U.S. Supercapacitor Market Size, Share & COVID-19 Impact Analysis, By Type (Double Layered Capacitors, Pseudo Capacitors, and Hybrid Capacitors) and By Application (Grid Stabilization, UPS, Renewable Energy, Transportation, and Others) and Regional Forecasts, 2021-2028

The U.S. supercapacitor market size was USD 55.8 million in 2020. The market is projected to grow from USD 60.9 million in 2021 to USD 141.7 million in 2028 growing at a CAGR of 12.8% in the 2021-2028 period. The global impact of COVID-19 has been unmatched and staggering, with this market witnessing a negative demand across all regions amid the pandemic. Based on our analysis, the market in the U.S. region exhibited a slow growth rate of 5.7% in 2020 compared to the average year-on-year growth during 2017-2019. The rise in CAGR during the forecast period is attributable to this market's demand and growth, returning to pre-pandemic levels once the epidemic is over.

A supercapacitor, also known as an ultracapacitor, is an electronic device used for storing large amounts of electrical charge. These capacitors consist of two metal plates coated with porous activated carbon immersed in an electrolyte which is made of positive ions and negative ions dissolved in a solvent. When the device is charged, ions from the electrolyte accumulate on the surface of each carbon-coated plate, thus storing energy formed between the particles. Compared to the traditionally used batteries, supercapacitor batteries deliver stabilized power, handle more fluctuations and discharge cycles, and have wide-ranging operating temperatures.

Widespread adoption of these capacitors by the automotive industry is providing a boost to the market growth in the country. They are broadly used in automobiles for a smooth charge/discharge cycle used for on/off switching in the vehicle. In line with this, shifting consumer preference for electric and hybrid electric (HEV) vehicles also favors market growth. Additionally, the increasing demand for electrical components by the utility sector is acting as another growth-inducing factor.

Blockades in Electrical Industry has Harmed The Market Growth in U.S.

The economic backslash caused by the spread of the novel coronavirus globally has a damaging impact on every industry and the sector of U.S. supercapacitors Industries have endured significant losses in operational time owing to the imposition of stringent rules such as state lockdowns in order to reduce the spread of the virus. Accordingly, the outbreak of the virus has altered the demand for these products in the U.S. The lockdown also resulted in the halting of the supply chain, mainly for raw materials from the Asian and African region, such as carbon-based materials, metal oxides, carbides, nitrides, and other electrolyte materials. This has resulted in a substantial delay in fulfilling existing orders.

Companies were already facing a huge cash crunch due to no new orders as the pandemic started. Disruptions in supply chain crisis further impacted their profit margins. Owing to this reduced demand and halt in operational activities, system manufacturers are facing enormous challenges, which will further increase the cost of production and results in a low rate of return on investment. Furthermore, the unavailability of as skilled workforce coupled with long-spanning shutdowns of manufacturing plants will hamper the application industry potential.

LATEST TRENDS

Increasing Demand for Fuel Cell Electric Vehicles to Augment U.S. Supercapacitor Market Growth

The U.S. has been focusing to indulge in hydrogen vehicles and refueling stations to boost the utilization of fuel cell electric vehicles (FCEVs) in the country. The government and the U.S. Department of Energy (DoE) have significantly invested in research & development activities to implement promising long-term targets in order to support adoption of FCEVs for years. In the year 2019, the fuel cell R&D subprogram was granted a total funding of about USD 30 million by the U.S. DoE to meet future cost, performance, and durability targets. Different countries and states are also separately focused on developing and achieving large hydrogen FCEV fleet in private and commercial operations. These factors are expected to grow the product demand in the U.S. during the forecasted period.

Increasing emphasis on Utilization of Renewable Energy Resources to Drive Market Dynamics

The growing obligation to conserve Earth's resources and be environmentally sustainable has given rise to more solar and wind energy installations in the country. The United States administration has also introduced favorable policies and regulatory frameworks to augment renewable energy sources structure. For instance, in March 2020, the International Renewable Energy Agency (IRENA) announced that the United States of America installed 29 gigawatts of renewables in the same year, nearly 80% more than in 2019, including 15 gigawatts of solar energy and around 14 gigawatts of wind energy.

