Automotive Ultracapacitor Market Size, Share & COVID-19 Impact Analysis, By Vehicle Type (Passenger Car and Commercial Vehicle), By Propulsion Type (Electric Vehicle and Internal Combustion Engine), By Application (Start /Stop Function, Regenerative Breaking, and Others (Power Steering, Turbocharger, Suspension System, and Others)) and Regional Forecast, 2023 – 2030

The global automotive ultracapacitor market size was valued at USD 2.02 billion in 2022 and is projected to grow from USD 2.51 billion in 2023 to USD 10.02 billion by 2030, exhibiting a CAGR of 21.8% during the forecast period of 2023-2030.

An automotive ultracapacitor, also known as an automotive supercapacitor or electric double-layer capacitor (ELDC), is an energy storage device that stores and releases electric energy with the help of electrostatic charge separation. The product is specially designed for automotive applications. Moreover, a supercapacitor provides energy storage and discharge, making it suitable for applications such as regenerative braking, peak power assistance, and short-term energy storage in electric vehicles and hybrid vehicles.

The automotive ultracapacitor complements traditional batteries by delivering high power density and extended lifecycle, contributing to improved energy efficiency and overall performance in an ICE vehicle. The increasing demand for electrification of vehicles, efficiency and performance, and regenerative braking is expected to drive the automotive ultracapacitor market growth during the forecast period.

COVID-19 IMPACT

Increased Sales and Production of Electric Vehicles Propelled Market Growth 

The COVID-19 pandemic had a positive impact on the global market. The increased sales and production of electric vehicles (EV), including battery electric vehicles and hybrid vehicles, resulted in a boost in the market growth.

Moreover, the sales and production of electric passenger cars witnessed a slight increase due to favorable government policies and subsidies. Several governments worldwide introduced stimulus packages to revive the economy during and after the pandemic. In some cases, these packages included incentives for electric vehicle adoption and the development of green technologies. Such support increased the demand for electric vehicles, boosting the market growth during the COVID-19 pandemic.

LATEST TRENDS

Rising Adoption of Ultracapacitors in EV Fast Charging and Mild Hybrid Systems is an Ongoing Trend

The growing adoption of ultracapacitors in EV fast charging and mild hybrid systems is an ongoing trend in the market. With growing emphasis on reducing charging times for electric vehicles, ultracapacitors are being increasingly utilized for quick charge and discharge cycles. This trend aims to address one of the key challenges in electric vehicle adoption, i.e. the time required for charging. The rising technological advancement for EV charging from OEMs is poised to drive market growth during the forecast period.

For instance, in November 2022, Morand eTechnology launched a new energy storage solution, the Morand eTechnology. The energy storage technology is a unique hybrid system that incorporates the features of an ultracapacitor with that of a chemical battery to construct a durable and ultra-fast energy pack with the ability to recharge a city car in 72 seconds.

Automotive manufacturers are exploring the use of ultracapacitors in mild hybrid systems, where they can provide bursts of power during acceleration and assist in fuel efficiency. This application enhances the performance of internal combustion engine vehicles without transitioning to full electrification, fueling the market growth.

DRIVING FACTORS

High Power Density and Advancement in Technology of Ultracapacitor to Propel Market Growth

Ultracapacitors exhibit a high power density, allowing them to deliver and absorb energy quickly. This characteristic is particularly advantageous in scenarios where sudden bursts of power are needed, such as during acceleration or regenerative braking. The ability to provide high power density enhances the overall performance of electric vehicles. For instance, in September 2022, GODI India announced that it has developed 3000F high-power supercapacitors meant for electric vehicle (EV) and renewable energy storage system (ESS) applications. The company has manufactured the supercapacitors at its facility in Hyderabad. Deployment of its supercapacitors along with battery packs would lead to improvement in the battery life to multi-folds in EV & ESS applications. The company is also planning to commission 200 kWh of the supercapacitor production facility to cater to various local requirements and export markets. This development is anticipated to propel market growth during the forecast period 2023-2030.

