The global military battery market is poised for steady growth as the need to strengthen armed forces with advanced military equipment is becoming increasingly important. The upgrade and replacement of mission-critical military technology require high levels of battery performance and accuracy. While the United States is the largest contributor to market revenues, emerging economies in Asia-Pacific and the Middle East will offer the highest growth potential for battery manufacturers.
New analysis from Frost & Sullivan, Global Military Battery Market, finds that the market earned revenues of more than $1.99 billion in 2012 and estimates this to reach $2.61 billion in 2017. The research covers lithium, lithium-ion, nickel and lead-acid batteries. Lead acid batteries are the most widely-used chemistry in military equipment followed by lithium-ion and primary lithium.
“The growing use of sophisticated military equipment in various countries has fuelled the demand for lightweight, high energy density batteries,” said Frost & Sullivan Energy & Environmental Industry Manager Suba Arunkumar. “Having proven reliable for years, these batteries are here to stay and will be popular in unmanned aerial vehicles, unmanned grounded vehicles, man-portable devices, and submarines.”
However, requirements for very high quality standards heighten the cost of battery production and therefore, limit the number of eligible participants in this investment-intensive market. Fewer battery manufacturers also translate to fierce competition and narrower profit margins.
“Participants can work on improving their profitability by scouting for opportunities in different countries, especially developing ones,” noted Arunkumar. “Apart from product quality, strong brand recognition and an established industry presence will reinforce market value.”