Market Overview

Lithium-ion batteries (LiB) degrade over time with use, which reduces storage capacity. Meanwhile, the market for electric vehicles (EVs) and other electrically powered vehicles, as well as stationary storage batteries (ESS) are growing in response to the trend of achieving carbon neutrality.
From the standpoint of optimizing ESS operation, boosting the circulation of used EVs, and accelerating the utilization of reusable LiB, the practical application of efficient LiB deterioration diagnosis equipment, i.e., equipment that enables measurement of the cell status within decent time at reasonable cost, is awaited. Development of equipment and services for LiB degradation diagnosis is brisk.

Noteworthy Topics

Demand for Degradation Diagnosis for EV LiB & Perspective for Car Leasing Industry

Associated with the moves toward decarbonization, the car leasing industry is facing the needs of corporate users to shift from fossil fuel cars to EVs. To propel the shift further, car leasing companies are considering the introduction of LiB deterioration diagnostic service as a solution to decelerate the depreciation of EV.

At current, use of EVs as company cars is mostly seen among environmentally conscious major corporations. In view of the expanding the target to smaller companies and considering the intensifying price competition, it is critical to improve price competitiveness while the related industries jointly find ways to slow down the depreciation of EVs.
Using LiB degradation diagnostic technologies may help car leasing companies assess the residual value of EVs more systematically, which may lead to the optimal use of EVs as their assets, as well as to the development of lower leasing rates.

Future Outlook

​The domestic lithium-ion battery degradation diagnosis device/service market is forecasted to reach 1977 million yen by 2035 (based on the sales of businesses).


Although the market is still at its dawn, it is projected to expand primarily for EVs, then for the ESS.

Reuse of LiB for ESS is attracting attention from the perspectives of life cycle assessment (LCA). The reuse of battery maintained with LiB degradation diagnosis technologies is expected to optimize the ESS operation and maximize its value as assets. However, given the size of the EV market in Japan and the current status of recovery of used automotive LiB, the growth of the degradation diagnosis market for ESS will not precede that of the market for EVs.

Some businesses are already offering LiB degradation diagnosis for small commercial devices, and demand is expected to grow alongside the rise in small commercial devices equipped with LiB. However, in view of the market size by value, the market is forecasted to remain relatively small compared to the market of the other two applications.

Besides, LiB degradation diagnosis has a dimension of providing safety. In consideration of the increase of fires blamed on lithium-ion batteries not only overseas but also in Japan, the demand for LiB degradation diagnosis is poised to grow hereafter.

Research Outline