RESTRAINING FACTORS

Less Adoption Rate Over Traditional Batteries May Hamper the Market Growth

The restraining factor in the market is the lower adoption rate over traditional batteries, which may hamper the market growth. The technology and infrastructure supporting traditional batteries, especially lithium-ion, are well-established and widely adopted. This poses a challenge for ultracapacitors to compete in markets where established battery technologies already dominate. Integration challenges and the need for compatible power electronics and control systems can also hinder the market growth.

SEGMENTATION

By Vehicle Type Analysis

Rising Launches of New Electric Passenger Cars by OEMs to Drive the Segment Growth

Based on vehicle type, the market is bifurcated into passenger car and commercial vehicle.

The passenger car segment holds the largest automotive ultracapacitor market share worldwide and is expected to grow during the forecast period 2023-2030. The segmental growth is attributed to rising launches of new electric passenger cars by OEMs, which are driving market growth. For instance, in July 2023, BYD announced that it is launching a new electric SUV, its most direct competitor yet to Tesla’s Model Y. This development is poised to drive the market growth during the forecast period.

The commercial vehicle segment accounts for the second largest market share. The segment growth is attributed to increasing R&D, production, sales, and vehicle launches.

By Propulsion Type Analysis

Increasing Advancement in Technology of Electric Vehicles to Drive Segment Growth

Based on propulsion type, the market is segregated into electric vehicle and internal combustion engine.

The electric vehicle segment holds the maximum market share. The segmental growth is attributed to increasing advancement in the technology of electric vehicles such as quick charging and discharging, regenerative breaking, long cycle life, high power density, etc. For instance, in January 2022, Advics Co., Ltd announced that it would supply its regenerative coordinated braking system and Electric Parking Brake (EPB) to the GAC Group's GS8 hybrid vehicle. This is the first time the company's products will be delivered to the GAC Group model, and the adoption was established on the company's market performance experience in electronic devices. This development is poised to drive the market growth during the forecast period.

The internal combustion engine (ICE) segment registers the second largest market share due to performance enhancement. Moreover, ultracapacitors might find their application in ICE vehicles aiming for performance enhancement, such as improved acceleration or efficiency. Their ability to deliver high power quickly could be utilized for a burst of acceleration or for handling peak power.  This factor is poised to boost the market growth during the forecast period.

By Application Analysis

Rising New Vehicle Launches with Advanced Features to Boost Start/Stop Function Segment Growth

Based on application, the market is segmented into start/stop function, regenerative braking, and others (power steering, turbocharger, suspension system, and others).

The start/stop function segment holds the maximum market share. The start/ stop function segmental growth is attributed to the rising launches of new vehicles with advanced features from manufacturers. For instance, in February 2022, Maruti Suzuki launched the new Maruti WagonR with a couple of changes. The company has made four major changes in the new car. The four changes are ISS technology, hill hold assist, a new infotainment system, and CNG in Vxi trim. With the launch of the new WagonR, Maruti introduced the efficient feature of Idle Stop and Start. This function allows the car to switch off itself when standing in idle engine condition for a long period. This development is slated to fuel the market growth during the forecast period.

The regenerative braking segment secures the second-largest market share due to the increasing demand for electric vehicles. A regenerative braking system is found in an electric and hybrid vehicle and recharges the battery during braking deceleration.

REGIONAL INSIGHTS

The market is studied across Europe, North America, the Asia Pacific, and the rest of the world.

The Asia Pacific market for automotive ultracapacitor, which stood at USD 1.03 billion, dominated in 2022 and is poised to continue its dominance throughout the forecast period, with fastest growing CAGR. The Asia Pacific, particularly China, is emerging as a significant market for automotive ultracapacitors. The accelerating adoption of electric vehicles in countries such as India, Japan, South Korea, and others, coupled with supportive government policies, is driving the demand for energy storage solutions.

Europe market for automotive ultracapacitor registers the second-largest share due to the early adoption of electric vehicles in the region. The OEMs are heavily investing in EV production, which has driven the adoption of EV components such as ultracapacitors/supercapacitors, converters, and others and innovation. In addition, European companies have actively researched for and developed advanced technology. Moreover, ongoing research and development efforts, including collaboration between technology companies and manufacturers, have led to advancement in ultracapacitor technology. Such developments fuel the market growth in the region.

