-- Market participants look to keep pace with the rapid changes in the market by innovating
KUALA LUMPUR, Malaysia, May 29, 2013 /PRNewswire/ -- The market for lithium ion batteries (LiBs) is experiencing significant changes across consumer, automotive and industrial segments. One of the major contributing factors is the price reduction of LiBs due to industry over-capacity and competition. The proliferation of new consumer gadgets and rapid strides taken by the battery industry to keep up will also give a strong boost to the market. Electric vehicles, which have been on the cusp of strong growth for a while now, are expected to help triple the automotive LiB market. The industrial LiB segment too will grow on the back of stationary energy storage applications.
New analysis from Frost & Sullivan (http://www.powersupplies.frost.com), Asia Pacific Lithium ion Batteries Market, finds that the market earned approximately US$2.21 billion in 2012 and estimates this to more than double to US$4.82 billion by 2017 due to the widening market and product scope.
New energy storage applications in electric vehicles, grid-connected stationary energy storage, and the higher energy requirements of new consumer gadgets are expected to alter market dynamics. The LiB market has to make the most of these changes and find usage in these application areas.
LiBs are the preferred energy sources for consumer gadgets such as phones, tablets, mp3 players, next-generation electrically propelled light motor vehicles, and many industrial and commercial applications. In emerging consumer applications such as smart phones and tablets, LiBs are likely to generate high volumes but require technology upgrades to grow faster.
Consumer gadgets like smart phones and ultrabooks are energy intensive; however battery technology has not kept pace with their growth. This has led to R&D for newer chemistries in industrial and automotive segments that might prove disruptive to the LiB market.
"Competing battery chemistries are posing a stiff challenge to LiBs, as applications are becoming increasingly demanding with respect to energy storage and discharge needs," said Frost & Sullivan Energy & Environmental Industry Analyst Vishal Narain T.
With expectations of strong market growth, the competitive intensity and the production capacity in the industry has dramatically increased. So, apart from infusing funds into R&D to improve battery performance, manufacturers are resorting to price cuts to stay competitive. They are also trying to increase product compatibility and decrease product prices to suit a wider gamut of applications.
"Patents offer a major competitive advantage in this technology-intensive market, where industry consolidation to gain technology and market advantage is a strong possibility," noted Narain. "Technology battles leading to path-breaking products are anticipated to boost sales, reduce prices, and enhance volume demand."
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