Portable electronics, hybrid cars to drive global battery demand
By James Carbone -- Purchasing, 11/13/2008 2:00:00 AM
Worldwide primary and secondary battery demand will increase nearly 5% annually to almost $90 billion in 2012, driven by battery-powered electronics and hybrid vehicles.
According to a new report from the Freedonia Group, China will record the largest gains of any national market and will account for more than half of the total global increase in battery demand through 2012. China will surpass the U.S. to become the largest market in the world. Growth will be supported by continued strong demand for portable electronic products and motor vehicles as more cars are built with hybrid engines.
The rapid growth in hybrid vehicle production will also support demand for these batteries. In contrast, lead-acid batteries will see only modest growth, constrained by competition from nickel-metal hydride and lithium-based batteries in a number of applications.
Non-lead-acid secondary battery market gains will outpace demand for primary and lead-acid secondary batteries through 2012.
Sales of lithium-ion and lithium polymer batteries and, to a lesser extent, nickel-metal hydride batteries will be spurred by demand for electronic devices such as cell phones and portable digital audio players.
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