Future growth predicted for battery sector

Arthur D Little’s Future of batteries: Winner takes all? study aims to help players build effective strategies that unlock value and market position in the sector, which has seen existing and new players invest over $13.7 billion over the last two years.

“Battery technology is undergoing the biggest disruption in its 150-plus-year history, driven by the need for better solutions in areas such as electric vehicles and renewable power,” said Michaël Kolk, partner and head of ADL’s Global Chemicals Practice.

“However, companies need to beware of the risks, as well as the huge potential of the market, if they are to emerge victorious in the future.”

Growing market

The study predicts future trends that will meet growing needs in areas such as electric vehicles (EVs), renewable power solutions and consumer electronics.

It predicts that new innovations, such as solid-state electrolyte lithium-ion (Li-ion) batteries, will replace existing battery technologies over the long-term.

This is thanks to improved performance and innovation delivery combined with consumer pull and willingness to pay for better solutions.

Despite this, the study cautions that the current investment frenzy from various players either entering the market or expanding their offerings, predicts that the risks of failure are high.

It reveals that companies that work with a range of partners and backed by significant intellectual property, have the greatest chance of winning and maintaining market share.

Innovation it says, both in terms of both new technologies and process transformation, will also be vital to bring down costs.

To download the full report, please click here: www.adl.com/Futureofbatteries