The structural battery market involves the integration of batteries into various structural elements within vehicles, buildings, and other machinery in order to save space and reduce overall weight. Structural batteries have the ability to serve two purposes at once by functioning as both a structural component and an energy storage unit simultaneously. They are largely being adopted in electric vehicles (EVs) where battery packs are molded into the vehicle body or chassis to replace metal components. This provides automakers with flexibility in vehicle design while optimizing passenger space and cargo volume. Structural batteries help offset the high manufacturing costs of EVs by lowering the overall weight of the vehicle.

The Global structural battery market is estimated to be valued at US$ 1.84 Bn  in 2024 and is expected to exhibit a CAGR of 20 % over the forecast period 2024 to 2030.

Key Takeaways
Key players operating in the structural battery market are Tesla, Inc. (United States), BMW AG (Germany), Airbus SE (France), Volkswagen AG (Germany), Samsung SDI Co., Ltd. (South Korea), Saft Groupe S.A. (France), Northvolt AB (Sweden), LG Chem Ltd. (South Korea), Farasis Energy, Inc. (China), Solid Power, Inc. (United States), Cadenza Innovation, Inc. (United States), Blue Solutions SA (France), Oxis Energy Ltd. (United Kingdom), Excellatron Solid State, LLC (United States), Amprius, Inc. (United States). The growing demand for structural batteries from the automotive industry is one of the major factors driving market growth. Structural batteries are increasingly being used in electric vehicles, hybrid electric vehicles, and plug-in hybrid electric vehicles to improve vehicle performance. Rising global vehicle production and sales will augment the demand for structural batteries during the forecast period. The expansion of the global electric vehicle market especially in China, Europe, and North America will create new opportunities for structural battery manufacturers.

The increasing demand for electric vehicles is one of the major drivers of the Structural Battery Market Size. Stringent emissions norms and the push for greener technologies have encouraged many automakers to invest heavily in EVs. As structural batteries enhance the driving range and efficiency of EVs, their adoption is rising rapidly. The market is also being positively influenced by the growing demand for more sustainable battery solutions across various end-use industries. Various initiatives to promote EVs and the setting up of charging infrastructure worldwide will further bolster structural battery consumption over the coming years.

The current geopolitical situation is impacting the growth of the structural battery market. Conflict between nations in Europe has disrupted supply chains and increased raw material costs. Countries are also imposing export restrictions to secure domestic supply. As a result, battery manufacturers are facing challenges in procuring critical minerals like lithium, cobalt and nickel. This is hindering their production capacity expansion plans over the short to medium term. At the same time, higher energy costs in Europe are pushing up battery costs, making structural batteries less affordable. To overcome these challenges, battery makers will need to diversify their sourcing networks and reduce dependencies on single or conflict-affected nations. They also need to focus on recycling programs to recover batteries at the end of life and extract raw materials, as well as fund R&D to develop batteries with less dependency on critical minerals. Governments across regions should implement policies supporting the local battery industry through incentives and provide a stable investment environment.

Europe is currently the largest and most lucrative market for structural batteries in terms of value, accounting for over 35% of global revenues. This is due to the strong presence of leading European automakers and the region's push for electrification of transport. Germany dominates the European structural battery market owing to the large automotive industry centered around Munich and Stuttgart. However, sluggish economic growth and supply chain issues could impede near-term demand. The Asia Pacific region excluding China is emerging as the fastest growing market for structural batteries and is expected to witness over 25% CAGR during the forecast period. This can be attributed to the rapid expansion of the electric vehicle industry in countries such as South Korea, Japan and India, backed by supportive government policies and investments in charging infrastructure to promote clean mobility.

The North American structural battery market is concentrated in the United States, which contributes to over 70% of the regional revenues. With an upsurge in EV adoption led by Tesla and General Motors's EV commitments, the US structural battery market is poised for strong growth. Nevertheless, the market could face challenges from the ongoing trade issues with China, a key supplier of battery materials and components. Other regions including Latin America and Middle East & Africa offer lucrative opportunities for structural battery manufacturers to tap developing economies investing in electrification of transport and urban infrastructure.

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