Industrial Batteries Market Overview - 2030
As per the industrial batteries market analysis, the global industrial batteries market was valued at $9.0 billion in 2020, and industrial batteries market forecast is projected to reach $30.8 billion by 2030, growing at a CAGR of 13.2% from 2021 to 2030. Since 2018, the annual deployed capacity of industrial batteries has increased with 200%. From traditional batteries having been used majorly in one consumer electronics during the 90s and early 2000, industrial batteries are now powering several end-use applications such as grid storage and uninterrupted power systems. Industrial batteries are used in remote, difficult-to-reach areas where equipment/devices are required to be self-powered, and recharging & replacement of batteries is difficult or is not possible. The basic components equipped in these batteries majorly include cathode, anode, and electrolyte, out of which the cathode occupies around 30% of the overall battery cost. Industrial batteries are rechargeable, which are commonly used as a power source in various data centers, grid storage, and telecommunication centers. Lithium-ion battery, nickel-based, and lead-based industrial batteries are the most common types used in industrial applications.
Ongoing advancements in industrial batteries industry, increase in annual deployed capacities for industrial batteries, stringent government regulations implemented to control increasing pollution are some of the major drivers currently driving the global industrial batteries market trend. In addition, industrial batteries are increasingly being used in applications such as backup power for telecom base stations and data centers or to power fork lifts, which significantly contributes toward the industrial batteries market growth. As per the research conducted by the Statistical Review of World Energy in 2020, the global annual renewable energy (including biofuels) posted a record increase in consumption in energy terms (3.2 EJ). This was the largest increment for any source of energy in 2019. Furthermore, industrial batteries do not emit hazardous acids such as sulfuric acid, which promotes environmental sustainability, thereby contributing toward the growth of the global market.
Moreover, depletion of natural resources, increase in carbon emissions, and continuous efforts taken by both public & private sectors to reduce carbon emissions and save fuel consumption contribute toward the market growth. Implementation of government regulations related to carbon emission is anticipated to increase the use of lithium-ion battery thereby expected to fuel the industrial batteries market shares globally.
Manufacturers develop improved solutions and various equipment for specific requirement along with improved technology and fuel efficiency to reduce operation cost and enhance productivity of industrial batteries. These requirements have increased the demand for industries batteries in equipment manufacturing applications. To introduce new battery technologies, majority of industrial batteries manufacturers are collaborating with battery raw material suppliers to strengthen the supply of battery raw materials as the global industrial batteries market is depicted to increase at a fast pace creating abundant opportunities during the forecast period.
However, high price of lithium-ion batteries is likely to hamper the growth of industrial batteries market during the forecast period. According to PowerTech Systems, engaged in manufacturing, distributing, exporting, and importing of an exhaustive range of Frequency Inverters, AC Drives, and VFD, the cost of lithium-ion battery is 805.3 USD/KWh, whereas the cost of lead-acid battery is 172.6 USD/KWh. This has declined the adoption rate of these batteries across different applications, thereby limiting the global industrial batteries market size. Owing to regional concentration of industrial battery raw materials, metals reserves in countries such as China and DRC create the risk of supply shortages in case of any export restrictions.
The global industrial batteries market is segmented into type, application, and region.
By Type
Lithium-ion battery is projected to create abundant $ opportunity till 2030
On the basis of type, the global industrial batteries market is categorized into lithium-ion battery (lithium cobalt oxide, lithium magnesium oxide, lithium titanite, and others), nickel-based, and lead based. The applications of industrial batteries include telecom & data communication, uninterruptible power supply (UPS), energy, equipment, grid storage, and others (railways, utility, and security.).
Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
The major companies profiled in this report include Johnson Controls, Inc., Exide Technologies, Inc., Enersys, Inc., Saft Groupe S.A., GS Yuasa Corp., Northstar Battery Company LLC, C&D Technologies, Inc., Robert Bosch GmbH, East Penn Manufacturing Co., and LG Chem.
By Application
Telecom and Data Communication is projected as the most lucrative segment.
Asia-Pacific accounted for the largest share of the market in 2020, owing to rapid industrialization in China and India coupled with presence of manufacturing facilities.
In terms of type, the lithium-ion battery segment accounted for the largest market share in 2020, and is projected to grow at a CAGR of 13.0% from 2021 to 2030, owing to increase in demand for lithium-ion batteries among different industry verticals.
