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Market Summary

The battery additives market is projected to grow at a rate of 9.7% in terms of value, from USD 1.34 Billion in 2019 to reach USD 2.85 Billion by 2027. Battery additives are the key chemical components of the batteries, which regulate the functioning of the battery and increases their power performance. The market for battery additives is influenced by the rising demand for consumer electronics (mobile phones, rechargeable batteries, and smart watches), the evolution of environment friendly chemicals required by the manufacturers of electronic vehicles, which creates a heavy demand for batteries.

Battery additives such as conductive additives, porous additives, and nucleating additives are often used in the batteries to increase the charge holding capacity along with the rate of charging. The battery additives are used in various kinds of batteries, such as lithium-ion batteries (Li-ion) and Lead-Acid batteries. Battery additives are used in the electrodes, which acts as a conducting medium connecting the cathode and the anode. The increasing usage of rechargeable batteries is instrumental to the growth of lithium-ion batteries, which, in turn, is expected to develop the demand and sale of battery additives. However, hazards associated with the failure of batteries and underdeveloped charging infrastructure for electric vehicles may create hindrances in the growth of the market in the forecast period.

Underdeveloped infrastructure for electric vehicles and stringent safety laws related to batteries are restraining the growth of the battery additives market. However, usage in the automotive industry is growing as it offers better efficiency, clean, and sustainable fuel, as opposed to the conventional usage of fossil-derived petroleum. Besides, governments are promoting the adoption of alternative fuel vehicles to reduce the dependence on oil imports, which shall boost the economy of developing regions.

The COVID-19 pandemic is having a significant impact on the battery additives industry. Demand for the product is suffering severe shocks across various end-use markets, worldwide supply chains are upset, and the competitive order of manufacturers/producers has witnessed a change. The shortage of demand has fast-tracked the global chemical sector into an oversupply situation. Movement restrictions appear to be a direct and immediate effect, and once the compulsory social distancing ends, it is expected things would get back to normal conditions.

However, underdeveloped charging infrastructure for electric vehicles may create hindrances in the growth of the market in the forecast period.

Additive Type Outlook:

Nucleating additives observe a CAGR of 10.1% in the forecast period for the battery additives market. These type of battery additives provides the benefit of enhancing the charge holding capacity of batteries and lessen the loss by self-discharging. This additive possesses a surface charge opposite in nature partial charge of the polymer moiety and helps in expediting the rate of crystallization.

Application Type Outlook:

Lithium-ion batteries are used in several sectors of the industry owing to their safe usage and longevity. They are set to experience the highest CAGR of 11.5% during the forecast period. They are utilized in many appliances like smartphones, wearable devices, laptops, tablets, and other home applications. Lithium-ion batteries may be recharged numerous times and possess better stability. These types of batteries have a higher voltage capacity, energy density, and lower self-discharge rate as compared to other rechargeable batteries, thus having improved power efficiency owing to longer charge retention in a single cell as compared to other battery types.

End-Users Outlook:

The automobile segment held the largest market share of 48.2% in the year 2018. In automobiles, they are used for starting, lighting, and ignition (SLI) in automobiles and other vehicles with internal combustion engines. The demand for electric vehicles in the automotive industry is rising as it offers higher efficiency and usage of clean and sustainable fuel. The demand for these cars has grown, and it is expected to soon overtake the ICE vehicle. It is projected that by the year 2030, there will be more than 125 to 220 million EVs plying globally. The recent advancements in the technology of electric vehicles have presented an opportunity for its growth to revolutionize the transportation sector. The electric vehicles are projected to approach cost-competitiveness with conventional vehicles, owing to the reduction in battery costs and increased production volumes over the next ten years.

Regional Outlook:

Europe is forecasted to witness a CAGR of 9.3% during the forecast period. The European Union has put into effect an integrated Pollution Prevention and Control Directive to restrict the utilization of harmful chemicals and control of effluents that shall act as a driving effect on the overall growth of the battery additives market in this region. The usage of battery-operated vehicles shall be preferred over those run on conventional non-renewable fuels.

