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1.Global private sector companies in the space community are acting as a catalyst towards the growth of the space battery market. Technological development in space batteries is another factor boosting the demand for advanced batteries in the industry.
2.The market players are striving hard for nonstop innovation, which has resulted in the development of batteries with a specific energy of 500 Wh/kg.
3.The lithium-based battery is expected to remain the most preferred choice of the space industry during the forecast period, driven by innovation towards the production of highly reliable, high performing, and cost-effective technology by dropping the SWAP of the battery.
4.The innovative outlook of space battery technology would seek ways to decrease associated disadvantages of existing batteries like the poor performance of lithium-ion batteries in enormously low temperatures.
Batteries are used in a variety of space applications, such as satellites, launch vehicles, crew return vehicles, landers, rovers, astronomers’ equipment, and the International Space Station. It may be used either as an energy storage device or as an instant source of power.
Satellite is the most dominant application as the world has been gripped by what is being termed as ‘The CubeSat Revolution’. As a result of this, space battery manufacturers are facing increased demand for satellite batteries.
The challenge, which the battery manufacturers face while designing satellite batteries is limiting its size. It is a parameter which is of paramount significance in the context of satellites as there is a humongous cost associated with launching anything into orbit and satellite batteries may take up to 50% of the payload weight.
Battery manufacturers are therefore relentlessly innovating to develop batteries with higher specific energy so that it may support greater payload, which, in turn, will generate higher revenues for the satellite manufacturers.
Space battery manufacturers have to find a right balance between these two. The bottom line is that space battery manufacturers need to maintain value as well as to generate the maximum returns; thus, wanting a battery that is not only as light as possible but also having sufficient power as well.
Battery manufacturers have to undergo a tedious qualification and certification process since there is no margin of error for these batteries. There is no one to replace them if they get damaged and they have to sustain in extreme environmental conditions, such as extreme fluctuating temperatures, hard vacuum, shocks, and radiation.
Space batteries have witnessed an impactful, significant evolvement over the past five decades in which lithium-based batteries have acted as a disruptive agent. Lithium, being the lightest and the most electropositive metal, offers significant weight savings compared to traditionally used metals, such as silver and nickel.
The space industry is rapidly shifting towards miniaturization of spacecraft components, the demand for miniaturized space batteries is increasing. The space industry is moving today with the purpose of reduction of SWaP, i.e. Size, Weight, and Power consumed by the battery.
Some of the most noticeable movements are the gradual replacement of nickel-based batteries with lithium counterparts. Another movement is increasing the dominance of satellite platforms in the space industry marked by the CubeSat Revolution.
The rapid growth of the satellite industry is the primary driver of the sustainable demand for batteries in the spacecraft. Space X, has a satellite constellation, is working towards high-speed internet facilities across the world by deploying dedicated satellites. The company plans to launch 4,425 satellites by 2024.
The launch is expected to provide super-fast internet facilities with reduced latency as compared to existing broadband services. Such developments are likely to create high-growth opportunities for both existing as well as new players in the space battery market.
The projected increase in the global government expenditures in space is further propelling the growth of the space battery market. Also, the space industry enters a new investment cycle after some years of sluggish growth. Increase in space budgets of governments will be mainly due to increasing civil space programs and high focus on human space flight.
Increasing the space budget of emerging Asian countries with an aim to have their own independent space programs will also play a crucial role in setting the dynamics of the future space industry. Growing global private sector companies in the space community are acting as a catalyst towards the growth of the space battery market.
There were over 150 new firms identified which increased investment in the space-based activities. Space X, One Web satellites LLC, Planet Labs IncKymeta corporation, and Spire are some of the major private players in the industry.
Technological advancement in space batteries is another factor that is boosting the demand for advanced batteries in the industry. Existing market players are striving hard for continuous innovation, which has resulted in the development of batteries with a specific energy of 500 Wh/kg.
