Supercapacitors Market

Market Overview

The global supercapacitors market size was valued at USD 4.7 billion in 2022 and is projected to reach USD 34.02 billion by 2031, registering a CAGR of 24.6% during the forecast period (2023-2031). The increase in demand for a steady power supply for applications such as GPS, laptops, and so on, and the rising use of supercapacitors in the hybrid vehicle industry are the primary market drivers boosting Supercapacitor market growth.

Supercapacitors, also known as ultracapacitors or electrochemical capacitors, are energy storage devices that use the flow of ions at the electrode-electrolyte interface to store and release energy. They differ from standard capacitors and batteries in various ways, each with its properties and benefits.

The ability of supercapacitors to provide emergency shutdown power or backup to low-power equipment such as RAM, SRAM, microcontrollers, and PC cards, as well as advances in storage technology with emerging market segments such as hybrid electric vehicles (HEV), smart grids, and renewable energy systems, are the major driving factors for the global supercapacitors market. However, high initial material costs and a lack of supercapacitor expertise are projected to hamper market expansion.

Market Dynamics

Global Supercapacitors Market Drivers

Exceptional Power Density

Supercapacitors have a high power density, allowing them to produce high-energy bursts when needed. This high power density is critical in applications requiring rapid energy discharge. Electric vehicles are one of the most visible applications of high power density. When an electric vehicle decelerates or brakes, it generates kinetic energy, which can be caught and stored for later use. Supercapacitors work with batteries to swiftly absorb and release energy, giving the power required for rapid acceleration. For example, the Porsche 911 GT3 Hybrid uses a supercapacitor-based energy recovery system to improve acceleration by supplying power virtually instantly.

New uses are emerging as supercapacitor technology advances. Supercapacitors, for example, are being utilized in rapid-charging stations for electric vehicles to provide the high power required for ultra-fast charging, which is a crucial driver in EV adoption. As the demand for rapid energy discharge and recharging grows, supercapacitors will likely play a growing role in various industries, including transportation and energy storage. As a result, the supercapacitor market trend will likely change dramatically throughout the forecast period.

Global Supercapacitors Market Restraints

Limited Energy Density

Energy density is an important metric for energy storage devices, and one of the fundamental limitations of supercapacitors compared to batteries is their lower energy density. Supercapacitors excel in high-power applications but fall short when storing enormous amounts of energy for long periods. While supercapacitors have advantages in terms of rapid energy discharge for applications such as regenerative braking, they are not appropriate as the major energy storage solution in electric vehicles.

Due to the need for constant energy supply over long driving distances, EVs rely on batteries for most of their energy storage demands. Supercapacitors are supplementary systems in electric vehicles that capture and release energy during regenerative braking, improving energy efficiency and battery life. They cannot, however, substitute batteries for long-distance electric driving due to their inferior energy density.

Global Supercapacitors Market Opportunities

Growing Electric Vehicle Market

The electric vehicle (EV) market is rapidly expanding, and supercapacitors are finding chances to improve energy efficiency and battery life in this area. According to the International Energy Agency (IEA), electric car sales are setting new records, and this trend is predicted to continue until 2023. Electric vehicle markets are expanding exponentially, with sales exceeding 10 million by 2022. Electric car sales have more than tripled in three years, from roughly 4% in 2020 to 14% in 2022.

As EV manufacturers strive to improve energy efficiency and range, supercapacitors are being implemented into these cars to capture and release energy during acceleration and deceleration. This integration helps improve vehicle performance while reducing battery wear and tear. The growing emphasis in the automobile sector on decreasing emissions and increasing fuel efficiency is pushing innovation in energy recovery systems, making supercapacitors a critical component in current electric and hybrid vehicles.

Regional Analysis

Asia-Pacific Dominates the Global Market

The global supercapacitors market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia-Pacific is the most significant global Supercapacitors market shareholder and is estimated to grow at a CAGR of 25.0% over the forecast period. China is a major contributor to the region. To fulfill the carbon neutrality targets by 2060, China's demand for supercapacitors is predicted to expand at one of the fastest rates in the world for a long time. Benefiting from rising demand in downstream applications such as electric automobiles, supercapacitors' overall market share in China would expand further. Many new players have entered the market due to government policy support. China's automotive industry is expanding rapidly, and the country is becoming increasingly important in the global automotive market. The government considers the automobile industry, particularly the auto components business, one of the country's core industries. According to the Chinese Central Government, China's automotive output will reach 35 million units by 2025, meeting the supercapacitor demand. Electric vehicles are growing more popular, with China being one of the early adopters. The 13th Five-Year Plan for China's Transportation Industry emphasizes the development of green mobility alternatives such as hybrid and electric vehicles. 

Additionally, communication technologies in telecommunications and space have increased the demand for supercapacitors in recent years. The Indian Space Research Organization (ISRO) developed technology for processing supercapacitors (2.5 V) of variable capacitance values, namely 5 F, 120 F, 350 F, and 500 F, for specialized applications connected to space and societal demands at its Vikram Sarabhai Space Center (VSSC). Supercapacitors are being used efficiently to improve hybrid electric vehicles' efficiency in various ways. Furthermore, the Japanese government hoped that by 2050, all new cars sold in Japan will be electric or hybrid vehicles. The country intends to incentivize private-sector developers of electric vehicle batteries and motors. Furthermore, since the government pushes to reduce greenhouse gas emissions from vehicles, Japanese bus and truck manufacturers are focusing more on electric vehicle production. Hino Motors Ltd, for example, debuted its first model of a diesel-electric hybrid truck. 

