Electrochemical Market - Forecast(2024 - 2030)

The Electrochemical market size is forecast to reach USD 48.6 billion by 2029, after growing at a CAGR of 8.4% during the forecast period 2024-2029. ElectroChemicals typically involve the interaction between electrical energy and chemical reactions. Electrochemical techniques are widely used in various applications, such as energy storage, electroplating, sensors, and environmental monitoring. The global transition towards clean and renewable energy sources, driven by environmental concerns and regulatory mandates, fuels demand for electrochemical energy storage and conversion technologies. The shift towards electric vehicles, hybrid electric vehicles, and electrified transportation systems creates significant demand for electrochemical batteries and charging infrastructure. The electrochemical market is driven by a combination of technological innovation, market demand, regulatory drivers, and environmental imperatives.

The report “Electrochemical Market– Forecast (2024-2029)”, by IndustryARC, covers an in-depth analysis of the following segments of Electrochemical.

By Electrochemical Sensors Type: Conductometric Sensors, Potentiometric Sensors, Amperometric Sensors, Others

By Cell Type: Galvanic Cell, Electrolytic Cell

By Electrochemical Instruments Type: Electrochemical meters, Titrators, Potentiostats/Galvanostats, Ion Chromatographs, Others

By End Use Industry: Oil&Gas, Chemicals & petrochemicals, Mining, Environmental, Healthcare & Pharmaceuticals, Biotechnology, Automotive, Food & Beverage, Agriculture, Others

By Geography:  North America, South America, Europe, APAC, RoW

• As the market changes quickly, LG Energy Solution is working with top universities worldwide to extend its collaborative battery research programs to propel the development of next-generation battery technology on June 7, 2022. LGES made an announcement announcing its collaboration with German academic institutions. The company is set to collaborate with the University of Münster's Münster Electrochemical Energy Technology (MEET) and the Forschungszentrum Jülich's Helmholtz Institute Münster (HI MS). These academic institutions will collaborate on a battery research project supported by the Frontier Research Laboratory of LGES.

• The development of a circular economy for electrochemical cells and a greater focus on battery recycling are the results of the public's increased awareness of resource conservation and environmental sustainability.

• The emphasis on sensors in the electrochemical market aligns with a significant trend driven by advancements in medical diagnostics and biotechnology. Electrochemical sensors play a crucial role in various fields, including healthcare, environmental monitoring, food safety, and bioprocessing, due to their ability to detect and quantify biomolecular interactions with high specificity and sensitivity. 

The Conductometric Sensors segment occupied a major share of the electrochemical market in 2023. Conductometric sensors are devices used to measure the electrical conductivity of a solution or medium. They are widely employed in various fields, including environmental monitoring, biomedical applications, industrial process control, and food safety.

One advantage of conductometric sensors is their simplicity and cost-effectiveness compared to other types of sensors. They can be easily miniaturized, allowing for the development of portable and wearable devices for on-site or in-field measurements. On August 15, 2022, The durable thick-film LFS1505 sensor, which is IST AG's most recent product release, has a quick reaction time, excellent accuracy, resistance to a range of chemicals, and can be tailored to meet the demands of any application The LFS1505 standard conductivity sensor is an ideal, affordable option for medical technology hand-held devices that need single-use sensors.

In 2023, the Galvanic Cell segment held the majority of the electrochemical market.  The shift towards greener transportation options has led to a surge in the demand for electric and hybrid vehicles. Galvanic cells, especially lithium-ion batteries, are essential components in these vehicles, driving the market growth for such cells.

The International Energy Agency (IEA) reports that sales of electric cars surpassed 10 million in 2022, indicating an exponential increase in the sector. In only three years, the percentage of electric vehicles sold overall has more than quadrupled, rising from 4% in 2020 to 14% in 2022. Governments worldwide are implementing stricter emissions regulations to combat air pollution and reduce greenhouse gas emissions. As a result, there's a growing shift towards greener transportation options, with EVs being a key solution. The increasing focus on sustainability and reducing carbon footprints is driving consumers and policymakers alike to favor electric vehicles over traditional internal combustion engine vehicles.

Many automotive manufacturers are making commitments to sustainability and carbon neutrality. As part of these initiatives, they are ramping up the production of electric and hybrid vehicles to meet consumer demand and regulatory requirements, thereby driving the demand for galvanic cells.

The Chemicals & Petrochemicals segment dominated the electrochemicals market in 2023. Electrochemical processes play a significant role in the chemicals and petrochemicals industry, contributing to various aspects of production, purification, and waste treatment.

Department of Chemicals and Petrochemicals stated that the chemical and petrochemical (CPC) sector in India is valued at $178 billion, placing it in a prominent position in the global market. By 2025, it is projected to reach a valuation of over $300 billion. As the chemical and petrochemical industry in India continues to expand and modernize, the demand for electrochemical products and technologies is expected to grow in collaboration, presenting opportunities for manufacturers, suppliers, and service providers in the electrochemical sector.

Electrochemicals play a crucial role in enhancing the efficiency, sustainability, and environmental performance of the chemicals and petrochemicals industry. As the industry continues to evolve, further advancements in electrochemical processes are expected to drive innovation.