By application, the telecom & data communication segment garnered the highest revenue share in 2020, and is expected to register a CAGR of 11.7%. Presently, increasing demand for reliable and dependable power solutions to support large scale manufacturing facilities to ensure data safety and security is expected to fuel the growth of telecom & data communication segment.
By Region
Aisa Pacific holds a dominant position in 2020 and would continue to maintain the lead over the forecast period.
Impact Of Covid-19 On The Global Industrial Batteries Market
- The COVID-19 pandemic has negatively affected the global economy and subsequent shrinking of the GDP in global economies, thereby changing consumer spending patterns globally.
- The pandemic has disrupted the global industrial sector due to unavailability of labor and raw material shortage. This led to demand–supply gaps, thus hampering industrial batteries production.
- Several legal liabilities over business due to the COVID-19 pandemic have pushed leading industrial battery manufacturers to completely shut down the manufacturing capacities.
- Thus, the abovementioned factors are expected to hamper the global industrial battery market growth.
Key Market Segments
By Type
- Lithium-Ion Battery
- Lithium Cobalt Oxide
- Lithium Magnesium Oxide
- Lithium Titanite
- Others
- Nickel-based
- Lead-based
By Application
- Telecom & Data Communication
- Uninterruptible Power Supply (UPS)
- Energy
- Equipment
- Grid Storage
- Others (Railways, Utility, and Security)
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- France
- Italy
- Spain
- UK
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Rest of Asia Pacific
- LAMEA
- Brazil
- Saudi Arabia
- South Africa
- Rest of LAMEA
Industrial Batteries Market Report Highlights
| Aspects | Details |
 By Type |
|
 By Application |
|
 By Region |
|
 Key Market Players | Johnson Controls, Inc., GS Yuasa Corp., C&D Technologies, Inc., Saft Groupe S.A., Exide Technologies, Inc., Enersys, Inc., Toshiba Corporation, East Penn Manufacturing Company, Inc., LG Chem, .ROBERT BOSCH gmbh. |
Analyst Review
The global industrial batteries market benefits from the growing demand of lithium-ion battery.
Various benefits associated with lithium-ion batteries are expected to increase their adoption during the forecast period. In addition, increase in demand for reliable and dependable power solutions to support large-scale manufacturing facilities to ensure data safety and security is expected to fuel the demand of uninterruptible power supply system, which, in turn, drives the growth of industrial batteries market. However, high price of lithium-ion batteries as compared to traditional batteries is likely to hamper the growth of the market
The COVID-19 pandemic has affected the global industrial batteries market for a short span, due to slight disruption in supply of raw materials during the pandemic.
Moreover, companies such as SYSTEMS SUNLIGHT S.A. is investing heavily over research and development of lithium technologies to support the growth of industrial batteries market throughout the forecast period. In addition, in October 2020, Sanitized AG and Ferro Plast entered into a strategic partnership to improve the sales of Sanitized industrial batteries in Italy. This strategy is set up to support development, production, marketing, and regulatory queries in Italy.
Asia Pacific significantly China and India will provide more business opportunities for Industrial Batteries Market in coming years.
Nickel-based battery segment accounted for largest industrial batteries market share.
To get latest version of industrial batteries market report can be obtained on demand from the website.
Stringent government regulations implemented to control increasing pollution as lithium-ion batteries do not emit hazardous acids such as sulfuric acid, rising need for eco-friendly energy storage solutions, rapidly increasing demand from data centres are key factors driving the growth of industrial batteries market growth
Rise in digitization and cloud computing among organizations have necessitated the construction of data centre facilities across the globe, rapidly increasing construction of data centres is expected to create high end opportunities over the demand of industrial batteries throughout the forecast period.
The top ten market players are selected based on two key attributes - competitive strength and market positioning
The key strategies traced from the analysis of recent developments of the key players are as follows: Partnership: This strategy is adopted when two or more companies agree to cooperate with each other to advance their mutual interests. Product launch: This strategy is adopted to introduce new and unique products in the market.
Johnson Controls, Inc., Exide Technologies, Inc., Enersys, Inc., Saft Groupe S.A., GS Yuasa Corp., Northstar Battery Company LLC, C&D Technologies, Inc., Robert Bosch GmbH, East Penn Manufacturing Co. and LG Chem
Telecom and data communication centres, large-scale industries needing heavy power storage and supply, automotive manufacturers.
The expected market value of Industrial Batteries by 2027 is US$ 21.15 billion
Loading Table Of Content...
