CLEVELAND (Sept. 6, 2006) — Buoyed by increasing demand in China, worldwide primary and secondary battery demand is projected to rise at an annual pace of nearly 7 percent to $73.6 billion through 2010, according to a study by The Freedonia Group Inc.
The industry research market firm, based in Cleveland, said China will record the largest gains of any national market, stimulated by healthy economic growth, ongoing industrialization efforts and rising per capita income. Based on annual demand that will climb by more than $7 billion from 2005 to 2010, Freedonia said China will surpass the U.S. to become the world's largest battery market.
Increases sales also are expected to be strong in India, Indonesia, South Korea, Poland, South Africa, Brazil and Russia for similar reasons.
Although the rate of growth will be less robust than in developing parts of the world, the company predicted battery demand in the U.S., Western Europe and Japan also will accelerate through 2010. “Market gains in these areas will be fueled by largely favorable economic conditions and higher income levels,” Freedonia said, “leading to increased use of a wide variety of battery-powered products. Renewed growth in motor vehicle production will also contribute to battery sales growth in the U.S. and Western Europe.”
The company forecast that non-lead-acid secondary battery market gains will outpace demand for primary and lead-acid secondary batteries through 2010. However, primary battery demand also will rise, driven by increased use of electrical and electronic products traditionally powered by primary batteries. Lead-acid battery sales will expand, benefiting from rising automotive output and growing demand in applications like uninterruptible power supplies, Freedonia said, but nonetheless, sales of lead-acid batteries will continue to lag demand for other product types.
Automotive battery demand will be fueled by an acceleration in motor vehicle production, it added, “but market gains will lag growth in overall battery demand, restrained by intense price competition and the maturity of most developed world markets.”