The automotive industry is going through
a revolutionary transformation with electric vehicles (EVs) chipping in and
marking their promising position in the sector due to the trend of ecofriendly
products that has made a penetration into various industry. While this foreseeable
disruption in the automotive industry will make automobile manufacturers alter
their strategies, the battery market players will also reinvent their
manufacturing methodologies in order to fulfill the current demand. The
disruption will largely reflect in the battery separators market in which
players will be innovating to stay with the tides of the time. For instance, in March 2019, the Korean energy
and chemical company, SK Innovation announced that the organization will be
expanding its territories in the battery separators market by building a new
plant in Poland. The manufacturing unit will be producing lithium-ion battery separators
(LiBS) and ceramic coated separators (CCS), which will eminently position their
brand in the battery separators market. The organization also quoted the demand
from automotive industry to be a significant cause for the expansion. Apart from
the demand influx from the automotive industry, it is the fast-growing industrial
sector that will drive further growth of the Battery Separators Market.
With the trend of lithium-ion battery booming in the end-use industries, the players are also inclining their strategies in order to stay ahead of the curve and gain maximum battery separators market share in the global revenues. The battery separators market size was evaluated at $3.4 billion as of 2018, and the demand from the end-use industries is poised to catapult at a profitable CAGR of 11.6% during the forecast period 2019-2025.
APAC
– The Most Lucrative Battery Separators Marketplace & Future Opportunities
for the Players:
APAC had the maximum battery separators market share with 30% in 2018. Due to the heavy automobile production in countries such as China, India, and Indonesia, the battery separators market is witnessing growth prospects. Furthermore, the region has underwent a tremendous industrial growth after the first decade of this century, which is also creating prospects in the associated industries, and the battery separators market is getting significant traction from the same. The burgeoning opportunities in the battery separators market can be fathomed by the import values in the parent industry corresponding to the most prominent marketplaces in the region –
Table
1 – Import Value Corresponding to the Parent Industry
Sr. No. |
Country |
Import Value –
2018 (In USD) |
Growth Rate in
% (2017-18) |
1 |
China |
4.94 Billion |
20 |
2 |
India |
1.67 Billion |
76 |
3 |
Indonesia |
415.51 Million |
11 |
4 |
Malaysia |
610.41 Million |
18 |
5 |
Philippines |
226.19 Million |
14 |
6 |
Japan |
1.57 Million |
22 |
7 |
Singapore |
769.92
Million |
32 |
8 |
Thailand |
470.92
Million |
6 |
Import data source – International Trade Centre (ITC)
The increasing demand for battery separators conspicuously resonates with the surging import values to various countries in the parent industry. Here are some factors that are responsible for the growing APAC battery separators market size –
· The Automobile
Industry in APAC Giving Rise to An Augmented Demand for Battery Separators –
The recent years have seen a radicle growth in APAC automotive industry. While China continues to be the largest automotive market, India is witnessing growth also in terms of electric vehicles owing to its Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles (FAME) scheme which was launched in 2015 with a vision of transforming the automotive industry and inclining it towards the ecofriendly trend in order to contribute towards the global trend of using clean energy products.
According to the International Trade Administration, China automotive industry experienced sales of 28 million units in 2015 with a year on year growth of 9% compared to 2015. Furthermore, the Chinese Central Government expects that China’s automobile productivity will reach 30 million units by 2020 and 35 million by 2025. While this will create a massive impact on APAC battery separators market. The fact that China is among the eight countries that are part of the International Energy Agency (IEA)’s Electric Vehicle Initiative (EVIs) will create prospects to prosper for players that are manufacturing separators for lithium-ion batteries.
Indian automotive industry is also witnessing growth, and FDI inflows in the automobile sector were evaluated at $20.85 billion between April 2000 and December 2018, according to India Brand Equity Foundation (IBEF). Furthermore, the International Council on Clean Transportation (ICCT) documents that components and outlays under Indian government’s FAME scheme translated to $5,350 million in FY 2016-17. This is going to create a demand influx in country’s lithium-ion battery market, and therefore, the state of art lithium-ion battery separators will gain propitious prominence.
