The Booming Market for Ultracapacitors in the Automotive Industry

2 min read

The automotive ultracapacitor market is projected to undergo significant growth, with projections indicating a rise of USD 239.4 million from 2024-2028. As per Technavio, the market is poised to expand at a CAGR of 18.53% during the forecast period, driven primarily by increasing demand in the EV automotive industry. Key players in this market comprise CAP XX Ltd., LICAP Technologies Inc., Kyocera Corp., and several others.

A prominent trend propelling the automotive ultracapacitor market’s growth is the heightened focus on advanced ultracapacitors. Companies are now investing in the research and development of carbon nanotube and graphene-based ultracapacitors, which possess the capability to store a substantial amount of energy and release it rapidly.

Another factor bolstering the market’s expansion is the escalating trend towards electric energy in the automotive industry. Ultracapacitors are proving to be invaluable as they offer advantages over traditional batteries for electric and hybrid vehicles, providing peak power assistance during regenerative braking and enabling faster charging times. Consequently, their usage has surged across various vehicle types, including passenger cars, SUVs, and commercial vehicles.

Despite the promising outlook for ultracapacitors in the automotive industry, there are also obstacles to surmount. A significant challenge is the high initial cost of ultracapacitors, which is nearly ten times more expensive than batteries for electric cars. Additionally, there is a limited supplier base, and ultracapacitors have not undergone extensive testing in various applications, leading to customer reluctance.

A segment experiencing significant growth within the automotive ultracapacitor market is that of double-layered capacitors. These capacitors are witnessing a surge in demand, particularly in the electric vehicle and transportation sectors, as they offer the energy storage capabilities of batteries and the power discharge characteristics of capacitors.

In conclusion, the market for ultracapacitors in the automotive industry is expected to prosper owing to the rising trend towards electrification of vehicles and the demand for sustainable, fuel-efficient propulsion. With ongoing technological advancements and innovations, ultracapacitors are poised to play a crucial role in shaping the future of the automotive industry.

For further insights, information about market segments, and a detailed analysis, please refer to Technavio’s comprehensive reports.