Structural Battery Market to grow at highest pace owing to rising demand for sustainable energy

Author : Nishant Sherkhane | Published On : 23 Apr 2024

The structural battery market comprises lightweight, integrated energy storage solutions made of materials like carbon fiber that are used as structural components in vehicles and buildings. These batteries provide both energy storage capacity and structural reinforcement benefits. Structural batteries can be incorporated into building components like windows, doors and walls, or vehicle parts like frames and body panels. They offer advantages like weight reduction, higher energy density, flexibility in design, and use of waste space for power storage. The growing emphasis on electric vehicles and renewable energy is driving automakers and construction firms to adopt sustainable energy storage technologies.

The global structural battery market is estimated to be valued at US$ 1.84 Bn in 2024 and is expected to exhibit a CAGR of 20.% over the forecast period 2024 To 2031.

Key Takeaways

Key players operating in the structural battery market are Tesla, Inc. (United States), BMW AG (Germany), Airbus SE (France), Volkswagen AG (Germany), Samsung SDI Co., Ltd. (South Korea), Saft Groupe S.A. (France), Northvolt AB (Sweden), LG Chem Ltd. (South Korea), Farasis Energy, Inc. (China), Solid Power, Inc. (United States), Cadenza Innovation, Inc. (United States), Blue Solutions SA (France), Oxis Energy Ltd. (United Kingdom), Excellatron Solid State, LLC (United States), Amprius, Inc. (United States). Major automotive manufacturers are investing heavily in developing and adopting structural battery technologies to strengthen their electric vehicle portfolio. The demand is also surging from the renewable energy sector as these batteries help optimize the use of space in solar panels and wind turbine blades. Advancements in materials science have enhanced the energy density and life cycle of structural batteries, further boosting their uptake.

Growing awareness about environmental impact of fossil fuels and stringent emission norms are propelling the sales of electric vehicles. As Structural Battery Market Size allow longer driving range and facilitate lightweight vehicle construction, their demand from automakers is growing substantially. Government subsidies and incentives for electric mobility are also encouraging consumers to switch from gasoline vehicles to EVs. Surging investments in renewable energy generation are driving construction of solar farms and wind parks. Since structural batteries enable energy storage within these structures, their usage is rising in the green energy domain. Technological advancements are focused on developing low-cost, high-performance materials that boost energy capacity and lifespan of such integrated energy systems.

The key trends in the structural battery market include growing popularity of carbon fiber and composite materials for structural battery housing and integration of battery management systems to optimize power utilization. Carbon fiber offers improved conductivity, cyclic performance and safety. Equipping structural batteries with control units ensures efficient thermal regulation and charging operations.

The key opportunities in the structural battery market involve collaborations between automakers, battery technology firms and material vendors to design purpose-built solutions. Partnerships with construction giants can fuel deployment of these batteries in buildings and infrastructure. Growing investments in establishing charging infrastructure also augur well for deploying stationary structural battery networks in cities.

Impact of COVID-19 on Structural Battery Market Growth

The COVID-19 pandemic had a significant impact on the growth of the structural battery market in the initial months. Government-imposed lockdowns and social distancing measures led to disruptions in the supply chain and halt in manufacturing activities. This adversely impacted the production volumes of structural batteries during 2020. The demand from the end-use industries such as automotive, infrastructure, and consumer electronics also dropped sharply amid the pandemic situation. However, with gradual lifting of lockdowns and resumption of economic activities from mid-2020, the market started recovering. The structural battery market is now expected to grow at a higher pace during the forecast period with technology advancements and increasing investments by key players in R&D activities.

The post-COVID demand is projected to rise steadily from 2023 onwards driven by replacement of legacy energy storage systems and integration of structural batteries in new product designs. Continuous product development and commercialization efforts to offer sustainable and lightweight energy storage solutions will support future growth. Although high initial costs remain a challenge, favorable government policies and regulations regarding clean energy adoption are anticipated to boost market expansion across regions. Manufacturers need to focus on ramping up production capacities, ensuring supply chain security, and expanding into developing markets to gain from emerging opportunities in the years to come.

Geographical Regions with Fastest Structural Battery Market Growth

Central and Eastern Europe is projected to emerge as the fastest growing regional market for structural batteries during the forecast period. This growth can be credited to ongoing renewable integration projects and launch of several national programs pushing adoption of green construction materials and smart buildings integrated with energy storage. Additionally, accelerated EV production ramp-up in countries such as Germany, Poland, and the Czech Republic is creating high consumer demand.

Structural battery manufacturers are hence strategically expanding their local production base and distribution network across Central and Eastern European nations to capitalize on existing opportunities. Developing industrial and utility energy storage infrastructure, technology transfer partnerships, and investments toward establishing dedicated R&D facilities will further support the structural battery market expansion at a rapid pace over the coming years.

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