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Wireless Data Transmission And 4G Networks Fuel Demand For Batteries In The European Telecom Market, Finds Frost & Sullivan

LONDON, Sept. 26, 2013 /PRNewswire/ -- Demand for batteries to be deployed in wireless data transmission infrastructure is high. Furthermore, Western European countries are shifting towards long term evolution  (LTE - 4th generation or 4G networks), that provides users better voice clarity, higher bandwidth for data transmission through mobile phones, and Internet services. These two factors are driving the battery market for telecom to new heights. Huge potential for growth is forecast. Lithium-ion batteries are gaining momentum while other emerging chemistries, such as sodium nickel chloride and vanadium redox, are entering the market.

New analysis from Frost & Sullivan (, European Battery Technologies for the Telecom Market, finds that the market earned revenues of $628.4 million in 2012 and estimates this to reach $914.8 million in 2017.

The rising popularity of hybrid base transceiver stations (BTS) promotes the use of batteries as a renewable power source since telecom companies look to reduce fuel consumption in conventional diesel gensets. The increasing relevance of off-grid, remote BTS also boosts the adoption of batteries for energy storage applications.

"European countries are migrating to LTE networks, the 4th generation data transmission technologies that require  higher bandwidth, better infrastructure and additional battery capacity," explains Frost & Sullivan Energy and Environmental Industry Manager, Suba Arunkumar. "Every country needs to upgrade its infrastructure to adapt to a 4G network. This change and upgrading of wireless telecom infrastructure drive demand for batteries in this market."

At the same time, the study unveils that fierce competition among battery manufacturers has heightened pricing pressures, limited the entry of new chemistries, and affected revenues. The market's dependence on government regulations is likely to further dampen battery uptake. Macro-level economic factors too curb market investments.

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