STRUCTURAL BATTERY MARKET ANALYSIS

The Global Structural Battery Market size was valued at US$ 165.69 Mn in 2023 and is anticipated to witness a compound annual growth rate (CAGR) of 21% from 2023 to 2030.  

A global structural battery is a type of energy storage device that also serves as a structural component in a system or device. This means that the battery can carry mechanical loads while also storing and delivering electrical energy. This dual functionality can help to reduce weight and increase efficiency in various applications, such as electric vehicles, drones, and portable electronic devices. The concept of structural batteries is not new, but recent advancements in materials science and engineering have made them more feasible. These batteries are typically made from multifunctional materials that can conduct electricity, withstand mechanical stresses, and store energy.

Global Structural Battery Market: Regional Insights

• North America: North America is expected to be a significant market for structural batteries due to the presence of major automotive manufacturers and the growing demand for electric vehicles. The U.S., in particular, has been at the forefront of electric vehicle adoption, driving the market for structural batteries in the region.
• Europe: Europe is also a key region for the structural battery market, driven by stringent emission regulations and the push for sustainable transportation solutions. Countries like Germany, the U.K., and Norway have been at the forefront of electric vehicle adoption, creating opportunities for structural battery technologies.
• Asia Pacific: The Asia Pacific region is witnessing significant growth in the structural battery market due to the rapid expansion of the automotive industry and the increasing adoption of electric vehicles. Countries like China, Japan, and South Korea are leading in electric vehicle production and have policies promoting the development of advanced energy storage technologies.

Analyst View:

The global structural battery market is expected to grow significantly over the forecast period driven by the increasing demand for lightweight and innovative battery solutions from various industries. The increasing adoption of electric vehicles worldwide will be a key growth driver for structural batteries as automakers are looking for battery solutions that add structural rigidity to EVs while also increasing driving range. Additionally, the adoption of structural batteries is expected to witness growth in the renewable energy industry for developing integrated solar panels with energy storage capabilities.

However, high manufacturing costs and limited availability of materials continue to restrain the growth of the structural battery market. Developing cost-effective manufacturing techniques for large-scale production remains a challenge. Likewise, the availability of lightweight yet durable materials that can withstand mechanical stresses is also limited.

Figure 1: Global Structural Battery Market Share (%), By Region, 2022

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Global Structural Battery Market Drivers:

• Growing adoption of electric vehicles: The growing adoption of electric vehicles (EVs) is a major driver for the development and use of structural batteries. As the demand for EVs increases, there is a need for more efficient and lightweight energy storage solutions. Structural batteries can potentially meet this need by serving as both an energy storage device and a structural component, thereby reducing the weight and increasing the efficiency of the vehicle. In addition, the shift towards renewable energy sources and the need to reduce carbon emissions are also driving the adoption of EVs. For instance, According to the International Energy Agency, in 2022, The electric car market is experiencing a surge in demand, with sales projected to increase by 35%.
• Increasing investments in renewable energy integration: The increasing investments in renewable energy integration are indeed a significant driver for the development and adoption of structural batteries. As more renewable energy sources like solar and wind are integrated into the grid, there is a growing need for efficient and reliable energy storage solutions. Structural batteries can potentially meet this need by providing a way to store the energy generated by these renewable sources and deliver it when needed. In 2023, The U.S. Department of Energy (DOE) has announced a $3.5 billion investment in 58 projects spanning 44 states. The aim is to enhance the resilience of the aging American power grid to withstand severe weather and wildfires while also facilitating the integration of renewable energy sources.

Global Structural Battery Market Opportunities:

• Improved Energy Density and Power Density: Material such as carbon nanotubes or graphene, lithium-ion, and others can potentially increase the energy density and power density of structural batteries. These materials have exceptional electrical conductivity and a high surface area, which can improve the charge storage capacity of the battery. For instance, The demand for automotive lithium-ion (Li-ion) batteries surged in 2022, experiencing a remarkable 65% increase to reach 550 GWh, up from the 330 GWh recorded in 2021. This substantial growth can be primarily attributed to the expansion in sales of electric passenger cars, which saw a 55% rise in new registrations in 2022 compared to the previous year.
• Enhanced Mechanical Strength and Increased Lifespan: Nanocomposites, which are made by embedding nanoparticles in a matrix material, can enhance the mechanical strength of structural batteries. This can make the batteries more durable and capable of carrying higher loads. Nanotechnology can also improve the lifespan of structural batteries. For Instance, the field of nanotechnology has played a pivotal role in driving significant progress in computing and electronics. This progress has resulted in faster, smaller, and highly portable systems capable of handling and storing increasingly vast volumes of information

Global Structural Battery Market Trends:

