Component Demand to Reach $4.8 Billion

U.S. demand for battery and fuel cell components is projected to rise 6.8% annually through 2007 to $4.8 billion. Market advances will be fueled by an acceleration in battery output, spurred by strong demand for energy-hungry portable devices such as digital cameras and wireless phones. A shift in production toward advanced, higher-end batteries with improved performance will support associated component market gains. Fuel cell production will expand eightfold, resulting in double-digit increases in demand for electrode assemblies, fuel reformers and processors as well as plates and other components. Battery & Fuel Cell Components, a new study by The Freedonia Group, explores these trends.

Demand for electrical and electronic devices will outpace demand for most other battery and fuel cell component types through 2007. Gains will reflect both increased use of “smart” battery technology and double-digit growth in lithium battery output, boosting demand for safety devices used to provide overcurrent protection.

A healthy fuel cell market environment will also stimulate demand for on-board power conditioning devices, among other components. Battery electrodes will continue to dominate overall components demand as 46% of the market in 2007. Consumption of battery containers and coverings will remain substantial as well, representing nearly one-fifth of all components demand.

Secondary batteries represent the largest battery and fuel cell components market, and will account for more than three-fifths of all demand in 2007. This is predominantly due to greater per-unit demand on a dollar basis for components used in the manufacture of lead-acid batteries, compared to most other battery types.

The 194-page Study #1744 is available for $3,800 from The Battery Bookstore, P.O. Box 650, Boalsburg, PA 16827, phone: (814) 466-6559, fax: (814) 466-2777, or visit www.7ms.com.