Battery Separators Market

The global battery separators market is projected to grow from USD 6.3 billion in 2023 to USD 13.0  billion by 2028, at a CAGR of 15.7% during the forecast period. Industrial, automotive, and consumer electronics sectors are driving the growth in battery separators market. In industrial applications, they ensure reliable energy storage for uninterrupted operations and facilitate the integration of renewable energy sources. The automotive sector benefits from high-performance separators in electric and hybrid vehicles, enhancing battery efficiency and safety. In consumer electronics, battery separators enable the development of compact, powerful devices, supporting the rise of smartphones, tablets, and wearable technology.

Attractive Opportunities in the Battery Separators Market

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Market Dynamics:

Driver: Increasing adoption of lithium-ion batteries in the renewable sector

Deep-cycle lithium-ion and lead-acid batteries emerge as crucial storage options for renewable energy. Despite the fact that lithium batteries are moderately new to this area, they are tending to a portion of the restrictions related with lead-acid other options. Moreover, lithium batteries are replacing lead-acid batteries in different applications, including private, business, and sporting vehicle use. As additional enterprises perceive the advantages of changing to sustainable power, there is an high focus on creating further developed batteries. The developing electric vehicle market, with its emphasis on more secure, lighter, and more productive batteries, is one of the huge driver for battery separators market. Also, the flood in sustainable power, driven by progressions in lithium batteries, grows opportunities for energy capacity, helping both the climate and the economy and one more key driver for the battery separators market is the developing interest for energy capacity arrangements in the telecom area. As worldwide network increments and the dependence on cell phones strengthens, there's an elevated requirement for solid and enduring batteries in telecom foundation. The battery separators market is likely to be significantly influenced by the growing preference for lithium-ion batteries in the mentioned earlier and other industries.

Restraints: Proper storage and transportation of batteries

Dealing with batteries of all types involves inherent risks. Without appropriate safeguards, batteries can present dangers to local people, whether they are being used, charging, or just put away. The potential issues incorporate overheating, consuming, or exploding battery chargers which prompts electrical shock and burns. These battery-related dangers can bring about accidents, deaths, and property loss. For example, misusing of lithium-ion batteries leads to numerous work-related injuries. Beyond lithium-ion batteries, even commonly used lead-acid batteries and standard 9-volt dry cell batteries from supermarkets can pose serious risks to those nearby. Hence, the absence of appropriate storage and transportation of batteries is driving legislatures to make a severe move against producers of these batteries, which will hamper the development of the battery separators market.

Opportunity: Battery usage in energy storage devices

A rapidly extending innovation in the sustainable energy area is battery energy capacity frameworks, perceived as effective means to reduce dependence on fossil fuels and address power fluctuation. Lithium-ion batteries are one of the significant battery types used in energy storage devices. Furthermore, lead-acid batteries are a great decision for a battery energy storage since they are a more reasonable battery choice and are recyclable. They are additionally more secure than a few different chemistries because their active components are not flammable. These batteries are intended for widespread performance with high power yield in different applications, for example, data center and others. As data centers use lead-acid batteries, their demand is expected to increase, and this further gives an opportunity to the development of the battery separators market.

Challenge: Lack of government support and infrastructure in emerging economies

The adoption of sustainable energy sources, various countries' governments are prioritizing the provision of subsidies and incentives to support the manufacturing of lithium-ion batteries. In certain nations, governments offer exemptions and incentives to encourage the development of grid-connected power storage facilities and the adoption of electric vehicles. To adopt the electric vehicles, a few countries have executed strategies including exclusions from or refunds on road tolls. However, supportive capital markets, battery research promotion, early-stage product facilitation, and scaling up electric vehicle manufacturing are all necessary for emerging markets. To meet current and future energy capacity requirements, India's thriving lead-acid battery manufacturing sector needs to be expanded. Support for Research and development is expected to reduce initial investment costs, and involve small and medium-sized enterprises (SMEs) in the production of industrial units for the ecosystem that manufactures rechargeable battery cells. Therefore, the absence of government support and infrastructure in developing economies is anticipated to pose a challenge to the expansion of the battery separators market.

Battery Separators Market: Ecosystem

Prominent companies in this market include well-established, and financially stable manufacturers of battery separators market. These companies have been operating in the market for several years and possess a diversified product portfolio and strong global sales and marketing networks. Prominent companies in this market include Asahi Kasei Corporation (Japan), ENTEK (US), Shanghai Energy New Materials Technology Co., Ltd. (China), SK ie technology (South Korea), Toray Industries, Inc. (Japan), and UBE Corporation (Japan).

"Polypropylene segment, by material, is estimated to account for the highest CAGR during the forecast period."

Polypropylene (PP) is one of the most adaptable polymers accessible and can be utilized as fiber and plastic in various industries, including automotive and medical devices. Specifically, polypropylene separators find widespread use in the batteries of electric vehicles (EVs) to enhance battery performance and safety. These separators are designed to withstand high temperatures and provide excellent chemical stability, making them ideal for use in lithium-ion batteries. As the demand for electric vehicles continues to grow, the use of polypropylene in battery separators is expected to increase, contributing to the development of advanced and reliable energy storage systems. The interest for polypropylene is expected to rise further because of expanding needs in auto parts, design attire, medical services gadgets, and different areas.

