Third-Generation Technologies Inspire Growth of the World Lead Acid Batteries Market

SAN JOSE, Calif., Nov. 25, 2002; Implementation of third- generation (3G) communication systems, especially in Europe and Asia, and new automobile electrical accessory designs are powering the growth of the world lead acid batteries market. Proven reliability and competitive pricing also provide a sustained demand.

New analysis from Frost & Sullivan (www.batteries.frost.com ), World Lead Acid Battery Markets, reveals that this market generated revenues worth $29.28 billion in 2001 and is expected to reach $35.72 billion in 2008. Analysis includes both original equipment and aftermarket sales of starting, lighting, and ignition (SLI), motive and stationary lead acid batteries.

According to Frost & Sullivan Industry Analyst Sara Bradford Mardegain, "3G networks are expected to carry voice and data 40 times faster than the current networks. This is expected to encourage new business as well as upgrades with enhanced batteries."

Rapid growth of the government-controlled telecommunication sector in India and China has resulted in widespread use of the Internet and construction of wireless networks for the ever expanding cellular phone subscribers. The installation of new infrastructure has resulted in increased utilization of data communication and telecommunications equipment, driving the demand for lead acid batteries.

Mardegain adds, "In the age of constant technological evolution, the need to create powerful batteries emerges."

With the rise in the use of industrial heavy-duty electric vehicles and entry of automobiles with new electrical accessory designs such as televisions and DVD navigation devices, the need for battery systems with higher power has been felt. Automobile manufacturers are working closely with the lead acid battery industry to develop dual-battery systems and batteries that can carry power up to 42-volts.

The market has become more challenging due to the fluctuating demand in several end-user applications and the emergence of low-priced batteries manufactured by Asia Pacific vendors. The types of battery chemistries available are also multiplying. Hence, manufacturers are adopting international sourcing and creative market segmentation to compete in the price-conscious market.

Battery vendors should concentrate on product differentiation and creation of brand recognition by manufacturing batteries with new features and enhanced quality. Conducting regular competitor and end-user analysis would enable the vendors to understand and conquer this dynamic market.

Formation of strategic alliances has enabled vendors to expand their product line and target markets. This has also facilitated pipeline inventory control, implementation of safety and quality control procedures resulting in increased production efficiency.

Frost & Sullivan is a global leader in strategic growth consulting. This ongoing growth opportunity analysis is part of research that includes market insights on Global UPS Markets, DC Power System Markets, Rechargeable Battery Markets and Micro Fuel Cell Markets for Mobile Devices. Frost & Sullivan also offers custom growth consulting to a variety of national and international companies. Executive summaries and interviews are available to the press.