The solid-state battery market size reached USD 630.5 Million in 2023 and is expected to register a CAGR of 36.3% during the forecast period (ending in 2030), according to the latest analysis by Emergen Research. An increase in global demand for electric vehicles (EVs) is one of the key factors driving market revenue growth. Significant investment in solid-state technology is coming from governments of countries such as India and Japan.
In an effort to mitigate climate change caused by burning fossil fuels, electric passenger vehicles are becoming more and more popular, said the report. Solid-state batteries are a good substitute for Li-on batteries as they use solid electrolytes, in contrast to the liquid or gel electrolytes used in li-on batteries. Compared to the lithium-ion batteries currently utilized in EVs, solid-state batteries have a number of benefits. Because they are more compact and lighter, they contribute less weight and space to the vehicle. Additionally, they can store more energy in a given space due to their increased energy density.
The drivers of this growth are markets like India. The government of India has been investing significantly to promote faster adoption of Electric Vehicles. Similarly, the Government of Japan has recently set a target to sell environmentally friendly electric vehicles by 2035.
Solid state batteries cost significantly more to build than Li-ion batteries, which is a constraint on the market. The relatively high cost could seriously impede the development and use of solid-state batteries. Additionally, mass manufacturing of solid-state batteries is quite complex, and therefore scaling up a business is a big challenge for manufacturers.