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Industry and Technology Overview
Global Sulfur-Based Battery Market Industry Overview
The global sulfur-based battery market was valued at $517.4 million in 2021, which is expected to grow with a CAGR of 17.69% and reach $2,669.9 million by 2031. The growth in the global sulfur-based battery market is expected to be driven by an increase in investment toward renewable power generation, battery energy storage systems, and EV charging station infrastructure across the globe.
Market Lifecycle Stage
The sulfur-based battery market is in a mixed emerging and introduction phase owing to different battery technologies in the market. As sodium sulfur-battery technology is on the verge of introduction to the growth stage, the lithium-sulfur battery is in the development stage. Sulfur-based batteries are expected to be the replacement for lithium-ion batteries in the coming years.
Impact
• Sulfur-based batteries are the types of batteries that use sulfur-based cathode. It is used in stationary energy storage and automotive energy storage applications. Various companies manufacturing conventional batteries such as lithium-ion, lead acid, and others are gaining interest in the R&D of sulfur-based batteries to fulfill the future demand from large-range electric vehicles and high-energy storage capacity batteries in stationary applications.
• The search for next-generation high-power and high-performance battery systems, such as sulfur-based batteries, has begun in the battery industry as the demand for renewable energy sources keeps rising. An economical and effective use of the generated power would be made possible by advanced energy storage systems with a long cycle life and low cost. For electric vehicles, automotive manufacturers are actively focusing on innovations, which is fostering the quick development of battery systems with significant power, high energy density, long range, and safety.
Impact of COVID-19
Due to the COVID-19 pandemic, research and development has slowed down owing to the lack of funding, halted manufacturing activities, and components or raw material supply chain disruptions. In addition, a halt in the building and construction of renewable power infrastructure, electric vehicle, and EV infrastructure projects was further affected by COVID-19, which resulted in a decrease in demand for battery products and affected R&D projects worldwide.
Market Segmentation:
Segmentation 1: by Application
• Automotive Energy Storage
• Stationary Energy Storage
• Consumer Electronics
• Aerospace and Defence
Based on application, the global sulfur-based battery market is expected to be dominated by stationary energy storage applications. This is followed by the automotive energy storage segment, which accounted for the second-largest share in the sulfur-based battery market in the year 2021 due to increasing demand for electric vehicles and the building and construction of EV charging stations across the globe.
Segmentation 2: by Product Type
• Sodium-Sulfur Battery
• Lithium-Sulfur Battery
The global sulfur-based battery market based on product type was dominated by sodium-sulfur batteries in 2021. Further, in the forecast period, the adoption of lithium-sulfur batteries is expected to grow due to the advantages of these batteries over lithium-ion batteries in the future.
Segmentation 3: by Region
• North America - U.S., Canada, and Mexico
• Europe - Germany, France, Italy, Spain, and Rest-of-Europe
• China
• U.K.
• Asia-Pacific - India, Japan, Australia, South Korea, and Rest-of-Asia-Pacific
• Middle East and Africa - U.A.E., Saudi Arabia, South Africa, and Rest-of-Middle East & Africa
• South America - Brazil and Rest-of-South America
Asia-Pacific generated the highest revenue of $262.5 million in 2021. The region is experiencing an increase in renewable power generation, distributed generation, and sales of electric vehicles. Therefore, lithium-ion and large-scale battery technologies will be challenged by sulfur-based battery alternatives in stationary energy storage and EV infrastructures. The Asia-Pacific region is anticipated to grow at a faster rate during the forecast period.
Recent Developments in the Global Sulfur-Based Battery Market
• In September 2022, Toho Gas, a utility company that serves 54 cities in central Japan, ordered or rewarded a supply contract to NGK Insulators, Ltd for an 11.4MW/69.6MWh sodium sulfur system. This sodium-sulfur battery system would be deployed at Tsu LNG station in Mie Prefecture. This would strengthen the presence of the company in the sulfur-based battery market in Japan.
• In January 2022, Lyten, Inc. signed an agreement with the U.S. Department of Defense through the National Security Innovation Capital (NSIC) program. This agreement aimed at enhancing the lithium-sulfur battery technology for commercial and national security use. This would expand the manufacturing and production capacity of the domestic battery prototype of the company.
• In April 2022, Li-S Energy Limited expanded its production to Geelong with a new facility for 2-megawatt-hour annual production. The company would expand its production capacity for lithium-sulfur batteries, which is near the current production facility and research labs on the campus.
• In September 2020, LG Chem Ltd. successfully finished flight testing by using a lithium-sulfur battery in the high-altitude long-endurance solar-powered unmanned vehicle (EAV-3). This unmanned vehicle was developed by Korea Aerospace Research Institute. Lithium-sulfur battery was developed by the research team of LG Chem with efforts of 1.5 years. This strategy would strengthen the position of the company in the sulfur-based battery market in the coming years.
Demand - Drivers and Limitations
Following are the demand drivers for the sulfur-based battery market:
• Rise in Demand for High Power Capacity Batteries from EV Applications
• Rapid Growth of Energy Storage Systems in Renewable Energy Generation
• Increase in Demand from Grid Scale Energy Storage Applications
The market is expected to face the following challenges:
• Technological Advancements in Lithium-ion Battery
Analyst View
According to Debraj Chakraborty, Principal Analyst, BIS Research, “Sulfur-based batteries are expected to be a suitable replacement for lithium-ion batteries used for stationary energy storage, aerospace and defense, and electric vehicle applications. Extensive R&D and increased adoption of sulfur-based batteries in the next 5-10 years can help in overcoming the challenges in developing high-capacity batteries for long-range electric vehicles and other key applications."
Sulfur-Based Battery Market - A Global and Regional Analysis
Focus on Application, Product, and Country-Wise Analysis - Analysis and Forecast, 2022-2031
Frequently Asked Questions
Sulfur-based batteries are energy storage systems in which sulfur material is used as the cathode, and materials, such as lithium, sodium, and others, are used as an anode. Types of sulfur-based batteries included in this market study include lithium sulfur and sodium sulfur. These battery types are used in various applications, including stationary energy storage, electric vehicle, aerospace and defense, and consumer electronics. As of now, sodium-sulfur batteries are available commercially and mostly offered by the company named NGK Insulators, Ltd., whereas lithium-sulfur batteries are not yet commercially available on a broad scale in the market.
Sustainability development goals in the power, transportation, and energy storage industry, rise in demand for electric vehicles, stringent regulations toward environmental pollution through transportation, increasing government support, the rapid expansion of solar power generation and storage, and investment toward EV infrastructure are the key trends in the sulfur-based battery market globally.
The global sulfur-based battery market has seen major development by key players operating in the market, such as business expansion, partnership, agreement, product launch, and acquisition. According to BIS Research analysis, most of the companies preferred partnerships, business expansions, agreements, and product launches as a strategy to further increase their growth in the global sulfur-based battery market. Companies such as NGK Insulators, Ltd., Zeta Energy LLC, Li-S Energy Limited, Lyten, Inc., and Morrow Batteries majorly adopted business expansion, agreement, and product launch strategies.
A new entrant can focus on the research and development of lithium-sulfur batteries and sodium-sulfur batteries in the sulfur-based battery market due to the higher growth rate and adoption of these in energy storage and electric vehicle infrastructure during the forecast period 2022-2031.
The following can be considered as some of the USPs of this report:
• Study on various research and development projects
• Competitive study
• Market strategies and developments
• Patent analysis
The companies manufacturing and having the capacity to develop sulfur-based battery products and services and component suppliers, research institutions, and regulatory bodies can buy this report.