High-Value Chemistries, High-Drain Products Drive Growth in Battery Markets
Rechargeable cells will register the largest and fastest market gains through 2020, reflecting an ongoing trend away from single-use batteries and less expensive rechargeable chemistries such as nickel-metal hydride (Ni-MH) toward higher-value more expensive rechargeable lithium products. Robust increases in domestic production of hybrid and electric vehicles (H/EVs), as well as strong growth potential in nascent markets such as energy storage systems (ESSs), will also help boost sales of high-value rechargeable batteries. Value gains for single-use products will be bolstered by an ongoing shift away from alkaline towards higher-value primary lithium cells. Nevertheless, technological advances that improve the useful lives of single-use batteries and an increased preference for long-lived rechargeable batteries will restrain overall advances.
Key Findings in the Battery Markets Study
Lithium-Ion Batteries Solidify Position in H/EVs
Motor vehicles will post the largest demand increases in dollar terms, accounting for nearly half of the growth through 2020. Nevertheless, the 5.0 percent average annual sales gains forecast for motor vehicle batteries will constitute a slowdown from the 2010-2015 period due to a sharp deceleration in domestic motor vehicle production growth. However, a strong outlook for domestic H/EV production will support value gains due to a greater preference for high-value lithium-ion (Li-Ion) batteries, rather than lower-cost nickel-metal hydride (Ni-MH) types, in these vehicles. The large existing stock of motor vehicles will also promote aftermarket replacement battery demand.
Portable Devices Trend Toward High-Value Single-Use and Rechargeable Chemistries
In a continuation of past trends, portable device battery demand will advance at a below-average rate through 2020, with strong market gains for primary and rechargeable lithium products offset by stagnant or declining demand for lower-value chemistries such as alkaline, lead-acid, and Ni-MH. While sales alkaline of cells will continue to edge up due to the large base of portable devices in use that rely on alkaline batteries, the increasing complexity and higher energy requirements of many portable devices support an ongoing trend away toward use of higher-value lithium chemistries. The lighter weight, longer run times, smaller size, and flexibility of lithium-ion and lithium-polymer rechargeable batteries promotes use of these chemistries over heavier and lower value-added rechargeable types such as lead-acid and nickel cadmium (Ni-Cad).
OEM Motor Vehicle Battery Demand Boosts Industrial Battery Sales
Among end users, industry offers the greatest growth potential in both dollar terms and in average annual advances. Industrial demand will be buoyed by rising original equipment manufacturing (OEM) motor vehicle battery demand, particularly for high-value lithium-ion products. Strong advances in nonresidential fixed investment spending will also support market gains for industrial motive power battery purchases, which find use in industrial trucks and underground mining equipment, as well as in electric wheelchair and personal mobility device OEM applications, among other applications.
This Freedonia industry study analyzes the $14.2 billion US battery industry. It presents historical demand data (2005, 2010, and 2015) and forecasts (2020 and 2025) by application (motor vehicle, portable device, and other) and end user (consumer, industrial, government, and other). The study also evaluates company market share and competitive analysis on industry competitors including East Penn Manufacturing, Energizer, EnerSys, Exide Technologies, Johnson Controls, Panasonic, Procter & Gamble, Saft Groupe, Samsung SDI, and Tesla Motors.