battery electrolytes are categorized into solid and liquid electrolyte. Liquid electrolytes are basically found in batteries used in laptops and cellphones.

Amid the COVID-19 crisis, the global market for Battery Electrolyte is projected to reach US$4.2 Billion by 2024, registering a compounded annual growth rate (CAGR) of 2.9% over the analysis period. Europe represents the largest regional market for Battery Electrolyte, accounting for an estimated 18.5% share of the global total. The market is projected to reach US$816.9 Million by the close of the analysis period. Asia-Pacific is forecast to emerge as the fastest growing regional market with a CAGR of 4.8% over the analysis period. Long term growth in the market is supported by factors such as increasing focus on electric vehicles, sales of automobiles, growing share of alternative energy in the energy mix, and strong demand from the replacement market. Available in liquid, solid and gel forms, battery electrolytes represent a medium to facilitate ion transfer for conductivity and store electrical charge. Electrolyte is a major component of the battery owing to its critical role in supporting overall functioning of the battery. The increasing adoption of batteries in industries such as consumer electronics, automotive, manufacturing and aerospace & defense is providing a major impetus to the battery electrolyte market. Consumer electronics and automotive are the primary end-use industries for these batteries, while energy storage is a promising application area. The increasing use of consumer electronic items along with availability of binder-free electrodes for lithium-ion batteries are driving the market growth, while the adoption of electric vehicles to curb carbon emissions is expected to help the market in exhibiting a fast growth in the long term.

Electric vehicles are garnering significant attention from governments and automobile giants to reduce vehicle emissions and protect the environment. In the coming years, leading players are anticipated to launch new and efficient versions of electric vehicles, which are slated to drive their adoption and push the battery electrolyte market. Electric vehicles have been garnering considerable attention over the last few years on account of increasing focus of governments on reducing carbon footprint of the automobile sector. Various countries have set ambitious plans to embrace the concept and offering attractive incentives and subsidies for promoting electric cars. These endeavors have resulted in significant investment in electric vehicles and battery technologies for increasing range and charging time to attract consumers. In the coming years, these vehicles are anticipated to replace a large number of traditional automobiles plying on roads. Ongoing developments related to battery technology intended to improve energy density and reducing unit cost of batteries are anticipated to drive global adoption of the technology for electric vehicles. These developments along with growing demand for electric vehicles are anticipated to play a pivotal role in fueling the global battery electrolyte market.