A battery is a product which transforms stored chemical energy directly into electrical energy. The main components of the battery are an anode, cathode, and electrolyte. In this, the cathode is the electrode from which a conventional current leaves a polarized electrical device. It is a negative electrode in an electrolytic cell which attracts the positively charged particles is attracted. The cathode materials market is witnessing a decent growth in recent years and anticipated to register the good growth during the forecast years. The growth is majorly driven by the increasing demand for batteries in the electric vehicles and various other consumer electronics.
Insight by Battery Type
On the basis of battery type, the cathode materials market is classified into lead-acid batteries and lithium-ion batteries. Among these two, the lithium-ion batteries category is projected to lead the market, registering the faster CAGR during the forecast period. This can be attributed to the increasing penetration and growing focus of various countries on electric vehicles, as the government of various countries is focusing on lowering the carbon dioxide in order to maintain a greener environment.
Insight by Material
Based on material, the cathode materials market is segmented into the material by lithium-ion batteries and materials by lead-acid batteries. Lithium-ion materials are classified into lithium iron phosphate (LFP), Lithium cobalt oxide (LCO), Lithium Nickel Manganese Cobalt Oxide (NMC), Lithium Nickel Cobalt Aluminum Oxide (NCA), lithium ion manganese oxide battery (LMO). The lead-acid batteries are further classified into lead dioxide on the basis of material. Of all these, the lead dioxide segment is projected to hold the largest share in the market in the coming years. This is attributed to the increased production of commercial vehicles, passenger cars, two-wheelers, and others.
Along with that, the increasing demand for energy storage systems is anticipated to drive the cathode materials market in the coming years.
Insight by End-User
On the basis of end-user, the cathode materials market is categorized into automotive, consumer electronics, power tools, energy storage systems, and others. Consumer electronics is the largest consumer of batteries, making it the largest user category in the market, as they are significantly used in high-end consumer electronics. Also, the demand for batteries is increasing in the automotive industry due to the industry expansion coupled with the growing focus on electric vehicles.
The increasing penetration of electric vehicles, growing demand for consumer electronics, and the growing investment in renewable energy storage are the major factors driving the cathode materials market growth. In government and authorities of various countries in North America, Europe, and few Asian countries have started providing subsidiaries to the electric vehicle manufacturers, in order the promote the use of electric vehicles to protect the environment from emission.
The stringent safety regulations for batteries through storage and transportation are anticipated to pose as a challenge in the growth of the cathode materials market during the forecast period.
Regulations over carbon emissions, safe disposal, use of lead, and renewable energy usage targets around the world are providing a substantial boost towards new product development initiatives in cathode materials market.
Asia-Pacific cathode materials market is expected to account for the largest share in the market. The major growth drivers are the increasing demand for battery energy systems and increasing consumers of batteries in automobiles, industrial, and portable devices in the developing Asian countries. Additionally, the shifting preference of the consumers from fuel energy to battery energy to deal with CO2 emission regulations is also driving the market growth in the region.
The competitive landscape for cathode materials market is marked by the presence of established large players and small scale players. Some of the key players operating in the global cathode materials industry are Advanced Lithium Electrochemistry Co., Ltd., BASF SE, Targray, NEI Corporation, 3M Company, Mitsubishi Chemical Holdings, Hitachi Chemical, Sumitomo Corporation, Hunan Shanshan New Material Co., Ltd., Hunan Reshine New Material Co Ltd Ltd., Pulead Technology Industry Co., and Umicore.