CLEVELAND, Oct. 5, 2016 /PRNewswire/ -- US demand for rechargeable batteries is forecast to expand 5.3 percent per annum to $14.2 billion in 2020. Advances will be fueled by continued strong growth in hybrid and electric vehicle (H/EV) production. In addition, an ongoing trend away from single-use batteries and less expensive rechargeable chemistries such as nickel-metal hydride (Ni-MH) toward more powerful, more expensive rechargeable lithium types will contribute to dollar gains. These and other trends are presented in Rechargeable (Secondary) Batteries, a new study from The Freedonia Group, a Cleveland-based industry research firm.
Industry study Rechargeable (Secondary) Batteries is available at http://www.freedoniagroup.com/DocumentDetails.aspx?ReferrerId=RF-PRNEWS&StudyID=3458
Higher personal incomes and consumer spending activity will also promote rechargeable battery sales. As incomes climb, consumers are more likely to buy products such as cordless electric power tools, which are popular among users because of their convenience and safety compared to corded products. Demand for cordless tools with increased power, longer runtimes, and lighter weight will lead to greater use of more expensive, sophisticated, and lighter battery chemistries, boosting demand in value terms. Anticipated strong spending growth for niche products such as energy storage systems and electronic cigarettes (e-cigarettes) from what are currently extremely small sales bases will further promote dollar gains.
The H/EV market will post the largest advances in value terms. Battery demand will almost double in this market between 2015 and 2020, supported by robust increases in electric vehicle production. Growth in output and stocks of micro and mild hybrids equipped with start-stop systems and the trend away from Ni-MH batteries toward higher-cost lithium-ion (Li-Ion) batteries in full hybrids will also contribute to sales gains. Although the pace of increase will be much slower than that for Li-Ion batteries, automotive lead-acid battery demand will climb as well, supported by the replacement product requirements of the large existing number of motor vehicles in use. Value gains will also be bolstered by the growing use of better-perfoming, expensive products like absorbent glass mat lead-acid batteries in micro and mild hybrids.
About The Freedonia Group – The Freedonia Group, a division of MarketResearch.com, is a leading international industrial research company publishing more than 100 studies annually. Since 1985 we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Each study includes product and market analyses and forecasts, in-depth discussions of important industry trends, market share information and profiles of the leading industry players. Reports can be purchased at www.freedoniagroup.com and are also available on www.marketresearch.com and www.profound.com.
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SOURCE The Freedonia Group