The global air electrode battery market size to be valued at USD 2.02 billion by 2027 and is expected to grow at a compound annual growth rate (CAGR) of 9.0% during the forecast period. Growing demand for air electrode batteries among the end-use applications, along with increasing research and development activities focused on advancing the battery technology, is anticipated to drive the industry over the forecast period. The growing deployment of electric vehicles, the rising utility of battery energy storage systems, and proliferating adoption of electronic gadgets are among the major factors bolstering the demand for air electrode battery. These batteries offer higher electrochemical performance, higher storage capacity, and lower environmental impact when compared to ion batteries, thereby enhancing their commercial market value.
China dominates the air electrode battery market owing to the presence of major manufacturing companies across the country, along with bulk production of batteries. The growing deployment of electric vehicles is positively influencing the air electrode battery industry landscape across China. In addition, the Chinese government provides significant funding to air battery-related projects, thereby enhancing business growth across the country.
Air electrode batteries such as zinc-air or lithium-air batteries offer longer shelf life, stable discharge voltage, high energy density, and environmental friendliness. In the metal-air battery, the catalyst comes in direct contact with the air cathode, thereby enhancing the electron movement between the external circuits and the cathode, which leads to a stable charge-discharge cycle.
The shorter life cycle and lower energy efficiency of air batteries, when compared to ion batteries, are expected to hinder the commercial viability of the product. Moreover, COVID-19 pandemic has severely impacted the market supply chain. Raw material suppliers, electrode material producers, and battery pack manufacturers are anticipated to take a significant amount of time to recover to the pre-COVID level.
The wide application of electrode batteries across various electronic devices and the increasing deployment of EVs (electric vehicles) across the globe are driving the growth of the market. The use of air–electrode batteries are being preferred over ion batteries in EVs, as air batteries do not require charging thereby not requiring electricity which has resulted in an advantage for electric vehicles and its user. In addition, technology like aluminum-air batteries is safer than ion batteries as it uses water-based electrolytes that are free of toxins resulting in EV thermal friendly.
However, the lower energy efficiency of air electrode batteries is hampering the market growth. Additionally, the property of metal-based air electrode batteries to corrade has arisen as a major challenge for the growth of the market. Due to the interaction of the metal-based batteries with oxygen or water, it risks corrosion thereby compromising the quality and performance of the battery.
Moreover, the advantageous characteristics of electrode batteries are certain to provide growth opportunities in the market. These batteries are lighter, have stable discharge voltage, and store higher electrochemical capacity than Li-ion batteries which maximizes the specific energy density and leads to a significant increase in the range of performance capability. In addition, they are relatively safe to use, have a lower environmental impact, and are economical. Owing to these factors they are extensively being used in refrigerators, tablets, smartwatches, television sets, washing machines, and several medical electronic devices which are boosting the market.
The secondary battery segment held the largest revenue share of 47.0% in 2019 owing to its low production cost, high energy density, and environmental friendliness. The rechargeable batteries find usage in electric vehicles (EV), portable electronic devices, and utility-scale energy storage systems. Growing demand for electronics, along with rising adoption of EV technology, is estimated to bolster the segment growth over the forecast period.
The primary battery segment accounted for a prominent market share in 2019 owing to its higher energy density when compared to other battery types. Atmospheric air is present as a battery reactant, allowing the non-rechargeable battery to offer more energy in a given volume or weight. The non-rechargeable batteries find application in various sizes from hearing aids to cameras, thereby enhancing the product demand.
The fuel cell is anticipated to be the fastest-growing segment over the forecast period owing to its widespread usage in transportation, emergency, stationary, and portable backup power, and material handling applications. In addition, fuel cells have lower emissions and higher efficiencies when compared to conventional combustion technologies, thereby enhancing the adoption rate of air electrode fuel cell across several industries.
The transportation segment held the largest share of 44.8% in 2019 and is anticipated to expand at the fastest CAGR over the forecast period owing to the growing adoption of fuel cell electric vehicles. Rising research and development activities for air electrode fuel cell, along with government initiatives to boost the adoption of electric vehicles across the passenger and commercial vehicle segment, are bound to propel the segment growth over the forecast period.
The medical devices segment accounted for a significant market share in 2019 owing to the growing usage of disposable medical devices and equipment. Rising investments in superior quality medical equipment, including dental products, optical technologies, diagnostic imaging, and medical tracking applications, are expected to drive the demand for air electrode battery.
