Global Cathode Material Market By Battery Type (Lead Acid, Lithium-Ion, and Other Battery Types), By Material (Lithium Iron Phosphate (LFP), Oxyhydroxide, and Other Materials), By End-Use(Consumer Electronics, Automotive), By Region and Companies – Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032
- Published date: Oct 2023
- Report ID: 101464
- Number of Pages: 334
- Format:
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Report Overview
In 2022, the Global Cathode Material Market size was valued at USD 21.0 Billion and is expected to reach USD 50.4 Billion in 2032. This market is estimated to register the highest CAGR of 9.4% between 2023 and 2032.
Cathode materials are important elements in the composition of positive electrodes in battery cell manufacturing. The cathode materials include many elements like manganese, nickel, and cobalt.
These cathode materials are used in manufacturing motors, transformers, and generators across various end-use industries. Various components in the electrical industry, like insulating materials, laminated cores, and wire windings, require cathode material.
The cathode materials like lithium iron phosphate, lithium cobalt oxide, lead oxide, graphite cathode, and many such materials are used in large numbers across different industries. The increasing demand for batteries in the industries also increases the demand for cathode material in the market.
Moreover, the rising awareness among individuals for 0 emission vehicles like electric vehicles has significantly raised the demand for cathode material. With the increasing demand for electric vehicles from individuals worldwide, the cathode market is expected to experience significant growth in the upcoming period.
Key Takeaways
- Market Growth: The global cathode material market has experienced impressive expansion, experiencing an annual compounded compound annual growth rate of 9.4% between 2023-2032.
- Overview: Cathode materials play a pivotal role in energy storage systems such as batteries. Their role lies in improving battery performance, capacity, and overall efficiency.
- By Battery Type Analysis: An analysis of battery types broadly categorizes them as lithium-ion, lead acid, or other types based on cathode material – with lead acid batteries holding onto their lead position by taking in most market revenues.
- By Material Analysis: Lead dioxide has long dominated the cathode material market and garners an impressive market cathode materials market share, accounting for much of the total revenue generated.
- By End-Use Analysis: When categorizing cathode material end uses, the automotive industry accounts for the most revenue share in this segment.
- Drivers: Key factors driving market expansion include global trends towards clean energy and sustainable transport, government initiatives encouraging electric vehicle use, as well as technological advances such as battery technologies that increase battery density for greater energy storage capability and greater performance efficiencies.
- Restraints: Market challenges include raw material availability and price volatility as well as recycling concerns, recycling regulations, environmental standards, as well as stringent government standards which pose considerable hindrances.
- Market Expansion Opportunities: Development projects focused on increasing energy density and performance are ideal candidates for market expansion, along with innovation in production processes or uncovering alternative raw materials that represent lucrative avenues of expansion.
- cathode materials market Trends: Trends in the cathode material market include advancements in lithium-ion battery technologies, the rise of solid-state batteries, and an emphasis on sustainable and recyclable cathode materials. Collaboration and strategic partnerships to accelerate innovation and market expansion are also notable trends.
- Regional Analysis: Asia Pacific leads the cathode material market with an impressive revenue share of 33.4 percent.
- Key Players in the Cathode Material Market: Establishments and Startups Specializing in Battery Materials and Technologies The cathode material market features both established firms as well as startups with expertise in battery materials market forecast and technologies, many specializing in cathodes for electronic vehicles (EV).
Driving Factors
High Demand for EVs and Renewable Energy Battery Storage to Drive the Growth of the Global Cathode Material Market
The increased demand for various electric vehicles like HEVs, and PHEVs across the world is driving the growth of the cathode material market. The depleting fossil fuel reserves have forced individuals to look for better options for the fuel in their vehicles. Therefore, the benefits of electric vehicles, like 0 emissions and better efficiency, attract customers to adopt electric vehicles.
This has significantly boosted the demand for the cathode material in the market. The high use of cathode materials in manufacturing different batteries for electric vehicles is driving the growth of the cathode materials market.
Also, the adoption of renewable energy battery storage across various industries has positively affected the cathode material market. The advantages of renewable energy battery storage, like low carbon emission and low cost, attract industries to adopt renewable energy battery storage in their industries.
Therefore, with increasing demand for renewable energy battery storage, the cathode materials market is anticipated to grow significantly in the upcoming period.
Restraining Factors
Safety Concerns Related to Batteries are Obstructing the Growth of the Cathode Material Market
The batteries are made up of different types of chemicals and compounds that are toxic to humans. These chemicals and compounds include various acids and heavy metals, which are said to be harmful to human exposure. Therefore, the batteries require proper storage and transportation according to the provided guidelines, or otherwise, they can be very dangerous for individuals.
