Metal Air Battery Market Size, Share & COVID-19 Impact Analysis, By Metal (Zinc-Air, Lithium-Air, Aluminum-Air, Iron-Air, Others), By Type (Primary, Secondary/Rechargeable), By Application (Electric Vehicle (EV), Stationary Power, Military Devices, Electronic Devices) and Regional Forecasts, 2021-2028

The global metal-air battery market size was valued at USD 431.49 million in 2020 and is projected to grow from 445.04 million in 2021 to USD 744.66 million in 2028, exhibiting a CAGR of 7.6% during the forecast period

The global impact of COVID-19 has been unprecedented and staggering, with metal air batteries witnessing a slow growth across all regions amid the pandemic. Based on our analysis, the global market exhibited a decline in 2020 as compared to the average year-on-year growth during 2017-2019. The sudden rise in CAGR during the forecast is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

Metal air batteries are considered the most preferred replacement for lithium-ion and lithium air batteries, which are currently used across most of the application sectors. The ability of the battery to use metals, such as iron, zinc, and aluminum, which are available in abundance, results in lower manufacturing costs. The specific density and energy capacity of these batteries are also better compared to the lithium-ion and lithium air batteries. Sometimes the battery is also referred to as a special type of fuel cell, which uses metal as an anode and air as an oxidant. These are used for hearing aid devices, railway signaling, navigation systems, watches, and others.

Blockades in Research and Development Processes across Regions to Harm Growth of the Market

The global health emergency caused by the sudden spread of the novel coronavirus or COVID-19 pandemic has had a negative impact on almost every industry. Businesses have had to suffer a significant loss in operational time owing to the imposition of strict policies, such as nation-wide lockdowns, to curb the reach of the virus. Accordingly, the outbreak of the disease has altered the demand for metal air batteries as the demand from the end-use sectors has gone down.

As these batteries are still in nascent stages of development and various companies and research institutions are working on parameters that will help in the commercialization of these batteries, the estimated delivery timeline of projects has lengthened. This will substantially impact investments in the market in the coming years. For instance, as per the International Energy Agency (IEA), the global sales of electric vehicles will fall by 15% in 2020, which will certainly hamper the battery manufacturers around the globe. Similarly, owing to market challenges due to Covid-19 faced in 2020, battery manufacturing in China is estimated to witness a shortfall of 25GWh to 30GWh incapacity.

LATEST TRENDS

Increasing Adoption of Renewable Resources for Power Generation to Favor Growth

The increasing adoption of renewable energy resources, such as wind and solar, is one of the leading factors driving the demand for battery energy storage systems, which will benefit the market. With the increasing energy demand along with the need to reduce greenhouse gas (GHG) emissions, the installation of renewable energy is set to grow at the highest and tremendously over the coming years, which in turn will lead to the expansion of battery storage systems. For instance, in 2019, The German government announced its ambitious goal of producing 20GW energy by using offshore wind power by the end of 2030.  

Increased Scope of Deployment with Expanding Marketplaces is a Prominent Trend

In the current scenario, metal air batteries are majorly used in electronic applications, such as remotely controlled toys, buttons cells, hearing equipment, and others. With the expanding market for consumer electronics with new devices, the scope for these batteries also increases. Also, these can be used in electric vehicles which are expected to gain pace in the global market over the next decade. This will certainly act as a boost to the innovation process carried out to have an optimal battery solution.  High voltage metal air batteries are expected to be delivered in the market in coming years.  

DRIVING FACTORS

Rising Need of Batteries for Backup Power Systems to Propel Growth

The demand for high energy has become a mandatory requirement across all sectors to meet the production targets. This has increased the number of batteries being installed for power back up to balance the working hours. Also, at residential locations, batteries are being installed along with rooftop solar or just as backup power. The military operations at remote locations require a good source of backup power to run the technically advanced systems that have come up to maintain high standards of security. This trend of off-grid energy storage is expected to be continued and expanded across different industry verticals, which will create opportunities for the installation of high voltage metal air batteries and drive the growth of the market.

Economical Advantage and Higher Capacity Will Attract Investments from Leading Players

The low manufacturing cost of metal air batteries compared to the other available counterparts backed by the use of abundantly available metals as anode and air as oxidant attracts investors to manufacture these batteries on a larger scale. The higher energy density is another factor that makes these batteries a lucrative opportunity for the manufacturers to gain huge profits. Various companies are working along with other research and development institutions to improve the current performance characteristics of the battery and bring the optimum product to the market on a large scale.     

RESTRAINING FACTORS

Rising Adoption of Lithium-Ion Batteries Poses Threat to Growth of the Market

One of the key market restraints for the market is the increasing deployment of lithium air and lithium ion batteries across all the application sectors. Lithium-ion batteries being more stable and commercialized, are growing at a tremendous rate and will have a strong foothold in the market in the following years. This will harden the task for metal air batteries to penetrate the energy storage market. Currently, lithium-ion batteries account for more than 3/4th of the energy storage systems market. Also, the lack of rechargeability with the use of some metals poses a threat to their adoption.

SEGMENTATION

By Metal Analysis

Zinc-air Batteries Segment Holds a Significant Share Backed by Commercialization

Based on the metal, the global market is broadly categorized into zinc-air, lithium-air, aluminum-air, iron-air, and others. The zinc-air batteries are the only type of metal air battery that have been commercialized and therefore hold significant share and growth opportunities. These are currently used for stationary power and electronic devices. Aluminum air batteries expected are expected to have healthy growth in the coming years as it is being tested for electronic vehicles and also for large storage systems in the renewable sector.  