The Asia Pacific region in the electrochemical market is anticipated to hold a major share during the forecast period (2024-2029). Asia-Pacific, particularly countries like China, Japan, South Korea, and Taiwan, serves as a major manufacturing hub for various industries, including electronics, automotive, energy storage, and chemicals. The demand for electrochemicals such as lithium-ion batteries, fuel cells, and sensors is driven by the region's thriving manufacturing sector, which relies on these materials for the production of consumer electronics, electric vehicles, renewable energy systems, and industrial equipment.

According to the Institute for Energy Economics and Financial Analysis, The Asia-Pacific (APAC) region is the world's largest and second-largest consumer of both petrol and oil, respectively, and provides 10%–15% of the world's demand for both resources. the Asia-Pacific region faces increasing pressure to transition towards cleaner and more sustainable energy sources. This transition includes a shift towards renewable energy sources such as solar, wind, and hydroelectric power, as well as electrification of transportation through the adoption of electric vehicles (EVs) and fuel cell vehicles (FCVs). Electrochemical technologies play a critical role in this transition by providing energy storage solutions for renewable energy systems, and transportation electrification, thereby boosting demand for electrochemical products and solutions.

The shift towards electric vehicles (EVs) and hybrid electric vehicles (HEVs) indeed plays a crucial role in driving the demand for electrochemicals, particularly in the automotive sector. The statistics from the U.S. Energy Information Administration (EIA) demonstrate the increasing market share of EVs and hybrids in the automotive industry, highlighting their growing significance as a driver of the electrochemicals market.

The combined sales of battery electric vehicles (BEV), plug-in hybrid electric vehicles (PHEVs), and hybrid vehicles in the country accounted for 16.3% of all new light-duty vehicle (LDV) sales. Sales of BEVs, hybrids, and plug-in hybrids made up 12.9% of all sales in 2022. One of the primary components of EVs and HEVs is the battery pack, which relies heavily on electrochemical processes for energy storage. Lithium-ion batteries, in particular, are the predominant technology used in electric vehicles due to their high energy density, long cycle life, and fast charging capabilities. The increasing adoption of EVs and HEVs leads to a surge in demand for lithium-ion batteries and other electrochemical materials used in battery manufacturing.

Increasing consumer awareness of environmental issues and the benefits of electric vehicles contributes to the growing demand for electric vehicles. Consumers are increasingly choosing electric and hybrid vehicles for their lower operating costs, reduced emissions, and superior performance compared to traditional internal combustion engine vehicles. As consumer preferences shift towards electric mobility, the demand for electrochemicals in the automotive market continues to increase.

The increase in research and development (R&D) activities focused on solid-state batteries presents a significant growth opportunity for the electrochemicals market. The development of advanced materials and manufacturing processes for solid-state batteries not only enhances the performance and safety of battery technology but also drives demand for electrochemical materials and components. For instance, The increase in research and development (R&D) activities represents a significant growth prospect for the EV all-solid-state battery market. R&D efforts focused on optimizing materials and manufacturing processes can help reduce the cost of solid-state batteries. For instance, On February 23, 2023, Florida State University and Lawrence Berkeley National Laboratory (Berkeley Lab) created a new blueprint for solid-state batteries that are less reliant on particular chemical components, especially crucial metals that are difficult to get because of issues with the supply chain.

The success of R&D initiatives in advancing solid-state battery technology paves the way for market expansion and commercialization opportunities in the electrochemicals sector. Companies involved in battery manufacturing, materials supply, and research collaborations stand to benefit from the growing demand for electrochemical materials and components for solid-state batteries. As solid-state battery technology matures and gains traction in automotive, consumer electronics, and energy storage markets, the electrochemicals market experiences increased demand and investment.

Safety and reliability are indeed significant challenges facing the electrochemicals market, particularly in applications involving high-energy devices such as batteries and fuel cells. Safety is paramount in electrochemical devices due to the potential risks associated with energy storage and conversion processes. Lithium-ion batteries, for example, can experience thermal runaway, short circuits, and electrolyte leakage, leading to fires, explosions, and other safety hazards. Safety concerns not only pose risks to users but also impact consumers, regulatory compliance, and market acceptance of electrochemical products.

Reliability is critical for ensuring consistent performance and longevity of electrochemical devices over their operational lifespan. Degradation mechanisms such as electrode corrosion, electrolyte decomposition, and material fatigue can affect the reliability and efficiency of batteries, fuel cells, and other electrochemical systems. Reliability issues can lead to decreased device performance, premature failure, and increased maintenance costs.

In 2023, the Major players in the electrochemical market are Panasonic Corporation, Samsung SDI Co., Ltd., LG Chem Ltd., BYD Co. Ltd., Saft Groupe S.A., GS Yuasa Corporation, Enersys, A123 Systems LLC, Bloom Energy Corporation and Others.

 On October 24, 2023, The Institute of Power Engineering (IEn) located in Poland created and launched a system that utilizes stacks of solid oxide electrochemical cells that are manufactured using additive manufacturing and other low-cost processes.

 On September 3, 2021, A partnership agreement was signed between Permascand Top Holding AB, an independent, technology-driven manufacturer of electrochemical solutions, and Verdagy for the development of a revolutionary electrochemical cell that would create green hydrogen. The Collaboration Agreement will hasten the Electrochemical Cell's commercialization.

 Panasonic Corporation stated that it has created a new technique for managing batteries that evaluates the electrochemical impedance of a battery. This is a useful way to assess how much longer lithium-ion batteries can last in gadgets on November 14, 2019.