The global sodium-ion battery market size was valued at USD 275.1million in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 15.3% from 2022 to 2030. The sodium-ion battery market is driven by several factors, including the rising demand for power and a growing need for uninterrupted supply. Rising demand for energy storage is also fueling the development of clean energy projects. Moreover, increasing demand for electric vehicles and the demand for solar power are driving the growth of the Sodium-Ion Battery market.
Global Sodium-Ion Battery Market: Regional Insights
The global sodium-ion battery market is geographically divided into North America, Latin America, Europe, Asia Pacific, and Middle East & Africa.
North America among regions, is expected to dominate the global sodium-ion battery market over the forecast period due to growing demand from large-scale energy storage applications, as the region the sodium-ion battery technology is commercialized on large scale across the region. For instance, in May 2022, Natron Energy entered into collaboration with Clarios for production of sodium-ion batteries. The production facility of Clarios in Meadowbrook, Michigan is expected to become the biggest manufacturing facility for sodium-ion battery all over the world.
Furthermore, Asia Pacific is anticipated to witness significant growth in the global sodium-ion battery market over the forecast period. This is due to increasing number of developments, upcoming projects and investments in energy storage technologies that include high-temperature sodium batteries, compressed air, lithium-ion batteries, flow batteries, and lead-acid batteries. For instance, in April 2022, Huawei Hubble announced the investment in a production line of 1GWh sodium-ion battery of Zhongkehai Sodium, who focuses on building the biggest ever sodium-ion battery production line.
Figure 1 : Global Sodium-Ion Battery Market, By Region , 2021
Global Sodium-Ion Battery Market Drivers:
Rise in number of research and development activities and increasing commercialization of sodium-ion batteries is expected to propel growth of the global sodium-ion battery market over the forecast period. Sodium-ion batteries offer different advantages over lithium-ion batteries; however, they are not yet commercialized on a large-scale. Due to growing use of sodium-ion batteries, the R&D activities are likely to increase in the near future. For instance, in July 2021, Indi Energy, raised seed funding from Mumbai Angels Network for enhancing R&D activities and scale up the proprietary sodium-ion battery technology of the company.
Rise in demand for electric vehicle across the globe is also expected to augment growth of the global sodium-ion battery market over the forecast period. The demand for EVs has significantly increased in recent years, as governments are focusing on electrifying of transportation to reduce carbon emissions coming from fuel. Due to environmental concerns, emphasis on renewable energy solutions is most likely to lead to rise in sodium-ion battery use, as this technology promises greater capacity compared to typical lithium-ion cells. Thus, growing demand for EVs is expected to propel the market growth.
Global Sodium-Ion Battery Market Opportunities:
Rise in demand for novel battery energy storage technologies is expected to offer growth opportunities for market players in the global sodium-ion battery market over the forecast period. Battery energy storage has become popular in recent time. As per the International Renewable Energy Agency (IRENA), deployment of energy storage in emerging markets is anticipated to grow by nearly 40% each year till 2025. Thus, it is expected to boost the R&D activities as well as investment in sodium-ion batteries, which will provide market players with growth opportunities.
Growing development and deployment of large-scale battery storage is also likely to offer growth opportunities to the global sodium-ion battery market over the forecast period. So far deployment of battery storage has be focused in developed countries in Europe, North America, Central Asia, and East Asia-Pacific region. As the levels of renewable penetration is increasing and the number of ageing grid infrastructure is growing, the demand for large-scale battery storage is likely to grow. This factor is expected to support the market growth, in coming years.
|Base Year:||2021||Market Size in 2022:||US$ 307.7 Mn|
|Historical Data for:||2017 to 2020||Forecast Period:||2022 to 2030|
|Forecast Period 2022 to 2030 CAGR:||15.3%||2030 Value Projection:||US$ 962.6 Mn|
Natron Energy Inc., Faradion Limited, Altris AB, AMTE Power PLC, Contemporary Amperex Technology Co. Limited, NGK Insulators Ltd., and TIAMAT SAS
|Restraints & Challenges:||
Global Sodium-Ion Battery Market Trends:
Market players are focusing on increasing funding to scale up production capabilities, which is a growing trend in the global sodium-ion battery market. For instance, in March 2022, Altris, a sodium-ion battery company raised EUR 9.6 million in a Series A funding round and the company has raised nearly EUR 11.5 million since mid-2020. With these funding the company will be able to scale up its production capabilities and continue R&D activities.
