The Global Cathode Materials Market was valued at USD 21.30 billion in 2023 and is predicted to reach USD 30.99 billion by 2029, with a CAGR of 6.45% over the foreseen period 2024-2029.
The market is driven by a growing call for electric vehicles and various consumer electronics products. There is an active shift in the automotive industry towards the use of clean and sustainable fuels. Batteries are one of the proven solutions and versatile methods for storing electricity. A battery consists mainly of four components, cathode materials, anode materials, spacers, and an electrolyte solution. The cathode materials provide ions while the batteries are in charge or discharge mode. Cathode materials have gradually evolved from the level of the first generation to the level of the third generation. The cathode materials market is predicted to see significant double-digit expansion during the foreseen period. A battery stores energy in the form of chemical energy, which is converted into electricity when needed. Battery components include the anode, cathode, and electrolyte. The use of cathodic materials is escalating in lithium-ion batteries and energy storage systems due to the immense popularity and growing call for electric vehicles. Cathode materials are essential components of any general battery that find diverse applications in the automotive, electronics, aerospace, and marine industries. Furthermore, lithium-ion batteries have a higher energy density, high performance, high discharge rate, ease of storage, durability, and environmental friendliness compared to traditional batteries.
The worldwide call for electrified vehicles (EV), including battery electric vehicles (BEV), plug-in hybrid vehicles (PHEV), and hybrid electric vehicles (HEV), has escalated in recent years due to strict CO2 regulations, emissions, as well as government support through policy changes and subsidies. In Europe, North America, and some Asian countries, governments have started offering subsidies related to the manufacture of electric vehicles. This will increase the call for cathodic materials in electric vehicle batteries.
The worldwide market for cathode materials is predicted to experience healthy expansion during the foreseen period. The cathode materials are employed as voltage and energy-limiting electrodes in batteries. The escalating use of batteries in electric vehicles (EVs) and consumer electronics is intended to provide a boost to the market. The market is predicted to benefit from the escalated use of lightweight, rechargeable batteries in modern devices such as smartphones and laptops. Rapid development in commercial vehicles, passenger car, and motorcycle manufacturing is further fueling the call for cathode materials in batteries. Apart from this, the use of energy storage applications is likely to lead to an increase in the consumption of the product during the foreseen period. The use of cathode materials is escalating in personal mobility, industry and robotics, aerospace, and marine applications due to the latest lithium technologies such as gold nanowire batteries that can withstand a long recharge duration. The substantial productivity gain of the electric industrial forklift, electric forklift, and robotic systems is likely to increase the call for cathode materials. For the same battery volume, the built-in lithium-ion battery can triple the autonomy compared to conventional technologies.
However, strict safety regulations for batteries during storage and transportation are predicted to slow the expansion of the cathode materials market during the foreseen period.
The escalating use of electric vehicles and portable electronic devices is likely to drive the market for cathode materials during the foreseen period due to the use of cathode materials in lithium-ion batteries. The improved compatibility and durability of lithium-ion batteries have led to an increase in the call, which in turn is fueling the call for cathode materials. The automotive industry is likely to drive the call for cathodic materials as automakers have started to focus on electric vehicles and developed and developing countries have taken initiatives for a greener environment and lower CO2 emissions.
The battery industry has grown at a high pace in the past two decades, supported by the escalating power call of modern portable customer electronics, electric vehicles, and the escalating adoption of intermittent renewable power generation. With the rise of the COVID-19 endemic, there is a sharp pullback in economic activity owing to compulsory lockdowns and other containment measures. According to the IMF World Economic Outlook published in June 2020, the world economy is set to post a -4.9% GDP growth rate in 2020.
Depending on the type of battery, the lead-acid segment is predicted to account for the majority of the cathode materials market in 2023. Escalated investment by governments in the automotive industry will drive expansion in the market for cathode materials lead-acid during the foreseen period.
Based on material, the lead dioxide segment is predicted to account for the majority of the cathode materials market in 2023. The growing production of passenger cars, commercial vehicles, and two-wheelers, as well as the growing call for industrial energy storage, are predicted to drive the lead dioxide cathode materials market during the foreseen period.
Asia-Pacific is estimated to account for the majority of the worldwide market for cathode materials in 2023. The main drivers of expansion for the Asia-Pacific cathode materials market include a high call for battery power systems and escalated battery consumers (automobiles, portable devices, and industrial) in Asia-Pacific countries. Market expansion in Asia Pacific countries is also driven by the shift of preference from fuel to battery power due to regulations on CO2 emissions and government support through changes, policies, and subsidies. These have further escalated the call for electrified vehicles, including BEV, PHEV, and HEV. Asia-Pacific accounted for the largest share of the worldwide market for cathode materials in 2023 due to the escalating industrialization of emerging economies such as India, China, and Thailand.
China is predicted to fuel the call for cathodic materials with government support, a strong manufacturing base, and growing investment from auto giants in the production of electric vehicles. These factors have made the country a major consumer of cathode materials. North America is another prominent region for cathode materials due to technological advancements in the aerospace, automotive, and electronics industries for more compatible devices such as drones and aircraft. Furthermore, the escalating production of light, electric, and hybrid vehicles in the automotive industry is likely to drive market expansion during the period considered. The European market for cathode materials is predicted to grow due to the call from the automotive industry for light and fuel-efficient vehicles. The growing awareness of emission-free cars is predicted to be the main driver of market expansion in the region.
Companies playing a prominent role in the global cathode materials market include Unicore, 3M, Mitsubishi Chemical Holdings, Posco, Johnson Matthey, BASF SE, Sumitomo Corporation, Mitsui Mining & Smelting Company, Showa Denko, Hitachi Chemical Co., Ltd, KUREHA CORPORATION, Sumitomo Corporation, Mitsui Mining & Smelting Co., LTD., SHOWA DENKO K.K., The Dow Chemical Company, NICHIA CORPORATION, TODAKOGYO CORP, NEI Corporation, Nexeon Limited, Toda Kogyo Corp, Nichia Corporation, Sustainable Enterprises Media, Inc., Ube Industries, Pulead Technology Industry, Asahi Kasei Corporation, and Others.
By Battery Type
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Frequently Asked Questions
The Global Cathode Materials Market is expected to grow with a CAGR of 6.45% between 2024 and 2029.
The Global Cathode Materials Market is expected to reach a revised size of US$ 30.99 billion by 2029.
Unicore, 3M, and Mitsubishi Chemical Holdings are the three Cathode Materials Market key players.
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