Battery Coating Market: Current Analysis and Forecast (2021-2027)

Battery coating is a core technology that is used for the manufacturing of lithium-ion secondary batteries. It is a thin film deposition technology used in the electrochemical industry. Specific materials are coated on the substrates such as the anode, cathode, and separator for isolating them, which combine to form the layered electrode. Battery coatings are generally used for providing high density, high permeability, and minimum energy loss in the cores of the transformers, motors, and generators. The increasing urbanization resulted in a rise in the consumption of electric vehicles and the growing automotive industry is rising the battery coating market globally as it increases the performance of cars, vehicles, and electric devices. Also, it has a high demand for power and high-speed cars as it helps in improving their efficiency, reduces energy loss, and other benefits. Additionally, battery coating emits a lower level of carbon dioxide which makes it environment-friendly material. Batteries also possess strong power density and have unique properties such as high permeability. Therefore, the manufacturers have been focusing on producing new products for specific applications according to their utilization. For instance, Tesla's advanced battery research group in Canada in collaboration with Dalhousie University has released a paper on novel nickel-based battery tech that could last 100 years while also delivering similar charging and energy density as currently used Lithium Ferrum (iron) Phosphate cells. Thus, the global battery coating market is likely to showcase a growth of around 13% during the forecast period.

Based on material, the market is categorized into ceramic, alumina, oxide, carbon, and others. Among these, alumina has a prominent share in the battery coating market. This can be attributed to the fact that high quality of alumina, easy accessibility, and less intricate battery coating process relative to other material types.

Based on battery components, the market is categorized into electrode coating, separator coating, and battery pack coating. Among these, electrode coating has considerably had a large share in the battery coating market. As there is an increase in demand for electrode coating in lithium-ion batteries for the high performance and protection of the batteries. Also, there is an increase in demand for more sustainable batteries, especially in EVs, smart devices, and energy storage systems. These factors will drive the growth of the electrode coating segment.

Based on application, the market is categorized into power generation, automobiles, oil and gas, electronics, and others. Among these, automobiles accounted for a significant share of the battery coating market. Battery coatings are generally used for providing high density, high permeability, and minimum energy loss in the cores of electric motors, and generators. It also helps in providing electrical resistivity and ultimately reduces magnetic losses. Due to these factors, battery coating is widely adopted by electric vehicle manufacturers. For instance, in November 2021, Nissan announced an investment of USD17.6 billion (JPY 2 trillion) over the next five years on developing a cheaper, more powerful battery to boost its electric vehicle lineup.

For a better understanding of the market adoption of battery coating, the market is analyzed based on its worldwide presence in the countries such as North America (United States, Canada, Rest of North America), Europe (Germany, France, United Kingdom, Italy, Spain, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of APAC), and Rest of World. Asia-Pacific accounted for a significant share of the market and is expected to showcase substantial growth during the forecast period. This is due to increasing investment in the electric vehicle sector and the rising demand for smart devices in the region. For instance, China's 14th five-year plan (2021-2025) emphasizes the significant expansion of the New Energy Vehicle (NEV) industry. The Chinese government targets 20% of all new car sales by 2025 to be electric, even adopting NEVs as the new generation of governmental vehicles. Different Chinese cities have various NEV adoption plans. For example, Shanghai targets to raise half of all new car sales to be pure electric vehicles, including buses, trucks, postal vehicles, and government cars by the middle of the decade. Moreover, South Korea is also witnessing significant growth in the battery coating industry due to the global expansion of its domestic brands. This will increase the demand for battery coating in the region.

Some of the major players operating in the market are Targray Technology International Inc., Solvay S.A., Arkema S.A., Ashland Global Holdings Inc., Axalta Coating Systems Ltd., UBE Corporation, Tanaka Chemical Corp., SK Innovation Co. Ltd., Forge Nano Inc., Shandong Hengyi New Material Technology Co. Ltd. These companies are taking several strategic decisions to meet the growing demand and increase their market share.