The futuristic outlook of space battery technology would seek ways to reduce associated disadvantages of existing batteries like poor performance of lithium-ion batteries in extremely low temperatures and a phenomenon associated with it called Thermal Runaway, which is caused by overcharging.
1.Increasing participation of private space companies, such as SpaceX, OneWeb Satellites, and Sky and Space Global Ltd, and an expected launch of more than 4,000 satellites.
2.The increase in the number of satellites being launched into space is another significant driver of growth of the market. Both primary lithium and secondary Lithium-ion are poised to remain the most popular batteries in their respective segments.
3.The lithium-based battery is likely to remain the most preferred choice of the space industry for the rapid growth of the market, driven by innovation towards the production of highly reliable, high performing, and cost-effective technology by reducing SWaP of the battery.
4.The rising demand to monitor and to combat the increasing terrorist activities and importance of surveillance systems in the fourth-generation warfare. Navigation, another promising segment, is likely to grow at the highest rate in the market.
North America
The North American market, particularly the USA, will be one of the prime markets for Space Battery Market due to the nature of industrial automation in the region, high consumer spending compared to other regions, and the growth of various industries, mainly AI, along with constant technological advancements. The GDP of the USA is one of the largest in the world, and it is home to various industries such as Pharmaceuticals, Aerospace, and Technology. The average consumer spending in the region was $72K in 2023, and this is set to increase over the forecast period. Industries are focused on industrial automation and increasing efficiency in the region. This will be facilitated by the growth in IoT and AI across the board. Due to tensions in geopolitics, much manufacturing is set to shift towards the USA and Mexico, away from China. This shift will include industries such as semiconductors and automotive.
Europe
The European market, particularly Western Europe, is another prime market for Space Battery Market due to the strong economic conditions in the region, bolstered by robust systems that support sustained growth. This includes research and development of new technologies, constant innovation, and developments across various industries that promote regional growth. Investments are being made to develop and improve existing infrastructure, enabling various industries to thrive. In Western Europe, the margins for Space Battery Market are higher than in other parts of the world due to regional supply and demand dynamics. Average consumer spending in the region was lower than in the USA in 2023, but it is expected to increase over the forecast period.
Eastern Europe is anticipated to experience a higher growth rate compared to Western Europe, as significant shifts in manufacturing and development are taking place in countries like Poland and Hungary. However, the Russia-Ukraine war is currently disrupting growth in this region, with the lack of an immediate resolution negatively impacting growth and creating instability in neighboring areas. Despite these challenges, technological hubs are emerging in Eastern Europe, driven by lower labor costs and a strong supply of technological capabilities compared to Western Europe.
There is a significant boom in manufacturing within Europe, especially in the semiconductor industry, which is expected to influence other industries. Major improvements in the development of sectors such as renewable energy, industrial automation, automotive manufacturing, battery manufacturing and recycling, and AI are poised to promote the growth of Space Battery Market in the region.
Asia
Asia will continue to be the global manufacturing hub for Space Battery Market over the forecast period with China dominating the manufacturing. However, there will be a shift in manufacturing towards other Asian countries such as India and Vietnam. The technological developments will come from China, Japan, South Korea, and India for the region. There is a trend to improve the efficiency as well as the quality of goods and services to keep up with the standards that are present internationally as well as win the fight in terms of pricing in this region. The demand in this region will also be driven by infrastructural developments that will take place over the forecast period to improve the output for various industries in different countries.
There will be higher growth in the Middle East as investments fall into place to improve their standing in various industries away from petroleum. Plans such as Saudi Arabia Vision 2030, Qatar Vision 2030, and Abu Dhabi 2030 will cause developments across multiple industries in the region. There is a focus on improving the manufacturing sector as well as the knowledge-based services to cater to the needs of the region and the rest of the world. Due to the shifting nature of fossil fuels, the region will be ready with multiple other revenue sources by the time comes, though fossil fuels are not going away any time soon.
