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The Worldwide Battery Business Juggernaut Powers On

By: Susan Banks Sr

The world battery market is worth roughly 60 billion US dollars, of which roughly 5 billion dollars is apportioned to rechargeable (secondary) batteries. The growth is estimated at 5 percent annually through 2010. Australia, Pakistan, The U.S., Italy and South Korea will record some of the most powerful market gains.

Currently the fastest growth area within the battery sector is the automotive marketplace, which is feeling strong double-digit growth. In the automotive space, HEVs are driving a surge in demand for lithium and other chemical technologies, while the core SLA battery market continues to underpin earnings and show steady growth due to after-market sales and the expanding global fleet of motor cars. Almost fifty percent of the current fourteen billion dollar lead acid battery market can be attributed to the aftermarket category. Despite recent increases in lead prices, the SLA battery market is likely to see continued growth owing to its reliability, tough construction, small cost of maintenance, better performance compared with other technologies, and the inability to develop a commercially viable alternative technology that could replace SLA batteries in all these aspects.

Another fervent growth sub-category is the personal computer battery market which is expected to increase from 2 billion dollars in 2006 at a compound annual growth rate of approximately 9 percent.

The reality above are good proof of just how hot the battery market is for venture capitalists at the moment, and what a large return they expect if a battery technology find should occur. A revolution in this space might be akin to the holy-grail, due to dependance on batteries for portability.

Of the many chemical technologies, the Lithium rechargeable battery market is projected to be US8 billion dollars by the year 2015. Of this growth, the Lithium rechargeable battery market for Hybrid Electric Vehicles is envisioned to increase from virtually zero in 2005 to approximately US one billion dollars in 2015 – the equivalent of a 50% year-over-year CAGR. The overall market for Lithium batteries is increasing much faster in terms of volume, but due to device cost reductions due to enhanced efficiencies in the production processes and increases in production volumes, aggregate revenue growth is not forecast to quicken so quickly.

The storage battery market is extremely rivalrous and hence vast sums are invested on research and development each month. New chemical technologies, along with advancements in old technologies leads industry experts to predict transformations in battery capacity (for equivalent size and weight) of 3 to 4 times over the next 5 years. This approximate doubling of capacity every 2 and a half years is similar to moores law in the computer sector which sees memory power doubling every eighteen months.

In terms of disposable batteries, ordinarily a consumer purchases these types of batteries 3 times per year. Single-use batteries are figured to have the highest margin per square foot in most retail stores, and they are often an distress purchase by the consumer. These kinds of batteries are sold in more retail establishments than any other products, period. This is obviously due to the massive array of devices that are reliant on batteries – Many experts see sales virtually recession proof.

From an environmental view, disposable batteries are obviously questionable, due to their very nature. The earths landfills are overflowing with the often toxic byproducts of the disposable battery boom. In light of this the European Union has come to the table and introduced legislation called the European Directive on Batteries, which has finally been ratified and will come into force in 2008, introducing recycling to the market. It is hoped that the US and other countries will follow this development closely and introduce their own environmental legislation.

Article Source: http://ezine-articles-planet.com

Susan is a regular contributing editor to Fuzing.com. This article is brought to you in conjunction with trade leads from the Automotive Batteries and Chargers section of our Business to Business Website.

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