Global Ultracapacitor Market Is Estimated To Witness High Growth Owing To Rising Demand For Energy Storage And Increasing Adoption Of Electric Vehicles
The global Ultracapacitor Market is estimated to be valued at US$ 3.02 Bn in 2024, exhibiting a CAGR of 15.6% over the forecast period (2024-2031). Increasing demand for energy storage solutions and growing adoption of electric vehicles are the key factors propelling the growth of the ultracapacitor market. Furthermore, the rising focus on the integration of renewable energy is also driving the market growth.
Market Dynamics:
Rising demand for energy storage and increasing adoption of electric vehicles are the major drivers of the global ultracapacitor market. Ultracapacitors are increasingly being used in applications that require high power for short durations, such as regenerative braking systems in hybrid electric vehicles. They are more efficient, last longer and charge faster than lithium-ion batteries. Various automotive OEMs are focusing on developing electric vehicles with advanced energy storage technologies like ultracapacitors. This is expected to significantly boost the adoption of ultracapacitors in the automotive industry. Additionally, growth in the renewable energy sector is also spurring the demand. Renewable energy being intermittent in nature requires efficient energy storage solutions and ultracapacitors are well-suited for integration with renewable sources like solar and wind power.
Growing Demand for Renewable Energy is Driving the Global Ultracapacitor Market
The rising demand for renewable energy sources across the globe is a major driver for the ultracapacitor market. Ultracapacitors are increasingly being used in wind and solar power generation applications due to their ability to store power efficiently. They play a critical role in energy storage, helping transfer excess power generated from renewable sources like wind turbines and solar panels to the grid efficiently. With the push for cleaner energy alternatives, renewable energy capacity addition is growing rapidly. This is augmenting the demand for energy storage technologies like ultracapacitors that help store the intermittent power generated from renewable sources and optimize output to the grid.
Rising Demand for Hybrid and Electric Vehicles is Fueling Market Growth
Another key driver for the ultracapacitor market is the growing demand for hybrid and electric vehicles worldwide. Ultracapacitors find widespread applicability in electric vehicles as they can charge and discharge power very quickly, helping start internal combustion engines. They are also used in hybrid electric vehicles to capture energy lost during braking and reuse it later to deliver extra power for acceleration. With stringent emission norms and rising environmental awareness, consumers are increasingly adopting electric and hybrid vehicles. This is catalyzing demand for ultracapacitors from the automobile sector. The push for sustainable mobility solutions by governments through incentives and subsidies on electric vehicles will further bolster market opportunities.
High Manufacturing Costs Pose a Challenge
One of the major restraints hampering the ultracapacitor market's growth is its high manufacturing cost compared to alternative technologies like lithium-ion batteries. Ultracapacitors require complex manufacturing processes involving multiple deposition and etching steps which make them more expensive than batteries. The high cost prevents large-scale adoption of ultracapacitors in mass-market applications like consumer electronics. With lithium-ion battery prices declining dramatically, it is difficult for ultracapacitor manufacturers to compete on cost. Significant research needs to be carried out to develop advanced manufacturing technologies and processes to lower the production costs of ultracapacitors.
Limited Energy Density Restrains Wider Application
The relatively low energy density of ultracapacitors compared to lithium-ion batteries is another key challenge. Ultracapacitors can only store small amounts of energy for their weight and volume. This restricts their use in applications that require high energy storage capacity like electric vehicles. While ultracapacitors can deliver power quickly, batteries are still a better option for applications requiring long power-backup times. It is difficult to attain high energy storage levels from ultracapacitors with present technologies. Ongoing R&D to improve energy density through material and electrode design innovations is crucial to address this limitation.
Growing Demand for Consumer Electronics Widens Opportunities
The surging demand for various consumer electronic devices worldwide creates massive opportunities for ultracapacitor suppliers. Devices like smartphones, tablets, wearables require power backups for short durations during operation. Ultracapacitors are excellently suited to fulfill this functionality due to their high-power density and ability to charge/discharge rapidly. Their longer lifespan compared to batteries is an added advantage for consumer goods with fast replacement cycles. Ultracapacitor manufacturers can capitalize on the exponential growth of the consumer electronics sector with innovative product offerings catering to specific requirements.
Emerging Applications in Transportation Sector Spur Prospects
Emerging applications of ultracapacitors in various transportation applications including trains, trams, and electric buses present lucrative prospects. In mass transit systems, ultracapacitors can provide peak power assist during acceleration and recover braking energy efficiently. They are also gaining acceptance for uses like regenerative braking systems in hybrid electric buses. With smart city and sustainability initiatives driving massive investments in public transportation infrastructure globally, the uptake of ultracapacitors is expected to surge. Manufacturers need to develop customized ultracapacitor solutions and form strategic partnerships and collaborations within this industry vertical to reap benefits.
Link - https://www.coherentmarketinsights.com/market-insight/ultracapacitor-market-4879
Key Developments:
- In March 2023, KEMET Corporation, a leading global supplier of electronic components, announced the release of the world's first automotive-grade FMU supercapacitor, capable of operating at 105°C. This innovative supercapacitor is rated for 5.5V and features an aqueous-based electrolyte system, making it suitable for real-time clock applications in harsh environments where reliability is crucial.
- In January 2023, Skeleton Technologies, a global leader in high-performance energy storage solutions, announced the launch of the world's first fully automated supercapacitor production line at its Leipzig Superfactory in Germany. This pioneering move marks a significant milestone in the company's efforts to revolutionize the manufacturing process and drive down the costs of supercapacitors, making them more accessible for a wide range of applications in electrification and decarbonization projects globally.
- In February 2022, Panasonic Corporation, a global leader in electronic and electrical products, announced the launch of its KX series of SP-Cap® conductive polymer aluminum electrolytic capacitors, which offer the highest level of reliability in the industry with an endurance of up to 5,500 hours at 125°C. These capacitors are designed for use in power circuits for servers and communication base stations, among other applications, where high durability is crucial for supporting high-speed communications.
- In November 2021, Panasonic Corporation, a global leader in electronic and electrical products, announced the launch of its JX series of SP-Cap® conductive polymer aluminum electrolytic capacitors, which offer the highest level of reliability in the industry. This new series of capacitors is suitable for use in power circuits for increasingly sophisticated communication base stations, such as 5G, and servers with growing data traffic.
- In April 2020, CAP-XX Limited, a global leader in the development and manufacture of thin, prismatic supercapacitors with high power and energy density for space-constrained electronic devices, announced the industry's first 3V thin, prismatic supercapacitors. The company strategically launched its 3V technology in the thin prismatic form factor to address the growing demand for small, cost-effective, and energy-efficient solutions suitable for thin wearables, key fobs, and other IoT devices.
- In March 2020, Skeleton Technologies, a leading provider of ultracapacitor technology known for its high-performance energy storage solutions, launched the SkelMod 131V—an ultracapacitor module specifically designed for power quality applications in the medical industry. This module is particularly effective for managing power peaks and ensuring adequate power quality for MRI machines.
Key Players:
CAP-XX Limited, Eaton Corporation plc, Eonix Corporation, FastCap Ultracapacitors (Nanoramic Labs), Maxwell Technologies, Nippon Chemi-Con Group, Panasonic Corporation, SECH SA, Skeleton Technologies GmbH, Systematic Power Manufacturing, LLC, YUNASKO LTD, Ioxus Inc., Elna Co., Ltd., VINATech, and Nesscap Energy Inc.