According to the Edison Electric Institute’s statistical studies, Japan automotive industry witnessed a notable growth of around 23% year on year growth in terms of the sales of electric vehicle in 2018. This is driving a lucrative demand influx in the APAC battery separators market.
Apart from these countries, the year on year production growth in the automotive industries of Indonesia, Malaysia, and Thailand were noted to be 10.3%, 12.2%, and 9% respectively in 2018, according to the International Association of Motor Vehicles Manufacturers (OICA). This growth of the automotive industry in APAC countries is augmenting the battery separators market revenues.
· The APAC
Consumer Electronics Sector Creating a Demand Influx in the Battery Separators
Market –
It is a well-known fact that APAC countries such as China and Taiwan are giant producers of consumer electronic products, especially, mobile phones and tablets. Previously, batteries of these devices were separated by a ceramic separator. However, with the consumer electronics industry inclining towards lithium-ion batteries, the manufacturers are also opting for Polypropylene (PP) and Polyethylene (PE) battery separators. This battery separators market trend is going to witness further growth in APAC as almost all the electronic products will be equipped with lithium-ion battery.
· The Foreseeable
Industrial Growth in China Will Open Floodgates for the Industrial Battery
Separator Market in the Region –
The Made in China 2025 (MIC 2025) initiative by the Chinese government will create a demand influx in the manufacturing industry. It is quite evident when the initiative identifies loopholes in the manufacturing industry of the country and envisions to expand and eradicate gaps by instilling innovation capacity and efficiency in resource utilization. This initiative is poised to influence a gamut of industries along with the manufacturing industry of the country, which will create a demand for industrial batteries. Subsequently, the battery separators market players will target China industrial sector in order to leverage the favorable pricing environment and reap revenues.
Battery
Separators Market – Global Scenario and Growth Drivers:
· Global Electric
Vehicles Trend to Disrupt the Battery Separators Market –
The need to reduce the CO2 emissions is driving the electric vehicles market, and as mentioned above, these vehicles will use lithium-ion batteries. This will create a substantial demand for battery separators, and it is quite evident when the prominent battery separators market player ASAHI KASEI stated in May 2016 that the organization is increasing its production capacity by 60 million m2/y at its plant in Moriyama. The battery separators business leader cited the demand influx from the automotive industry as the major cause for the expansion. Furthermore, the battery separators market players in Europe called Daramic, LLC has also announced manufacturing capacity expansion plan in September 2018. The company will be expanding its manufacturing unit in Seletat, France by 15%. The President of Daramic cited the demand influx caused by electric vehicles market as a major cause of the expansion projects in France and China, India, and Thailand over the course of next 3 years. During the forecast period, more companies will be expanding their battery separators manufacturing capacities, and the demand from the automotive industry will play a critical role in the battery separators market growth. The automotive industry is found to be the key end-use industry in the battery separators market in which the revenues will grow at a CAGR of 8.9% through to 2025.
· The Impressive
Growth of the Mobile Phones Industry to Enhance the Battery Separators Market
Revenues –
According to the Global Systems of Mobile Communications (GSMA), the number of mobile subscribers are going to increase from 5.1 billion in 2018 to 5.8 billion in 2025. This is going to create an upsurge in the demand for mobile phones battery, which will create growth opportunities in the battery separators market. The nickel-based batteries that are used in mobile phones will create demand for the porous polyolefin films, nylon or cellophane battery separators.
Battery
Separators Market – Competitive Landscape:
The major players expanding geographically in the battery separators market are ASAHI KASEI, Cangzhou Mingzhu Plastic, Celgard, LLC, Daramic, LLC, Dreamweaver, Bernard Dumas, ENTEK International, Foshan Jinhui Hi-Tech Optoelectronic Material Co. Ltd., Henan Yi Tang New Energy Technology Co. Ltd., Hunan Chinaly New Materials Co. Ltd., Porous Power Technologies, Shenzhen Senior Technology Material Co. Ltd., and Sumitomo Chemical Co. Ltd., Xinxiang Zhongke Science and Technology Co. Ltd.
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https://www.industryarc.com/Report/15957/battery-market.html
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