Global Lithium-Ion Battery Testing Equipment Market - 2023-2030

Global Lithium-Ion Battery Testing Equipment Market - 2023-2030

Global Lithium-Ion Battery Testing Equipment Market reached US$ 512.3 million in 2022 and is expected to reach US$ 754.7 million by 2030, growing with a CAGR of 4.8% during the forecast period 2023-2030.

The lithium-ion battery testing equipment market is experiencing significant growth, primarily driven by the surging demand for electric vehicles and the diversification of battery chemistries. According to IEA, in 2022, automotive lithium-ion battery demand soared by a remarkable 65%, largely attributed to a 55% increase in new EV registrations.

Moreover, as the demand for lithium-ion batteries continues to surge, there is a parallel increase in the demand for critical materials such as lithium, cobalt and nickel. It indicates the importance of rigorous testing and quality control equipment to ensure the reliability and safety of batteries, particularly in the context of global supply chain sustainability.

The lithium-ion battery testing equipment market in the Asia-Pacific is experiencing robust growth, with key indicators pointing toward an expanding industry landscape. According to IEA, China, in particular, is taking the lead in grid-scale battery storage installations, with an impressive annual addition of nearly 5 GW in 2022. It surge in grid-scale deployments underscores the critical need for comprehensive testing and quality assurance equipment to ensure the performance and safety of these massive energy storage systems.

Dynamics

EV Battery Supply Chain Growth

The growing EV battery supply chain is significantly increasing the demand for lithium-ion battery testing equipment. The expansion of electric vehicle production and the surge in EV sales globally, particularly in China and other major markets highlight the critical role of battery technology in achieving net-zero emissions. According to IEA, to meet government EV ambitions, demand for EV batteries is projected to increase substantially, from approximately 340 GWh today to over 3500 GWh by 2030. It expansion necessitates additional investments across the supply chain, including mining and battery component production.

Furthermore, as EVs increasingly become a central focus of the automotive industry, there is heightened attention on the security of the supply chain for the critical minerals and metals needed for battery production. It emphasis on the reliability and quality of battery components is driving the need for advanced testing and quality control equipment. As the demand for EV batteries continues to soar to meet ambitious government targets and net-zero emission goals, there will be a tenfold expansion in battery and minerals supply chains.

Growing Innovations and Advancements

The lithium-ion battery test equipment market is experiencing significant growth due to technological advancements and innovations driven by the rapid expansion of the new energy vehicle market and lithium battery production capacity. The need for tailored solutions has driven innovation in equipment design and manufacturing. Load cells, a type of force sensor, are used to measure the mechanical properties and performance of lithium-ion batteries. Controlled loads are applied to the batteries to monitor force, strain or displacement responses. Researchers use this data to evaluate battery structural integrity, durability and behavior under different conditions.

The industry has seen significant advancements in lithium battery test equipment technology. High-quality equipment manufacturers have been focusing on improving precision, stability and automation in their products. Innovations include advanced tension control, auto-deflection technology and improved winding speed in winding machines. Also, international battery leaders like Samsung, LG and Panasonic are accelerating production expansion and demand for domestic equipment companies is expected to increase.

The battery test equipment industry exhibits varying levels of competition and concentration along the production chain. The posterior section equipment, which is crucial for battery safety and quality, has the highest technical requirements and enjoys a competitive advantage. According to ""Tycorun Energy"" report high-quality equipment in this segment can achieve net profit margins of about 30%, contributing significantly to the industry.

Environmental Concerns

The lithium-ion battery testing equipment market can be negatively impacted by the lithium batteries' environmental concerns. As governments and environmental agencies become more aware of the environmental impact of lithium-ion batteries, they may impose stricter regulations on battery manufacturing and testing. Compliance with these regulations may require additional testing procedures and equipment, increasing the cost and complexity of battery production.

Furthermore, addressing environmental concerns, such as responsible mining practices and proper disposal, can add to the overall production costs of lithium-ion batteries. Manufacturers may seek cost-cutting measures, including reducing investments in testing equipment, which could compromise battery quality and safety. Also, battery testing equipment for assessing the suitability of batteries for recycling may see limited adoption if recycling rates remain low.

Segment Analysis

The global lithium-ion battery testing equipment market is segmented based on type, equipment and region.

Growing Demand for Battery Discharge Testing Equipment Driven by Rechargeable Battery Market Expansion

The rising demand for rechargeable batteries, including lithium-ion batteries, is driving the growth of battery discharge testing equipment. It is primarily due to global concerns related to environmental issues, energy efficiency and the growing adoption of electric vehicles and renewable energy sources. The research and development of various rechargeable battery types, such as lithium-ion batteries, polymer rechargeable batteries, all-solid-state batteries and all-resin batteries, are gaining attention. Battery discharger testers are crucial for evaluating the performance and safety of these diverse battery technologies.

