Precursor Materials Market Size, Share, Growth, and Industry Analysis, By Type (NCM Type & NCA Type), By Application (Power Battery, Consumer Battery, & Others) and Regional Forecast to 2032

Updated On: 02 September 2024

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PRECURSOR MATERIALS MARKET REPORT OVERVIEW

The global Precursor Materials Market size was USD 10.97 billion in 2023 and the market is projected to touch USD 53.54 billion by 2032, exhibiting a CAGR of 14.8% during the forecast period.

Precursor materials are essential components used in the manufacturing of advanced resources. It is a substance that follows a response which turns into an inborn piece of an item synthetic. They are engaged in the making of polymers, medication, and other industrial products. They act as preliminary resources and intermediates in diverse manufacturing methods. They play a decisive role in the performance index of finished products.

Rising demand for high-performing electronic devices and semiconductors are boosting demand for material. Technological development and increasing integration of advanced technology is offering many opportunities for market progress.

COVID-19 Impact: Market Growth Restrained by Pandemic due to Decline in Demand

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The pandemic affected this market on account of decline in demand. The market escalation had hindered owing to the disrupted supply chain, halts on manufacturing, and decreased demand by the end-users. The lockdown and travel limitations forced by governments worldwide further increased the difficulty faced by the market players. Conversely, facing these challenges, the market is estimated to recover in the coming years due to the increasing demand for electronic items.

LATEST TRENDS

"Surge in Demand from Battery Applications Fueling Market Growth"

A present trend in the market is the increasing lithium-ion battery industry which is impelling a notable spike in requirement for the precursor materials. These materials are necessary for the manufacturing of cathodes, which are ultimately used in functionality of batteries. The growing demand for credible batteries is being motivated by the escalating use of gadgets and electric vehicles (EVs). Hence, this trend is supporting the expansion of market growth significantly.

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PRECURSOR MATERIALS MARKET SEGMENTATION

By Type

Based on type the global market can be categorized into NCM type & NCA type.

• NCM Type: Nickel-Cobalt-Manganese type materials are popular because of their high energy density and stability. They cater to different market demands with NCM type being commonly used in electric vehicles.
• NCA Type: Nickel-Cobalt-Aluminum type materials offer even higher energy density although they are less stable. They meet various demands of consumers from the electronic sector.

By Application

Based on application the global market can be categorized into power battery, consumer battery, & others.

• Power Battery: The materials are used for the manufacturing of lithium-ion batteries for electric vehicles and energy storage equipment are part of power batteries.
• Consumer Battery: These materials are valuable in the fabrication of consumer batteries for electronic devices such as laptops and others.
• Others: There are other various applications such as medical devices, aerospace components, and others using the material.

DRIVING FACTORS

"Growing Demand in Electronic and Semiconductors Industry Boosting Market Progress"

One of the main attributes in the global precursor materials market growth is the rising demand for the material from the electronics and semiconductor industries. With the rapid progression and trimness of electronic devices, there is a high need for high-quality precursor materials which helps in the market expansion. These materials are crucial in manufacturing of semiconductors; integrated circuits and other electronic machinery are enhancing growth of the market. Furthermore, the rise of emerging technologies further amplifies the demand for advanced electronic components, thereby propelling the growth of the market.

"Increasing Transition towards Electric Vehicle Enhancing Market Expansion"

Another growing aspect that is impelling the market growth is the shift towards electric vehicles and renewable energy solutions. The need for high-performance batteries such as lithium-ion batteries has amplified due to the increasing EVs and energy storage systems. Rising government’s initiative to promote sustainability and spending high amounts on EV infrastructure and renewable energy. They are supporting the demand for the material. Constant research and development activities intended at improving battery performance, energy density, and longevity are probably supporting the market expansion.

RESTRAINING FACTORS

Instability of Raw Material Prices Impeding Market Growth

The off-putting factor that is hindering the market extension is the unsteadiness of unprocessed material prices. Many precursor materials are derivatives of metals and minerals whose prices are fluctuating owing to geopolitical tensions, market demand-supply dynamics, and supply chain disruptions. Furthermore, the stringent regulatory setting prevailing the use and disposal of precursor materials are impeding the market growth. Many of these materials, especially those used in electronics and batteries have risen environmental and health risks. Governments and regulatory bodies globally have implemented strict regulations and guidelines to make certain safety production, use, and discarding of these materials. Fulfillment of these policies may incur high cost and lengthy for manufacturers that is potentially affecting their operational efficiency and profitability, hence hampering the market expansion.

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PRECURSOR MATERIALS MARKET REGIONAL INSIGHTS

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

"North America Region Dominating the Market due to Increasing Large Consumer Base"

North America has emerged as the most dominant region in the global precursor materials market share due to the existence of major manufacturing companies in the region. The electronic and semiconductor sectors in this region facilitate the manufacturers to amplify efficiency to increase production. The U.S. is the key contributor to the market development in this region. The consumption frequency mainly depends on the countries of America which are expanding their market presence. The culture in these countries allows people to live-in such an easy surrounding that enhances the quality of disinfectants. This factor also contributed to the growth in the establishment of various manufacturer companies to expand the market reach.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Product Innovation and Market Strategies"

Many prominent industry players in this market are focusing on expanding their manufacturing services, R&D funds, infrastructure development and integration of technologies to provide cost-effective production and increase their customer base. There are many companies in the market that use some techniques such as merger, acquisitions, partnership and using new advanced technologies for producing and developing new products and stay ahead in the market.

List of Market Players Profiled

• GEM Co., Ltd (China)
• Umicore (Belgium)
• CNGR Corporation (China)
• Brunp Recycling (China)
• Tanaka Chemical Corporation (Japan)
• Kelong New Energy (China)
• Zhejiang Huayou Cobalt (China)
• Fangyuan (China)
• Greatpower Technology (China)
• Ronbay Technology (China)
• Hunan Changyuan Lico (China)
• GanfengLithium (China)
• Jiana Energy (China)
• Jinchuan Group (China)
• Zhejiang Power (China)

INDUSTRIAL DEVELOPMENT

October 2023: Umicore announced the expansion of its EV battery materials production. It has happened by increasing their production capacity for cathode active materials and precursor cathode active materials at its plant in Ontario, Canada.

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 takes into account 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.