Binders in Battery Market Size, Share, Trends, Growth 2032

Binders in Battery Industry Prospective:

The global binders in battery market size was worth around USD 3612.47 million in 2023 and is predicted to grow to around USD 7,326.66 million by 2032 with a compound annual growth rate (CAGR) of roughly 8.13% between 2024 and 2032.

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Binders in Battery Market: Overview

Battery binders are integral components of modern-day batteries or of an electrochemical cell. They are used for creating a connection between the conductive additive and active material of a battery. Furthermore, they also play the role of adhering to the current collector. In simple terms, binders in batteries act as glue for keeping the active and conductive materials in contact with each other. Apart from this, they also assist in electrical and ionic conductivity. Battery binders are crucial during the charging and discharge cycle of batteries thus leading to higher demand for efficient battery binders that can improve battery performance and make them safer. The market is currently filled with different types of battery binders made of either polymers or polymer-based materials including polyacrylic acid (PAA), polyvinylidene fluoride (PVDF), carboxymethyl cellulose (CMC), polyethylene oxide (PEO), styrene-butadiene rubber (SBR), and polyvinyl alcohol (PVA). Additionally, battery binders can also be classified as water-based and solvent-based with each variant offering some advantages and challenges. For instance, the former shows excellent mechanical properties and electrode adhesion while the latter has more formulation flexibility and scalability. The forecast period has high growth potential for the binders in the battery market.

Key Insights:

• As per the analysis shared by our research analyst, the global binders in battery market is estimated to grow annually at a CAGR of around 8.13% over the forecast period (2024-2032)
• In terms of revenue, the global binders in battery market size was valued at around USD 3612.47 million in 2023 and is projected to reach USD 7,326.66 million, by 2032.
• The market is projected to grow at a significant rate due to the increasing demand for portable consumer electronics
• Based on the process, the water-based segment is growing at a high rate and will continue to dominate the global market as per industry projection
• Based on the battery type, the lithium-ion segment is anticipated to command the largest market share
• Based on region, Asia-Pacific is projected to dominate the global market during the forecast period

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Binders in Battery Market: Growth Drivers

Increasing demand for portable consumer electronics will generate higher market growth

The global binders in battery market is expected to grow due to the growing demand for portable consumer electronics across the world. These smart devices are powered by lithium-ion (Li-ion) batteries which in turn depend on binders for overall performance. In comparison to other forms of electrical energy storage systems, Li-ion batteries have higher energy density and longer cycle life. Furthermore, they assist in faster charging which is an essential aspect of portable electronic items. The growing dependency of the modern population on portable consumer electronics items such as laptops, smartphones, and other gadgets will help fuel the demand for battery binders. Some of the leading reasons for the extensive growth in the consumer electronics sector include increasing per capita income, rising digitalization across industries, higher access to a range of products through online sales channels, and increasing launch of novel products offering advanced features at reasonable prices. As per official findings, around 70% of US households have at least one smart device. Moreover, the industry is further impacted by the surging use of smart electronics in the education sector leading to a growing rate of students purchasing portable electronic items. In March 2024, Microsoft, a technology giant, announced the launch of two desk laptops equipped with a ‘Copilot’ button that will allow laptop users to quickly access the chatbot assistant.

Rising investments in improving battery production rate will generate a high demand for binders

The global leaders are actively investing in improving battery production rate as the demand for batteries continues to grow rapidly. In April 2022, Exide Industries, a leading battery developer, announced an investment of INR 6600 crore in the Indian battery market for the construction of a new Li-ion cell battery facility. In February 2024, Addionics, a leading provider of next-generation battery solutions, announced an investment of USD 400 million in the US sector to enhance the domestic production of batteries for electric vehicles (EVs) thus delivering a higher market growth avenue for the global binders in battery market.

Binders in Battery Market: Restraints

Limited research on the development of new binder materials will restrict the market expansion

The global industry for binders in battery will face growth restrictions due to limited research on the development of novel binder materials that not only deliver efficiency but also aid in the improvement of battery performance. For instance, currently, only a limited number of materials are used for binder batteries including carboxymethyl cellulose (CMC) and polyethylene oxide (PEO). The process of developing new materials is extensive and requires higher investments. The currently available materials are meeting the modern requirements but more research is needed to help the industry grow beyond current predictions.

