The next generation lithium-sulfur batteries poised for rapid growth

The term "advanced battery" refers to the next generation of batteries that boast higher energy density, longer lifespan, fast charging, and cheaper price point than their lithium-ion counterparts. Lithium-sulfur batteries could eventually replace lithium-ion. Portable devices like flashlights and radios are already benefiting from lithium-ion batteries. That’s without mentioning hybrid electric vehicles, cell phones, laptops and tablets, which would be in no way practicable without next-generation batteries.

It's clear to see why the market is being propelled to new heights. BCC Research valued the global next-generation advanced battery market at $67.3 million in 2021, and it is projected to reach $1.8 billion by 2027, growing at a CAGR of 83.5% from 2022 to 2027. Let’s explore the factors making lithium-sulfur batteries the future go-to battery.

Growing demand for electric vehicles globally

The demand for hybrid electric vehicles is grown significantly, thanks mostly to carbon reduction initiatives. Prices for most of the critical components of hybrid electric vehicles have also declined, making ownership of hybrid vehicles more and more attainable. The introduction of 48V and plug-in hybrid electric vehicles has pushed the demand for hybrid electric vehicles even further. Increased cost-effectiveness, benefits of dual engines, improved fuel efficiency by 25% to 40% for full hybrids and PHEVs, and improved fuel efficiency by 10% to 20% for mild hybrids are among the forces driving demand for hybrid electric vehicles. 

The cumulative number of global fuel cell electric vehicle stocks already exceeds 7,200 units. The US has more than 50% of the fuel cell electric vehicle share, with Japan following behind. There has been a rise in the adoption of pure electric vehicles, with plenty of policies and incentives framed to support them. International governments have set targets to induct a share of electric vehicles into the automotive mix in their countries, with the Indian government planning to electrify all automobiles in India by 2030. As the trend towards electric vehicles grows, the demand for advanced batteries will climb. 

The ever-popular consumer electronics industry

Rising disposable incomes and new technologies are driving more people to adopt consumer electronics devices. These electronics use portable batteries, yet the size of batteries make it difficult for designers to create smaller sized consumer electronics. Any system's battery takes up a sizable percentage of its space. Since solid-state batteries make devices portable and miniaturized, this has increased demand for them. These batteries fit in any small electrical equipment since they are flexible and thin.

Overall, the consumer electronics industry in the US continued to grow in 2021, driven by strong demand for innovative and cutting-edge technology. As technology advances and consumer preferences evolve, the consumer electronics market will continue to grow in the coming years.

High cost for electric vehicles

Hybrid and plug-in hybrid electric vehicles are comparatively more expensive than conventional IC engines. A hybrid vehicle costs 20% more than a conventional gasoline or diesel fuel-based engine, and the drivetrains of hybrid vehicles are also more complex.

The components of hybrid electric vehicles and plug-in hybrid vehicles for a typical range of 100 to 600 volts require precise manufacturing to meet the stringent design norms involving insulated high-voltage lines. Batteries must be encased in sealed compartments to bear overcharge, extreme temperatures, vibration, short circuits, fire, humidity, collision and water immersion. The replacement cost for these battery packs is also extremely high. The battery packs for plug-in hybrid electric vehicles are more significant than typical hybrid vehicles, resulting in even higher battery costs. These high overheads could hinder market growth in the future.

Discover more about the market for the advanced battery

The market has had a fluctuating journey, but the foundation for much wider next-generation advanced battery use is now well-established. As the global adoption of consumer electronics and electric cars contributes to the rising growth of next-generation batteries, the market will continue to enjoy huge expansion. With this phenomenal growth in mind, getting a handle on the ins and outs of the industry is more important than ever.

BCC Research has broken down the dynamics of the advanced battery market, providing five-year forecasts and regional analysis. Download your complimentary report overview here.

We also offer memberships to our BCC Research library which can gey you up to speed with the entire fuel cell and battery landscape. Enquire about our membership today.