Ultracapacitors: Environmentally Friendly Solution?

PALO ALTO, Calif.--(Business Wire)--
The market for ultracapacitors advances, with the technology
finding several optimal uses in the transportation and industrial
segments. Moreover, the growing need for environmental friendly
solutions, especially in Europe and North America, results in
substantial investment in this technology toward a cleaner
environment. The continued and stable funding in this industry implies
high expectations from ultracapacitors.

New analysis from Frost & Sullivan
(http://www.powersupplies.frost.com), World Ultracapacitor Market,
finds this market earned revenues of $99.6 million in 2007 and
estimates to reach $205.9 million in 2014.

If you are interested in a virtual brochure, which provides
manufacturers, end users, and other industry participants with an
overview of the World Ultracapacitor Market, then send an e-mail to
Johanna Haynes, Corporate Communications, at johanna.haynes@frost.com,
with the following information: your full name, company name, title,
telephone number, e-mail address, city, state, and country. We will
send you the information via e-mail upon receipt of the above
information.

"The future of ultracapacitors as an energy storage solution is
immense," notes Frost & Sullivan Industry Analyst Anu Cherian.
"Currently, ultracapacitors are used in complementing batteries for
more efficient energy storage."

When used in tandem with the battery, ultracapacitors
significantly enhance battery life by handling all peak power
requirements of the device. Ultracapacitor technology offers some very
unique selling points such as high power density, ability to operate
at a wide range of temperatures and climatic conditions, quick and
easy recharge, and up to a million charge-recharge cycles without
affecting its efficiency.

There is, however, concern about the current high price of the
ultracapacitor. The energy density of an ultracapacitor is below 1
Wh/kg in comparison with that of batteries, which provides energy
densities up to 100 Wh/kg. These numbers denote that ultracapacitors
cannot take on the entire role of batteries. Ultracapacitors do not
provide slow and steady energy discharge similar to batteries. Hence,
they are not considered a substitute for batteries. This adds cost in
addition to the cost of a battery in current applications, which
affects the rate of adoption of the technology by OEMs.

This situation will likely resolve only when production reaches
higher economies of scale, along with increased demand for the
product. Cost reduction is achieved by increase in production
capacities and sourcing materials from cheaper suppliers to enable
easy design and packaging.

Once demand for ultracapacitors is established and clearly
defined, standards for sizes will be laid out, and the currently
rigorous and time consuming task of design and incorporation into
devices will be easily minimized. This will enhance revenue growth in
the market.

Several unexplored opportunities exist for ultracapacitors. Their
use in micro, mild, full and fuel-cell hybrids is seen as a
high-volume application for the future ultracapacitor market. In the
industrial market, their use can be diversified in backup power
applications. Identification of niche application areas, along with
early adoption into new technology, is the key to growth in this
market.

Ultracapacitor manufacturers create various new configurations of
products to suit a vast array of applications. This kind of
diversification, they hope, will enable the market to move forward
aggressively.

"Additionally, companies also manufacture modular products to suit
high-end applications, and they incorporate various combinations of
voltages at different capacitances giving the end user a satisfactory
solution," remarks Cherian. "It is evident that for an emerging market
such as this, there is a need to quickly incorporate creativity and
technology to get a head start in a niche market."

World Ultracapacitor Market is part of the World Ultracapacitor
Market Growth Partnership Service program, which also includes
research in the following markets: World Secondary Lithium-ion
Battery, North American Power Quality Equipment and Services, and
North American DC/AC Power Inverter. All research services
subscriptions provide detailed market opportunities and industry
trends evaluated by extensive interviews with market participants.
Press interviews are available.

Frost & Sullivan, the Global Growth Consulting Company, partners
with clients to accelerate their growth. The company's Growth
Partnership Services, Growth Consulting and Career Best Practices
empower clients to create a growth focused culture that generates,
evaluates and implements effective growth strategies. Frost & Sullivan
employs over 45 years of experience in partnering with Global 1000
companies, emerging businesses and the investment community from more
than 30 offices on six continents. For more information about Frost &
Sullivan's Growth Partnerships, visit http://www.frost.com.

World Ultracapacitor Market

N2D7

Frost & Sullivan
Corporate Communications - North America
Johanna Haynes, 210-247-3870
F: 210-348-1003
johanna.haynes@frost.com
or
Corporate Communications - Europe
Chiara Carella, +44 (0) 20 7343 8314
chiara.carella@frost.com
or
Corporate Communications - Southeast Asia
Donna Jeremiah, +603 6304 5832
F: +603 6201 7402
djeremiah@frost.com
or
Corporate Communications - South Asia
Ravinder Kaur, +91 44 42044760
F: +91 44 24314264
ravinder.kaur@frost.com
or
Corporate Communications - Middle East
Shwetha Thomas, +91 22 4001 3429
F: +91 22 2832 4713
sthomas@frost.com
or
Corporate Communications - Latin America
Jose Maria Jantus, +54-11-4777- 9951
F: +54-11-4777-0071
jose.jantus@frost.com
or
Corporate Communications - China
Amelia Wong, +86 21 5407 5783 Ext 8669
M: +86 13621724823
amelia.wong@frost.com
or
Corporate Communications - Australia & New Zealand
Sharmin Jassal, +61 2 8247 8900
F: +61 2 9252 8066
sharmin.jassal@frost.com
or
Corporate Communications - Africa
Patrick Cairns, +27 21 680 3274
F: +27 21 680 3296
patrick.cairns@frost.com
http://www.frost.com

Copyright Business Wire 2008