Finding New Applications for Nickel Batteries is Vital to Sustain Demand.

PALO ALTO, Calif. -- As modern day devices become increasingly sophisticated, there is mounting pressure on battery technologies to keep pace. The growth of portable devices necessitates lightweight, easily chargeable batteries that deliver continuous power supply for long durations. Incorporating these features, new advanced battery chemistries such as lithium-ion (Li-ion), lithium ion polymer (Li-ion Poly), and lithium sulphur are weaning away demand from traditional nickel cadmium (NiCad) and nickel metal hydride (NiMH) batteries.

Faced with declining market share, nickel battery manufacturers must undertake immense amount of research and development (R&D) to stay competitive. Investing in R&D is likely to help develop an enhanced nickel battery in terms of chemistry or better form factor.

New analysis from Frost & Sullivan (http://www.batteries.frost.com), World Nickel Battery Markets, reveals that revenue in this market totaled $1767.1 million in 2004 and projects at $1685.8 million 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 World Nickel 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.

The industrial segment is traditionally the largest end-user of NiCad and NiMH batteries and continues to prefer nickel batteries. This is because they are inexpensive, resist abuse, have high discharge rates, and can be used over wide temperature ranges. The recent chemistries though, are not suitable to operate in such conditions.

"However, across numerous other applications, nickel-based batteries are slowly losing out to lithium-based battery technologies due to lack of product advancements and technological innovations," notes Frost & Sullivan Research Analyst C.R. Malavika. "As novel product applications demand miniaturization along with greater energy density and longer runtimes, nickel batteries are being substituted in many medical, military, and telecom applications."

In addition, increasing prices of raw materials are forcing a rise in production costs. While manufacturers need to raise prices to sustain themselves, price competition from Chinese vendors, who have lower production costs, limits their profits.

As the European and North American nickel battery markets show declining trends, manufacturers need to think of expanding their geographical operations and also find new applications for nickel batteries.

While electric vehicles are fast becoming a big market for NiMH batteries, other areas such as hobby batteries, telecom, and electric bikes are also likely to provide market potential. The need of the hour remains to search vigorously for new areas and applications that would put the nickel batteries market on the path to growth.

"Asia Pacific (APAC), especially China is considered to have a lot of potential in terms of overall growth," says Malavika. "Cost of production is extremely low in these countries without a compromise on quality, thus ensuring a higher profit margin and a steady growth of the nickel batteries market in these regions."

World Nickel Battery Markets, part of the 9211 Batteries Subscription, analyzes the global market for nickel batteries, examining the different applications and listing key market trends. It further forecasts market opportunities across end-user categories and global regions. Executive summaries and analyst interviews are available to the press.

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 Nickel Battery Markets

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Keywords in this release: rechargeable batteries, nickel batteries, nickel cadmium, NiCad, nickel metal hydride, NiMH, lithium-ion, Li-ion, lithium-ion polymer, Li-ion Poly, lithium sulphur, energy density, research, information, market, trends, technology, service, forecast, market share