• Thin Film and Printed Batteries: Thin film and printed batteries represent an emerging trend in the structural battery market due to their ability to offer flexible form factors, lightweight integration into various materials, reduced weight and space requirements, customization for unique designs, low environmental impact, and suitability for a wide array of applications, from IoT devices to medical equipment and flexible electronics. As research and development in this field progress, thin film and printed batteries are positioned to play a pivotal role in providing innovative and sustainable power solutions for diverse industries.
• Rise of IoT and smart connectivity: The rise of the Internet of Things (IoT) and smart connectivity is propelling the growth of the global structural battery market by fostering a demand for energy-efficient, space-efficient, and durable power solutions for IoT devices. As IoT devices become smaller and more prevalent, structural batteries, capable of serving both structural and energy storage functions, offer a compelling solution. Moreover, these batteries reduce maintenance needs, ensuring uninterrupted operation, cater to diverse design requirements, and align with sustainability goals, while seamlessly integrating with sensors and monitoring components, making them a crucial driver for the expansion of the global structural battery market. For Instance, as reported by IoT Analytics in May 2023, there was an 18% increase in the worldwide IoT connections during 2022, resulting in a total of 14.3 billion active endpoints. Projections from IoT Analytics indicate an anticipated 16% growth in the global count of connected IoT devices for the year 2023, potentially reaching 16.7 billion active endpoints.

Global Structural Battery Market Restraints:

• High production cost of structural batteries: The high production cost of structural batteries is indeed a significant restraint on their widespread adoption. Several factors contribute to these high costs: Advanced materials structural batteries require advanced, multifunctional materials that can conduct electricity, withstand mechanical stresses, and store energy. These materials, such as carbon fiber composites, are often expensive to produce.
• Counterbalance: Although the upfront cost of structural batteries is high, they can provide long-term savings by reducing the weight and increasing the efficiency of the system or device. This can lead to lower energy consumption and operating costs over time. Advances in materials science and manufacturing technologies could potentially reduce the production cost of structural batteries.
• Limited availability of raw materials: The limited availability of raw materials is indeed a significant restraint for the production of structural batteries. These batteries require advanced, multifunctional materials that can conduct electricity, withstand mechanical stresses, and store energy. These materials, such as carbon fiber composites or nanomaterials, often rely on specific raw materials that may be scarce or difficult to source.
• Counterbalance: While the limited availability of raw materials is a significant challenge for the production of structural batteries, Recycling and Reuse Industries can focus on recycling and reusing materials as much as possible. This not only reduces the demand for raw materials but also helps in waste management.

Figure 2: Global Structural Battery Market Share (%) By Material Type, 2022

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Global Structural Battery Market Segmentation:

The global structural battery market report is segmented into Material Type, Application, End User, Battery Type, Power Capacity, Sales Channel, And Region.

Based on Material Type, the market is segmented into Metal-Based Structural Batteries, Polymer-Based Structural Batteries, and Composite-Based Structural Batteries. Based on Application, the market is segmented into Automotive, Aerospace, Consumer Electronics, Medical Devices, Renewable Energy Systems, and Others. Based on End user, the market is segmented into Original Equipment Manufacturers (OEMs), Battery Manufacturers, and Research Institutes and Universities. Based on Battery Type, the market is segmented into Lithium-Ion Structural Batteries, Solid-State Structural Batteries, and Other Battery Chemistries. Based on Power Capacity, the market is segmented into Low Power Structural Batteries, Medium Power Structural Batteries, and High Power Structural Batteries. Based on Sales Channel, the market is segmented into Direct Sales (OEMs, Battery Manufacturers), Distributors and Retailers, and Online Retail, and based on Geography, market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Global Structural Battery Market: Key Developments

• In August 2022, Tesla has revealed plans for a new Model Y version featuring a structural battery pack supplied by BYD. This innovative vehicle will be produced at the Giga Berlin plant in Germany.
• In 2020, Volkswagen, a German automobile manufacturer announced a partnership with QuantumScape, a solid-state battery startup. The partnership aims to develop solid-state batteries for electric vehicles, including potential applications in structural batteries.
• In 2021, Solid Power, a solid-state battery company, announced a partnership with BMW, a German multinational manufacturer of luxury vehicles and motorcycles. The collaboration involves joint development efforts to advance solid-state battery technology for automotive applications, which could include integration into structural components.
• In October 2021, During a tour of Gigafactory Berlin, Tesla introduced an innovative structural battery pack equipped with 4680 cells.

Global Structural Battery Market: Key Companies Insights

Key players operating in the global structural battery market are Tesla, Inc.U.S., BMW AG (Germany), Airbus SE (France), Samsung SDI Co., Ltd. (South Korea), Saft Groupe S.A. (France), Cadenza Innovation, Inc. (U.S.), Excellatron Solid State, LLC (U.S.), General Motors (U.S.), BYD (China), LG Chem (South Korea), and CATL(China), Volkswagen (Germany),  Northvolt AB (Sweden),  Farasis Energy, Inc. (China),  Solid Power, Inc. (U.S.),  Blue Solutions SA  (France),  Oxis Energy Ltd. (UK), Amprius, Inc. (U.S.).

Definition:  A structural battery is a type of energy storage device that also serves as a structural component in a system or device. This means that the battery can carry mechanical loads while also storing and delivering electrical energy. This dual functionality can help to reduce weight and increase efficiency in various applications, such as electric vehicles, drones, and portable electronic devices. The batteries are typically made from multifunctional materials that can conduct electricity, withstand mechanical stresses, and store energy.