The rising demand for electric light commercial transportation in North America fuels the market growth. The increasing consumer demand for EVs due to government incentives, advanced technology, and environmental concerns is poised to drive the adoption of electric vehicles, escalating the market growth.

The rest of the world's regions include South America and the Middle East. The growth is attributed to some countries in the Middle East & Africa, particularly the Gulf Corporation Council (GCC), which has been implementing policies and incentives to enable the adoption of EVs. This adoption of electric vehicles drives the demand for automotive ultracapacitors during the forecast period.

KEY INDUSTRY PLAYERS

Market Players Emphasize a Wide Range of Product Offerings to Gain Competitive Edge

Key players include Maxwell Technologies, Nippon Chemi-Con Corporation, and Panasonic Corporation. The manufacturers focus on providing technologically advanced automotive ultracapacitors for various vehicles worldwide.

Maxwell Technologies creates and manufactures energy storage and power delivery solutions.  The company provides ultracapacitor power solutions for applications such as consumer and industrial electronics, automotive, renewable energy, transportation, and information technology. It engages in manufacturing, developing and marketing ultra, high-voltage, as well as truck and generator starting capacitors, thereby providing cost-effective, energy-efficient, environmentally conscious, and failure-free performance for the life of the most demanding applications.

List of Key Companies Profiled:

• Maxwell Technologies (Republic of Korea)


• Skeleton Technologies (Estonia)


• Yunasko Ltd (U.K.)


• Panasonic Corporation (Japan)


• Hitachi AIC Inc. (Japan)


• ELNA America Inc. (U.S.)


• LOXUS Inc. (U.S.)


• Nichicon Corporation (Japan)


• LS Mtron Ltd (South Korea)


• SPEL Technologies (India)


• CAP-XX (Australia)


• NEC-Tokin (Japan)


• Kemet Corporation (U.S.)


• Sumitomo Corporation (Japan)


• Nippon Chemi-Con (Japan)

KEY INDUSTRY DEVELOPMENTS:

• In October 2023, NICHICON CORPORATION launched the UTH series of miniature aluminium electrolytic capacitors to meet the demand for compactness and long life in the power supply field. The UTH series is based on accumulated technologies. The capacitor recognizes high capacitance and miniaturization by utilizing a newly developed high-capacity electrode foil and sealing rubber.


• In September 2023, Skeleton Technologies signed a contract with Auve Tech to develop an ultra-fast charging system for urban public transport vehicles that use supercapacitors as their energy source. The technology was advanced from the prototype stage to the demonstration phase. The Skeleton team developed a charging station based on supercapacitors and engineered an automated control system for roof-charging through an inverted pantograph.


• In April 2023, Skeleton signed an agreement with Siemens to digitalize supercapacitor production. Under the partnership, the companies intend to construct a fully automated digital manufacturing process for creating supercapacitors in Germany. The company is investing USD 240 million in scaling up its supercapacitor production in Germany at its Leipzig Super factory.


• In August 2022, CAP-XX announced that it has entered a joint marketing agreement with Ioxus to obtain Ioxus supercapacitor modules for new geographies by leveraging CAP-XX’s strong worldwide distribution and networks. The company will continue to sell its supercapacitor modules in North America and Japan. The Ioxus supercapacitor modules are designed for power management in demanding applications such as engine start modules, hybrid energy storage, microgrid/grid/power correction and transportation subsystems.


• In May 2022, Nippon Chemi-Co announced that it has developed SMD-type aluminium electrolytic capacitors MZT Series with a maximum of 50% higher capacitance for the automotive electronics market, industrial equipment market, and communication base station market. The MZT Series realizes a maximum 20% to 50% higher capacitance than the existing Series (MZR Series, MZS Series) by adopting newly developed high-capacitance aluminium anode foil and cathode foil.

REPORT COVERAGE

The market research report provides a detailed analysis focusing on key aspects such as leading market players, competitive landscape, and vehicle type. Besides this, the report includes insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market's growth in recent years.

REPORT SCOPE & SEGMENTATION