Prismatic Cell Market Size, Share, Growth, and Industry Analysis, By Type (LiCoO2 Battery, NMC/NCA Battery, LiFePO4 Battery & Others), By Application (Power Banks, Laptop Battery Packs, Electric Vehicles, Flashlights, Cordless Power Tools & Others), and Regional Forecast to 2032

PRISMATIC CELL MARKET OVERVIEW

The global Prismatic Cell Market size expanded rapidly XX in  2023 and is projected to grow substantially XX by 2032, exhibiting a prodigious CAGR XX during the forecast period.

The prismatic cell market is experiencing tremendous growth due to the rising demand for energy-efficient and high-energy density energy storage solutions, particularly in the renewable energy sector as well as the electric vehicle sector. Prismatic cells take the form of a nearly flat, rectangular, or square shape, and such configurations are appreciated for their higher energy density and more compact design and superior heat dissipation than other battery formats, including those in cylindrical cell format. One of the major reasons why prismatic cells are widely deployed in EVs, consumer electronics, and energy storage systems is the space-optimization advantage and cost-effectiveness. Demand for prismatic cells is accelerating with an increase in electric vehicle usage, developing clean energy sources, and increasingly advanced energy storage systems. Advances in battery technology, like increased cycle life and safety features, are further augmenting the demand of prismatic cells in several industries.

GLOBAL CRISES IMPACTING PRISMATIC CELL MARKETRUSSIA-UKRAINE WAR IMPACT

Prismatic Cell Market Had a Negative Effect Due to Disturbances in the Global Supply Chains during the Russia-Ukraine War

The Russia-Ukraine war has brought forth a significant blow to the prismatic cell market share, particularly with respect to disturbances in the global supply chains of critical raw materials. Nickel and cobalt, two pivotal raw materials used in lithium-ion batteries, of which prismatic cells happen to be a constituent, is sourced from Russia and Ukraine. The existing conflict has resulted in shortages, increased prices for these raw materials, and production delays that affect battery manufacturers. This uncertainty has skyrocketed energy costs through the war, increasing production costs of prismatic cells. As a result, it led to slower growth in the market while increasing costs for end consumers, consequently decreasing collective adoption of electric and energy storage systems. The conflict has also led to increased volatility in commodity prices, including buckwheat flour.

LATEST TREND

"Increased Use of Electric Vehicles and Renewable Energy Storage Solutions to Drive Market Growth"

One of the key trends driving the prismatic cell market forward is increased use of electric vehicles and renewable energy storage solutions. Governments and industries around the world continue to call for cleaner alternatives and more sustainable sources of energy, which leads to EVs and renewable energy systems-battery, mainly solar and wind power-being adopted fast. Prismatic cells, with better energy density and cycle life, along with thermal management capabilities, are gaining preferences in EV batteries and large-scale energy storage systems. This transition toward green energy along with improvements in battery technologies that enhance their performance, and safety is greatly energizing the prismatic cell market. Also, scaling up manufacturing capabilities and investments in research and development contribute to having more efficient and cost-effective prismatic cells on the market.

PRISMATIC CELL MARKET SEGMENTATION

BY TYPE

Based on Type, the global market can be categorized into LiCoO2 Battery, NMC/NCA Battery, LiFePO4 Battery & Others

• LiCoO2 Battery: Lithium cobalt oxide, or LiCoO2, is a battery used in prismatic cells with high energy density and stable performance characteristics. Relatively widely used for consumer appliances such as smartphones and laptops, the others are used in other electric vehicles but at a much higher price compared to them and are further bounded due to the cycle life.
• Nickel Manganese Cobalt (NMC) and Nickel Cobalt Aluminum (NCA): These batteries are two types of high-performance batteries that are now being increasingly used in electric vehicles and large-scale energy storage systems, especially for their reasonably well-known excellent density of energy, long cycle life, and improved thermal stability. They have the perfect balance of cost, performance, and safety to be a first choice in all those applications requiring high performance.
• LiFePO4 Battery: LiFePO4 batteries are very safe, having a very long cycle life and thermal stability. Though they have lower energy density than LiCoO2 and NMC batteries, the cost is on the lower side and has a longer lifetime. LiFePO4 is used primarily for electric buses, energy storage systems, and low-price electric vehicles, for which safety and life cycles take front over the highest energy density.

