In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
March 17, 2021: IndianOil Corporation announced that it has entered into a joint venture with Israel-based metal-air battery company, Phinergy Limited, to form IOC Phinergy Private Limited. The new company would develop fuel cells and indigenous hydrogen storage solutions to promote green mobility in India and to boost the ‘Make in India’ initiative.
The global aluminum air battery market is estimated to garner a significant revenue by growing at a modest CAGR over the forecast period, i.e., 2022–2030. The growth of the market can be attributed to the growing applications of these batteries in military electronics, backed by the high energy density of these batteries, and for the rapid advancements in battery technology. Aluminum air batteries use the oxygen in the air to produce electricity, with aluminum anode. These batteries are non-rechargeable, which limits its use to military equipment. However, it can be manually recharged, and mechanical changes are being made for the commercial development of aluminum air batteries in the future. Moreover, increasing research and development for making these batteries rechargeable, by recycling the hydrated aluminum oxide to use as a power source for electric vehicles, is also expected to boost their adoption in the coming years. Moreover, the growing adoption of EVs, is also anticipated to create significant opportunities for the growth of the market in the coming years. According to a research by the US Pew Research Center, 7% of U.S. adults currently have an electric or hybrid vehicle, while 39% are likely to seriously consider buying an electric vehicle. Moreover, on a global level, more than 6.4 million EVs were sold in 2020. Additionally, to cater to the growing demand for electric vehicles, and to cut-down the manufacturing cost, automotive companies are investing heavily in the development of this technology. Furthermore, presence of aluminum in abundance, and lower cost of aluminum as compared to lithium, is a major factor estimated to boost the growth of this market.
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The global aluminum air battery market is segmented by application into marine devices, military applications, and electric vehicles, out of which, the military applications segment is anticipated to hold the largest share in the market during the forecast period owing to the increasing use of aluminum air batteries in military electronics, as they provide high energy density, and are primary batteries. On the basis of electrolyte, the market is segmented into water-based, potassium hydroxide, and others, out of which, the potassium hydroxide segment is anticipated to witness the highest CAGR during the forecast period, as potassium hydroxide provides the best performance in terms of cell voltage, battery life, and reduced byproduct. Potassium hydroxide is being used to improve the commercial viability of these batteries.
In 2018, the world’s total energy supply was 14282 Mtoe, wherein the highest share in terms of source was captured by oil, accounting for 31.6%, followed by coal (26.9%), natural gas (22.8%), biofuels and waste (9.3%), nuclear (4.9%), hydro (2.5%), and other (2.0%). Where there was an increase in energy demand in 2018, the year 2019 witnessed slow growth as the energy efficiency improved owing to decline in the demand for cooling and heating. However, in 2020, the electricity demand decreased by 2.5% in the first quarter of 2020 due to the outbreak of Coronavirus resulting in government imposed shutdowns in order to limit the spread of the virus, which was further followed by shutdown of numerous business operations impacting their growth. This also resulted in decline of 5.8% in the worldwide CO2 emissions which was recorded to be five times larger than the one recorded during the global financial crisis in 2009. However, in 2021, the demand for oil, gas and coal is estimated to witness growth, which is further projected to create opportunities for market growth. Moreover, rising environment degradation and awareness related to climate change is motivating many key players to employ sustainable energy strategies and invest significantly in environment-friendly power generation technologies with an aim to promote sustainable development among various nations around the world. Such factors are anticipated to promote the growth of the market in upcoming years.
Regionally, the global aluminum air battery market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market in North America region is estimated to garner largest share over the forecast period on the back of presence of major battery manufacturing companies, increasing experiments and demonstrations regarding the application of aluminum air batteries in electric vehicles, and high awareness for environment conservation. Moreover, increasing adoption of EVs in the region, and benefits of aluminum air battery over lithium batteries, are estimated to boost the market growth in the region in the upcoming years.
The market in the Asia Pacific region is estimated to witness highest CAGR over the forecast period owing to growing adoption of clean energy in the countries, such as, Israel, along with rising tests and research in this direction. For instance, Phinergy Limited, a leading Israel-based pioneer in metal-air technology, is constantly testing aluminum air batteries in electric vehicles, including unmanned aircrafts and underwater vehicles. Major economies, including Japan and India, are investing in this technology to manufacture automobiles running on aluminum air batteries in the future, which is estimated to boost the regional market growth.
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The global aluminum air battery market is further classified on the basis of region as follows:
Our in-depth analysis of the global aluminum air battery market includes the following segments:
The global aluminum air battery market is dominated by Phinergy Limited, Industrie De Nora S.p.A., RiAlAiR Limited, Xinjiang Joinworld Co., Ltd., and Fuji Pigment Co., Ltd., among other major key players. Furthermore, with various technological advancements in this direction, many other metal-air battery manufacturers, including Aqua Power Systems, Inc., Arotech Corporation, and Zinc8 Energy Solutions Inc. among others, are expected to invest in aluminum air battery in the forecast period. Major automotive companies, such as, Maruti Suzuki, Toyota Motor Corporation, and Tata Motors Limited are also collaborating with market players, and are investing in the development of this technology as a power source for hybrid and electric vehicles.
Ans: Features of aluminum air battery, such as high energy density, and low cost of aluminum are the major factors driving the market growth.
Ans: The market is anticipated to attain a modest CAGR over the forecast period, i.e., 2022-2030.
Ans: Non-rechargeable nature of aluminum air batteries is one of the factors estimated to hamper the market growth.
Ans: The market in Asia Pacific is estimated to garner the largest market share owing to the large number of market players present in the region, who are investing in the commercial development of this technology.
Ans: The major players in the market are, Phinergy Limited, Industrie De Nora S.p.A., RiAlAiR Limited, Xinjiang Joinworld Co., Ltd., Fuji Pigment Co., Ltd., and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by voltage, electrolyte, application, and by region.
Ans: The potassium hydroxide segment is anticipated to hold largest market over the forecast period on the back of higher cell voltage potential with KOH as the electrolyte.