Governments, and leading environmental authorities all over the world, confirm the urgent need for innovation in energy saving solutions and carbon reduction. Over the next 30 years, trends indicate there will be dramatic change to find and implement global energy solutions; this is driven by the need to implement alternative energy sources to fossil fuels and the sociocultural factors that demand clean air (CO2 reduction), water and sustainable energy that is essential for human beings. These issues are an inspiration and catalyst to new research and the development to solve such technological challenges.
Today, batteries often fail to reach 1 year. The bus and truck industry put pressure on battery makers to extend the warranty for lead acid batteries to 4 years. In many applications, in countries with extreme climate conditions, the lifespan of lead acid batteries is shortened to between 1 and 3 years. Urbanization in various developing countries has also lead to a higher need for backup power. Trucks, buses and cars require an increasing power supply because of start-stop-systems and on-board electronics. More complex grid structures increase the demand for energy storage solutions. WaveTech’s products have the scope to address the entire lead acid battery market, as well as the rapidly growing lithium battery market. WaveTech is initially concentrating on four market sectors with tests and/or contracts with large customers already advanced in all four segments:
- Buses & Trucks (€4.2 billion)
- Telecommunications (€1.7 billion)
- UPS (uninterrupted power supply) (€1.5 billion)
- Electrical forklifts (€0.8 billion)
At a later stage, the automotive industry (revenue potential €19 billion will be addressed)
Lead Acid Battery Market
The global lead acid battery market size was valued at USD 46.6 billion in 2015 and is expected to witness growth owed to its increasing usage in vehicles and UPS along with advancements in manufacturing processes. The growing demand for stationary lead acid batteries in off-grid renewable energy generation is expected to augment market size.
The development of the passenger car, commercial vehicle, and motorcycle industries, along with growing application of energy storage applications is expected to drive industry demand in the near future. Increasing requirement of UPS in industrial sectors including oil & gas, manufacturing, chemical, and healthcare has spurred industry demand.
U.S. lead acid battery market, by product, 2014 - 2025 (USD Million)
Low cost coupled with reliable performance is anticipated to drive the growth in the future. However, high lead content in the product can harm the environment and is expected to restrain growth. In addition, the low energy density of these products is anticipated to restrict growth. However, the increasing demand for alternatives such as lithium ion battery in automobiles is likely to pose challenges for growth in the future.
Development of the auto industry in India, Mexico, Indonesia, South Korea, Thailand, and Vietnam is anticipated to stimulate industry size. Growing inclination towards pollution-free electric vehicles coupled with technological developments is expected to fuel product demand over the upcoming years.
The global market is dominated by major players including Johnson Controls, GS YUASA, Exide Technologies, East Penn, and EnerSys. Johnson Controls was one of the prominent lead acid battery industry players in 2015 and accounted for over 25% of the market share
Automotive was the largest segment in 2015 and accounted for 59% of the global market revenue. The extensive usage of these products in the automotive sector is expected to grow as a result of increasing manufacturing of vehicles globally. The enriched distribution system of lead acid batteries along with the ready availability has also fueled the growth of the industry.
Global lead acid battery market volume, by application, 2015 (%)
UPS is expected to gain substantially over the projected period at a CAGR of 7.2% owing to an increasing requirement for uninterrupted power supply in residential, commercial, and industrial sectors. Asia Pacific industry for UPS is expected to rise significantly over the forecast period on account of the rapid development of data centers and IT industries in the region.
Market share by application over the period is expected to remain with minimal change to individual market shares. The automotive segment will continue to dominate the market with a 60% share.
Lithium-Ion Battery Market
The lithium-ion battery market is highly competitive in nature because of the presence of large and small-scale manufacturers, specifically in the U.S., China, and Japan. The global lithium-ion battery market size was valued at USD 22.8 billion in 2016 due to its increasing demand for grid storage and electric vehicles as it offers lightweight and high-energy density solutions. Increasing registration of electric vehicles (EVs) along with decreasing lithium-ion battery cost is anticipated to augment industry size over the forecast period.
The rising number of PV installations and nuclear power plants along with the commencement of New Wind Energy Projects are anticipated to stimulate the market growth over the forecast period. Rising off-grid installations in China, U.S., Germany and India along with increasing adoption of lithium-ion batteries in medical equipment is expected to promote industry expansion over the forecast period.
U.S. lithium-ion battery market revenue by product, 2014 – 2025 (USD Million)
The product is commonly used in electronic devices such as mobile phones, digital cameras, and power tools. The demand for the product in the manufacturing, solar power, and railway industries is expected to increase with the growing need for power backup and storage. High density, long life span and reduction in battery prices will drive product demand over the forecast period.
Rising demand for other batteries including lead acid battery, lithium-air, flow battery, and sodium nickel chloride batteries in electric vehicles, energy storage, and consumer electronics is expected to restrain lithium-ion battery market over the forecast period.
The trend of renewable energy generation was driven by increasing concerns about climate change, favorable government incentives, decreasing price of solar photovoltaic cells, and declining cost of batteries.
Hybrid & electric vehicles will witness growth on account of substitution from fuel to electric batteries. In addition, government's stringent regulations on emission norms in order to safeguard the environment and to reduce the degradation based options are expected to play a critical role in shaping the overall battery market.