Aluminum Air Battery Market Trends

Growth Drivers

• Rising Sales of Electric Vehicles - The International Energy Agency reports that the global demand for electric cars is growing exponentially, with sales expected to reach 10 million by 2022. In just three years, the percentage of electric vehicles in overall sales has more than tripled, rising from 4% in 2020 to 14% in 2022. For electric vehicles, aluminum-air batteries can offer a durable and lightweight energy storage option. This may contribute to extending the driving range and lowering the overall cost of electric cars. Aluminum-air batteries have an energy density that can be up to eight times greater than lithium-ion batteries', which makes them a viable alternative for electric vehicles. As a result of this, aluminum-air battery market is anticipated to grow significantly with rising sale of electric vehicles.
• Growing Interest in Renewable Energy Storage Systems - Aluminum-air batteries have the potential to enhance power system stability and dependability. The integration of renewable energy sources like solar and wind power can also be supported by these batteries. Thus, it is anticipated that the market for aluminum-air batteries will develop over the next several years due to the rise in demand for reliable energy storage solutions across a range of industries. Compared to other battery types, aluminum-air batteries are considered more environmentally benign. Lead, cadmium, or lithium are among the harmful or dangerous substances absent from these batteries. Aluminum-air batteries also have a lower environmental impact because they don't use rare earth metals or other limited resources. Because of its extreme versatility, aluminum-air batteries can be utilized to regulate frequency and capacity in wholesale energy industry. Owing to this, the aluminum-air battery market will encounter growth during the projection period.
• Increasing research & development - Continuous research & development are ongoing with aim to enhance the performance of aluminum-air batteries, including power output, and efficiency. With the advancing technology and production scale up, cost of aluminum-air batteries is predicted to decline, making them more affordable. All this is anticipated to support the growth of overall market.

Challenges

• Easy Availability of Alternate Products - The market offers a range of substitute metal air batteries, such as lithium, zinc, and iron. Batteries composed of lithium-air have the highest specific energy. The maximum energy density of lithium-air batteries may reach theoretical values of approximately 3,458 watt-hours per kilogram, which is a substantial increase above that of Li-ion batteries. Global demand for lithium-ion batteries and other substitute products could provide the major obstacle to the expansion of the aluminum-air battery market.
• Large investment needed in research & investment is Expected to Pose Limitation on the Market Growth in the Projected Period
• Low shelf life of aluminum-air batteries is Predicted to Hamper the Market Expansion in the Upcoming Period.