BY APPLICATION

Based on application, the global market can be categorized into Power Banks, Laptop Battery Packs, Electric Vehicles, Flashlights, Cordless Power Tools & Others

• Power banks: These will be required in prismatic cells because of the small volume, higher energy density, and long cycle life with the ability to store and give portable power to a smartphone, tablet, or any other portable electronic appliance. And with the continued evolution of consumer electronics, so will the increasing demand for power banks-as reliable, mobile charging solutions become more of an essential necessity for consumers.
• Laptop battery packs: Prismatic cells are preferred for laptop batteries with high energy density and good space utilization as compared with cylindrical cells. Laptops have been getting thinner and more powerful, thus using high-performance battery packs based on prismatic cells is becoming increasingly popular and can be seen to ease extended usage and fast charging capabilities.
• Electric Vehicles (EVs): Prismatic cells are being widely used in electric vehicle batteries, with high energy density along with improved thermal management to deliver constant power. As the quest for clean energy gathers steam at a rapid pace in every part of the world, it is becoming increasingly necessary for EV manufacturers to opt for prismatic cells since they can store energy better and last longer, thereby driving automotive market growth.
• Flashlights: These prismatic cells are used because they occupy less space with efficient power delivery. These batteries can be used for consumer as well as industrial usage due to their dependable and long-lasting power supply. The need for high performing flashlights is increasing, and most of these flashlights are needed in outdoor and emergency conditions.
• Cordless Power Tools: Prismatic cells are increasingly being applied in cordless power tools and include drills, saws, screwdrivers, and others. These cells offer higher energy density, quicker charging, and longer battery life, ensuring reliable performance in heavy-duty applications. Increasing growth of construction and the DIY industries have further upped the demand for reliable, rechargeable power tool batteries, and thereby forced the application of prismatic cells.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.             

DRIVING FACTORS

"Adoption of Electric Vehicles to Boost the Market"

One of the primary drivers for prismatic cells market growth is the adoption of electric vehicles. Prismatic cells have emerged as popular options for EV battery packs because of their high energy density, long shelf life, and efficient thermal management. Governments across the globe have tightened up environmental controls and offered incentives to promote cleaner transportation, thereby fueling the increased demand for EVs. This makes them a top choice for many auto majors for space optimization and vehicle performance enhancement. The global shift toward electric mobility and the increasingly rapid expansion of EV infrastructure are also very rapidly increasing the demand for prismatic cells in the automotive sector, which is driving this market growth.

"Increasing Demand for Renewable Energy Storage Solutions to Expand the Market"

The increasing demand for renewable energy storage solutions will significantly drive the growth of the prismatic cell market. As the world fastens its move toward renewable sources of energy, including the likes of solar and wind power, people need efficient storage systems of energy that can provide uninterrupted supply of power during intermissions in sources. Large-size prismatic cells are preferred by large-scale energy storage systems, as they hold considerably high energies, and their cycle life is longer. Demand for sustainable and reliable storage solutions in the EV sector and in grid stabilization and residential solar energy storage, etc., drives growth beyond individual industries in markets adopting the prismatic cell.

RESTRAINING FACTOR

"High raw material cost ""to Potentially Impede Market Growth"

High raw material cost is a significant limitation that is likely to inhibit further growth in the prismatic cell market. Cobalt, nickel, and lithium are some of the key materials used in the production of prismatic cells; the cost of these materials is known for wavering and therefore subject to supply chain disruptions. The volatile nature of prices for the critical raw materials may raise the manufacturing cost; this raises the cost of prismatic cells both to the producers and the consumers. Moreover, dependence on specific sources of extraction for the material, such as cobalt from the Democratic Republic of Congo, can highlight dangers in the supply chain. This pressure on the cost may then make prismatic cells less applicable in any cost-sensitive applications.

OPPORTUNITY

"Increase in Electric Vehicle Infrastructure to Create Opportunity for the Product in the Market"

The increase in electric vehicle infrastructure leading to the need for high-speed charging offers a market opportunity to prismatic cells. Electric vehicles have been gaining acceptance worldwide, hence there is a need for more powerful batteries that support longer miles and shorter times to fully charge. Such a requirement is a good example of prismatic cells, which have efficient energy storage with high energy density. In fact, ultra-fast charging technologies for EVs open a tremendous opportunity for prismatic cells as they can charge and discharge a lot faster without losing on safety or life. Under such conditions, prismatic cells have a great opportunity to play a crucial role in the next generation of EVs and thus achieve mass penetration.

