Battery Separators Market - Forecast 2022-2027
The Battery Separators market size is forecast to reach US$11.9 billion by 2027 after growing at a CAGR of 11.2% during the forecast period 2022-2027. Battery separators provide a barrier between the anode and the cathode of a battery to prevent electrical short circuits. The separator materials must be thin, porous, mechanically durable, chemically stable and electrically resistant. Most of the separators used to consist of a polymeric membrane forming a microporous layer. Commercially available lithium-ion batteries use polyolefin as a separator. Polyolefins are made from polyethylene, polypropylene or laminates of both materials. Polyimide separators are poised to be the best choice for high-end lithium-ion batteries. The growing popularity of electric vehicles drives the battery separators market. The surge in the demand for consumer electronics also acts as a driver.
Battery Separators Market COVID-19 Impact
The COVID-19 pandemic had a severe impact on several industries including the transportation industry. The aerospace industry was one of the very first sectors that were affected by the pandemic. As cases surged, governments around the world struggled to stop the spread of infection and introduced border closures, travel bans and restrictions on traveling, as a result of which flights were grounded. The aerospace industry has been among the worst hit by the pandemic and many airlines were forced to suspend operations which also led to layoffs. The International Air Transport Association (IATA), Airport Council International (ACI) and International Civil Aviation Organization (ICAO) predict that the sector will take at least 3-4 years to roll back to pre-pandemic levels. It was expected that with the vaccine rollout, 2021 would be a recovery year but with new variants such as Delta and Omicron being discovered, the aerospace industry still suffered setbacks. The automotive industry also had several challenges such as halting of production due to lockdown measures, shortages of spare parts, shipping challenges and shortage of semiconductors. This also impacted the battery separators' market size.
Report Coverage
The report: “Battery Separators Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the battery separators industry.
Key Takeaways
- The Asia-Pacific region dominates the battery separators industry on account of the automotive and electronics industries in the region. According to India Brand Equity Foundation, the electronics industry size is expected to cross US$300-350 billion by 2025.
- The market for microporous polymeric membrane separators has registered a spike in growth since the commercialization of lithium-ion batteries.
- Conventional separators using polypropylene and polyethylene are prone to shrinkage and melting at 150 °C or above which may cause short circuits. Separators made of thermally stable polyimides are electrochemically stable and resistant to high temperatures and possess good mechanical strength, making them highly suitable for lithium-ion batteries.
- The major opportunity for this market is the increasing R&D for new materials for battery separators.
Figure: Asia-Pacific Battery Separators Market Revenue, 2021-2027 (US$ Billion)
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Battery Separators Market Segment Analysis – by Battery Type
The non-aqueous battery systems segment held the largest portion of the Battery Separators market share and is expected to grow at a CAGR of 10.7% during the forecast period. The volatile crude oil prices and the increasing pollution, have pushed consumers towards green energy. As green and renewable energy, lithium-ion batteries have been used as a power source in electric vehicles and portable electronics. Lithium-ion batteries are indispensable power energy in daily life. Lithium-ion batteries are superior to other types of batteries such as lead-acid, nickel-cadmium, nickel-metal hydride, etc. as they store more energy and deliver power over a long duration, they also charge quickly and have higher longevity. Therefore, lithium-ion batteries are widely used. Most commercially available non-aqueous lithium-ion separators are high-molecular materials with high insulation such as polyethylene, polypropylene, or both. As the use of lithium-ion for high-power applications become widespread new separator materials are needed to ensure the safety of these batteries. R&D efforts are active in the field of lithium-ion battery separators. Materials such as cellulose and its derivatives, polyethylene terephthalate, polyvinylidene fluoride, polyamide, polyimide and aramid are good candidates for separators. Therefore, the non-aqueous segment is set to dominate the battery separators market size.
Battery Separators Market Segment Analysis – by Application
The automotive segment held the largest portion of the Battery Separators market share and is expected to grow at a CAGR of 9.6% during the forecast period. In recent years, electric vehicles (EVs) have become the biggest consumers of lithium-ion batteries owing to the growing sales of EVs. Sustained policy support has been one of the main reasons for strong electric car sales in many markets, with overall public spending on subsidies and incentives doubling in 2021 to nearly US$30 billion, as per the International Energy Agency (IEA). Many countries and cities around the world have stated they will ban the sale of passenger vehicles powered by fossil fuels, which is also driving the sales of EVs. For instance, in December 2020, Japan announced plans to achieve 100% electric passenger car sales by the mid-2030s. In February 2021, Singapore announced new targets for its Singapore Green Plan 2030, under which from 2030, all new cars registered have to be cleaner-energy models. Paris pledged to ban diesel engines by 2025 and phase out all combustion-engine cars by 2030. Norway has the most ambitious target, to phase out conventional cars by 2025. Around the world, governments are encouraging the sales of EVs. Thus, the automotive sector is anticipated to dominate the battery separators market size.
