Lithium Sulfur Battery Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Lithium Sulfur Battery Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The lithium-sulfur battery market is expected to register a CAGR of more than 25.50% during the forecast period.

Key Highlights

• Over the medium term, factors such as increasing demand for electric vehicles due to the various countries' supportive government policies and initiatives to reduce emissions and the increasing demand for energy storage devices amid increasing renewable energy installation drive growth in the market during the forecast period.
• On the other hand, the high cost of lithium-sulfur batteries is likely to restrain the market growth during the forecast period.
• Nevertheless, advancements in battery technology have dramatically increased the demand across end-user industries. Also, the government’s investment is increasing to develop high-energy-density batteries for the military and aviation sectors. This will likely create immense opportunities for the market studied during the forecast period.
• The Asia-Pacific is expected to be the largest and fastest-growing market during the forecast period, with most of the demand coming from countries like China, Japan, and other countries.

Lithium Sulfur Battery Market Trends

Aerospace Segment to Dominate the Market

• The installation of lithium-sulfur batteries is increasing across the aerospace sector as this sector requires high energy storage. Air transport is booming worldwide as it is the most time-efficient and convenient travel source for people. The aerospace sector is also moving towards lower emission sources.
• Governments worldwide invest heavily in integrating batteries into air transport to store energy. These batteries are significantly used in unmanned small or micro reconnaissance aircraft in the aviation field.
• Lyten, a United States-based battery startup company, is looking to electric aircraft as a potential early market for its energy-dense lithium-sulfur batteries. In June 2023, the company announced the commissioning of its Lithium-Sulfur battery pilot line in Silicon Valley. The lithium-Sulfur pilot line is expected to start delivering commercial battery cells in 2023 to early adopting customers within the defense, logistics, automotive, and satellite sectors.
• Furthermore, the utilization of drones for various purposes is increasing worldwide, which can be equipped with such batteries. The investment in manufacturing drones is growing significantly.
• In July 2023, DroneShield was awarded a USD 33 million contract with an unnamed U.S. government agency. The contract covers the supply of equipment such as DroneGun Mk4, which can be used to disrupt the control and navigation capabilities of multiple drones.
• The growth in the aviation sector is mainly driven by the increasing number of air passengers globally because of the cheaper airfare in recent times, developing economic conditions, and rising disposable income.
• Due to the coronavirus pandemic, According to International Air Transport Association (IATA), commercial airlines generated only USD 506 billion in revenue in 2021. However, the market's revenue was estimated to reach USD 732 billion in 2022 and USD 803 billion in 2023.
• The abovementioned factors will likely drive growth in the aerospace sector, boosting the demand for lithium-sulfur batteries during the forecast period.

Asia-Pacific to Dominate the Market

• Asia-Pacific is expected to dominate the global lithium-sulfur battery market. Countries in the region are the leading supporters of the global market, with China, Japan, and South Korea leading the way. Countries like Australia, India, and Vietnam are also following plans to set up lithium-based battery manufacturing facilities in their countries during the forecast period.
• The region is significantly making efforts to supply clean electricity to every corner and reduce dependency on conventional fuels, such as kerosene and diesel, for their lighting and mobile phone charging needs. Lithium-sulfur battery integrated energy storage solutions will likely witness an increasing adoption rate due to their technical benefits, such as high energy density and storage capacity.
• The demand for these batteries in the region is expected to grow rapidly, owing to the adoption of energy storage systems and electric vehicles for on-grid and off-grid applications. Further, the increasing installation of renewable energy generation facilities also boost the demand for such batteries.
• Furthermore, the Chinese government is investing in building charging stations nationwide to promote electric vehicle sales. For instance, in January 2022, the Chinese government announced plans to build enough charging stations for 20 million electric vehicles by 2025.
• The development of charging infrastructure is propelling EV adoption in the country. As of May 2022, China Electric Vehicle Charging Infrastructure Promotion Alliance (EVCIPA) confirmed that there were nearly 1.42 million charging stations across the country, including 806 AC charging stations, 613 thousand DC charging stations, and 485 DC-AC combined charging stations.
• Japan aims to establish a “Well-to-Wheel Zero Emission” policy, in line with the global efforts to eliminate emissions, focusing on energy supply and vehicle innovation by 2050 and replacing all vehicles with EVs to reduce greenhouse gas emissions by around 80% per vehicle, including an approximate 90% reduction per passenger vehicle. Such government initiatives are likely to increase the demand for electronic vehicles, which, in turn, is expected to increase the demand for lithium-sulfur batteries.
• Therefore, based on the above factors, the Asia-Pacific is expected to dominate the lithium-sulfur battery market during the forecast period.

Lithium Sulfur Battery Industry Overview

The lithium sulfur battery market is fragmented, Some of the major players in the market include (in no particular order) Johnson Matthey PLC, LG Chem Ltd, Sion Power Corporation, Morrow Batteries, and Ilika PLC, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support