Sodium Ion Battery Market: Current Analysis and Forecast (2022-2028)

Sodium-ion batteries are energy storage device which is based on electrochemical charging & discharging reactions between the cathode and anode. The cathode electrode is generally made up of sodium-containing layered material. In recent times, sodium-ion batteries witnessed significant demand owing to their thermal stability, higher energy storage capacity, and lower cost. Also, sodium-ion batteries have a similar battery life cycle and energy density compared to Li-ion batteries and their other counterparts and are more suitable for static applications. Additionally, the growing demand for energy & electricity along with the increasing adoption of renewable energy and the incorporation of sodium-ion batteries in solar PV panels and wind energy technology is expected to propel the market for sodium-ion batteries in the coming time.

The Sodium Ion Battery Market is expected to grow at a steady rate of around 25% owing to the increasing adoption of renewable energy and growing demand for the electric vehicle coupled with the technological advancement in battery technology. Major market companies focus on providing sodium-ion batteries with technologically advanced features along with product launches, collaboration, and mergers & acquisitions. For instance, in April 2022 AMTE Power Plc collaborated with Eltrium & Sprint Power to accelerate the development of next-generation battery technologies to meet the needs of the electric vehicle market.

Based on the type, the market is segmented into the sodium-sulfur battery, sodium-air battery, and sodium salt battery. The sodium-sulfur segment is expected to witness significant market growth during the forecast period owing to its increasing adoption in the electric vehicle segment. Additionally, sodium sulfur batteries can work at higher temperature ranges (300-3500C) and provide added advantages over their counterpart batteries. They are widely adopted in distributed grid support, wind power integration, and high-value application on the island.

Based on end-use, the market is segmented into utility, residential, commercial, transportation, industrial, and others. The utility segment is expected to register a significant CAGR during the forecast period due to technological advancement attributed to energy storage. Also, the technological advancement in grid technology coupled with renewable energy adoption and its utilization for load, thermal stability, and power generation along with growing energy demand is expected to support the market growth. Additionally, the strict government regulation to reduce the carbon footprint and increasing awareness of the individual toward cleaner fuel will propel the market for sodium-ion batteries for utility applications.

For a better understanding of the market adoption of the sodium ion battery industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. North America is anticipated to grow at a substantial CAGR during the forecast period. This is due to the increasing adoption of renewable energy including wind power, and solar energy, along with growing investment for the upgradation of grid infrastructure. Also, the government in the region planning for capacity addition in renewable energy and is expected to propel the market demand for sodium-ion batteries during the forecast period. For instance, according to the IEA total installed capacity for solar and wind energy was 61 GW and 132 GW respectively for the year 2021 and is expected to reach 106 GW for solar and 148 GW for wind energy by 2023. Additionally, supportive government policies in the region are expected to support market growth. For instance, in December 2021, the US Department of Energy launched ARPA-E through the SCALEDUP program to support the mass production of sodium ion batteries.

Some of the major players operating in the market include: AMTE Power Plc., NGK Insulators, HiNa Battery Technology, Aquion Energy, NEI Corporation, Nanode Battery Technologies, Contemporary Amperex Technology Co., Limited, Reliance Industries, Altris AB, and Natron Energy Inc.