CHALLENGE

"The High Installation Cost Could Be a Potential Challenge for Consumers"

This high installation cost poses serious challenges to consumers in the prismatic cell market. The use of such cells in devices and systems like electric vehicles and renewable energy storage systems results in a high initial investment cost. While prismatic cells have long-term benefits like greater energy density, longer lifespan, and improved thermal management, their high product costs are a scarecrow for many consumers. This is especially true for electric vehicles, where the battery itself often accounts for a majority of the total price of the vehicle. While technology continues to advance and the cost lowers over time, this initial price barrier prevents it from reaching near-widespread adoption, at least in price-sensitive markets.

PRISMATIC CELL MARKET REGIONAL INSIGHTS

•  NORTH AMERICA

In North America, the United States prismatic cell market is increasing due to the high adoption of electric vehicles and increasing renewable energy storage solutions. Their government inclined towards clean energies and policies compelled them to switch towards carbon-emitting fuels, which boosted the clean, high-quality energy storages technologies such as prismatic cells. Moreover, leading makers of EVs, such as Tesla that rely heavily on prismatic cells for their battery packs, are in the U.S., hence promoting the regional market growth.

• EUROPE

Europe is another highly strategic region for prismatic cells. Countries, such as Germany, France, and UK, lead the charge in EV adoption as well as green energy endeavors. The stringent policies and aggressive ambitious targets of the European Union to obtain carbon neutrality have made it invest in sustainable technologies, mainly prismatic cells for electric vehicles and energy storage systems. In addition, several companies based in Europe are developing battery technology, thus propelling the prismatic cell market in this region.

• ASIA

Asia is the world's largest area, holding the largest share in the prismatic cell market. This can be generally attributed to the high mass scale of electric vehicle production coupled with the growing demand for backup storage systems for renewable energy. In this regard, the world's major producers of prismatic cells include countries like China, Japan, and South Korea. Among the leading supply companies are BYD, CATL, and LG Chem, which supply nearly all the prismatic cells in the world. Strong thrusts from China on the uptake of EVs and growing renewables sector in that country are also driving demand for prismatic cells considerably. Low production costs in Asia add to that region's advantage in the global market.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market Through Innovation and Market Expansion"

CATL, LG Chem, BYD, Tesla, Panasonic, and Samsung SDI are among the critical industry players in the prismatic cell market, driving forward the innovation and expansion of the market. They are pushing forward the development of battery technologies, with advances in the energy density and cycle life as well as in safety features in prismatic cells, making them more efficient and reliable to be used in electric vehicles, renewable energy storage systems, and consumer electronics. Businesses such as BMW and Volkswagen continue to expand investments on the mass production of electric vehicles. It, therefore, creates a higher demand for prismatic cells. To further enhance market position, these firms focus on the expansion of manufacturing capacities, sourcing raw materials, and developing strategic alliances-this contributes to the overall growth of the prismatic cell market in all parts of the world.

LIST OF TOP PRISMATIC CELL MARKET COMPANIES

• CATL (Contemporary Amperex Technology Co. Limited) (China)
• BYD (China)
• Samsung SDI (South Korea)
• LG Chem (South Korea)
• Tianjin Lishen (China)
• Hefei Guoxuan (China)
• LARGE (China)
• OptimumNano (China)
• DLG Electronics (China)
• Zhuoneng New Energy (China)
• CHAM BATTERY (China)
• SK On (South Korea)

KEY INDUSTRY DEVELOPMENTS

August 2023: Samsung SDI will invest heavily in the development and commercialization of solid-state batteries. This time, it stated that more advanced battery products would be produced with superior energy density and safety compared to traditional lithium-ion battery and prismatic cells. The company, Samsung SDI, intends to ramp up mass production and put them in the market by mid-2020s in a bid to position itself as the industry leader in next-generation energy storage solutions and to further enhance the already growing momentum toward more efficient, sustainable energy systems.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis considers both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.