Battery demand on the up in US

US demand for primary and secondary batteries is expected to increase 4.2% per year to US$17.1bn in 2017. The motor vehicle market will post the largest increases in dollar terms as motor vehicle production continues to rise following an extended period of decline. 

Motor vehicles will also be the fastest growing market in percentage terms, with overall battery demand bolstered by expanding production and sales of hybrid/electric vehicles (HEVs). Backup power supplies will register the next fastest demand gains, boosted by a pickup in nonresidential fixed investment, especially for wireless device transmission towers and related facilities, and by continuing concerns about the perceived vulnerability of the nation’s power grid. This information is part of a study by The Freedonia Group, a Cleveland-based industry market research firm.

Secondary battery demand will climb faster than primary battery demand in a continuation of past market trends. Analyst Nick Cunningham stated: “The portable device market, which registered the fastest growth of any market from 2007 to 2012, will continue to expand due to the popularity of high-drain devices such as portable computers.” 

Mr. Cunningham added that sales of secondary batteries used in HEVs will more than double in dollar terms through 2017, although conventional motor vehicles will account for 85% of all automotive battery demand. Rechargeable lithium sales will grow at the fastest pace of any secondary battery chemistry due to its popularity in the portable devices market, although lead-acid will contribute significantly more to dollar gains through 2017. Bolstered by increases in motor vehicle production, lead-acid will be responsible for over half of all secondary battery sales advances.