Battery Separators Market Segment Analysis – by Geography
The Asia-Pacific region held the largest portion of the Battery Separators market share in 2021 up to 45% owing to the revival of the automotive industry in the region. As per the International Organization of Motor Vehicle Manufacturers (OICA), in India 3.6 million cars were sold in 2021 compared to 2.85 million cars in 2020. In China, 21.41 million cars were sold in 2021 compared to 19.99 million cars in 2020. Also, the electric vehicles segment is doing well in this region. According to IEA, the increase in EV sales in 2021 was primarily led by the People’s Republic of China, which accounted for half of the growth. More vehicles were sold in China in 2021 (3.3 million) than in the entire world in 2020. The first quarter of 2022 showed similar trends, with sales in China more than doubling compared with the first quarter of 2021. Additionally, the growing electronic industry also contributes to the growth of the battery separators market. South Korea ranks among the top countries in terms of electronics production. According to an article in the Financial Times, China accounts for more than 65% of global battery production and more than half of lithium production. Therefore, this region is anticipated to dominate the battery separators market.
Battery Separators Market Drivers
Growing Popularity of Electric Vehicles (EVs)
According to the International Energy Agency (IEA), in 2021, sales of electric cars (including fully electric and plug-in hybrids) doubled to a new record of 6.6 million. Sales kept rising in 2022 as well, with 2 million electric cars sold worldwide in Q1 2022, up almost 75% compared to Q1 2021. In China, electric car sales nearly tripled in 2021 to 3.3 million, accounting for about half of the global total. Sales also grew strongly in Europe increasing by 65% to 2.3 million. Also, according to Bloomberg New Energy Finance (BNEF), EVs are expected to hit 10% of global passenger vehicle sales by 2025, rising to 28% in 2030 and 58% in 2040. According to IEA’s Global Electric Vehicle Outlook, the number of electric cars, buses, vans and heavy trucks on roads is expected to hit 145 million by 2030. The rise in electric car sales in 2022 despite strains along the global supply chain. The rising crude oil prices since the Russia-Ukraine war have also pushed new buyers towards EVs. The increase in electric vehicle manufacturing and sales drives the demand for lithium-ion batteries and thereby the battery separators market.
Surge in the Demand for Consumer Electronics
The growing adoption of lithium-ion batteries in consumer electronics is driving the Battery Separators market. Due to the pandemic consumers have shifted their spending priorities from vacations and eating out to focusing on adding more comfort, conveniences and entertainment at home. Work-from-home, as well as online classes, led to a surge in spending on laptops, tablets and smartphones. As per Apple Inc.’s annual report, the net sales of iPhones, iPad and MacBooks were higher in 2021 compared to 2020. As people started spending more time at home, they also started upgrading their houses with smart devices including smart lights, smart security systems, smart locks, smart speakers and other such devices. According to the International Data Corporation (IDC) Worldwide Quarterly Smart Home Device Tracker, the worldwide market for smart home devices grew 10.3% year over year in Q3 2021 with more than 221.8 million device shipments. Thus, the surge in the demand for consumer electronics drives the battery separators market.
Battery Separators Market Challenges
Safety Concerns
The separator plays an important role in a battery as it functions as a barrier to prevent contact between the two electrodes and facilitates ionic conduction. Although separators are not active components in batteries, they influence the battery's electrochemical performance, safety and cost. The thermal stability of a separator is extremely important for batteries. Because most separators are made from polymers, especially polyethylene and polypropylene, they are prone to shrinkage and melt at 150 °C or above, so short circuits and thermal shrinkage may occur. As the applications of lithium-ion batteries are growing, particularly in EVs and power grids, the need for larger batteries that can hold more energy is growing. Larger batteries are more prone to large temperature increases which may result in a fire or an explosion. Thus, the safety concerns may restrain the growth of the battery separators market.
Battery Separators Industry Outlook
Product launches, acquisitions and R&D activities are key strategies adopted by players in the Battery Separators market. The top 10 companies in the Battery Separators market are:
- Asahi Kasei Corporation
- Sumitomo Chemical Co. Ltd.
- Toray Industries
- Teijin Limited
- ENTEK International
- Freudenberg SE
- Hollingsworth & Vose
- SK Innovation Co. Ltd.
- Dreamweaver International
- Bernard Dumas
Recent Developments
- In May 2021, ENTEK International acquired Nippon Sheet Glass Group’s battery separator business. With this strategic acquisition, ENTEK becomes the only separator manufacturer in the world producing all three primary separator technologies (PE, AGM and lithium separators) for the global energy storage industry.
- In March 2021, SK Innovation Co. announced an investment of approximately US$1 billion to add two EV-focused battery separator plants in Poland.
- In June 2020, Microporous LLC announced its newest and most technically advanced lead-acid battery separator manufacturing facility is fully operational. The new facility triples Microporous polyethylene separator capacity in the U.S.
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