Market Challenges And Opportunities

Global Solid State Battery Market Drivers:

Growing penetration of electric vehicles to foster market growth

The market is driven by the growing demand for electric vehicles (EVs) and technological advancements in batteries. Several companies are investing heavily in R&D activities to develop solid-state batteries for use in EVs. The Paris Declaration on “Electro-Mobility and Climate Change and Call to Action” proposed a target of deploying 100 million electric cars and 400 million electric two- and three-wheelers by 2030.

Expanding consumer electronics market to propel market growth

The market growth is attributed to the increase in consumer spending on electronics and appliances. Solid state batteries are widely used in consumer appliances. The demand for these batteries is also driven by the rising popularity of smartphones and laptops. Compared to conventional lithium ion battery, the main advantage of a solid state battery is that it has a smaller footprint and can be used in a wider range of applications. Moreover, they can be manufactured cheaper and offer longer lifespans than the current generation of Lithium-ion batteries.

Global Solid State Battery Market Opportunities:

Growing popularity of thin-film batteries is expected to offer profitable market opportunities over the forecast period. Thin-film batteries are a key segment of the global solid state battery market. These batteries are used in radio frequency identification tags, renewable energy storage systems, smart cards, portable electronics, neural stimulators, pacemakers, and defibrillators. These batteries are environmentally friendly as they do not contain flammable liquid electrolyte or pressurized gases.

These batteries are more energy-dense than traditional batteries. Typically holding 2-8 times as much power per unit of weight. That can be a game-changer for the industry. The biggest difference between a traditional battery and a solid-state battery is the material that makes up the electrolyte. The most common type of electrolyte for a solid-state battery is an inorganic crystalline material, such as boron carbide. Inorganic crystalline electrolytes have high ionic conductivity, low electronic conductivity, and are suitable for rigid battery designs that can operate in harsh environments. This factor is expected to hold potential market opportunities.

Global Solid State Battery Market Restraints:

High costs of raw materials to hinder market growth

The high costs of raw materials used for making solid-state batteries is expected to restrict growth of the global market. However, these barriers are being overcome by continuous research and development.

Complexities associated with manufacturing process to curtail market growth

The manufacturing of solid state batteries requires a lot of time and energy to manufacture. In addition, the sintering process can create a lot of carbon dioxide that can be detrimental to the battery’s durability. Another disadvantage of a solid state battery is that it is difficult to produce these devices on a large scale.

Figure 2. Global Solid State Battery Market, By Application, 2022