ULTRACAPACITOR MARKET ANALYSIS

Ultracapacitors are electrical energy storage devices that can store a large amount of electrical charge. It is also referred to as supercapacitors and has high capacitance value, much higher than an ordinary capacitor. However, it has lower voltage limits, which bridges the gap between electrolytic capacitors and rechargeable batteries. Ultracapacitors are used in various sectors including electronics, the automotive, wind, industrial, and military. The global ultracapacitors market focuses on four regions namely North America, Europe, Asia Pacific, and Rest of World.

The global ultracapacitors market is estimated to be valued at US$ 4,890.6 million in 2021 and is expected to exhibit a CAGR of 25.0% over the forecast period (2021-2028

Recent Developments:

1. In February 2021, Effenco, a Canada-based specialist in electric propulsion systems launched Ultracapacitor Systems for electric trucks
2. In November 2019, Skeleton Technologies launched UL-certified ultracapacitors for warehouse robotics and smart factories
3. In October 2021, Yunasko completed a project to develop and manufacture supercapacitor/ultracapacitor modules for powering a diesel locomotive engine in a diverse range of outdoor temperatures.

Asia Pacific (Region) held dominant position in the global ultracapacitors market in 2020, accounting for 36.0% share in terms of volume, followed by North America and Europe, respectively. (Add Relevant Driver/s for growth of the region/segment) 

Figure 1. Global Ultracapacitors Market Value (US$ Mn), by Region, 2020

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Global Ultracapacitors Market: Drivers

Longer life cycle as compared to batteries is expected to drive growth of the global ultracapacitors market during the forecast period

An average of ultracapacitors is around 8 to 15 years, while the life of a conventional battery used in automobiles is around 3 to 4 years. Moreover, in other devices such as solid-state devices, the conventional battery life cycle is around 1-2 years. The high price of lithium-ion batteries also results in the poor resale price of electric vehicles, which inhibits the growth in sales of electric cars. In such a situation, ultracapacitors may serve as a better substitute for batteries as it has a long life and is not needed to be replaced after 3-4 years. Furthermore, decreasing the price of ultracapacitors is expected to make an impact in the near future. Hence, these factors are expected to drive growth of the global ultracapacitors market during the forecast period.

Stringent environment regulations in Europe and North America is expected to propel the global ultracapacitors market growth over the forecast period

Rising fuel costs, increasing carbon emissions, and depletion of natural resources has led to increased demand for alternate means of transportation. Governments in many regions have started imposing stringent environmental regulations to reduce CO2 emission and save fuel. For instance, the European Commission issued a regulatory proposal confirming a 95g/km target by 2020. Government regulations such as 95g/km CO2 emissions in Europe and Corporate Average Fuel Economy (CAFE) in the U.S. are the major factors supporting the growth of ultracapacitors in these regions. This, in turn, has increased the demand for ultracapacitors, which offers environment-friendly energy storage options. As a complement to battery technology, ultracapacitors are expected to replace battery technology in the long run. Therefore, these factors are expected to propel the global ultracapacitors market growth in the near future.

Global Ultracapacitors Market: Opportunities

Growing demand from newer applications such as wind and solar can present lucrative growth opportunities

Ultracapacitors are being increasingly used in numerous technologies such as regenerative auto start-stop, power assist, braking, catalyst preheating, door-lock systems, and stabilization of electrical systems. Moreover, ultracapacitors are used in the solar devices, energy harvesting, electrical vehicles, mobile phones, tablet PCs, and other products. Furthermore, the increasing demand and adoption of ultracapacitors in military/ aviation also create an opportunity to capture this opportunistic market. Ultracapacitors are used in missiles, airplanes, and rockets. In the military sector, ultracapacitors can be used for several purposes such as - backup power for electronics in military vehicles, backup power for fire control systems in tanks and armored vehicles, and high power discharge for naval warfare among others.

Rising demand for handheld electronic devices can provide major business opportunities

Ultracapacitors are expected to witness significant demand in handheld electronic devices such as laptops and mobiles in the near future, owing to increasing adoption in the transportation, solar, and industrial sectors. Any electronic device that requires a burst of power can be transformed with an ultracapacitor. Features such as video, camera, wireless communication, GPS navigation, and high-fidelity audio found in commercial products today can be operated with the help of ultracapacitors. Similarly, other industrial hand-held devices such as GSM/GPRS and RFID communications, LED flash, thermal printers, bar code scanners, display refreshes, GPS chips, hard disk drives, and audio amplifiers can also be operated more efficiently with the help of ultracapacitors.

Market Trends:

Carbon is a crucial role in the manufacturing of ultracapacitors

Among the various raw materials used to manufacture ultracapacitors, carbon plays the most important role. Ultracapacitors use powdered activated carbon made from coconut shells. However, this market is not expected to foresee any raw material availability issues in the coming years and research and development will continue based on the market needs.

Energy sector is expected to be the most lucrative sector

Energy is the most attractive application segment for ultracapacitors followed by electronics. Rising need for renewable and lasting energy sources to replace fossil fuels is one of the major factors expected to drive the growth of ultracapacitors in the near future.

Figure 2. Global Ultracapacitors Market Share, By Automotive, 2020

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Key Takeaways of the Graph:

• Among Automotive, the Bus held dominant position in the market and accounted for 50.0% share in the global ultracapacitors market in 2020. The segment is expected to reach US$ 5,498.7 million in 2028. Owing to growing demand of electric buses
• Among Industrial, the Smart Grid held dominant position in the market and accounted for 37% share in the global ultracapacitors market in 2020. The segment is expected to reach US$ 1,548.4 million in 2028. Owing to improve the power quality of smart grid

Global Ultracapacitors Market: Restraints

Low awareness regarding ultracapacitor technology is expected to restrain growth of the global ultracapacitors market during the forecast period

Although ultracapacitors have been in the market since the 1950s, most consumers still prefer batteries and are hesitant to use ultracapacitors. There is low awareness regarding the benefits of ultracapacitors among consumers. Manufacturers have close associations with battery companies for providing energy storage solutions in their vehicles. Although more efficient as compared to batteries, ultracapacitors are no batteries and people are yet to be educated about this product. Thus, these factors are expected to restrain the market growth in the near future.

High price of ultracapacitors is expected to hinder growth of the global ultracapacitors market over the forecast period

Ultracapacitors are expensive as compared to batteries, which hinders their demand. Although ultracapacitors are cost-effective in the long run, the initial capital price to be paid is significantly high as compared to other products. However, price of ultracapacitors is decreasing gradually though it still faces severe competition from lithium batteries. Hence, these factors are expected to hinder growth of the global ultracapacitors market over the forecast period.

Global Ultracapacitors Market: Competitive Landscape

Key players operating in the global ultracapacitors market are Maxwell Technologies Inc., NEC Tokin, Nesscap CO. LTD., LS Mtron, Panasonic Corporation, Tesla, Inc., KEMET Corporation, CAP-XX, Ioxus, Inc., Supreme Power Solutions Co., Ltd., and YUNASKO.

Global Ultracapacitors Market: Key Developments

Key players operating in the market are focused on mergers and acquisitions, in order to enhance the market presence. For instance, in February 2019, Tesla Inc. acquired Maxwell Technologies Inc., a battery company.  

Key companies are involved in mergers and acquisitions, in order to gain a competitive edge in the market. For instance, in April 2017, KEMET Corporation, a capacitor manufacturer acquired NEC Tokin.