Furthermore, growing installation of solar photovoltaic (PV) technology and ambitious targets to support the transition of low carbon energy are likely to augment the regional industry pace. Besides, various governments and organizations have reported that solar PV technology has observed considerable expansion in the country’s primary generation mix over the years. For example, according to the Energy Information Administration, U.S. (EIA), the total generation from solar PV technology totaled about 9.6% of the net utility-scale renewable resources in 2019 from 8.5% in 2018, experiencing a year-on-year increment of over 8.78 million megawatt-hours (MWh). These factors, including implementing lucrative government policies to promote sustainable infrastructural development, are projected to drive the market in renewable energy systems.

DRIVING FACTORS

Increasing Installation of Renewable Power Generation to Fuel Growth

Supercapacitors are an emerging technology in the field of energy storage systems that can offer higher power density and higher energy density over batteries and traditional capacitors. These batteries will become an attractive power solution to renewable energy power generation because of their advantages, including high charge & discharge current capability, very high efficiency, and a wider temperature range.

The National Conference of State Legislatures (NCSL) has created the Renewable Portfolio Standards (RPS) to diversify their energy resources, promote domestic energy production, and encourage economic development in the U.S. The new regulations require Phase I utilities to achieve a renewables target of 14% by 2025, 30% by 2030, 65% by 2040, and 100% by 2050. The accelerated renewables requirement for Phase II utilities is 26% by 2025, 41% by 2030, and 100% by 2045. These government regulations are expected to drive the renewable energy market, which in turn is likely to drive the market growth during the forecast period

Extended Life Cycle & High Energy Density of U.S. Supercapacitors to Aid Market Value

Supercapacitors are high-capacity capacitors which have a greater capacitance and lower voltage restrictions than other capacitors. As a new energy storage component, this capacitor has a longer cycle life, high current capability, high efficiency, wide temperature range, easily monitorable state of charge, and a wide voltage range. In terms of lifespan comparison, lithium-ion batteries average between 500 and 10,000 charge cycles, while supercapacitors have a lifespan ranging from 100,000 to a million cycles. It can also operate in temperature range -40°C to 70°C, which is considerably more comprehensive than that of traditional batteries and operate at any voltage below its maximum continuous operating voltage. As a result, these capacitors may become an attractive power solution to an increasing number of applications, which is anticipated to drive this market.

RESTRAINING FACTORS

Limitation of U.S. Supercapacitors To Be Used For Greater Number of Life Cycle

Supercapacitors are widely used in electric vehicles, renewable energy storage, military, consumer electronics, and other fields because of their excellent characteristics. However, this market is mainly affected by its short development time, self-discharge rate, gradual voltage loss, and fast speed. A capacitor battery can lose as much as 10% to 20% of its charge per day due to its self-discharging characteristic, which makes its discharge rate significantly higher than lithium-ion batteries. Another significant hurdle affecting the growth rate of the industry in the U.S. is the low energy densities of these capacitors. Currently, there is still a particular gap between the supercapacitors (<20 Wh kg−1) and batteries (30–200 Wh kg−1) in terms of energy densities which is restricting the growth of market in the U.S.

SEGMENTATION

By Type Analysis

Double layered capacitors Segment Benefits from its Diverse Applications

By type, the market is segmented into double-layered capacitors, pseudocapacitors, and hybrid capacitors.

The double-layered capacitors segment is expected to dominate the market, primarily owing to their diverse applications such as energy storage, UPS, and electric & hybrid vehicles. Also, these supercapacitors are available in different capacities and temperature ratings which make their installation easy.