The others segment includes energy storage, consumer electronics, and other applications, such as mobile robots and aerial drones. Widespread implementation of air electrode battery in portable and residential electronics, refrigerators, washing machines, television, tablets, and smartwatches is expected to bolster the industry growth over the forecast period.
The Asia Pacific held the largest revenue share of 31.1% in 2019 and is projected to expand at the fastest growth rate over the forecast period. The proliferating electronic manufacturing market due to the ever-increasing consumer base, along with growing applications in major economies, such as China, Japan, and India, is anticipated to bolster the regional market growth. The rising deployment of electric vehicles across the region is expected to further add to the industry growth.
China offers lucrative growth opportunities for the market. It is the largest battery manufacturer globally owing to several factors, including the presence of key industry players across the country, increasing consumer demand, cheap labor, and easy availability of raw material. Rising energy storage demand owing to the significant usage of electricity grids, along with the growing need for continuous power supply, is estimated to further boost the regional market growth.
North America occupied a significant market share in 2019, with the U.S. being the largest contributor to the regional market growth. Favorable government policies encouraging the adoption of electric vehicles owing to lower emissions as compared to gasoline-powered vehicles are anticipated to fuel the industry growth across the region. Growing demand for air electrode batteries in smart devices and computers is another key factor propelling the industry growth.
Market players adopt several strategies, such as mergers & acquisitions, collaborations, joint ventures, and new product offerings. The strategies enable the companies to strengthen their foothold in the market. Industry participants are significantly investing in research and development initiatives in order to improve the technical aspects of air electrode battery offering better performance, longer life, and lower battery cost as compared to conventional batteries.
In July 2021, Form Energy launched a rechargeable iron-air battery, its first commercial product. The battery is stated to be capable of delivering electricity for 100 hours.
In March 2021, the Indian Oil Corporation entered into a joint venture with Phinergy, an Israeli-based company to form IOC Phinergy Private Limited. The collaboration will support the “Make in India” initiative while manufacturing Aluminum-Air systems in India.
In May 2020, Zinc8 a Canadian company introduced a zinc-air hybrid flow battery.
Some of the prominent players in the air electrode battery market include:
Mullen Technologies, Inc.
Poly Plus Battery Company
Hitachi Maxell Ltd.
Sanyo Electric Co., Ltd.
LG Chem Ltd.
Market size value in 2020
USD 1.08 billion
Revenue forecast in 2027
USD 2.02 billion
CAGR of 9.0% from 2020 to 2027
Base year for estimation
2016 - 2018
2020 - 2027
Revenue in USD million and CAGR from 2020 to 2027
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Battery type, application, region
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa
U.S.; Canada; Mexico; U.K.; Germany; France; China; Japan; India
Key companies profiled
Phinergy; Hitachi Maxell Ltd.; Volkswagen Ag; Mullen Technologies, Inc.; Sanyo Electric Co., Ltd.; BASF Global; Tesla Inc.; Panasonic Corporation; LG Chem Ltd.; Poly Plus Battery Company
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This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global air electrode battery market report on the basis of battery type, application, and region:
Battery Type Outlook (Revenue, USD Million, 2016 - 2027)
Application Outlook (Revenue, USD Million, 2016 - 2027)
Regional Outlook (Revenue, USD Million, 2016 - 2027)
Central & South America
Middle East & Africa
b. The global air electrode battery market size was valued at USD 1,012.5 million in 2019 and is expected to reach USD 1,089.0 million in 2020.
b. The global air electrode battery market is expected to witness a compound annual growth rate of 9.0% from 2020 to 2027 to reach USD 2,027.8 million by 2027.
b. The Asia Pacific region accounted for the largest market shares in 2019 for the global air electrode battery market. The proliferating electronic manufacturing market due to the ever-increasing consumer base along with growing applications in major economies such as China, Japan, and India are anticipated to bolster regional growth.
b. Some key players operating in the air electrode battery market include Phinergy, Hitachi Maxell Ltd., Volkswagen Ag, Mullen Technologies, Inc., Sanyo Electric Co., Ltd., BASF Global, Tesla Inc., Panasonic Corporation, LG Chem Ltd, Poly Plus Battery Company.
b. Growing demand for air electrode batteries among end-use applications along with increasing research and development focused on advancing the battery technology is anticipated to drive the air electrode battery market demand over the forecast period.
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