North America is anticipated to exhibit a CAGR of 24.8% over the forecast period. The regional market's supremacy can be attributable to the increased emphasis on renewable energy. During the projection period, the United States is expected to contribute most to the regional market's strengthening. The Renewable Portfolio Standards (RPS) were developed by the National Conference of State Legislatures (NCSL) to diversify their energy supplies, boost domestic energy production, and support economic development in the United States. According to the new laws, phase I utilities must meet a renewables target of 14% by 2025, 30% by 2030, 65% by 2040, and 100% by 2050. For Phase II utilities, the accelerated renewables target is 26% by 2025, 41% by 2030, and 100% by 2045. These government restrictions will boost the renewable energy market and drive market expansion throughout the forecast period. The product's introduction in several automotive applications such as power assistance, auto-start-stop, catalyst preheating, door locking systems, regenerative braking, and electrical system stabilization is expected to boost demand for supercapacitors in the United States during the forecast period.

Europe has the second-largest supercapacitor market share, according to supercapacitors market insights, due to rising electric car usage, rigorous environmental regulations, and the incorporation of renewable energy sources. The automotive industry, in particular, is boosting supercapacitor demand because they enable efficient energy storage and regenerative braking capabilities. Furthermore, the German supercapacitor market had the biggest market share, while the UK supercapacitor market was the fastest expanding in Europe.

Segmental Analysis

The global supercapacitors market is segmented based on type, material, application, end-user, and region.

By Type, the market is further segmented into Double Layer Capacitors, Pseudo Capacitors, and Hybrid Capacitor.

Double Layer Capacitor accounts for the largest share of the market. Double-layer capacitors, called Electric double-layer capacitors (EDLC) or ultracapacitors, store energy by separating charges electrostatically at the electrode-electrolyte interface. They use a high-surface-area electrode and a separator to produce a large double-layer capacitance. The double-layer capacitors category dominated the market. They are based on the theory of electrostatic double-layer capacitance, which occurs at the electrode-electrolyte interface. DLCs feature a high energy storage capacity, a long cycle life, and the ability to charge and discharge quickly. They are widely utilized in applications requiring high power density and short energy bursts, including renewable energy systems, automotive electronics, and consumer electronics.

Pseudo Capacitors, also known as Electrochemical Capacitors, combine supercapacitor and battery characteristics. They store energy at the electrode-electrolyte interface via double-layer capacitance and a reversible faradaic redox process. As a result, they can offer high power and relatively high energy storage.

Based on material, the market is sub-segmented into Electrodes, Activated Carbon, and Activated Carbon Fibers.

Activated Carbon generated the most income. Activated Carbon is a porous, high-surface-area carbon commonly used in supercapacitor electrodes. To activate Carbon, oxidizing chemicals or high-temperature techniques form micropores and increase its surface area. Activated Carbon is preferred for supercapacitor electrodes because of its outstanding capacitive characteristics. It has a high specific capacitance, which helps the device's energy storage capability.

Electrodes, which serve as charge storage sites in supercapacitors, are a critical component. They are typically made of conductive materials with a large surface area to assist electrostatic charge separation.

By application, the segment can be further bifurcated into Camera and Laptop.

Camera is the most common application in the market. Supercapacitors are used in digital cameras and other photographic equipment to supply short bursts of energy to power the camera's flash and zoom functions. Supercapacitors are appreciated in cameras for producing short bursts of power, enabling capabilities such as rapid-fire photography with a camera flash and speedy autofocus.

Laptops include supercapacitors as auxiliary power sources, providing short-term energy backup during a power outage or facilitating rapid data storage when the laptop is in standby or hibernation mode.

The market is divided into Consumer Electronics, Automotive, and Manufacturing based on end-users.

Automotives are the largest end-user of the market. Supercapacitors are used in various applications in the automobile sector, including regenerative braking, start-stop systems, and hybrid and electric vehicles (EVs). Supercapacitors increase energy economy, lower pollutants, and improve vehicle performance. The automobile category dominated the market. Energy storage technologies that efficiently handle regenerative braking, start-stop systems, and power transmission for diverse automobile applications are in high demand. Supercapacitors excel in these applications because of their high power density, quick charging, and great temperature performance. They may catch and store energy while braking and swiftly release it during acceleration, increasing fuel efficiency and lowering pollution.

Smartphones, tablets, computers, digital cameras, wearables, and other portable electronic devices are all part of the consumer electronics business. Supercapacitors are employed in this segment to enable rapid charging, increase battery life, and improve gadget performance.

Recent Developments

• October 2023- KYOCERA AVX Introduces Generation 2 PrizmaCap Supercapacitors.
• October 2023- Panasonic Connect's New 4K/IP CCU Will Provide Strong IP Connectivity: AK-UCU700 Models.
• April 2023- CAP-XX Limited (LSE: CPX), the world's leading manufacturer of ultra-thin prismatic, cylindrical, and Lithium-Ion supercapacitors, has announced that its complete portfolio of high-performance supercapacitors is now available from global authorized distributor Digi-Key.