Frost & Sullivan says industrial applications represent substantial, untapped growth potential for lithium-ion batteries. The increasing need for cordless tools, data communication equipment and energy storage applications for renewable power will promote greater demand for lithium-ion batteries, according to Frost and Sullivan.
Frost & Sullivan estimates European Lithium-ion Battery Market for Industrial Applications earned revenues of $748.2 million in 2012 and estimates this to reach $1,644.2 million in 2017. The research covers the use of lithium-ion batteries in six key applications: industrial tools, medical devices, aerospace and defence, data collection, energy storage, and telecom and data communication.
"High energy density, light-weight, improved performance and long life-cycle are the key factors that motivate the use of lithium-ion batteries in industrial applications," noted Frost & Sullivan Energy and Power Supplies Industry Manager, Suba Arunkumar. "Such inherent advantages are highlighting their appeal, despite higher costs."
"Incentives to promote renewable energy is driving market growth by increasing the need for self-consumption of the energy generated," added Arunkumar. "This will lead to heightened demand for lithium-ion batteries."
"Owing to low unit shipments and it being a relatively new market, lithium-ion batteries are a little more expensive than existing, established chemistries like lead acid, nickel cadmium and nickel metal hydride," explained Arunkumar. "On reaching mass commercial volume, similar to consumer applications, the price of these batteries is expected to fall, pushing usage levels."