By Type Analysis

Secondary Batteries Segment to Dominate Owing to Their Ability to Recharge Rapidly

Based on type, the global industry can be primarily bifurcated into primary and secondary/rechargeable. Currently, most of the metal air batteries being manufactured are primary which has led primary segment to hold a significant market share in the global market. Also, market players are working toward making the metal air batteries rechargeable, which will be a major turnaround in the whole energy storage systems market. Rechargeability is the major determining factor for the adoption of these batteries in stationary power and EV on a larger scale. Therefore, trial and error methods are being carried out to end up on a feasible solution of a metal air battery. Zinc and aluminum are the metals found to have rechargeable characteristics when used in battery manufacturing.

By Application Analysis

Introduction of EV Holds Immense Growth Opportunities in Market

Based on application, the global market is divided into electric vehicles (EV), stationary power, military devices, and electronic devices. The electronics devices segment is currently dominating the market share as commercial metal air batteries are mostly found in small electronics only. Further, the research and plans by leading EV players such as TESLA to introduce metal air batteries using aluminum will drive the growth of EVs at exponential levels. The global need to reduce carbon emissions, coupled with a high rate of emissions from the transportation sector, is the major factor that will indirectly boost the investments for electric vehicle application and therefore drive the growth of the EV segment.    

REGIONAL INSIGHTS

The market has been analyzed across major regions, which include North America, Asia Pacific, Europe, and the rest of the world.  

Asia Pacific is projected to dominate the global metal air battery market in the coming years owing to the region being the manufacturing hub for a major portion of global electronics. The region also has countries, such as China and Japan, which account for over 50% of the total EVs running around the globe. Other factors that drive the region's growth include huge investments by countries in renewable energy and research & development to find solutions to existing battery problems.

After Asia Pacific, North America is the other dominant region in the market. A huge presence of market players aiming toward the development of optimum metal air batteries has led to investment flow and the running of multiple pilot projects to assess the effectiveness of the manufactured commodities.

Europe is also looking for safer and higher performing batteries at minimum costs. Certain projects, such as NECOBAUT, are being carried out in the region to develop a new generation of batteries for the automotive sector. The NECOBAUT project aims toward the development of new batteries for the automotive sector based on new metal air technology that will overcome the energy density limitation of the Li-ion battery currently used in electric vehicles. 

KEY INDUSTRY PLAYERS

NantEnergy Inc., Log 9 Materials, and Phinergy to Lead with Diversified Product Portfolios and Customer Reach

The global metal air market has different key players aiming toward optimal metal air battery manufacture with rigorous research and developments to enhance the performance characteristics.  These key players are indulging in various collaborative efforts along with a dedicated focus on efficient operations with minimum energy loss. As the market is still at a nascent stage and is concentrated in particular parts, companies are aiming to reach customers around the globe, which will bolster the opportunities in the metal air battery market growth. 

LIST OF KEY COMPANIES PROFILED:

• Phinergy (Israel)


• NantEnergy (United States)


• Log 9 Materials (India)


• Arotech Corporation (United States)


• PolyPlus (United States)


• Fuji Pigment Co. Ltd. (Japan)


• Zinc8 Energy Solutions (Canada)


• GP Batteries (Hong Kong)


• ZAF Energy Systems Inc. (ZAFSYS) (United States)


• Thunderzee (United States)


• Duracell Inc. (United States)


• Energizer Holdings (United States)


• Panasonic (Japan)


• Epsilor Electric Fuel (Israel)


• Renata S.A. (Switzerland)


• ZeniPower (Zhuhai Zhi Li) Battery Co., Ltd. (China)


• Guangdong Tianqju Electronics Technology Co., Ltd (China)

KEY INDUSTRY DEVELOPMENTS:

• In July 2021, Form Energy, a Boston-based startup, developed an innovative low-cost, long-duration rechargeable iron-air battery that can deliver electricity for 100 hours at system costs and costs less than 1/10th the cost of a lithium-ion battery.


• In July 2021, Scientists at the Illinois Institute of Technology have developed a unique combination of internal battery components that allow lithium and oxygen to react with minimal interference, avoiding the formation of byproducts that decrease the efficiency of the battery, thereby facilitating lithium-air battery with a long cycle life, achieving 1,200 charges and discharges. A hybrid electrolyte has also been developed to absorb impurities. 


• In June 2021, the International Advanced Research Centre for Powder Metallurgy and New Materials (ARCI) of the Government of India, developed a cost-effective electrocatalyst that can decrease cost and increase the efficiency of metal-air batteries. 


• In April 2021, Researchers at Hanyang University of South Korea designed a new type of zinc-air pouch cell that improves the anti-freezing characteristics, resistance toward swelling, compatibility for crosslinking, and ion-discerning property of the zinc-air batteries.

REPORT COVERAGE

The global metal air battery market report highlights leading regions across the world to offer a better understanding of the user. Furthermore, the market research report provides insights into the latest metal air battery industry trends and analyzes technologies that are being deployed at a rapid pace at a global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader to gain in-depth knowledge about the industry.

Report Scope & Segmentation