"Others segment, by battery type, is estimated to account for the highest CAGR during the forecast period."

The battery industry is growing rapidly, and the demand for cost-effective and high-quality battery materials is increasing. Different types of batteries, such as nickel-metal hydride, nickel cadmium, and antacid frameworks. Basic batteries are utilized in an extensive variety of family things, like compact Disc players, controllers, lights, computerized cameras, and others. The battery separator market is driven by the overall growth in the battery industry and the rising demand for energy storage solutions, particularly in consumer electronics and household appliances. The general development in the battery business, combined with a rising interest for cost effective and great battery materials, fills in as the essential driver powering the interest for battery separators market.

"Automotive segment, by end-use, is estimated to account for the highest CAGR during the forecast period."

The demand for battery-driven vehicles, such as hybrid electric vehicles and plug-in hybrid electric vehicles, is primarily driven by the automotive end-use sector. Automotive is the largest end-use sector for battery separators market. Additionally, there are various advancements in automotive lead-acid batteries to meet the growing electrical demands of modern vehicles and the rising demand for efficiency. Moreover, continuous advancements in automotive lead-acid batteries are directed towards fulfilling the increasing electrical needs of modern vehicles and improving efficiency. These headways add to the expanded use of batteries in the auto area. Thus, the rising interest for batteries inside the automotive sector. As a result, the increasing demand for batteries in the automotive industry is anticipated to simultaneously boost the market demand for battery separators.

"Europe region is estimated to account for the highest CAGR during the forecast period."

The demand for batteries in Europe is significant, driven by their essential applications as sustainable, clean, and compact sources of power in consumer electronics and automotive. In, the automotive industry, there is a growing emphasis on electric vehicles, and the adoption of batteries for sustainable and efficient power solutions is on the rise and the consumer electronics market in Europe is witnessing notable growth, especially in the segment of wearable devices. The combined demand from both the automotive and consumer electronics sectors, along with the battery manufacturers, positions Europe as a region experience the highest CAGR in the battery separators market during the forecast period.

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Source: Secondary Research, Expert Interviews, and MarketsandMarkets Analysis

Key Market Players

Major companies in the battery separators market include Asahi Kasei Corporation (Japan), ENTEK (US), Shanghai Energy New Materials Technology Co., Ltd. (China), SK ie technology (South Korea), Toray Industries, Inc. (Japan), and UBE Corporation (Japan) among others. A total of 26 major players have been covered. These players have adopted product launches, agreements, joint ventures, investments, acquisitions, mergers, and expansions as the major strategies to consolidate their position in the market.

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Scope of the Report

This research report categorizes the battery separators market based on Type, Material, Thickness, Technology, Battery Type, End-use, and Region.

Based on Type, the battery separators market has been segmented as follows:

• Coated Separators
• Non-coated Separators

Based on Material, the battery separators market has been segmented as follows:

• Polypropylene
• Polyethylene
• Others

Based on Thickness, the battery separators market has been segmented as follows:

• 5µM–10µm
• 10µM–20µM

Based on Technology, the battery separators market has been segmented as follows:

• Dry Battery Separator
• Wet Battery Separator

Based on Battery Type, the battery separators market has been segmented as follows:

• Lithium-ion (Li-ion)
• Lead-acid
• Others

Based on End-use, the battery separators market has been segmented as follows:

• Automotive
• Consumer Electronics
• Industrial
• Others

Based on region, the battery separators market has been segmented as follows:

• Asia Pacific
• Europe
• North America
• Middle East & Africa
• South America

Recent Developments

• In October 2023, Asahi Kasei is set to expand its coating capacity for lithium-ion battery (LIB) separators, with the aim of meeting the increasing demand for electric vehicles, particularly in North America. The expansion will raise the company's coating capacity to approximately 1.2 billion m2/year, enabling the supply of coated separators for batteries equivalent to 1.7 million electric vehicles. This investment is part of Asahi Kasei's strategy to strengthen its LIB separator supply infrastructure for automotive applications and to support the significant growth in electric vehicle production, especially in North America. The expansion will involve the installation of new coating lines at existing Asahi Kasei facilities in the US, Japan, and South Korea, with the start-up scheduled in succession from the first half of fiscal year 2026.
• In December 2023, Solvay has finalized an agreement with the U.S. Department of Energy grant to build a facility in Augusta, GA, to manufacture battery-grade PVDF, which is used as a lithium-ion binder and separator coating in electric vehicle batteries. The facility, expected to be operational in 2026. This agreement will significantly strengthen Solvay's position in the battery separator market.
• In January 2022, ENTEK acquired AEF, a leading provider of material handling systems. Building both extrusion and material handling equipment, ENTEK expanded its manufacturing capabilities in its recently completed facility in Henderson, NV, offering the required space and resources to support the expansion of the merged businesses.

Frequently Asked Questions (FAQ):

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