SILICON ANODE BATTERY MARKET ANALYSIS

Global Silicon Anode Battery Market is projected to reach around US$ 1,020.8 Million by 2030, in terms of revenue, exhibiting a CAGR of 18% during the forecast period (2023-2030).

Global Silicon Anode Battery Market: Growth Drivers

Rising demand for microelectronic devices

Growing electronic industry is a major factor fueling the market growth of the silicon anode battery. Rising demand for microelectronic devices such as laptops, cell phones, and tablets is expected to have a positive impact on the market growth of the silicon anode battery. Growing demand for smartphones due to increasing penetration of the internet is further anticipated to augment the market growth of the silicon anode battery. For instance, on Dec 2022, according to India Brand Equity Foundation (IBEF), it is anticipated that the Indian electronics manufacturing sector will be worth US$520 billion by 2025.

Growing use of silicon as an anode material in lithium-ion batteries

Growing use of silicon as an anode material in lithium-ion batteries due to its excellent capacity performance is projected to drive the market growth. For instance, according to International Energy Agency – Global EV (Electronic Vehicles) Outlook 2023, the demand for automotive lithium-ion (Li-ion) batteries has increased by nearly 65% to 550 GWh in 2022 from around 330 GWh in 2021, mostly due to increase in the sales of electric passenger cars, with new registrations rising by 55% in 2022 as compared to 2021. Also, growing environmental concern coupled with the rising demand for the high-performance batteries due to rising demand for high-end electronic applications are further expected to augment the market growth of the silicon anode battery over the forecast period.  

Global Silicon Anode Battery Market: Restraints

High production cost and life cycle of silicon materials

The market growth of silicon anode batteries is hindered by the poor durability of silicon materials. Furthermore, the high production costs associated with silicon batteries serve as a major barrier, limiting the market’s expansion potential for silicon anode batteries in the forecast period. The widespread use of silicon anode batteries is hampered by these factors, but this can be changed with more research and development to meet the difficulties and realize the full potential of the technology.

Global Silicon Anode Battery Market- Opportunity

Rise in gigafactory projects

Increasing number of new gigafactory projects by manufacturers is expected to offer potential growth opportunities to the market of the silicon anode battery. For instance, in May 2023, Automotive Cells Company – ACC, develop and produce battery cells and modules for electric vehicles, opened its first gigafactory for the production of batteries for electric vehicles, in Billy-Berclau/Douvrin in the Hauts-de-France area. The culmination of TotalEnergies, Stellantis, and Mercedes-Benz's collective work is represented by Automotive Cells Company, which would accelerate Europe's transition to a sustainable mobility that is available to all.

Increased government involvement in high performance operating system development

Growing IT sector coupled with increasing government focus on the developing high-performance operating system is expected to drive the market growth of the silicon anode battery. Advancement in the technology in order to offer a high-performance battery and better energy storage system is further anticipated to augment the market growth of the silicon anode battery over the forecast timeframe. 

Global Silicon Anode Battery Market- Trends

Increasing demand for healthcare electronic devices

Growing demand for silicon anode battery from healthcare electronic devices is expected to fuel the market growth over the forecast period. The growth of the market is also attributed to increasing production of various healthcare devices due to growing healthcare sector around the globe. Thus, growing demand for the product from healthcare devices is anticipated to augment the market growth.

Growing demand in grid and renewable energy sector

Rising demand for silicon anode battery from the grid and renewable energy sector is expected to accelerate the market growth over the forecast period. The growth is also attributed to the developing infrastructure of the energy sector around the globe due to growing demand for energy. Therefore, growth in the energy sector is expected to augment the market growth of the silicon anode battery.

Global Silicon Anode Battery Market: Key Developments 

• In November 2021, Nexeon, a company that develop advanced silicon materials for lithium-ion batteries, and Prime Planet Energy Solutions - PPES, a joint venture between Panasonic Corporation and Toyota Motor Corporation, have extended their funded joint development agreement (JDA). The partners will concentrate their efforts on commercializing lithium-ion battery applications for e-mobility.
• In December 2021, In contrast to conventional lithium-ion batteries and battery packs, fully customizable, non-flammable batteries and pouch cell battery packs were launched by Nanotech Energy, the industry leader in high-performance, grapheme-based energy storage that offer a safer and more potent energy storage solution.
• In July 2022, Connexx systems Co. Ltd., a company that develops power storage technology, announced the establishment of its shuttle battery, a ultra-high energy density innovative battery powered by iron and air, in Nihon Keizai Shimbun.
• In September 2022, a joint research project between General Motors and OneD Battery Sciences, a battery manufacturer with headquarters in Palo Alto, aims to create more effective batteries for electric vehicles.

Global Silicon Anode Battery Market: Regional Analysis

Figure 1. Global Silicon Anode Battery Market Share (%), By Region, 2022

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Asia-Pacific dominates the silicon anode battery market, driven by consumer electronics, automotive, and renewable energy industries. Europe is expected to experience growth due to electric vehicle adoption and government investment. The market faces challenges from global brands, domestic tariffs, and trade routes.

Regionally, Asia Pacific dominated the global silicon anode battery market in terms of revenue, in 2022, followed by North America and Europe, respectively.

Figure 2. Global Silicon Anode Battery Market Share (%), By Application, 2022

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Global Silicon Anode Battery Market: Segmentation

The silicon anode battery market has been segmented into consumer electronics, automotive, industrial, grid, and renewable energy on the basis of application. Further, sub segmentation of consumer electronics is into Cell phones with 3G or 4G, laptops, tablets, MP4 players, digital cameras, and other microelectronic devices. Automotive is further sub segmented into plug-in hybrid electric vehicles, hybrid electric vehicles, electric vehicles, and electric bicycles.

On the basis of application, in 2022, the consumer electronics accounted for the largest market share of 45% in terms of value, followed by the automotive.

Global Silicon Anode Battery Market: Impact of Coronavirus (COVID-19) Pandemic

The automotive industry is currently experiencing a significant slowdown as a result of the global implementation of lockdown in response to the COVID-19 outbreak, which has resulted in a decrease in the automotive industry's need for silicon anode batteries. The lockdown is also negatively affecting the supply chain.  The global silicon anode battery market is predicted to grow at a 10% slower rate for a brief period. However, it also caught the attention of the government, which is now concentrating on developing high performance operating systems.

Global Silicon Anode Battery Market: Key Companies

Key Companies operating in global silicon anode battery market are Nexeon Limited, Enevate Corporation, OneD Material, XG Sciences Inc., Nanotek, Instruments, Inc., Zeptor Corporation, Group14 Technologies, California Lithium Battery, Amprius, Inc., and Connexx Systems Corporation

Definition: Silicon anode battery is also known as next-generation Li-ion batteries that uses silicon as an anode, in order to provide more than 10 times theoretical capacities as compared to the lithium-ion battery. These are basically an extension of lithium-ion battery that increases the energy storage capacity and increases life of the battery. These are widely used across various industries such as automotive, consumer electronics, and grid & renewable energy.