Global Advanced Energy Materials Market Size (2023 – 2030)

Global Advanced Energy Materials Market is estimated to be worth USD 1.90 Billion in 2022 and is projected to reach a value of USD 3.22 Billion by 2030, growing at a CAGR of 6.8% during the forecast period 2023-2030.

Fuel cells, batteries, wind turbines, solar panels, and other energy-efficient devices and systems all make use of a group of materials collectively referred to as advanced energy materials. These materials’ unique properties enable the development of next-generation energy options. Materials like metals and alloys, ceramics, polymers, composites, and others are used in advanced energy applications. Energy storage and the creation of renewable energy are the two most significant utility fields for advanced energy materials. The market for advanced energy materials is growing as a result of the increase in interest in renewable energy sources as well as in tools and systems that use less energy. Major market players are investing heavily in research and development to produce novel and cutting-edge energy technologies and materials.

Due to the rising demand for energy-efficient products and systems as well as renewable energy sources, the global market for innovative energy materials is anticipated to escalate quickly in the forecasted years. The primary materials used in cutting-edge energy uses are metals and alloys, ceramics, plastics, and composites. The two major usage categories are energy storage and the production of renewable energy sources. The biggest market for advanced energy materials is in the Asia Pacific area, and major market players are making significant R&D investments to develop brand-new, cutting-edge energy materials and technologies. 

Global Advanced Energy Materials Market Drivers:

Increasing Demand for Renewable Energy Sources is boosting market growth.

One of the main reasons propelling the global market for novel energy materials is the rising demand for safe energy sources. The growing concern over environmental degradation and climate change has resulted in a significant shift in favour of green energy sources like solar, wind, and hydropower. Advanced energy materials are essential to the development of these energy sources because they are used to create solar cells, wind generators, and other sustainable energy systems. Government initiatives and regulations aimed at reducing carbon emissions and averting climate change are anticipated to result in a rise in demand for renewable energy sources in the future years. For example, many nations have goals for escalating the proportion of renewable energy in their energy mix, which is anticipated to increase the demand for advanced energy materials in the renewable energy industry.

The increasing use of Electric Vehicles is boosting the demand for advanced energy materials.

Another significant factor propelling the global market for innovative energy materials is the rising popularity of electric cars (EVs). For the manufacture of EVs, high-tech energy components like lithium-ion batteries, solid-state batteries, and supercapacitors are required. Several variables, such as governmental incentives, environmental laws, and advancements in battery technology, are fuelling the rising demand for EVs. As part of their efforts to lower carbon emissions and enhance air quality, governments all over the world are providing incentives and grants to persuade customers to transition to electric vehicles (EVs). Additionally, the demand for EVs is being fuelled by the tightening of environmental laws. By extending their range and decreasing their price, advances in battery technology are also growing EVs’ appeal to customers. The need for advanced energy materials is anticipated to rise considerably as the demand for EVs rises. The creation of new and advanced energy materials and technologies for use in the manufacture of EVs is likely to be sparked by this, propelling the growth of the global market for advanced energy materials.

Global Advanced Energy Materials Market Challenges:

The absence of a regulatory framework and standards is one of the biggest problems facing the market for advanced energy materials worldwide. There is a need for clear guidelines and standards to make sure that new and innovative materials are safe, dependable, and effective given how quickly they are being developed. Without appropriate regulations, there is a chance that these materials' performance will vary, which could result in potential safety risks and prevent their use in a variety of applications. Furthermore, the absence of a clear regulatory framework might discourage research and investment in advanced energy materials.

Global Advanced Energy Materials Market Opportunities:

New technologies and applications are one of the most significant global market opportunities for advanced energy materials. As a result of ongoing research and development in the field, advanced energy materials are coming into use in a wide variety of new ways. This consists of revolutionary innovations like thermoelectric materials, perovskite solar cells, and solid-state batteries, all of which are predicted to hasten the market's explosive growth in the forecasted years. For producers and researchers in the advanced energy materials market, the development of new and cutting-edge energy materials for these applications is likely to present new opportunities. 

COVID-19 Impact on Global Advanced Energy Materials Market:

On the global market for advanced energy materials, COVID-19 has had a mixed effect. Positively, the pandemic has increased curiosity about advanced energy technologies and renewable energy sources by highlighting the significance of dependable and sustainable energy sources. Government programmes to encourage the use of renewable energy sources have also received more funding as a result of this. Production of advanced energy materials has been slowed as a result of the pandemic's detrimental effects on manufacturing processes and supply chains. In addition to slowing consumer demand for energy-intensive goods and services, the economic effects of the pandemic have also hampered the market expansion for advanced energy materials. Despite these obstacles, the market for advanced energy materials has a promising future because the world is anticipated to continue moving toward renewable energy sources in the years to come.

Global Advanced Energy Materials Market Recent Developments:

• In February 2023, Shell Offshore Inc., completed the sale of its 100% interest in Shell Onshore Ventures LLC to IKAV. The entire consideration is about $2 billion, plus additional contingent payments depending on oil prices. The transaction is a component of Shell's plan to build a strong and competitive upstream business. Shell keeps assisting California with its gas and energy trading, EV charging stations, hydrogen and LNG fuelling stations, stores and lubricants, delivery facilities, and ports. Shell also continues to invest in California's advanced, emerging technology and country-leading research and development.

ADVANCED ENERGY MATERIALS  MARKET REPORT COVERAGE:

Global Advanced Energy Materials Market Segmentation:

Global Advanced Energy Materials Market Segmentation: By Application

• Electricity generation
• Water Efficiency
• Building Efficiency
• Electricity Delivery & Management
• Transportation
• Fuel Production & Delivery

The six major applications of advanced energy materials are transportation, fuel production and delivery, electricity generation, water efficiency, energy efficiency in buildings, and electricity delivery and management. The electricity generation sector currently holds the largest market share because of the growing demand for renewable and clean energy sources. Solar cells and wind turbines are the two main applications fuelling market expansion. Due to the need to reduce greenhouse gas emissions and growing energy consumption concerns, the market for building efficiency is also growing. In the coming years, the transportation industry is expected to experience significant growth due to the rising popularity of electric and hybrid vehicles. Geographically, China is the world's biggest consumer of advanced energy materials, making the Asia Pacific the region with the largest market. Due to government support and pro-renewable energy laws, North America and Europe are also significant markets.  

Global Advanced Energy Materials Market Segmentation: By Region

• North America
• Europe
• Asia Pacific
• Rest of the World

Asia Pacific has the largest market for advanced energy materials because China is the world's largest consumer of these materials. The region is growing considerably as a result of arising investments in energy storage technologies and renewable energy sources, as well as programmes and policies from the government that promote the adoption of these technologies. North America and Europe are also important markets because of governmental support and pro-renewable energy policies. The Middle East and Latin America are emerging markets due to rising investments in renewable energy projects and the adoption of cutting-edge energy materials. When it comes to market share, Asia Pacific is in charge. 

Global Advanced Energy Materials Market Key Players:

1. Alstom
2. Advanced Energy Industries, Inc.
3. Cummins, Inc.
4. Clean Energy Fuels Corp.
5. enn energy holdings ltd
6. Ford Motor Company
7. Itron, Inc.
8. Shneider Electric
9. Siemens
10. Shell PLC  
11. 3M