Battery discharger testers are equipped with a variety of charge/discharge modes to meet the specific testing needs of different battery technologies. It also come with a full range of protective functions to prevent damage to valuable batteries during testing. The availability of evaluation software with pre-installed test modes for various types of rechargeable batteries simplifies the testing process. It user-friendly software enhances the efficiency of battery testing.

Geographical Penetration

Asia-Pacific Dominates Lithium-ion Battery Testing Equipment Market

Asia-Pacific holds the largest share in the lithium-ion battery testing equipment market. According to IEA, India, as indicated in its draft national electricity plan for 2022, has set ambitious targets for the development of battery energy storage. It demonstrates India's commitment to adopting advanced battery technologies, creating opportunities for the growth of battery testing equipment services.

According to ""The China Story"" article today's battery and minerals supply chains are largely centered around China, which produces 75% of all lithium-ion batteries. China also holds significant production capacity for cathodes (70%) and anodes (85%), key components of batteries. It concentration underscores the need for rigorous quality control and testing. Also, the increasing penetration of Chinese-made equipment in Japanese and South Korean battery companies is anticipated, offering significant global market opportunities.

Competitive Landscape

The major global players in the market include Arbin Instruments, Hioki USA Corporation, Battery Technology Source Co. Ltd., Xiamen Tmax Battery Equipment Limited, ACS Solutions, GUANGDONG BELL EXPERIMENT EQUIPMENT CO. LTD., Chroma ATE Inc., Kikusui Electronics Corporation, Guangzhou Lanqi Electronic Industry Co.,Ltd and Maccor Inc..

COVID-19 Impact Analysis

The COVID-19 pandemic made a significant impact on the lithium-ion battery testing equipment market. The pandemic disrupted global supply chains, including those related to the production and distribution of lithium-ion batteries and their testing equipment. Shutdowns of manufacturing facilities, mines and refineries in countries like China, which plays a central role in battery manufacturing, led to delays and shortages in the supply of batteries and esting equipment.

The pandemic led to a decrease in the demand for electric vehicles as consumer spending declined and economic uncertainty prevailed. Since lithium-ion batteries are a critical component of EVs, the reduced demand for EVs indirectly affected the demand for battery testing equipment used in EV production. Despite disruptions, research and development efforts continued in the energy-storage materials market. Advances in materials, manufacturing processes and automation technologies may impact the design and testing requirements for lithium-ion batteries, influencing the demand for testing equipment.

Russia-Ukraine War Impact

The Russia-Ukraine war has disrupted the lithium-ion battery market due to Ukraine's rich lithium deposits, a key resource for batteries used in electric vehicles and renewable energy systems. The conflict has raised concerns about the stability of lithium supply chains and has led to increased speculation in lithium prices. Lithium is critical for electric mobility and renewable energy transition, making it a strategic concern for major global powers.

The war has accelerated research into alternatives to traditional lithium-ion batteries. It includes exploring batteries made from sand, which could offer a safer and more environmentally friendly option. While this may not directly impact the testing equipment market, it could lead to changes in testing requirements and standards if alternative battery technologies gain traction.

By Type
• Battery Capacity Tester
• Battery Voltage Tester
• Battery Resistance Tester
• Battery Cycle Life Tester
• Battery Safety Tester
• Battery Formation Equipment
• Battery Analyzer
• Others

By Equipment
• Battery charge and discharge tester
• Thermal abuse test chamber
• External short-circuit tester
• Battery drop tester
• Thermal abuse test chamber
• Crush Tester
• Others

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Russia
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• In July 2023, Servotech Power Systems launched Techbec Green Energy, a new unit dedicated to the indigenous manufacturing of key components for electric vehicle (EV) chargers. Servotech and its subsidiary plan an initial investment of INR 30 crore ($3.65 million) for various purposes such as procuring testing equipment, hiring manpower, acquiring machinery, incorporating cutting-edge technology and supporting other related activities.
• In March 2023, Freyr Battery commenced lithium-ion battery production on its demonstration line in Mo i Rana, Norway, marking a significant milestone in its journey toward lithium battery manufacturing. The company-initiated sample production at its Customer Qualification Plant (CQP) using cell technology licensed from 24M Technologies, a US-based company. Freyr plans to conduct sample sales to its customers, test various materials and train its workforce at the 13,000 sq.m CQP, aiming to resolve any potential issues before the official launch of production at its GigaArctic battery plant, also in Mo i Rana, scheduled for 2024.
• In June 2021, Digatron and DSA, both based in Aachen, Germany, joined forces to develop an end-of-line (EOL) testing solution for lithium battery production. Digatron, an industry innovator with over 50 years of experience in battery technology, partnered with DSA, a specialist in innovative communication solutions for automotive electronics with 40 years of expertise.

Why Purchase the Report?
• To visualize the global lithium-ion battery testing equipment market segmentation based on type, equipment and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of lithium-ion battery testing equipment market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global lithium-ion battery testing equipment market report would provide approximately 53 tables, 56 figures and 182 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies