|Fastest Growing Market:||Europe|
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The lithium-ion battery's electrolyte solvent market is expected to record a CAGR of less than 20% during the forecast period 2022-2027.
The COVID-19 pandemic had a negative impact on the market. However, the market is now estimated to have reached pre-pandemic levels, and it is expected to grow steadily during the forecast period.
The major factors driving the growth of the market studied are the increasing demand from electric vehicle manufacturers and the growing demand from smartphone manufacturers.
On the flip side, potential hazards caused by using impure electrolyte solvents are projected to hinder the growth of the market studied to some extent.
Emerging technologies in the production of non-flammable solvents and the increasing scope of lithium-ion batteries in aerospace applications are likely to provide numerous opportunities for manufacturers in the future.
Asia-Pacific accounted for the largest share across the world, with China clearly dominating the global demand.
Scope of the Report
Electrolytes are vital components of an electrochemical energy storage device. They are usually composed of a solvent or mixture of solvents and a salt or a mixture of salts, which provide the appropriate environment for ionic conduction. The lithium-ion battery's electrolyte solvent market report is segmented by solvent type and application. Solvent type segmentation includes ethylene carbonate, diethyl carbonate, dimethyl carbonate, ethyl methyl carbonate, propylene carbonate, and other solvent types. By application, the market is segmented into application power backups/UPS, mobile, laptops, and other commonly used consumer electronic goods, electric mobility/vehicles, energy storage systems, and other applications. The report also covers the size and forecasts for the lithium-ion battery's electrolyte solvent market in 15 countries across the major regions. For each segment, the market sizing and forecasts have been done on the basis of revenue (USD million).
|Ethylene Carbonate (EC)|
|Diethyl Carbonate (DEC)|
|Dimethyl Carbonate (DMC)|
|Ethyl Methyl Carbonate (EMC)|
|Propylene Carbonate (PC)|
|Other Solvent Types|
|Mobile, Laptops, and Other Commonly Used Consumer Electronic Goods|
|Energy Storage Systems|
Key Market Trends
The Dimethyl Carbonate (DMC) Segment is Expected to Dominate the Market
Dimethyl carbonate (DMC) is the most promising electrolyte solvent for a lithium-ion battery due to its inherent safety and robustness. Commonly used organic solvents, like propylene or ethylene carbonates, have an issue because of their high viscosity, which limits the efficiency of the lithium electrochemical cycle. DMC has good solvation of lithium ions and low viscosity, which eliminates that issue.
Commercial processes for producing DMC include the phosgene route, liquid-phase methanol oxycarbonylation (a process developed by Enichem), and methyl nitrite carbonylation (developed by UBE).
UBE Industries Ltd is the largest supplier of diethyl carbonate, with a production capacity of nearly 175,000 ton per annum. Kindun Chemical Co. Limited, Shenzhen Capchem, and Dongwha Electrolyte are other major players involved in the production of this solvent type.
Tesla’s Gigafactory 3 in Shanghai entered its production phase in October 2019. Tesla Inc., in February 2021, announced plans to start work on a new plant in Shanghai as part of its plan to more than double its production capacity in China.
Thus, the DMC segment is expected to dominate the global market.
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The Asia-Pacific Region is Expected to Dominate the Global Market
China is the largest car market for electric vehicles in the world. The COVID-19 pandemic severely impacted the demand for electric vehicles in the initial years after 2020. However, a slight recovery was observed in the May and June figures, where plug sales showed improvement. However, 2020 was expected to be a disappointment for the electric vehicles segment in the country.
As of May 2021, Xpeng Motors, a Chinese electric car startup, has opened a large assembly plant in southeastern China. It is building a matching factory nearby.
Nio, another Chinese electric car company, established a large factory in central China, and it is preparing to build a second one a few miles away.
The Indian government has created momentum through its Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles schemes that encourage and, in some segments, mandate the adoption of electric vehicles (EV), to reach 30% EV penetration by 2030. The scheme creates demand incentives for EVs and supports the deployment of charging technologies and stations in urban centers.
Although Japan plans to phase out petrol and diesel cars by the mid-2030s and is a powerhouse producer of hybrid cars, consumers have a limited choice when it comes to BEVs.
