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Automotive Ultracapacitor Market size is projected to witness appreciable gains from 2023 to 2032, given the rising vehicle electrification. As automobile electrification continues to accelerate, the requirement for a reliable, safe, and high-power energy storage technology is increasing. Ultracapacitors are also set to hold an established place in VSS (voltage stabilization systems) for internal-combustion stop-start applications, driven by the escalating production of passenger vehicles.
As per statistics from the Society of Indian Automobile Manufacturers, in the Q4 of 2022, passenger vehicle wholesales surged by 23% Y-o-Y. Additionally, major OEMs including Ford, GM, and Stellantis have also set targets of reaching maximum fully electric vehicle sales in the upcoming years. Initiatives such as these will bolster the usage of energy storage technologies such as auto ultracapacitors.
Ultracapacitors refer to energy storage solutions that offer high power density, reliability, instant charging and discharging, extreme temperature tolerance, and more than 1 million charge-discharge cycles. The product delivers significant economic benefits in the form of fuel and energy savings across a range of markets including automotive.
The fast-paced electric vehicle adoption is among the key reasons behind the global automotive ultracapacitor market expansion. According to data from Bloomberg, in 2022, the U.S. was added to a growing list of nations where fully electric cars account for 5% of new vehicle sales. Governments worldwide have also introduced favorable programs and schemes to encourage EV adoption and address climate targets. Furthermore, the implementation of strict anti-pollution norms will encourage the use of electric-powered vehicles and consequently drive the demand for high-voltage ultracapacitors.
Based on the product, the industry valuation from the hybrid capacitors segment is slated to depict a high growth rate by 2032, due to the awareness of vehicle emission standards. Citing an instance, in November 2022, the European Commission announced a proposal to lower air pollution from motor vehicles to meet the zero-pollution ambition of the European Green Deal in the EU. Since hybrid capacitors present varied advantages including exceptional battery charge and discharge rates, the vehicle electrification trend will contribute to product consumption during 2023-2032.
The active suspension application segment is anticipated to account for a commendable share of the automotive ultracapacitor market by end of 2032. This growth is driven by the extensive availability of ultracapacitor energy storage solutions for use in active vehicle suspension systems to provide the required power and increase the lifecycles of vehicles. Moreover, their low maintenance, reduced self-heating, and low resistance, among other attributes, will spur product development for active suspension applications across Japan, Australia, and other major markets.
On the regional front, Europe is set to emerge as a lucrative revenue pocket for the automotive ultracapacitor market by 2032, given the presence of Skeleton Technologies and other industry frontrunners. Despite the growth trajectory, subsidy cut has resulted in a decline in battery electric vehicle production. Based on the Federal Motor Transport Authority, from December 2022 to January 2023, battery EV registrations declined by 83% to 18,100 units in Germany, hindering product adoption. However, the introduction of car loans will positively impact the regional market dynamics.
Key players in the automotive ultracapacitor market include Cap-XX, Yunasko, Skeleton Technologies, Mouser Electronics, TOKIN (KEMET Corporation), Nippon Chemi-con, Ioxus, Elna Co. Ltd. (Taiyo Yuden), LS Mtron, Maxwell Technologies (UCAP Power, Inc.), and Nesscap, among others. Product range and business expansions are among the key strategies being adopted by these companies to reinforce their market presence.
For instance, in January 2023, Skeleton announced the development of the modern supercapacitor factor in Germany and planned to include the production line of the inaugural fully automated supercapacitor. This initiative was taken to address the increasing decarbonization and electrification projects, thereby allowing the company to strengthen its foothold in the industry.
Despite the continuing effects of inflation on global automotive ultracapacitor market verticals including automotive, several favorable legislations have been introduced in the transportation sector. For example, the Inflation Reduction Act of 2022 is among the significant pieces of legislation to boost transportation electrification in the U.S. Such initiatives will augment EV production, in turn, stimulating ultracapacitor module usage for automotive applications.