With the rising demand for cathode materials for their application in electric vehicles and renewable energy storage, the safety concerns of batteries are also rising among individuals. These factors are hindering the growth of the global cathode material market.
By Battery Type Analysis
The Lead Acid Battery Dominates the Battery Type Segment
The battery type analysis is classified into lithium-ion, lead acid, and other battery types based on the battery types of the cathode material. From these types, lead acid batteries dominate the battery type segment by accounting for a major revenue share in the market.
The increasing use of lead acid-based batteries like lead oxide across various applications in the energy storage systems and automotive industry is driving the growth of lead acid batteries in the battery type segment of the cathode materials market.
However, lithium-ion batteries are anticipated to grow significantly during the forecast period. The lithium-ion batteries like lithium cobalt oxide, lithium iron phosphate, and lithium manganese oxide are used in electric vehicles. This rising adoption of EVs over the last few years has boosted the growth of lithium-ion batteries in the market. It is also expected to continue the growth during the forecast period.
By Material Analysis
Lead Dioxide Dominates the Material Segment of the Cathode Material Market by Accounting for Major Revenue Share.
Based on material type, the cathode material market is classified into lithium cobalt oxide (LCO), lithium iron phosphate (LFP), lead dioxide, graphite cathode, oxyhydroxide, and other materials. Among these materials, lead dioxide dominates the material segment.
The growth of lead dioxide in the material segment is attributed to the high use of lead dioxide batteries in the telecommunication, energy storage, and automotive industries. The lead dioxide’s moderate discharge rate, as compared to the other materials in the competition, is driving the growth of lead dioxide in the material segment of the cathode material market.
By End-Use Analysis
The Automotive Sector Leads the End-use Segment of the Cathode Material Market.
The end-use of the cathode material is classified into consumer electronics, automotive, and other end-uses. From these end uses the automotive sector leads the end-uses segment by covering the major revenue share in the market.
The automotive sector’s growth is due to the increased adoption of electric vehicles across the world in the last few years, which has boosted the automotive sector’s growth in the end-use segment of the cathode material market.
The cathode material is used in the manufacturing of many batteries, like lithium-ion and lead-acid batteries. These batteries are highly used in electric vehicles for their better efficiency. Therefore, with the increasing use of these batteries in the automotive sector, the cathode material market is growing significantly.
Market Key Segments
By Battery Type
- Lithium-Ion
- Lead Acid
- Other Battery Types
By Material
- Lithium Cobalt Oxide (LCO)
- Lithium Iron Phosphate (LFP)
- Lead Dioxide
- Oxyhydroxide
- Graphite Cathode
- Other Materials
By End-Use
- Consumer Electronics
- Automotive
- Other End-Uses
Growth Opportunities
The Increased Government Subsidies are Expected to Create Many Opportunities in the Global Cathode Materials Market.
The cathode materials are highly used in batteries across various industries. The depleting fossil fuel reserves and increasing awareness of renewable energy storage have significantly affected the cathode material market.
Therefore, to support this growing market, the government of many countries has introduced various schemes and subsidies to promote and support the growth of renewable resources. This is anticipated to create many opportunities in the cathode material market during the forecast period.
Latest Trends
The Trend of Eco-Friendly Products is Boosting the Growth of the Cathode Material Market
The ongoing trend of eco-friendly products among individuals is boosting the growth of the cathode material market. Individuals across the world are highly inclined towards the adoption of eco-friendly products like electric vehicles. This rising awareness of the environment is positively affected.
Industries are opting for electric vehicles and renewable energy storage due to the ongoing trend of eco-friendly products. With the increased use of EVs and renewable energy storage, the demand for cathode material has risen significantly in the market. Therefore, the cathode material market is expected to grow over the forecast period.
Regional Analysis
Asia Pacific Leads the Cathode Material Market with a Major Revenue Share of 33.4%
The Asia Pacific region dominates the cathode material market by accounting for a major revenue share of 33.4%. The growth of the Asia Pacific region is attributed to the presence of countries like Japan, China, India, Taiwan, and South Korea. The increasing demand for electric vehicles and energy storage systems in these countries is boosting the growth of the Asia Pacific region.
The increasing disposable income and rising standard of living among the individuals in the region are increasing the demand for electric vehicles. This is driving the growth of the Asia Pacific region in the cathode material market.
After Asia Pacific, North America covers the second biggest share in the global cathode material market. The presence of advanced infrastructure and increasing investments in the automotive sector are driving the growth of the North American region.
