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3G systems boost lead acid battery market

Posted: 29 Nov 2002 ?? ?Print Version ?Bookmark and Share

Keywords:3g communication systems? lead acid batteries?

The proliferation of 3G communication systems, especially in Europe and Asia, and new automobile electrical accessory designs are driving the growth of the world lead acid batteries market, Frost & Sullivan said. Proven reliability and competitive pricing are said to have also provided for the sustained demand.

According to new analysis from Frost, the lead acid battery 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.

"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," said Frost industry analyst Sara Bradford Mardegain.

Frost explained that 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 in effect, has resulted in increased utilization of data communication and telecommunications equipment, driving the demand for lead acid batteries.

Further, the market research firm states that 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.

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





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