Africa
Africa is expected to see the largest growth in Space Battery Market over the forecast period, as the region prepares to advance across multiple fronts. This growth aligns with the surge of investments targeting key sectors such as agriculture, mining, financial services, manufacturing, logistics, automotive, and healthcare. These investments are poised to stimulate overall regional growth, creating ripple effects across other industries as consumer spending increases, access to products improves, and product offerings expand. This development is supported by both established companies and startups in the region, with assistance from various charitable organizations. Additionally, the presence of a young workforce will address various existing regional challenges. There has been an improvement in political stability, which has attracted and will continue to attract more foreign investments. Initiatives like the African Continental Free Trade Area (AfCFTA) are set to facilitate the easier movement of goods and services within the region, further enhancing the economic landscape.
RoW
Latin America and the Oceania region will showcase growth over the forecast period in Space Battery Market aIn Latin America, the focus in the forecast period will be to improve their manufacturing capabilities which is supported by foreign investments in the region. This will be across industries mainly automotive and medical devices. There will also be an increase in mining activities over the forecast period in this region. The area is ripe for industrial automation to enable improvements in manufacturing across different industries and efficiency improvements. This will lead to growth of other industries in the region.
USA – $210 billion is allocated to federal R&D with main focus on health research, clean energy, semiconductor manufacturing, sustainable textiles, clean energy, and advanced manufacturing. Investments by private players are mainly focused on technological development including 5G infrastructure and AI in the region.
Europe – EIC is investing €1 billion to innovative companies in sectors like AI, biotechnology, and semiconductors. There is also a focus on developing the ecosystem in the continent as well as improving the infrastructure for developing industries such as electric vehicles and sustainable materials. Private players are targeting data centers, AI, battery plants, and high end technological R&D investments.
Asia – There are investments to tackle a range of scientific and technological advancements in this region mainly coming in from China, India, South Korea, and Japan. This will include artificial intelligence, 5G, cloud computing, pharmaceutical, local manufacturing, and financial technologies. Many countries are aiming to be digital hubs including Saudi Arabia.
Africa – Investments in the region are focused on improving the technological capabilities in the region along with socio-economic development and growth. Private participants of investments in this region is venture capital dominated who are targeting the various growth elements of the region as social stability improves. The major industries are fintech, easier lending, and manufacturing.
Latin America – The focus in the region is for fintech, e-commerce, and mobility sectors. There are also investments in improving manufacturing in the region. Local investments is focused on improving the healthcare, and transportation infrastructure in the region. The region is attracting foreign investments to improve their ability to utilize the natural resources present in the region.
Rest of the World – The investments in this region are focused on clean energy, green metals, and sustainable materials. Funds in Australia are focused on solar energy and battery technologies, along with high end futuristic areas such as quantum computing. The main countries of private investment in ROW will be Australia, Canada, and New Zealand.
The Space battery market is fragmented, with several global and regional players contesting for attention in a fairly-contested market space. The major companies include NASA, Orbital ATK, European Space Agency, Lockheed Martin ,ISRO,SPACEX.
The penetration of lithium-ion batteries is growing in the industrial sector, globally, on account of expansion in industrial infrastructure, increasing economic viability of energy storage deployment, and growing need to reduce grid dependency for power supply.
Although pumped hydro storage dominates the total installed storage power capacity, battery-based electricity storage systems are developing rapidly, decreasing costs and improving performance.Encouraging incentives are taken by the governments, such as net metering, have encouraged the installation of rooftop solar PV systems.
Battery storage is an important part of the rooftop solar PV power generation process, as solar energy is intermittent and unavailable during the night. The usage of lithium-ion battery-based solar home systems.
The off-grid solar lighting and charging products, and solar PV mini-grids have increased in the Asia-Pacific and African regions.Massive investments, predominantly in lithium-ion batteries, are driving down costs, while project developers are continuously getting better at designing and building customized storage systems.