Key Regions and Countries
- North America
- The US
- Canada
- Mexico
- Western Europe
- Germany
- France
- The UK
- Spain
- Italy
- Portugal
- Ireland
- Austria
- Switzerland
- Benelux
- Nordic
- Rest of Western Europe
- Eastern Europe
- Russia
- Poland
- The Czech Republic
- Greece
- Rest of Eastern Europe
- APAC
- China
- Japan
- South Korea
- India
- Australia & New Zealand
- Indonesia
- Malaysia
- Philippines
- Singapore
- Thailand
- Vietnam
- Rest of APAC
- Latin America
- Brazil
- Colombia
- Chile
- Argentina
- Costa Rica
- Rest of Latin America
- Middle East & Africa
- Algeria
- Egypt
- Israel
- Kuwait
- Nigeria
- Saudi Arabia
- South Africa
- Turkey
- United Arab Emirates
- Rest of MEA
Key Players Analysis
The cathode material market is fragmented into many companies offering the cathode material. The key companies in the market are adopting various strategies like mergers, acquisitions, partnerships, and collaborations to expand their market share and strengthen their position in the market.
The key companies in the cathode material market are Umicore, Johnson Matthey, LG Chem, BASF SE, Sumitomo Metal Mining Co. Ltd, Targray Technology International, NEI Corporation, Nichia Corporation, POSCO Chemical, Hitachi Chemical Co. Ltd, and other key players.
Market Key Players
- BASF SE
- Umicore
- LG Chem
- Johnson Matthey
- Targray Technology International
- Sumitomo Metal Mining Co. Ltd
- Nichia Corporation
- NEI Corporation
- POSCO Chemical
- Hitachi Chemical Co. Ltd
- Other Key Players
Recent Developments
- In April 2022, POSCO Chemical announced that they had started the construction of their new manufacturing plant, which has the capacity to produce 30,000 tons of high-purity nickel cathodes. This is expected to expand the customer base of the cathode material in the market.
- In May 2022, Umicore launched its new R and D center for cathode materials in Cheonan, Korea. The aim of the R&D center is to focus on the development of advanced battery materials.
Report Scope
Report Features Description Market Value (2022) US$ 21.0 Bn Forecast Revenue (2032) US$ 50.4 Bn CAGR (2023-2032) 9.4% Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Battery Type – Lead Acid, Lithium-Ion, and Other Battery Types; By Material – Lithium Iron Phosphate (LFP), Lithium Cobalt Oxide (LCO), Lead Dioxide, Graphite Cathode, Oxyhydroxide, and Other Materials; By End-Use – Consumer Electronics, Automotive, and Other End-Uses Regional Analysis North America – The US, Canada, & Mexico; Western Europe – Germany, France, The UK, Spain, Italy, Portugal, Ireland, Austria, Switzerland, Benelux, Nordic, & Rest of Western Europe; Eastern Europe – Russia, Poland, The Czech Republic, Greece, & Rest of Eastern Europe; APAC – China, Japan, South Korea, India, Australia & New Zealand, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, & Rest of APAC; Latin America – Brazil, Colombia, Chile, Argentina, Costa Rica, & Rest of Latin America; the Middle East & Africa – Algeria, Egypt, Israel, Kuwait, Nigeria, Saudi Arabia, South Africa, Turkey, United Arab Emirates, & Rest of MEA Competitive Landscape Umicore, Johnson Matthey, LG Chem, BASF SE, Sumitomo Metal Mining Co. Ltd, Targray Technology International, NEI Corporation, Nichia Corporation, POSCO Chemical, Hitachi Chemical Co. Ltd, and Other Key Players Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) Frequently Asked Questions (FAQ)
What will be the market size for Cathode Material Market in 2032?In 2032, the Cathode Material Market will reach USD 50.4 billion.
What CAGR is projected for the Cathode Material Market?The Cathode Material Market is expected to grow at 9.4% CAGR (2023-2032).
List the segments encompassed in this report on the Cathode Material Market?Market.US has segmented the Cathode Material Market Market by geographic (North America, Europe, APAC, South America, and MEA). By Type, market has been segmented into Lithium-Ion, Lead Acid and Other Battery Types. By Material, the market has been further divided into Lithium Cobalt Oxide (LCO), Lithium Iron Phosphate (LFP), Lead Dioxide, Oxyhydroxide, Graphite Cathode and Other Materials.
Which segment dominate the Cathode Material industry?With respect to the Cathode Material industry, vendors can expect to leverage greater prospective business opportunities through the Lead Acid Battery segment, as this dominate this industry.
Name the major industry players in the Cathode Material Market.BASF SE, Umicore, LG Chem, Johnson Matthey, Targray Technology International and Other Key Players are the main vendors in this market.
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- BASF SE Company Profile
- Umicore
- LG Chem
- Johnson Matthey
- Targray Technology International
- Sumitomo Metal Mining Co. Ltd
- Nichia Corporation
- NEI Corporation
- POSCO Chemical
- Hitachi Chemical Co. Ltd
- Other Key Players
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