Industrial Batteries Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2034
Page: 215 | Report Code: MC240731 | Research Suite: Report (PDF) & Market Data (Excel)
Industrial batteries are high-capacity energy storage
devices that are designed to power industrial applications including from
manufacturing to telecommunications. These are rechargeable batteries that are
specifically designed for use in industrial applications. They are known for
their durability, reliability and high performance, making them a popular
choice for powering a wide range of industrial equipment and machinery. The
common types of industrial batteries includes
lead-acid batteries, lithium-ion batteries and others, each suited for specific
industrial companies.
MARKET
OVERVIEW
The market valuation of industrial batteries market was valued at approximately USD 19.0 billion in 2023 and is projected to reach USD 46.8 billion in 2034 exhibiting a CAGR of 13.2% during the forecast period of 2024-2034. Industrial batteries are robust, dependable, and have high energy density, which helps ensure efficient and uninterrupted operations. The market is aligned with diverse sectors, which makes it a sustainable and growing market.
GROWTH
DRIVERS
The rising demand for renewable energy integration, where the global push toward renewable energy sources like solar and wind power is significantly driving the demand for industrial batteries. These batteries are essential for storing energy generated from renewable sources for use during periods of low generation. The amount of renewable energy capacity added to energy systems around the world grew by 50% in 2023, reaching almost 510 gigawatts (GW), with solar PV accounting for three-quarters of additions worldwide, according to International Energy Agency. The rapid growth of cloud computing, big data, and IoT applications is increasing the demand for reliable backup power solutions in data centers. These industrial batteries provide uninterruptible power supply systems (UPS) in order to prevent data loss and downtime.
The pandemic has fueled the growth of the global data center market, projected to reach 235 billion euros (USD 255.7 billion) by 2026 with a projected Compound Annual Growth Rate of 4.5%, according to Clifford Chance. The Uptime Institute's 2023 Global Data Center Survey found that the data center industry is growing, dynamic, and resilient. The survey also found that spending on data centers and related services is strong. The growth in electric vehicles is boosting the demand for industrial batteries, particularly for energy storage and charging stations and supporting infrastructure. According to the International Energy Agency (IEA), electric vehicle (EV) sales are expected to continue to grow in 2024, building on a record year in 2023. In 2023, global EV sales reached almost 14 million, which was a 35% increase from 2022 and more than six times higher than in 2018.
The IEA projects that EV sales will increase by more than a fifth in 2024, reaching 17 million, and that 25% of new car sales in Europe and the US will be electric. The IEA also projects that almost one in three cars on the roads in China will be electric by 2030. The expansion of 5G networks and telecommunications infrastructure requires reliable power backup solutions to maintain network stability served by the industrial batteries, contributing towards market growth. GSMA's Mobile Economy 2024 report projects that 5G connections will grow to 5.5 billion by 2030, and that 5G networks will cover one-third of the world's population by 2025. They also expect 5G to become the dominant global technology by 2028, surpassing 2G and 3G in terms of connections.
MARKET
SEGMENTATION:
·
By Type- Lead-acid
batteries, Lithium-ion batteries, nickel cadmium batteries and others
·
By Application- Backup
power, gird storage, telecommunications and others
·
By End-User Industries-
Automotive, healthcare, utilities, manufacturing, data centers and others
·
By Region- North America,
Europe, Asia Pacific, Middle East and Africa, South America
Industrial
Batteries Market Segment By Type Review:
The lead acid batteries are the most traditional type of industrial batteries. They consist of lead oxide as the cathode, sponge lead as the anode, and sulfuric acid as the electrolyte. They have relatively low manufacturing and purchasing costs. They are capable of providing high surge currents, making them suitable for applications requiring high power density. They find applications in the automotive sector for starting, lighting and ignition in vehicles. The lithium-ion batteries use lithium compounds as the cathode material and graphite as the anode. They are known for their high energy density and lightweight properties. It provides more energy per unit of weight compared to other battery types.
They are
capable of a higher number of charge-discharge cycles leading to longer
lifespan. Moreover, it retains charge well overtime with minimal energy loss.
It finds applications in electric vehicles as it dominates the EV market due to
high energy density and lightweight properties. It is also utilized in consumer
electronics, including laptops, smartphones and other portable devices. The
nickel cadmium batteries use nickel oxide hydroxide as the cathode, cadmium as
the anode, and potassium hydroxide as the electrolyte. It is known for its
robustness and ability to deliver consistent performance. It can withstand deep
discharge cycles without significant loss of capacity and performs well under a
wide range of temperatures. They find application in aviation sector used in
aircraft due to their reliability and performance at varying altitudes. The
other category includes a range of emerging and specialized battery technologies
like nickel metal hydride, sodium sulfur and flow batteries.
Industrial
Batteries Market Segment By Application Review:
The backup power systems rely on industrial batteries in order to provide uninterrupted power supply during
outages or failures of the main power source. The grid storage applications use
industrial batteries to store excess energy generated from renewable sources or
during off-peak periods, releasing it when the demand is high. This helps in
balancing supply and demand in the energy grid. The telecommunication system
uses industrial batteries in order to ensure
continuous operation of networks and communication infrastructure, particularly
during power outages or in remote locations. The other segment includes a
variety of applications that utilize industrial batteries for specifying
specific or specialized needs. These applications range from transportation to
industrial machinery and beyond.