Binders in Battery Market: Opportunities

Rising EV sector will generate several growth opportunities for the market players

The global binders in battery market are projected to generate several growth opportunities due to the increasing demand for high-capacity batteries in the electric vehicle sector. The automotive industry is currently on the brink of a revolution. The rising impact of using internal combustion engine-powered vehicles on the environment has become more evident in the form of the earth’s surging temperature globally and the unpredictable changes in weather conditions. Excess use of non-renewable energy disrupts ecological balance and also leads to severe pollution rates. Furthermore, the constantly changing prices of fuel have further increased the cost of operating fuel-powered vehicles leading to a sharp rise in demand for electric vehicles across public and private transport means. EV technology has become commercial in the last five years with the reduced prices of EVs and a growing number of battery-powered EV providers. Large corporations such as Coca-Cola, Hindustan Lever, and Amazon are investing in deploying electric vehicles for business operations. Moreover, EVs are not restricted to only passenger cars or buses. The rise in the development of three-wheel and two-wheel EVs will further lead to higher demand for efficiency battery packs thus directly impacting the use of battery binders.

Growing investments in improving battery performance will affect binders demand rate

Consumers are actively demanding more efficient batteries with improved safety and higher performance. Additionally, another key aspect of batteries gaining wide popularity is their complete life cycle. For instance, as per the latest reports, sodium-based battery technology has generated extensive interest among researchers as a substitute for lithium batteries. The sodium-based solutions are expected to further lower the cost of EVs. These investments are likely to draw more buyers toward the global binders in the battery market.

Binders in Battery Market: Challenges

Stringent and varying regulations on binder material will challenge the market expansion trends

The global binders in battery industry players face challenges in the form of managing the extremely diverse set of regulations that govern binder materials and their exact components. For instance, certain binder materials can prove toxic to the environment and impact the health of living organisms. The regulatory laws change from one region to another and companies must comply with these laws to conduct business which can lead to increased costs and operational complexities.

Binders in Battery Market: Segmentation

The global binders in battery market are segmented based on process, end-user industry, battery type, and region.

Based on process, the global market segments are water-based and solvent-based. In 2023, the highest demand was witnessed in the water-based segment due to higher Eco friendliness of the binder materials in the segment. Water-based batteries have high physicochemical properties. Their thermal conductivity is over 1000 °C. Solvent-based solutions are used in applications where water-based solutions may not show compatibility with other materials. The increasing demand for reducing the environmental impact of battery operations will drive the consumption of water-based binders.

Based on the end-user industry, the global binders in battery industry are divided into consumer electronics, automotive, energy & power, and others. 

Based on battery type, the global market segments are lead acid, nickel metal hydride, lithium-ion, and others. In 2023, the highest growth was registered in the lithium-ion battery type due to the extensive use of Li-ion batteries across regions. The growing production of exceptional performance and long-lasting Li-ion batteries will aid higher demand for binders. The current Li-ion battery production capacity is at 2.8 TWh.

Binders in Battery Market: Report Scope

Binders in Battery Market: Regional Analysis

Asia-Pacific will continue to lead the market during the projection period

The global binders in battery market will be dominated by Asia-Pacific. Several factors in the present world economy are working in the favor of the Asia-Pacific. For instance, China is the world’s number one producer of batteries. China accounts for more than 75.01% of global battery production and is continuously investing in upgrading its production capacity along with making improvements in battery technology. In January 2024, China’s BYD, a leading automotive giant, broke ground for the construction of a new sodium-ion battery facility in China. The project is backed by an investment of 10 billion yuan and as per company claims, upon completion, will deliver an annual capacity of 30 GWh. In December 2023, as per official resources, Nio, another Chinese EV maker, was planning on spinning off its battery production unit in the coming years. India on the other hand is witnessing a surge in domestic and foreign investments toward battery manufacturing. Following India’s Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) Battery Storage policy, three companies in the region were provided financial incentives worth INR 18,100 crore. North America will register significant growth during the projection period. The growing efforts in the US and Canada to meet global battery technology demands will help the regional market flourish.

Binders in Battery Market: Competitive Analysis

The global binders in battery market is led by players like:

• BASF
• UBE Industries
• Asahi Kasei Corporation
• Dow Chemical Company
• Sumitomo Chemical Company
• 3M
• Covestro
• Celgard (a subsidiary of Polypore International)
• DuPont
• LG Chem
• Mitsubishi Chemical Corporation
• Solvay
• AGC Inc. (formerly Asahi Glass Co. Ltd.)
• Arkema and Shenzhen Senior Technology Material Co. Ltd.

The global binders in battery market is segmented as follows:

By Process

• Water-Based
• Solvent-Based

By End-User Industry

• Consumer Electronics
• Automotive
• Energy & Power

By Battery Type

• Lead Acid
• Nickel Metal Hydride
• Lithium-Ion

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa