Strategy Analytics: Fuel Cells Disappoint as Portable Device Battery Market Surges to $9B by 2010; Better Power Management and Lithium Batteries for Mobiles Drive Market Growth

Business Wire, July 19, 2004

BOSTON & LONDON -- Strategy Analytics "Portable Device Batteries and Power Management" report released today finds that the market for battery cells will exceed US$9 billion by 2010 driven by the growing demand for portable devices, however, the demand for small form factor fuel cells will be disappointing. The development of Lithium-sulfur batteries promises to double the capacity of traditional rechargeable batteries while the development of the fuel cell market will be inhibited by the lack of a suitable supply chain and restrictions on the carriage of methanol on public aircraft.

Strategy Analytics associate and the report author, John Moroney, notes "The concept of rechargeable or disposable batteries is well understood by the end consumer market and the demand for portable devices will expand overall market revenues for battery cell manufactures. More efficient power usage will reduce the overall power demands of portable devices while, new cell chemistries, such as lithium-sulfur, will double the usable power. However, Direct Methanol Fuel Cells DMFCs will make slow progress into niche markets, such as military applications, driven by the need to be free from the infrastructure of modern society."

David Kerr, Vice President added "Digital devices have become an important part of everyone's life, manufacturers now need to educate consumers about the various cell types available to them and enable them to make informed choices about portable device configurations and the applications they run provide them with timely information to make."

This report, from Strategy Analytics Portable Enabling Technology Strategies (PTS) service, divides the demand for portable battery cells into primary and secondary cell chemistries and then segments this by device type:

--Cellular Handsets

--Laptop PC

--Video Camera

--Digital Still Camera

--PDAs

--Gaming Console

--MP3 Player

--Personal Audio Players

--Toys

--Other Portable Devices

About Strategy Analytics

Strategy Analytics, Inc., a global research and consulting firm, provides timely insights and strategic business solutions to companies operating at the convergence of information, communications and entertainment technologies. With worldwide headquarters in Newton, MA and principal offices in England, France and Germany, Strategy Analytics focuses on market opportunities and challenges in the areas of Automotive Electronics, Broadband, Telematics, Wireless Strategies and Enabling Technologies. For more information, see www.strategyanalytics.com.