telecom batteries in europe – growth opportunities

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Telecom Batteries in Europe – Growth Opportunities Explored Influence of Wireless Data Transmission © 2013 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.

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Page 1: Telecom Batteries in Europe – Growth Opportunities

Telecom Batteries in Europe – Growth Opportunities Explored

Influence of Wireless Data Transmission

© 2013 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of

Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.

Page 2: Telecom Batteries in Europe – Growth Opportunities

2

About Our Expert

Suba Arunkumar,

Industry Manager – Energy & Environment

Frost & Sullivan

• Over eight years experience in the energy storage market including battery

chemistries, fuel cells and other emerging energy storage options and technologies

• Manage a team of analysts tracking the power supplies, transmission, distribution,

building technologies, water and oil and gas industries

• Provide customised solutions to clients and major battery manufacturers across

the geographic region

• I’m a classical trained dancer, who enjoys cooking new and traditional Indian

cuisine.

Page 3: Telecom Batteries in Europe – Growth Opportunities

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Market Overview—Definitions (continued)

Network Infrastructure Build/Maintain

Network Infrastructure Build/Maintain

Network Operations

Network Operations

Customer support and

services

Customer support and

services

Customer premises

equipment

Customer premises

equipment

• Batteries play a vital role in all these three stages of telecom industry• Customer premises equipment typically defines the handset, for both the fixed and mobile telecom

communication• Batteries with different specifications, are used in all the above three stages,• Batteries for backup in infrastructure sites, and network operations use higher capacity batteries with

voltage rating of 48V, while at other equipment in customer support and services, smaller batteries with24V, 12V ratings are used.

• In telecom industry, batteries are largely used for backup power supply, and energy storage application isgaining momentum

• Development of “battery-aware sensor network” would be the next technological evolution in the telecomindustry that would influence the battery market.

• “Battery-aware sensor network” aims at optimal usage of small cylindrical batteries that power theelectronic circuitry in the telecom devices. This advancement enhances battery life and performance

Page 4: Telecom Batteries in Europe – Growth Opportunities

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Market Overview— Battery Chemistry Segmentation

Lead Acid

76.0%

Nickel11.2%

Lithium-ion

11.9%

Others0.9%

Percent Sales BreakdownTotal Telecom Battery Market:

Europe, 2012

Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.

Lead Acid

67.1%

Nickel8.1%

Lithium-ion

21.6%

Others3.2%

Percent Sales BreakdownTotal Telecom Battery Market:

Europe, 2017

Page 5: Telecom Batteries in Europe – Growth Opportunities

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PESTLE Analysis—Europe

Telecom Battery Market: PESTLE Analysis, Europe, 2012

Source: Frost & Sullivan analysis.

0

2

4

6

8

10Political

Economic

Social

Technology

Legislation

Environment

W.Europe Nordic Region Southern Europe CEE

Page 6: Telecom Batteries in Europe – Growth Opportunities

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Battery Chemistry Channel Revenue Forecast Discussion

• Lead acid batteries are the widely used ones for standby applications in telecom equipment. This chemistry is in existence for more than a century and has proved to be suitable for these applications.

• Although flooded batteries were initially used, the challenge of regular maintenance led to a shift towards VRLA lead acid batteries, that is largely used at present.

• Nickel cadmium evolved to be the competitive chemistry to replace lead acid batteries. Nickel cadmium had better performance than lead acid batteries, however, the usage of cadmium had environmental issues, that led to a decline in usage of these batteries.

• Lithium-ion batteries emerged to be the next evolution in this market, with slow and steady penetration in the market to replace lead acid batteries.

Source: Frost & Sullivan analysis.

1970 1980 1990 2000 2010 2020

Lead Acid

Nickel Cadmium

Lithium-ion

Total Telecom Battery Market: Demand Analysis of Battery Chemistries, Europe, 1970-2020

Strong Demand Medium Demand Low Demand

Page 7: Telecom Batteries in Europe – Growth Opportunities

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Competitive Structure

EnerSys

Exide

NorthStar, Victron Energy, Hoppecke, FIAMM

TIER 3

Yuasa Battery Europe, Discover Energy Corp, GE

Energy Storage, Systems Sunlight S.A, Storage

Battery Systems,

Major manufacturers with strong presence in Europe accounting to 37% of total revenues

Strong regional competitors accounting to nearly 18% of total revenues

Major regional players with less than 10% revenue contribution

Page 8: Telecom Batteries in Europe – Growth Opportunities

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3 Big Predictions

2Lithium-ion battery is gaining momentum to replace nickel cadmium

chemistry within a decade

3

LTE (4G) services, high speed internet (above 100 Mbps) demand more

BTS for better communication and higher penetration, creates demand for

batteries

1Advancements in wireless data transmission demands high infrastructure

growth that boosts demand for high performance batteries for backup

Page 9: Telecom Batteries in Europe – Growth Opportunities

9

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Page 10: Telecom Batteries in Europe – Growth Opportunities

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Does This Look Interesting? Contact Us And Find Out More

Chiara Carella

Corporate Communications

Energy & Environment

+44-207-343-8314

[email protected]

Suba Arunkumar

Industry Manager

Energy & Environment

+91-44-6681-4204

[email protected]

Malavika Tohani

Research Manager

Energy & Environment

+44-207-915-7836

[email protected]

John Raspin

Partner

Energy & Environment

+44-207-915-7814

[email protected]