The government is facing pushback from Toyota, which said last year that “the current business model of the car industry is going to collapse” if the government moved too quickly. Toyota has no plans to mass-produce a BEV vehicle until 2025, although it is developing fuel-cell electric vehicles (FCEVs) that run on hydrogen.
Japan also announced that it would stop the sale of new gasoline-only cars by 2035.
Thus, based on the aforementioned factors, Asia-Pacific is expected to dominate the global market over the forecast period.
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The market studied is consolidated in nature. The top companies have been utilizing competitive strategies and investments to retain and expand their shares. The top seven players, namely, UBE Industries Ltd, Kindun Chemical Co. Limited, Oriental Union Chemical Corporation (OUCC), Dongwha Electrolyte, Shenzhen Capchem Technology Co. Ltd, Lixing Chemical, and Huntsman International LLC, accounted for almost 78% of the market studied.
- In October 2021, SES Holdings Pte Ltd (SES) announced the establishment of the world’s first pilot production line capable of scaling up high-concentration, solvent-in-salt electrolyte production.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1.1 Increasing Demand from Electric Vehicle Manufacturers
4.1.2 Growing Demand from Smartphone Manufacturers
4.2.1 Potential Hazards Caused by Using Impure Electrolyte Solvents
4.2.2 Other Restraints
4.3 Industry Value Chain Analysis
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION
5.1 Solvent Type
5.1.1 Ethylene Carbonate (EC)
5.1.2 Diethyl Carbonate (DEC)
5.1.3 Dimethyl Carbonate (DMC)
5.1.4 Ethyl Methyl Carbonate (EMC)
5.1.5 Propylene Carbonate (PC)
5.1.6 Other Solvent Types
5.2.1 Power Backups/UPS
5.2.2 Mobile, Laptops, and Other Commonly Used Consumer Electronic Goods
5.2.3 Electric Mobility/Vehicles
5.2.4 Energy Storage Systems
5.2.5 Other Applications
220.127.116.11 South Korea
18.104.22.168 ASEAN Countries
22.214.171.124 Rest of Asia-Pacific
5.3.2 North America
126.96.36.199 United States
188.8.131.52 United Kingdom
184.108.40.206 Rest of Europe
5.3.4 South America
220.127.116.11 Rest of South America
5.3.5 Middle-East and Africa
18.104.22.168 Saudi Arabia
22.214.171.124 South Africa
126.96.36.199 United Arab Emirates
188.8.131.52 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share (%)**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 BASF SE
6.4.2 Connect Chemicals
6.4.3 Dongwha Electrlyte
6.4.4 Huntsman International LLC
6.4.5 Kindun Chemical Co. Limited
6.4.6 Lixing Chemical
6.4.7 Merck KGaA
6.4.8 Mitsubishi Chemical Corporation
6.4.9 Oriental Union Chemical Corporation (OUCC)
6.4.10 Sankyo Chemical Co. Ltd
6.4.11 SES Holdings Pte Ltd
6.4.12 Shenzhen Capchem Technology Co. Ltd (CAPCHEM)
6.4.13 UBE Industries Ltd
6.4.14 Zhengzhou Meiya Chemical Products Co. Ltd
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Emerging Technologies in the Production of Non-flammable Solvents
7.2 Increasing Scope of Lithium-ion Batteries in Aerospace Applications
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Frequently Asked Questions
What is the study period of this market?
The Lithium-ion Battery's Electrolyte Solvent Market market is studied from 2017 - 2027.
What is the growth rate of Lithium-ion Battery's Electrolyte Solvent Market?
The Lithium-ion Battery's Electrolyte Solvent Market is growing at a CAGR of <20% over the next 5 years.
Which region has highest growth rate in Lithium-ion Battery's Electrolyte Solvent Market?
Europe is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Lithium-ion Battery's Electrolyte Solvent Market?
Asia-Pacific holds highest share in 2021.
Who are the key players in Lithium-ion Battery's Electrolyte Solvent Market?
UBE INDUSTRIES,LTD., Kindun Chemical Co.,Limited, Shenzhen Capchem Technology Co. Ltd, Dongwha Electrlyte, Oriental Union Chemical Corporation (OUCC) are the major companies operating in Lithium-ion Battery's Electrolyte Solvent Market.