The pseudo capacitors segment also accounted for a significant market share. These capacitors are utilized in multiple applications to integrate batteries to increase the power density and smooth the flow of electricity in energy storage systems. Long-standing research & development facilities by key industry players to develop hybrid capacitors such as lithium-ion capacitors with economic feasibility and enhanced efficiency will drive the hybrid capacitors segment growth from 2020 to 2028.

By Application Analysis

Owing to Maximum Utilization of Supercapacitors, Grid stabilization, and UPS segment Hold a Significant Share Market in U.S.

Supercapacitors help power grids operate closer to their total capacity due to their high power density and a longer lifespan compared to conventional batteries. UPS segment accounted for the largest market share in 2020. Increasing demand for backup power solutions from the industrial and commercial industries is anticipated to drive the adoption of the product in UPS applications. Growing renewable energy installations and the need for continuous power are expected to drive the demand for these capacitors in solar, wind, and fuel cell applications.

The automotive application segment is projected to be one of the fastest-growing segments in the industry due to increasing inclination towards adopting low emission vehicles. Other market segments consisted of energy harvesting, drones, consumer electronics, military, and marine applications. The vast potential due to the growing adoption of consumer electronics, combined with technological advancements in this industry, is anticipated to propel the development of the others segment of this market in the country.

REGIONAL INSIGHTS

The exponential increase in the global power demand, building of new establishments to serve the abrupt population outburst and rapid urbanization is projected to support the growth of this market. The growing setup of new infrastructures is also projected to boost the energy requirements across various verticals, propelling the need for multiple supercapacitors to maintain a stable storage and distribution of electricity. For example, in September 2019, the U.S. Energy Information Administration (EIA) anticipated that the industrial sector, including construction, agriculture, mining, manufacturing, and refining, is likely to account for the dominating share in the global energy consumption. This energy consumption is anticipated to increase by about 50% by 2050 as compared to 2018 levels.

The introduction of the product in several automotive applications such as power assistance, auto-start-stop, catalyst preheating, door locking systems, regenerative braking, and stabilization of the electrical system is expected to increase the demand for supercapacitors in the U.S. during the forecast period.

KEY INDUSTRY PLAYERS

Major Players are Leading Way with Investments in R&D Activities

The markets’ competitive landscape is considerably fragmented with different players operating at state levels. The industry participants are significantly focusing on the development of high-performance capacitors with enhanced operational characteristics to fortify their global foothold. Considering all the scenarios, key players such as Maxwell Technologies, Skeleton Technologies, Kilowatt Labs, Inc., and CAP-XX held significant market share in the supercapacitors market in the US region due to their better-performing storage devices and established supply chain.

LIST OF KEY COMPANIES PROFILED:

• Maxwell Technologies (U.S.)


• Skeleton Technologies (Estonia)


• Kilowatt Labs, Inc.  (U.S.)


• CAP-XX (Australia)


• Cornell Dubilier Electronic  (U.S.)


• Ioxus (U.S.)


• Targray (Canada)


• NETenergy (U.S.)


• Nanoramic Laboratories (U.S.)


• Eaton (Ireland)

KEY INDUSTRY DEVELOPMENTS:

• April 2020 - Electrochem Solution, a subsidiary of Integer Holdings Corporation (ITGR),  has signed a technology licensing partnership with Nanoramic Laboratories for their FastCAP EE Series Ultracapacitors. This partnership allows Electrochem Solution to manufacture, sell and distribute these ultra-capacitors worldwide. These ruggedized high-temperature ultra-capacitors are capable of delivering high power density in tough conditions.


• February 2020 - Skeleton Technologies has started to supply ultra-capacitor modules to Attabotics, headquartered in Calgary, Alberta, Canada. The company offers a solution for fulfillment centers which includes, automated storage, retrieval, order fulfillment, and sortation system.

REPORT COVERAGE

The market research report highlights the United States to offer a better understanding of the user. Furthermore, the market research report provides insights into the latest industry trends and analyzes technologies deployed at a rapid pace at a global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the industry.

Report Scope & Segmentation