PALO ALTO, Calif., Dec. 6 /PRNewswire/ -- The need for power has increased manifold the past few years. End-users demand batteries that can provide them maximum power as well as longer run times. Uninterruptible power guarantees operations and ensures high levels of productivity. The degree of technical change in the applications market such as cellular phones, laptops, digital cameras, industrial cordless tools, back up power, military and medical markets is rapid. Batteries need to keep pace in order to satisfy the burgeoning need for safe, reliable and continuous power. This is the main driver promoting technological development in the battery arena.
Frost & Sullivan (http://www.batteries.frost.com/ ) finds that the World Emerging Battery Market earned revenues of $1.00 billion in 2005 and estimates this to more than triple due to increasing demand from vertical sectors like consumer electronics, industrial devices, backup power and other segments.
"Today's power hungry electronic devices require a next-generation battery to provide additional runtime while simultaneously maintaining a lightweight and small format," notes Frost & Sullivan Research Director Sara Bradford. "While chemistries on the market are sufficient for general operating, they are quickly becoming challenged by the demand for longer runtimes. Additionally, many industrial applications require a more robust and safe power system."
The battery market is fast approaching maturity and continuous R&D is necessary to maintain stability in demand and revenues. Moreover, the high degree of competition in the battery market is also motivating manufacturers to undertake product differentiation within the battery market or introduce a new chemistry. Many battery chemistries, including alkaline, nickel metal hydride (NiMH), nickel cadmium (NiCD), lead acid (LA), lithium primary and secondary batteries, have all been found to be superior for portable products and stationary power.
Market participants are exploring alternative power sources such as fuel cells, ultracapacitors, flywheels, etc, which could offer a better option than today's conventional battery chemistries. However, these alternatives are not likely to be introduced into the commercial market until 2010 and beyond. Battery manufacturers are investing much time and resources into next generation chemistries that could potentially be the bridge between today's conventional battery chemistries and those alternative technologies of the future.
Any limits on raw materials will ultimately challenge the emerging battery marketplace. New suppliers need to be established for existing suppliers require an expanded output for raw materials and component to meet the growth expectations for emerging batteries.
"Raw materials play a crucial role for the battery industry and any shortages or delays in obtaining these materials can delay emerging technology commercialization," states Bradford. "The delays could impact the market negatively and/or curtail the actual technology development altogether, depending on the severity."
Manufacturers are either strengthening their supplier relationships or setting the foundation to gain access to new suppliers, depending on the nature of the manufacturer. Those already established battery manufacturers versus up-and-coming new battery emergent companies would employ differing strategies to overcome this challenge.
