Abstract
Government Contracts Drive the Dynamic Battery Market
The ongoing evolution of military equipment technology necessitates
simultaneous improvements in the batteries that provide critical power. A flood
of research and development (R&D)-oriented Government contracts focused on
technological enhancements of existing battery chemistries is stimulating the
growth of the battery market and presenting vendors with significant
opportunities to continually expand their business. However, a standard
termination clause in all contracts, entitling the Government to end the
agreement at its convenience, as well as possible contractual modifications due
to budgetary constraints or changes in requirements presents a strong challenge
to vendors.
This Frost & Sullivan research analyzes the battery markets for
military/aerospace applications in the United States based on the following
segments: military aircraft, communication/satellite equipment, and Department
of Defense (DoD) budget analysis. In addition, batteries used to power training
and simulation equipment in the military are included in each specific area. It
provides detailed insights into recent developments and trends; analyzes
drivers, restraints, and challenges; offers strategic recommendations; and
discusses emerging applications in the military battery market.
Increasing Demand for Higher Energy and Lighter Battery Technologies
Battery power plays a crucial role on the battlefield in operating most kinds
of military equipment. In the case of communication equipment such as the Single
Channel Ground and Airborne Radio System (SINCGARS), the weight and service life
of communication equipment batteries can restrict the mobility and field
operating time for infantry and reconnaissance units. While this is a restraint
for the lithium/sulfur dioxide (Li/SO2) chemistry - commonly utilized in the
SINCGARS - it acts as a driver for competing chemistries such as
lithium/manganese dioxide (Li/MNO2) and in the long term, for secondary lithium
chemistries such as lithium ion (Li-ion).
"The demand for a lightweight, more powerful battery is unlikely to ever
diminish as communication/satellite equipment continues to evolve and improve.
This creates a healthy long-term trend for vendors operating such batteries in
the military equipment space," says the analyst.
Continual Action to Eradicate Terrorism Strengthens Equipment
Requirements, Promoting Battery Market Growth
Recent terrorist attacks against the United States have significantly
impacted the battery markets for communication equipment. America's war against
terrorism has necessitated a greater emphasis on human intelligence gathering.
While this factor may not directly drive the market for equipment and batteries,
any action taken as a result of intelligence gathering will require their use.
Additionally, unmanned surveillance and reconnaissance vehicles are anticipated
to provide extensive information for future battlefield operations.
"Communication requirements are expected to remain very high, driving an
increase in demand and therefore, production of equipment and the need for
batteries," notes the analyst.
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