North America is an integral region for the battery additives market and is likely to witness a consistent CAGR of 9.2% in the forecast period, owing to the growing electrical vehicle industries in the region. Moreover, advances in technology that are being developed across the region are driving the growth of this market. The different key vendors in North America are focusing on new technological advancements to support the growth of the market for battery additives in the region.

Market-O-Nomics

China accounts for about 30.0% of all the electric cars sold in the world. The China Association of Automobile Manufacturers (CAAM) says 601,000 new energy vehicles were sold in the first three quarters of 2018.

All major manufacturers are investing in research and development of battery additives. This has led to various improvisations in batteries in terms of higher energy density, safety, quick charging, and longer shelf life, which is increasing the demand for electric vehicles globally.

Concerns regarding the effect of battery additives have shifted the focus from chemicals to bio-based chemicals, which are environment-friendly. These chemicals reduce the detrimental effect on the environment, along with reducing the cost for the manufacturing of these battery additives.

The conductive segment for battery additives held the largest market share of 32.9% in the year 2018. This is owing to the rapid research in the scope of this additive type.

Competitive Landscape

3M Co., Cabot Corporation, Hammond Group, Colonial Chemical Corp., Orion Engineered Carbons, Altana AG, Zircon Industries, Atomized Products Group Inc., Prince International Corporation, and SGL Group, among others.

The players operating in the market have undertaken a number of strategies related to the market in the period 2017-2020. Some of the key highlights are:

In January 2017, IMERYS, a French vendor, started manufacturing graphite in Namibia, 13 months after the new Otjiwarongo mine was considered operational. This was to cater to the increasing usage of graphite, as the sales of electric and hybrid vehicles increased remarkably according to historical records.

Start-up Traction

The industry offers numerous growth opportunities. Thus, a number of startups providing innovative products and technologies have been entering the market. Some of them include Prietto, Lionano, Cadenza Innovation, Battrion, and Leyden-Jar.

Deal Landscape

Mergers and Acquisitions are an integral part of the industry. Along with the companies operating in the market, other key market players have also been entering the industry.

In November 2018, Orion Engineered Carbons acquired acetylene carbon black manufacturer, Société du Noir d’Acétylène de l’Aubette. This acquisition added the acetylene carbon black commodity to its product portfolio, which is used for manufacturing Li-ion batteries and high-end electrical cables.

Expert Insights:

Reports and Data forecasts promising developments for increased adoption of battery additives. According to industry experts, the use of products in the automotive and electronics sector is garnering significant traction in the market. New companies entering the industry would emphasize designing and developing innovative products, thereby catering to the increasing requirement of end-users.

Segments covered in the report:

This report forecasts revenue growth at a global, regional & country level, and provides an analysis of the industry trends in each of the sub-segments from 2017 to 2027. The scope of the report can be defined as:

For the purpose of this study, Reports and Data have segmented the global battery additives market on the basis of additive type, application type, end-user, and region:

Additive Type Outlook (Volume, Kilo Tons; 2017-2027 and Revenue, USD Million; 2017-2027)

Conductive

Porous

Nucleating

Others

Application Type Outlook (Volume, Kilo Tons; 2017-2027 and Revenue, USD Million; 2017-2027)

Lithium-ion

Lead-acid

Nickel ion

Others

End-Users Outlook (Volume, Kilo Tons; 2017-2027 and Revenue, USD Million; 2017-2027)

Automotive

Electronics

Others

Regional Outlook (Volume, Kilo Tons; 2017-2027 and Revenue, USD Million; 2017-2027)

North America U.S Canada

Europe Germany U.K France Benelux Rest of Europe

Asia Pacific China India Japan South Korea Rest of Asia Pacific

Latin America Brazil Rest of Latin America

MEA Saudi Arabia UAE Rest of the Middle East and Africa