Industrial
Batteries Market Segment By End-User Industries
Review:
The industrial batteries are integral to various end user industries, each with specific needs and applications. In the automotive sector, the electrification of vehicles and government incentive drives the demand for batteries used in electric vehicles, hybrid vehicles for starting, lighting and ignition applications. The healthcare industry relies on batteries for uninterrupted power supply (UPS) to critical medical equipment, portable medical device and telemedicine system driven by the increasing dependence of sophisticated medical technologies and stringent regulatory compliance.
The utilities use batteries for energy
storage, grid stability, and integrating renewable energy sources, fueled by
the adoption of solar and wind power and grid modernization efforts. The
manufacturing industries benefit from industrial batteries for powering
material handling equipment, supporting production processes and providing
backup power driven by trend towards automation. The data centers depend on
batteries for UPS in order to ensure continuous operation
of servers and IT infrastructure, amidst growing data needs and reliability
requirements.
Industrial
Batteries Market Regional Analysis:
North America is a significant market driven by factors like increase demand for renewable energy storage where the push for renewable energy adoption in the North American countries, mainly US and Canada, is driving the need for the efficient energy storage solutions. The growing electric vehicle market is one of the significant growth drivers for the market in this region, as it requires robust battery solutions for both vehicles and supporting infrastructure. Europe is a valuable market driven by stringent regulations, where the European Union policies focused on reducing carbon emissions and promoting sustainable energy, are driving the demand for industrial batteries.
Asia Pacific is a significantly growing market driven by the factors like rapid industrialization and urbanization in countries like China and India, increasing the need for reliable power solutions. Moreover, the government initiatives such as they are offering incentives to boost local manufacturing drives adoption of the market. The Middle East and Africa is a promising market driven by the region’s investment in infrastructure including large scale renewable energy projects, necessitating robust energy storage solutions. South America market is expected to grow driven by growing renewable energy projects coupled with economic growth and industrial expansion.
Key
Challenges:
The industrial
batteries, especially those used in high demand applications, faces issues
regarding lifespan and performance degradation over time. The frequent
replacements and maintenance may increase operational costs and reduce the
overall return on investment, one of the significant challenges for the market.
Moreover, the proper disposal and recycling of industrial batteries poses a significant environmental logistical challenges. The
lack of efficient recycling infrastructure may lead to environmental hazards
and increase disposal cost. The industrial
batteries, particularly lithium-ion types, are susceptible to safety issues
like overheating, fires and explosions. These safety concerns may limit the
deployment of batteries in certain applications and require additional
investments in safety measures.
Competitive
Landscape:
In the highly competitive industrial batteries market, companies are investing heavily in research and development to innovate and improve their products and services. They are also collaborating, forming strategic partnerships, or acquiring other companies to gain access to new market segments, enhance distribution networks, and increase market share. The news and development include - in January 2023, Oil & Natural Gas Corporation (ONGC) subsidiary, ONGC Tripura Power Company, signed an agreement with Assam Power Distribution Company Limited (APDCL) for a large-scale battery storage project in Assam.
The project is worth USD 245 million, and both
companies will form a joint venture (JV) to develop a battery energy storage
system (BESS) project with up to 250MW rated power output and 500MWh capacity.
In October 2022, EnerSys, the global leader in stored energy solutions for
industrial applications, granted exclusive sales and service rights for all
EnerSys motive power products, which includes industrial batteries in the
Middle Tennessee Territory, with local offices in Nashville. In April 2022,
Narada Power introduced a new product for the IDC scenario; the system includes
a 512V lithium iron phosphate cell, a three-level BMS, and other core
techniques. The modular designed solution is expected to meet various power
demands for UPS and HVDC systems, but it also has outstanding characteristics
such as high-power discharge, high energy density, high safety, and
reliability.
Global
Key Players:
·
Toshiba International Corporation
·
East Penn Manufacturing
·
Exide Industries
·
Robert Bosch GmbH
·
C&D Technologies
·
Northstar Battery Company
·
GS Yuasa Corporation
·
Saft Groupe
·
Energys
·
Johnson Controls
· Other Players
Attributes |
Details |
Base Year |
2023 |
Trend Period |
2024 – 2034 |
Forecast Period |
2024 – 2034 |
Pages |
215 |
By Type |
Lead-acid batteries, Lithium-ion
batteries, nickel cadmium batteries and others |
By Application |
Backup power, gird
storage, telecommunications and others |
By End-User Industries |
Automotive, healthcare,
utilities, manufacturing, data centers and others |
By region |
North America, Europe,
Asia Pacific, the Middle East and Africa, and South America |
Company Profiles |
Toshiba International
Corporation, East Penn Manufacturing, Exide Industries, Robert Bosch GmbH, C&D
Technologies, Northstar Battery Company, GS Yuasa Corporation, Saft Groupe, Energys,
Johnson Controls, Other Players |
Edition |
1st edition |
Publication |
July 2024 |