Stationary energy storage segment is gaining traction in the market, which is expected to fuel growth of the global sodium-ion battery market during the forecast period. Batteries are important for energy storage system and they account for major cost of the overall system, specifically in residential energy storage systems. Sodium-ion batteries offer lucrative properties such as low charging time, high energy density, a higher number of charging cycles, which are suitable for stationary energy storage applications. Thus, this trend is likely to continue in the market in the near future.
Global Sodium-Ion Battery Market Restraints:
Factors such as reduction in the cost of lithium-ion batteries are anticipated to hinder growth of the global sodium-ion battery market over the forecast period. Over the past decade there was a significant decline in price of lithium-ion batteries. This majorly due to steady improvement in performance of the battery and increased production volume. For instance, according to the Coherent Market Insights, in 2021, the cost lithium ion battery declined by 87% as compared to the price in 2010. The prices of these battery stood at US$ 132 per kWh.
Widespread use of lithium-ion batteries is also expected to hamper growth of the global sodium-ion battery market over the forecast period. Lithium-ion batteries are used in various devices such as laptops, cell phones, and tablets among various other gadgets. As demand for such electronic devices is high all over the world, lithium-ion batteries will continue to be in demand for such applications. Moreover, these batteries are likely to dominate the overall battery market over the next decade. Thus, this factor is expected to hamper growth of the global sodium-ion battery market over the forecast period.
Figure 2 : Global Sodium-Ion Battery Market, By Application (Stationary Energy Storage) , 2021-2030
Global Sodium-Ion Battery Market Segmentation:
The global sodium-ion battery market report is segmented into Application and Region.
Based on Application, the market is segmented into Stationary Energy Storage and Transportation. Out of which, Stationary Energy Storage is expected to dominate the global market over the forecast period and this is attributed to the high preference of sodium-ion batteries in stationary storage application due to its various lucrative properties such as low charging time, high energy density, higher number of charging cycles among others.
Transportation segment is also expected to witness significant growth in the near future and this is owing to the increasing adoption of electric vehicles due to rise in environmental concerns. As the use of EVs is increasing the demand for sodium-ion batteries is likely to grow all over the world, which is expected to drive growth of this segment.
Global Sodium-Ion Battery Market: Key Developments
In June 2020, Faradion Ltd. entered into partnership with Infraprime Logistics Technologies (IPLTech) for the use of high energy sodium-ion batteries in commercial vehicles and for the development of the same in the Indian market.
In September 2020, NGK Insulators Ltd. singed a joint development agreement with BASF New Business for sodium-sulfur batteries in stationary applications. With the agreement, both the companies will be focusing on achieving a rise in power and higher cycle number per time unit, which will help them to open up market segments for NAS batteries.
Global Sodium-Ion Battery Market: Key Companies Insights
The global sodium-ion battery market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.
Some of the key players in the global sodium-ion battery market are Natron Energy Inc., Faradion Limited, Altris AB, AMTE Power PLC, Contemporary Amperex Technology Co. Limited, NGK Insulators Ltd., and TIAMAT SAS.
The Sodium-Ion Battery is a type of rechargeable battery that uses sodium ions as charge carriers. It works in a similar manner to lithium-ion batteries. It is typically found in small handheld electronic devices and is used for various purposes, including powering watches and GPS systems.
The basic principle behind the sodium-ion battery is that ions transfer from the negative electrode to the positive one through a process called electrolysis. These charged ions then flow between the two electrodes. As the cell is charged, the voltage of the battery increases. However, the electrochemical reaction slows down with time. While sodium-ion batteries haven't quite reached the maturity stage, their rapid development suggests they may soon challenge lithium-ion in the rechargeable battery market. With further investment, the sodium-ion battery technology will be able to provide a cost-effective solution for large-scale electrical energy storage.
The growing demand for electric vehicles is a primary driver in the Sodium-Ion Battery market. Electric vehicles are a popular way to reduce carbon emissions. Governments are responding to this trend by pushing the sale of Electric Vehicles and implementing stricter rules regarding alternative energy sources. As more companies look to develop electric vehicles, sodium-ion batteries will continue to gain popularity. They are more environmentally friendly and can deliver more energy than lithium-ion batteries.
However, the market is likely to be hindered by factors such as reducing cost of lithium-ion batteries, lack of industrial supply chains and high weight disadvantage of sodium-ion battery compared to lithium-ion battery.
Key features of the study: