Ultracapacitor Market Assessment, By Product Type [Electrostatic Double-layer Capacitor, Pseudo-capacitor, Hybrid Capacitor], By Voltage [Low Voltage, Medium Voltage, High Voltage], By Application [Automotive, Industrial, Energy, Electronics, Others], By

Ultracapacitor Market Assessment, By Product Type [Electrostatic Double-layer Capacitor, Pseudo-capacitor, Hybrid Capacitor], By Voltage [Low Voltage, Medium Voltage, High Voltage], By Application [Automotive, Industrial, Energy, Electronics, Others], By Region, Opportunities and Forecast, 2017-2031F

Global ultracapacitor market size was valued at USD 3.01 billion in 2023, expected to reach USD 8.06 billion in 2031, with a CAGR of 13.1% for the forecast period between 2024 and 2031. The ultracapacitor market is growing at a rapid pace owing to the trend in the rising use of renewable energy, electric vehicles, and portable electronics. The necessity for better energy storage solutions and a greater emphasis on sustainability to meet the demand have fueled the growth of global ultracapacitor market share.

The ultracapacitor is a preferred energy storage solution in various businesses due to its special characteristics such as rapid charging, long life, and high-power density. For instance, different applications in the automobile industry, especially electric vehicles, utilize ultracapacitors to provide increasingly efficient energy. The increase in investment in and development of smart grids fuels the market for renewable energy. The ultracapacitor sector is poised to expand rapidly in the forecast period owing to the increasing use of new technologies and green energy.

While it will not be prepared to eliminate lithium-ion batteries, ultracapacitors could be suitable for multiple applications. Ultracapacitors possess several characteristics including safety, quick charging, and longer life owing to materials such as graphene. However, they are an efficient method to transport electrons as ultracapacitors are harder and more difficult to manufacture. Although ultracapacitors are never intended to surpass batteries, research and studies are in process to maximize ultracapacitors’ energy potential. It will heighten the surface area of its active materials. Consequently, the progress in research and development of the surface area is driving the ultracapacitor market. It is particularly true for the transportation sector, where ultracapacitor energy blasts are essential. Since ultracapacitors are used as alternative energy storage selection, the market is expected to gain more demand through its applications. However, global ultracapacitor market size might grow depending on recent technological advancements.

For instance, in June 2022, Eaton collaborated with Microsoft to incorporate its EnergyAware UPS technology. The EnergyAware reflects another way to guarantee grid loftiness while the energy flowing in the grid is decarbonized by permitting data centers to feed energy back down to the grid as required. Energy storage modules that may include ultracapacitors would be utilized to help two-way power streams and enhance grid service and asset management on the Energy front.

Advancement in Electric and Hybrid Vehicles to Promote Market Growth

The demand in the automotive sector is propelling global ultracapacitor market demand. Electric and hybrid vehicles segment in the automotive sector are the main factors for the ultracapacitor market growth due to special features of ultracapacitor to quickly store and release energy as it is required for sudden acceleration and regenerative braking. Additionally, the characteristic of frequent charging and discharging satisfies the necessity of electric vehicles. The use of ultracapacitor in electric vehicles prolongs the battery lifespan by maximizing efficiency and offering a cost-effective solution. Overall, high adoption rate in the electric vehicle sector represents an increase in the demand of ultracapacitor, thus propelling the ultracapacitor market growth.

For instance, in October 2023, Nippon Chemi-Con generated the HXK series, which has a greater capacitance and a higher ripple current than the HXJ series of conductive polymer hybrid aluminum electrolytic capacitors.

Renewable Energy Integration Fuels the Global Ultracapacitor Market Size

The combination of ultracapacitor and renewable energy system represents a significant development in the energy storage solution. The energy generation from renewable energy sources such as solar power and wind power are recurrent which requires an efficient energy storing solution. The ability to quickly capture and release energy meets the requirements of variable energy production from various renewable energy sources makes the ultracapacitor most suitable for the renewable energy sector. However, apt responsive nature of ultracapacitor makes it an ideal solution for handling fluctuations in energy supply and offering a more stable and reliable power output. Therefore, the ultracapacitor is observed to be a vital component in energy storage solutions, propelling the growth of ultracapacitor market.

For instance, in June 2022, YUNASKO revealed the second generation of its hybrid Li-ion battery + supercapacitor technology, referred to as graphene enhanced li-ion battery (GELIB). The breakthrough combines the advantages of supercapacitors and Li-ion batteries, providing high power density, rapid charging, extended cycle life, and high energy density. GELIB technology is a prominent step forward in energy storage.

Rising Investment in Energy Storage Technologies Drives Ultracapacitor Market Growth

Energy storage industry is witnessing huge investments, further contributing to growth of the global ultracapacitor market. The ongoing research and development to meet the rising demand of reliable and sustainable energy storage solution is attracting the attention of investors. Investors are identifying the unique capabilities of ultracapacitor, such as rapid charge and discharge cycles, enhanced safety, and prolonged lifespan, which can satisfy the evolving necessity of better and efficient solutions in the energy storage industry. Therefore, these characteristics of ultracapacitor highlight the potential to address the problems faced in grid stability, renewable energy integration, and the increasing demand for quick energy storage solutions. Furthermore, the attention of investors is resulting in the influx of financial support which promotes research and development in the related field along with widespread adoption of ultracapacitor. However, the synergy between escalating investments and the promising features of ultracapacitors contribute to the expanding landscape of energy storage technologies.

For instance, in October 2023, Nippon Chemi-Con expanded the size range of its KHF and KWB series radial lead-type aluminum electrolytic capacitors, which are used for input filtering of power supplies in digital appliances and general-purpose power supplies. Customers will be able to pick goods with the best specifications for a wide range of applications owing to the extended size options.

Asia-Pacific to Dominate Ultracapacitor Market

The surge in industrialization sector along with promising demand in the electric vehicle segment of automotive sector, and the supporting government initiatives aligned with clean energy and sustainability are fueling the global ultracapacitor market demand. Most prominent countries in Asia-Pacific, such as China, Japan, and South Korea, contribute to the market with extensive research and development programs to develop advanced energy storage solutions. Also, the region shows a strong market dynamic for electronics and automotive industries, further fueling the growth of global ultracapacitor market. Therefore, Asia-Pacific represents its strategic position in manufacturing and technology development, emerging as a leader in the ultracapacitor market offering a robust environment for greater innovation, increased production capabilities, and increasing adoption of ultracapacitor technologies.

For instance, in October 2022, Nippon Chemi-Con unveiled the surface mount device type conductive polymer aluminum solid capacitors PNA Series, ensuring high heat and moisture resistance, and an extended life of 12,000 hours at 125°C. The PNA Series contributes to weather resistance improvement and is maintenance-free for communication base stations. Henceforth, the innovations related to ultracapacitors in Asia-Pacific are fostering market growth.

Government Initiatives is Fostering Revenue Growth for Ultracapacitor Market

Supportive incentives and policies specifically designed by the government to uplift the ultracapacitor market to foster sustainable energy solutions along with the necessity of achieving the goal of net zero carbon emissions. Therefore, government initiatives play a pivotal role by promoting the adoption of ultracapacitor by diverse businesses and industries to drive revenue growth in the ultracapacitor market. Also, as the government notices the importance of ultracapacitor and its applications in enhancing grid stability, energy efficiency, and promoting the adoption trend of electric and hybrid vehicles, the government initiatives are creating a favorable ecosystem for attracting investment and future opportunities in the ultracapacitor market and encouraging the production and deployment of ultracapacitor technologies.

For instance, in October 2023, The Silicon Photonics Research Centre was launched by the Ministry of Electronics and Information Technology. The Silicon Photonics CoE-CPPICS Centre seeks to be self-sufficient in five years, with an emphasis on commercializing goods through start-ups. The Centre, financed by MeitY, plays a critical role in emerging technologies such as quantum computing, 5G/6G, and machine learning, and fits with the ambitious aims of India Semiconductor Mission by solving gaps and boosting domestic photonic integrated circuit production. Thus, government measures will help to improve demand for ultracapacitors, resulting in long-term revenue growth for the market.

Future Market Scenario (2024-2031F)

According to global ultracapacitor market analysis, the market is poised for substantial growth owing to the increasing adoption rate of electric vehicles. The demand for ultracapacitors as efficient energy storage solutions for quick charging and discharging in electric vehicles and hybrid vehicles is expected to surge as the automotive industry shifts rapidly towards electrification. Furthermore, ongoing research and development on materials, such as graphene, is likely to result in improved energy density for ultracapacitors. Breakthroughs in high-performance materials will contribute to enhanced capabilities making ultracapacitors more competitive with traditional batteries in various applications. In addition, ultracapacitors will play a crucial role in the integration of smart grids and renewable energy systems. Their ability to provide rapid bursts of energy and support intermittent renewable energy sources positions them as key components for ensuring grid stability and efficient energy management. These trends will drive the growth of the ultracapacitor market during the projected forecast period.

Key Players Landscape and Outlook

The ultracapacitor market presents a competitive landscape with key players leveraging their technological expertise and robust research and development initiatives to maintain ultracapacitor market dominance. Collaborations, strategic partnerships, and mergers are anticipated as players aim to broaden their product portfolios and enhance their global ultracapacitor market presence. The ultracapacitor market outlook is optimistic, driven by the increasing demand for energy storage solutions in electric vehicles, renewable energy systems, and industrial applications. The key players are expected to sustain growth and competitiveness in the dynamic ultracapacitor market with a focus on innovation, expanding product offerings, and catering to diverse end-user needs.

In February 2022, Panasonic Corporation unveiled the commercialization of the KX series of SP-Cap conductive polymer aluminum electrolytic capacitors with the greatest degree of dependability in the market with up to 5,500 hours of endurance at 125°C. The novel capacitor series is appropriate for use in power circuits for servers and communication base stations, among other applications that demand capacitors with improved endurance for high-speed communications.