Air Electrode Battery Market Analysis Report By Battery Type, By Application, By Region And Segment Forecasts From 2020 To 2027

Industry Insights

The global air electrode battery market size was accounted for USD 1.01 billion in 2019. The market is anticipated to grow at 9.0% CAGR over the forecast duration, 2020 to 2027. Increasing investment in research and development to manufacturing advanced batteries and growing end-use applications of air electrode batteries are attributing to the growth of the market. Increasing utility of battery energy storage systems, growing penetration of electronic gadgets, and rising adoption of electric vehicles are some of the other factors driving the product demand. Compared to ion batteries, air electrode batteries are known to offer increased storage capacity, lower impact on the environment, and superior electrochemical performance. These features enhance the commercial value of air electrode batteries, which, in turn, result in their high adoption.

China held the dominant share in the market due to the presence of leading manufacturers in the country and the high production volume. In addition, China is the one leading markets for electric vehicles, which, in turn, positively affect market growth. In addition, the government of China provides financial support to manufacturers to increase the adoption of air electrode batteries.

Air electrode batteries have several advantages that include stable discharge voltage, durability, environment friendly, and high energy density. In this battery, the catalyst makes direct contact with the air cathode thus, enhancing the movement of electrons between the cathode and the external circuit. This makes the charge-discharge cycle stable and leading to higher adoption of these batteries. However, compared to ion batteries, air electrode batteries have lower energy efficiency and a shorter life cycle, which, in turn, is projected to restrain the market growth.

Battery Type Insights

Based on type, the secondary battery type segment accounted for 47.0% of the share by revenue in 2019 and emerged as the largest segment. Factors such as environment-friendliness, high energy density, and low cost of production are attributing to the growth of this segment. These rechargeable batteries are used in portable electronics devices, energy storage, and electric vehicles. Increasing demand for electronics devices and a rise in the sales of electric vehicles are projected to bode well for the segment growth.

On the other hand, the primary battery segment held a noticeable share in the air-electrode batteries market in 2019. Such batteries have a higher energy density compared to other batteries. The atmospheric air act as a battery reactant that allows non-rechargeable batteries to provide more energy in a given weight and volume. These batteries are increasingly used in portable devices such as cameras and hearing aids.

The fuel-cell segment is likely to register the highest growth over the forecast duration. Increasing application of fuel-cell in transportation, portable backup power, stationary, and emergency. Further, these batteries have higher efficiency and lower emissions as compared to conventional batteries.

Application Insights

In 2019, the transportation application segment accounted for the highest share in the market with over 44.0%. Further, the segment is anticipated to register the maximum growth over the forecast years due to the increasing penetration of fuel-cell vehicles. Increasing spending on research and development coupled with favorable government regulations to promote electric vehicle adoption is driving the demand for this segment.

On the other hand, the medical devices category held a considerable share in the market in 2019. Increasing usage of disposable equipment and medical devices is attributing to the growth of the segment. In addition, increasing investment in quality medical equipment that includes optical technologies, medical tracking application diagnostic imaging, and dental products are estimated to drive the market growth.

Another segment comprises consumer electronics, energy storage, aerial drones, and mobile robots. Increasing use of batteries in refrigerators, television, smartwatches, tablets, and other electronic devices is anticipated to augment the segment growth.

Regional Insights

The Asia Pacific accounted for over 31.0% share in the market and emerged as the leading shareholders in 2019. In addition, the region is projected to witness the highest growth over the forecast duration. Factors such as rapidly rising electronic manufacturing and a growing consumer base in countries such as India, China, and Japan are predicted to drive regional growth. Moreover, China is witnessing increased adoption of electric vehicles, which is estimated to offer a lucrative opportunity for the industry players.

North America held a noticeable share in the market in 2019. The United States accounted for the major share in the regional market. The increasing adoption of electric vehicles in the United States is the main reason driving the North American market growth. Europe, on the other hand, is aggressively witnessing the adoption of electric vehicles owing to stringent norms regarding emission from internal combustion vehicles.

COVID-19 Impact Analysis

The outbreak of COVID-19 has negatively affected the air electrode battery market. The outbreak has led to the closure of manufacturing units, which adversely affected the production of these batteries. In addition, the pandemic has caused a shortage of raw materials and labor requirements, which delayed the ongoing production.

However, with the resumption of industrial operations, the demand is estimated to register considerable growth. In addition, government support in the development of electric and fuel cell vehicles is projected to be a major driving force for the market post-pandemic.  

Air Electrode Battery Market Share Insights

Key market players are adopting various strategic initiatives such as partnerships, the introduction of new products, and merger & acquisition among others. These strategic initiatives help industry players to strengthen their position in the market and gain a competitive edge over others. Further, to improve the performance, durability and lower the cost, market players are investing a significant amount in research and development. Key market players include Volkswagen Ag, Mullen Technologies, Inc., BASF Global, LG Chem Ltd., Tesla Inc., and Panasonic Corporation among others.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For this study, Million Insights has segmented the global air electrode battery market report based on battery type, application, and region:

• Battery Type Outlook (Revenue, USD Million, 2016 - 2027)
    • Primary Battery
    • Secondary Battery
    • Fuel Cell

• Application Outlook (Revenue, USD Million, 2016 - 2027)
    • Medical Devices
    • Transportation
    • Military Devices
    • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2027)
    • North America
        • The U.S.
        • Canada
        • Mexico
    • Europe
        • The U.K.
        • Germany
        • France
    • The Asia Pacific
        • China
        • Japan
        • India
    • Central & South America
    • Middle East & Africa