Large and Advanced Battery Technology and Markets

Report Highlights

• The U.S. market for large-and-advanced batteries was valued at $3.0 billion in 2003 and is growing at an average annual rate (AAGR) of 8.8%.
• The market is expected to reach $4.5 billion in 2008.
• The HEV/EV battery market is expected to grow at an AAGR of more than 50% to nearly $250 million in 2008. Nickel-metal hydride technologies dominate this market.
• The $1,195 million 2003 portable computer battery market is expected to rise at an AAGR of 4.5% to reach $1.5 billion by 2008. Nickel-metal hydride battery sales will drop with lithium technologies rising.
• The highest value large-and-advanced battery type is nonautomotive lead-acid. As defined, they represent an $881 million U.S. market, withboth traction and stationary applications being the largest sectors.

INTRODUCTION

Several entirely new classes of advanced batteries were commercialized during the the last 10 years, including nickel-metal hydride, secondary lithium and zinc-air designs. Meanwhile, improved microelectronic battery charger controller technology is allowing the commercialization of entire new classes of batteries (notably rechargeable alkaline and lithium-ion) and is improving the marketability of existing battery systems (notably nickel-cadmium and lead-acid). This, in turn, has allowed the commercialization of portable products that would be impossible without improved battery chargers, including portable computers and portable cordless hand tools.

As this synergy continues to develop, there are areas where the advanced battery industry could experience the explosive growth usually associated with emerging industries. Battery designers (mainly electrochemists) and battery charger designers (mainly electrical and electronics specialists) will continue to operate together, with new batteries and new battery chargers evolving concurrently to produce even higher-performance products.

Large-and-advanced battery technical advances, and a realignment of battery industry players must be matched by new markketing attitudes. Battery designers and users now must cooperate to meet more demanding design requirements. At the same time, there must be an understanding of the competitive forces that help shape the market, along with up-to-date knowledge of competitor activities. This BCC report covers the markets for large and advanced batteries and is intended to be a complete technical, economnomic and document.

SCOPE OF STUDY

The report contains:

• Discussion of general battery technology, covering widely used, recently commercialized and developmental large battery systems
• Coverage of established markets, including motive power, portable product power and stationary power
• Coverage of developing markets in electric vehicles, utility load leveling and military/aerospace applications
• Forecasts through 2008 for all market sectors
• Profiles of large-and-advanced battery companies.

METHODOLOGY

This report is based on literature reviews, patent examinations and discussions with commercial and government sources. Historic markets and predicted wholesale-level (industry sales) markets through 2008 are provided where applicable. Five-year forecasts are provided to emphasize predicted and developmental battery growth.

Most market summaries are based on a consensus scenario that assumes no unanticipated technical advances and no unexpected legislation. Advanced markets, including electric vehicles, utility load leveling and developmental military markets are characterized through accepted BCC consensus scenarios. Totals are rounded to the nearest million dollars. When appropriate, information from previously published sources is identified to allow a more detailed examination by clients.

INFORMATION SOURCES

Market assumptions used in this report include those based on updates of material from BCC's GB-184 Portable Battery Powered Products and GB-174 U.S. Battery Control Technology Market that were prepared by the same author of GB-197R. This report's author prepared these Opportunity Reports. Although many segments of the industry are well documented, much of this information is based on estimates, not hard facts. The distinction between them can be vital, and wherever possible, sources are identified. The author of this report, serving as a long-time editor of BCC's Battery/EV Technology News, provides a valuable secondary source.

AUTHOR'S CREDENTIALS

This report's project coanalyst, Sandrine Colson-Inam, a Ph.D. in Ceramics Sciences and Engineering, recently became a technical market consultant and subcontractor to BCC. Not only has she managed research and new product development projects in battery and materials technology, also has been involved in developing the subsequent opportunities in original equipment markets.

The author's battery technical and market expertise encompasses more than 10 years of professional and R&D related experience. Areas of focus include consumer electronics and industrial market applications for various types of power sources such as batteries and fuel cells. She is the author of several patents and technical papers and has lead seminars at many international conferences (Material Research Society and Electrochemical Society meetings, for example) as well as conducted specific workshops.

She presently is involved in consulting activities involving batteries and fuel cells, bridging the gap between Europe and North America to create seamless communication through partnership development between suppliers, manufacturers of power sources, their investors, original equipment manufacturers (OEMs) they partner with, and the end users.

Coanalyst, Donald Saxman, was the long-time editor of BCC's monthly Battery/EV Technology News and founded several other BCC newsletters. Saxman has more than 22 years' experience in market analysis, technical writing and newsletter editing. Since 1983, he has operated as a technical market consultant and subcontractor to BCC, and in this capacity, has prepared in excess of 60 Opportunity Reports.

His previous experience includes supervision of a quality-control laboratory at a major secondary lead refinery, experience as an analytical chemist at a hazardous waste testing service, product assurance manager for a space station life support system project, and as an information technology analyst and project manager.