Allaying End-User Safety Concerns Remains Vital to Increasing Industrial Applications of Lithium Batteries.

PALO ALTO, Calif. -- As industrial applications witness an increased trend toward portability and miniaturization, lithium batteries are slowly replacing traditional nickel-based battery chemistries. In addition to being lightweight, compact, and quick charging, lithium batteries possess twice the power density of standard nickel cadmium (NiCad) batteries.

While lithium batteries incorporate many positive features, on account of their being a relatively new technology, there exists a constant safety concern in the end-users' minds about overcharging and battery explosion.

New analysis from Frost & Sullivan (http://www.batteries.frost.com), World Industrial Secondary Lithium Battery Markets, reveals that revenue in this market totaled $0.81 billion in 2004 and projects to grow to $3.31 billion in 2011.

If you are interested in a virtual brochure, which provides manufacturers, end-users, and other industry participants an overview of the latest analysis of the World Industrial Secondary Lithium Battery Markets -- then send an e-mail to Trisha Bradley -- Corporate Communications at [e-mail] with the following information: your full name, company name, title, telephone number, fax number, and e-mail. Upon receipt of the above information, an overview will be sent to you via e-mail.

To enhance consumer confidence, lithium battery manufacturers are constantly undertaking a variety of safety tests and obtaining safety clearance through certifications such as Underwriters Laboratories (UL), Canadian Standards Association (CSA), and TUV.

While manufacturers continue to improve safety standards, demand for lithium batteries is driven by the telecom sector, which is shifting rapidly to portable devices. While telecom remains the largest market, the military concept of 'smart soldier', using compact, lightweight, and high-tech devices and ammunition, is proving an expanding market for lithium batteries. Likewise, the need for continuous life-saving power supply in medical devices is proving a high potential application.

"However, lithium batteries are yet to penetrate the rugged heavy industrial market and remain relatively untested in this field," says Frost & Sullivan Research Analyst C.R. Malavika. "But many manufacturers are experimenting with these battery chemistries and improving upon their features so that they can withstand the industrial conditions of high charge and discharge cycles, extreme temperatures, rugged environment, and low maintenance."

Further, the demand for lithium batteries is dependent on a number of factors including price. With increasing raw material prices pushing up production costs, manufacturers are raising battery prices to ensure sustainability. Moreover, on account of the expensive nature of safety tests undertaken by manufacturers, prices remain on the higher side.

Nevertheless, prices of lithium batteries expect to come down as the chemistry establishes and gains acceptance with the end-users. Moreover, Chinese and other Asian participants armed with the advantages of low-cost labor and cheap raw materials may pull the prices down due to excessive competition.

Since the industrial lithium rechargeable batteries market is in its infancy stage with a lot of focus on R&D, the degree of competitiveness is considered medium. While Asian participants remain the main threat for European and North American competitors, there expects to be some consolidation among smaller Chinese companies. On a global scale, larger companies expect to take over smaller players that possess niche technologies.

"As rechargeable lithium batteries have immense potential in terms of applications across a variety of areas, future growth expects to be particularly high across the Asia Pacific region," says Malavika "Besides, with research and technological advancements being undertaken to enhance industrial suitability, the prospects for this industry are bright."

World Industrial Secondary Lithium Battery Markets, part of the 9211 Batteries Subscription, analyzes the global market for industrial secondary lithium batteries. The study also examines the different applications of lithium batteries and lists key drivers and restraints. It further forecasts market opportunities across end-user categories and global regions.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community, by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit http://www.frost.com.

World Industrial Secondary Lithium Battery Markets

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Keywords in this release: industrial batteries. lithium batteries, lithium-ion, Li-ion, lithium-ion polymer, Li-Poly, memory effect, discharge cycles, energy density, UL, CSA, TUV, research, information, market, trends, technology, service, forecast, market share