Air Electrode Battery Market By Product (Zinc-Air Batteries, and Lithium-Air Batteries) Type (Primary, Secondary, and Fuel cells) Application (Transportation, Medical Devices, and Others), and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2023-2032

Market Perspective

The global Air Electrode Battery Market size was worth around USD 1.51 billion in 2022 and is predicted to grow around USD 3.87 billion by 2032 with a compound annual growth rate of roughly 9.86% between 2023 and 2032.

The demand for air electrode batteries is expected to increase due to rising end-use applications and ongoing efforts to improve battery technology. The transportation sector is driving growth with the increasing deployment of electric vehicles and the widespread use of electrical medical equipment. Electrode batteries offer better electrochemical performance, storage capacity, and environmental impact compared to ion batteries, making them a valuable commercial commodity. The stability in discharge voltage, high capacity, and energy density of air electrode batteries have made them a popular choice for appliances such as refrigerators, electronics, and military devices. These batteries are also cost-effective, safe, and have a minimal impact on the environment.

Key Insights

• Based on the product, the zinc-air batteries segment held the largest market share
• Based on type, the secondary segment dominated the market
• Based on application, the transportation segment generated the highest revenue
• On the basis of region, Asia Pacific accounted for the largest market share

Higher Energy Storage Capacities are Providing Vast Potential Uses

The high storage capacity and energy density of air-suspended electrode batteries are significant drivers of market growth. These batteries offer several advantages over traditional batteries, making them highly attractive to a wide range of industries.

First, the high storage capacity of these batteries allows them to store more energy for a given volume, making them suitable for use in applications where a large amount of energy needs to be stored, such as in electric vehicles and grid storage systems. This opens up new opportunities for businesses operating in these industries, as they can offer their customers a more efficient and reliable energy storage solution.

Second, the high energy density of air-suspended electrode batteries allows them to store more energy in a smaller volume, making them suitable for use in applications where space is limited, such as in portable devices and small electronics. This opens up new opportunities for businesses operating in these industries, as they can offer their customers a more compact and lightweight energy storage solution.

Reaction Due to Corrosion of Chemicals Within the Products is Challenging the Market Growth

Zinc-air batteries are commonly used in small-scale applications while lithium-air batteries are favored for large-scale or high-storage applications. The air electrode market faces a challenge related to the elemental metals used in batteries. The corrosion of zinc or lithium metal with the anode and electrolyte produces hazardous chemical gases, making the batteries unsafe. The gas produced through corrosion is explosive, as it contains traces of hydrogen. However, technological advancements are providing solutions to overcome this challenge.

Recent Developments

In December 2022: Volkswagen Group and Powerco SE its battery firm, which was created in July 2022, planned to expedite the growth of their worldwide battery business in North America.

In November 2022: Panasonic Energy and Redwood Inc signed an agreement wherein Redwood Inc. would be supplying recycled cathodes and other related materials to Panasonic Energy. This agreement aims at expanding the battery lines of Panasonic Energy.

Segmentation Analysis

The air electrode battery market is segmented into primary, secondary, and fuel cells. In 2022, the secondary battery segment held the largest market share, accounting for over 42% of the market due to its cost-effectiveness and high energy supply. Additionally, its environmentally friendly characteristics have further boosted its popularity, as battery disposal and recycling are ongoing challenges globally.

Secondary air electrode batteries can be recharged once the energy is exhausted, while primary batteries must be discarded after use, making secondary batteries a preferred choice. Advances in technology and innovative developments are continuously improving the performance of secondary batteries, which are used in electric vehicles, portable electronics, and large-scale energy storage systems.

Fuel cells is estimated to remain the fastest-growing segment during the forecast period. Fuel cells have noticed even further efficiency as compared to primary and secondary battery types owing to fewer emissions and more energy capacities. However, the production levels of fuel cells were not as much as compared of secondary rechargeable batteries.

Based on application, the market is categorized into transportation, medical devices, and others.  The transportation segment dominated the segmental market share, accounting for more than 49%. It is estimated that the transportation segment will register the fastest growth in the years to come owing to the high demand for EVs in residential, commercial, and industrial sectors. This demand is driven by the unified aim of reducing global carbon emission levels.

The medical devices segment registered steady growth in 2022 owing to the increasing utilization of new and advanced medical equipment. However, the demand for EVs is quite high compared to the demand for medical equipment.

Asia Pacific is Dominating the Global Air Electrode Battery Market Due to Growing Manufacturing Industry

The Asia Pacific region dominated the air electrode battery market, accounting for over 36% of the market share. The rapidly growing electronic manufacturing industry and increasing use of energy storage in batteries in countries such as India, China, Japan, and Australia are driving regional market growth. The shift towards renewable energy sources and rising demand for electric vehicles are also contributing to the market's growth. China is a leading player in the energy generation and energy storage markets and provides significant opportunities for the air electrode battery market.

In 2022, China was the largest manufacturer and supplier of batteries globally, benefiting from its abundance of raw materials, cost-effective labor, and increasing customer demand. Japan and India have also shown significant progress in recent years, with India's "Make in India" initiative boosting various markets in the country. In 2022, some battery manufacturers in India received certifications to manufacture air electrode batteries on a larger scale, with the government promoting the manufacturing process through various schemes to attract investors.

North America and Europe are Prominent Market Owing to Rising Government Support for the Usage of Electric Vehicles

North America has seen significant progress from 2018 to 2022, largely due to government efforts to promote the use of electric vehicles (EVs) as they emit fewer pollutants than traditional petrol or diesel-powered vehicles. The United States is the largest and most prominent player in the region, attracting many European and Asian battery manufacturing companies to set up plants for air electrode batteries, leading to growth in the market. The increasing demand for efficient and high-power batteries for developing medical facilities and advanced medical devices has further fueled the demand for air electrode batteries in the region.

Europe has made steady progress in 2022, driven by increased investments in battery manufacturers in countries such as Germany, Italy, France, and the United Kingdom. The European Union is promoting agreements with raw material-supplying regions to increase production capacity, and its policies on battery recycling will provide growth opportunities for zinc-air and lithium-air batteries in the future. Latin America, the largest supplier of lithium, faces challenges in market growth due to a scarcity of investors and slow industrial development.

Competitive Landscape

• BASF SE
• Camelion Batterien GmbH
• ENZINC, INC.
• Jauch Quartz GmbH
• Panasonic Energy Co., Ltd.
• Phinergy
• PPBC
• Toshiba India Pvt. Ltd.
• Volkswagen AG
• ZhuHai Zhi Li Battery Co., Ltd

The global air electrode battery market is segmented as follows:

By Product

• Zinc-Air Batteries
• Lithium-Air Batteries

By Type

• Primary
• Secondary
• Fuel cells

By Application

• Transportation
• Medical Devices
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America