Automotive Ultracapacitor Market size exhibits a strong growth potential, fostered by the fast-paced electric vehicle (EV) adoption on a global scale. Governments worldwide are introducing favorable schemes and programs for encouraging EV adoption, with a view to bring an environmental revolution that can address climate targets over the following decades.
The evolution of stringent anti-pollution regulations is one of the foremost drivers of the automotive ultracapacitor market outlook. For example, the EU implemented a ban on the use of lead-acid batteries and other hazardous materials for reducing carbon dioxide emissions from vehicles. To promote the adoption of sustainable alternatives and realize the vast potential of supercapacitor technologies, the EU introduced the LEFAPO project.
Under this EU-funded scheme, Olife Corporation, a Czech provider of energy storage and battery solutions, has been working on a unique design that combines supercapacitors with lithium cells. These batteries are 100% lead-free, non-toxic, and 50% lighter than its lead-acid counterparts.
By product, the automotive ultracapacitor market is divided into pseudo capacitor, hybrid capacitor, and double layer capacitor. The hybrid capacitor market value is anticipated to grow substantially over 2028, pushed by the rising trend of vehicle electrification. When compared with batteries, these devices offer exceptional charge and discharge rates.
By application, the automotive ultracapacitor market is bifurcated into active suspension, start-stop system, and regenerative braking segments. The active suspension application is projected to expand steadily between 2022 and 2028. The low resistance, low self-heating, and low maintenance offered by these solutions is steering their uptake across major markets, including Japan, India, and Australia.
Germany automotive ultracapacitor market share is slated to rise at a consistent pace, thanks to the robust development of the regional automotive industry. Ultracapacitor manufacturers are accelerating their production capacities, in the wake of government support toward the new production technologies. Thanks to the presence of industry frontrunners such as Skeleton Technologies, a leading automotive capacitor manufacturer in the international landscape, Europe graphene supercapacitor market is expected to register considerable growth.
Nesscap, Maxwell Technologies, LS Mtron, Elna Co Ltd., Ioxus, Nippon Chemi-con, NEC Tokin, Mouser Electronics, Skeleton Technologies, Yunasko, and Cap-XX are some leading automotive ultracapacitor manufacturers across the world. Mergers, acquisitions, and partnerships continue to remain the top-most strategies adopted by major industry players.
During November 2019, Lamborghini collaborated with the Massachusetts Institute of Technology to triple the energy capacity of its ultracapacitors. Along similar lines, in July 2021, Tesla announced that it has sold Maxwell, an ultracapacitor business, to UCAP Power, another ultracapacitor company. However, the company will retain Maxwell’s dry electrode capacitor technology, which is likely to be a part of its upcoming next-gen 4680 cell design. The automotive giant had acquired the San-Diego-based business for nearly $200 million during 2019.
Due to the COVID-19 pandemic, the industry recorded a major decline in revenue in 2020, as production activities were brought to a standstill. According to the International Organization of Motor Vehicle Manufacturers (OICA), the COVID-19 pandemic instigated a 16% drop in global automotive production. While the manufacturing endeavors and supply chains were disrupted, the global demand for automobiles, especially EVs, have been climbing gradually since 2021.
For instance, the total registered EV sales across India crossed the three-lakh mark during December 2021, registering a double-fold increase since 2020. Industry participants have been catering to the massive backlog of orders that will be supplied in the upcoming period.