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US Battery Demand to Reach $14.8 Billion in 2009

US demand for primary and secondary batteries is projected to increase 5.9 percent annually through 2009 to $14.8 billion. Among the factors driving this growth are strong demand for battery-powered products like cellular phones and digital cameras, and increasing production of electrical and electronic devices. Market gains will also be supported by an ongoing shift in the product mix toward more expensive batteries (such as lithium-based cells) that deliver enhanced performance for high-drain electronic equipment. These and other trends are presented in Batteries, a new study from The Freedonia Group, Inc., a Cleveland-based industrial market research firm.

Sales of secondary batteries are forecast to rise faster than primary batteries through 2009, due in part to strong growth in the use of high-drain portable electronic products. Secondary battery demand will also be supported by reductions in the time required to recharge batteries, making secondary types more appealing to consumers and nearly as convenient as primary cells.

Although lead-acid batteries will account for nearly 60 percent of all secondary battery sales in 2009, lithium ion, lithium polymer and nickel-metal hydride batteries will experience the strongest rates of growth. Demand for these advanced battery types will be heavily influenced by their high-performance attributes, as well as by continuing technical innovations and price declines.

Consumer applications will account for more than 70 percent of all primary battery sales in 2009, continuing the historical trend. Demand for primary batteries will be fueled by the ever-increasing number of battery-powered portable devices in use, such as digital cameras and MP3 players. Market gains for primary batteries will also be supported by rising durable goods production, which will boost demand in the industrial sector. While alkaline batteries will remain the dominant primary battery type, other types like zinc-air will account for an increasingly larger share of demand, due in part to performance traits that often exceed those of alkaline cells.

Distributed by Market Wire