This report is built using data and information sourced from proprietary databases, primary and secondary research and in-house analysis by a team of industry experts.
The Automotive Sector will be the Cornerstone of Growth for Ultracapacitors
Ultracapacitors, with their quick charging and discharging capabilities, are best-suited for short duration boost power applications in hybrid vehicles and electric cars. Advancements in ultracapacitor technology are expected to displace the lithium-ion battery as the dominant automotive battery technology for electric car. The expected takeoff in hybrid electric vehicles sales will drive the demand for ultracapacitors in the automotive sector. Revenues from ultracapacitor applications in the transportation sector are expected to grow at a CAGR of 42.5% during the forecast period of six years, from 2009 to 2015. From 2010 onwards, in automotive sector applications, ultracapacitors are expected to experience an annual revenue growth of 50% or higher.
R&D initiatives for hybrid battery/fuel cell automobiles are gathering pace with automotive majors such as Honda and Toyota testing prototypes of hybrid fuel vehicles. Ultracapacitors, due to their higher energy efficiency and power density features, are ideally suited for fuel-cell based vehicles.
Modernization of Power Grid and Smart Grid Initiatives will Offer Sales Growth
Utilities are looking for alternatives for battery banks as they move ahead with the modernization of the power grid. Battery banks have been the traditional choice of utilities for the short-term electricity supply needs during power outages. However, Utilities are increasingly using modern storage devices such as ultracapacitors to ensure the continuous supply of power during the period between a power blackout and the resumption of back-up power. The deployment of ultracapacitors in the power grid is expected to gain momentum with smart grid initiatives forging ahead in key economies of the globe.
The Ultracapacitors Market is Expected to Grow Due to Expanding Peak Power and Backup Applications
The substantial increase in the peak power needs of modern electric vehicles, industrial applications, and consumer electronic gadgets is expected to offer opportunity for sales growth of ultracapacitors. Ultracapacitors provide quick, short-duration energy spurts for peak power applications such as elevators, forklifts, consumer electronic gadgets and robotics applications.
The growth in back-up power devices will sustain the demand growth of ultracapacitors until 2015. Ultracapacitors are typically used in conjunction with batteries or fuel cells in back-up power applications such as Uninterrupted Power Supply (UPS). Critical-load utility customers such as hospitals, cell phone towers and airport control towers deploy ultracapacitors in uninterruptible power sources. The ultracapacitors market is expected to grow at a CAGR of 25.3% in dollar revenue terms during the forecast period of six years from 2009 to 2015.
High initial capital costs of ultracapacitors have restrained their uptake. Cheaper competing technologies such as batteries are denting the attractiveness of expensive ultracapacitors in applications that require moderate power supply. Capital costs associated with ultracapacitors that include a power conditioning system and all other necessary power supply equipment are high. Moreover, ultracapacitors incur high integration costs when deployed with legacy technologies.
Ultracapacitor manufacturers, keen about achieving cost reduction, are maximizing their cost optimization plans to spur the sales growth of ultracapacitors. Ultracapacitor manufacturers across the globe are taking initiatives to cut down on the high capital cost of ultracapacitors that are about 50 times that of batteries. Key market players are yet to find ingredient materials that are cheaper and which have optimal safety features for use in their production. Cost improvements of ultracapacitors achieved so far are not significant enough to make an impact on the overall sales. The vendors are taking a multi-pronged approach focusing on ingredient materials and R&D among other things, to address the high capital concerns.
Modern Ultracapacitors With Their Enhanced Capabilities Are Expected To Supplant Batteries
Advanced features of ultracapacitors such as low form factor, high power density, quick charging, and quick response time are driving the ultracapacitor market. Ultracapacitors are slowly penetrating into battery dominated devices such as digital cameras and flashlights. The emergence of battery-free devices in consumer electronics will be a key growth driver for the ultracapacitors market during the period 2009-2015. Technology advancements in ultracapacitors are prolonging the duration of energy release. Traditionally, ultracapacitors have been used in applications that needed intense jolts of energy for short durations. The use of circuits in modern ultracapacitors allow for sustained and efficient release of energy. A recently launched flashlight model called "Light for Life" which uses modern ultracapacitor technology will recharge in 90 seconds and can last for two hours. Fuel-cell and battery-based applications realize significant increases in life cycles with ultracapacitors that stabilize the power output of these systems. Electric double-layer capacitors (EDLCs) reduce power drain from the energy sources and extend the available life up to 400% when used in combination with batteries or other energy sources.
Need for Reliable, High Quality Power Supply Drives the Global Ultracapacitors Industry
The need for reliable and quality power supply is driving the ultracapacitors market. Reliable power supply entails uninterrupted, high quality, fluctuation-free power supply at constant frequency. Frequent fluctuations and frequency variations in power supply can cause unwanted damage to machineries and even result in loss of important data in data centers, telecom centers, and related others. Ultracapacitors provide the benefit of increased system reliability, which is one of the highest priorities of consumers. Advanced features such as compact size, high power density, quick charging, and wider temperature range, make ultracapacitors particularly suitable for short duration power boost applications such as instant high power back-up systems, regenerative braking in hybrid vehicles or trains, and others. By ensuring the availability of high quality power, ultracapacitors help in achieving increased system reliability for consumers.
The report analyses market opportunities and challenges for ultracapacitor manufacturers in the global arena. Its scope includes:
* Key geographies such as the US, Canada, the UK, Germany, France, Italy, Spain, Japan, China, India, Australia, and Brazil
* Annualised market revenues of the global ultracapacitors market from 2005 to 2008, forecast forward for 7 years to 2015
* Region wise (Asia-Pacific, Europe, North America and Rest of the World) annualised market revenues of the ultracapacitor market from 2005 to 2008, forecast forward for 7 years to 2015
* Forecast market revenues for each of the ultracapacitors major end-users – renewable energy, industrial, transportation, and consumer electronics, from 2009 to 2015
* Revenue shares of the ultracapacitors major end-users in the overall ultracapacitor market for 2008, forecast forward for 7 years to 2015
* Production analysis of ultracapacitors on the basis of regions for the year 2008
* Cost Analysis on the basis of material used in the manufacturing of ultracapacitors
* Qualitative analysis of market drivers, restraints and challenges for the global ultracapacitors market
* Competitive landscape including market shares and classification on the basis of material used and size of ultracapacitors. Key players covered include Panasonic, NEC TOKIN Corporation, Seiko Instruments, ELNA CO. LTD., Maxwell Technologies, Inc., Korchip Corporation, Cooper Bussmann, NESSCAP CO. LTD, Cap-XX etc
* Key topics covered include the Distribution Structure, Technology Analysis, and Regulatory Framework