Industrial Batteries Market By Battery Type (Lead-acid, Lithium-based and Nickel-based), and Application (Motive Power, Grid-energy Storage and Others), and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2024-2031
Market Perspective
The global Industrial Batteries Market size was worth around 17,432.98 Million in 2023 and is predicted to grow around USD 29,991.69 Million by 2031 with a compound annual growth rate of roughly 7.14% between 2024 and 2031.
Demand for batteries in grid-level energy storage applications, as well as rising demand for backup power in the industrial sector, is driving the expansion of the market. In addition, the adoption of renewable energy sources for the generation of electricity has surged the demand for electricity storage systems that utilize industrial batteries. In 2022, China dominated the global market with a share of over 75% of the world’s battery manufacturing. Following China, the USA was the second-largest battery manufacturer with slightly over 6% of the world’s share. China is home to six of the top 10 battery manufacturers in the world, and its manufacturing capacity accounts for approximately 900 gigawatt-hours or 75% of the global total.
The National Infrastructural Plan (NIP) is part of the Indian government's efforts to improve the country's infrastructure, which should boost the demand for industrial batteries. Similarly, many other economies have initiated several schemes in order to bolster their manufacturing capacities. This in turn will boost the industrial batteries market. Even then, the market expansion may be hampered by the high capital cost and safety concerns associated with battery charging and disposal of batteries. Advancing of alternatives to batteries may be a challenge to the industrial batteries market.
Key Insights
- Based on Battery Type, the Lead-acid segment held the largest market share
- Based on Application, the Motive Power segment generated the highest revenue
- On the basis of region, Asia Pacific accounted largest market share
The rising Popularity of Renewable Energy is Setting the Trend for Lithium-Ion Batteries
Li-ion batteries are so far the most efficient batteries offering superior electrochemical performance as compared to other battery types. Li-ion batteries provide improved power capacity, low discharges, and longer lifespan. Electricity generated from renewable sources can be stored indefinitely with the help of these batteries. Innovations and technological advancements in Li-ion batteries have resulted in the batteries being an enticing option for storing stationary energy.
The renewable sector is growing rapidly due to its minimal impact on the environment. Environmental concerns are on the rise owing to the extensive use of conventional energy and emissions which are released into the air. The better storage capacity of Li-ion batteries has helped in reducing the wastage and operational costs of power storage. These key factors have boosted the market demand for Li-ion batteries in the renewables sector.
Presence of Cheaper Alternatives Has the Potential to Slow the Expansion of the Market
Replacements for rechargeable batteries are emerging in the form of supercapacitors, fuel cells, and flywheels that supply uninterruptible power supplies. Until then, lead-acid batteries were cost-effective and efficient ways of storing energy. The steady shift toward substitutes may hinder the industrial batteries market growth.
Recent Development
December 2022-
- A technology company Sunlight Group Energy Storage Systems expanded its operations by acquiring a 51% share of Triathlon Holding GmbH. Through this agreement, the transformation of the industrial batteries landscape will be observed. The combined organization of these two companies will pursue significantly in Europe and US to decarbonize the emissions and set up technologically advanced industrial batteries which will be utilized for storing energy generated from renewable resources.
- The 82% stake in EasyLi was acquired by Manitou Group. EasyLi is a manufacturer of Li-ion batteries utilized in EVs, storing of electricity, and many other applications. It will expand the business and service lines of Manitou Group through the R&D, production, and reconditioning of batteries.
December 2021 – A mutual merger of Continental Battery Company and Battery Systems took place with the motive to provide better service and customer excellence. Battery Systems is a company that was incorporated in 1955 in the Southern part of California. The new company transitioned in 2022.
Segmentation Analysis
Based on battery type, lead-acid batteries dominated the market segment accounting for over 42% of revenues in 2022. Lead-acid batteries are high-power density batteries with enhanced lifespan and are applicable in industrial vehicles, UPS systems, and storing of off-grid electricity. These batteries deliver high power through UPS systems thus avoiding the power cut in case of any discrepancies. This is one of the characteristics which has augmented the dominance of the market segment.
Lead-acid batteries are also utilized in motive applications such as forklifts and industrial vehicles. It is cost-effective and establishes a supply chain due to its reliability. Along with its applications and caliber to deliver high-power results, recycling and disposing of lead-acid batteries is simpler as compared to li-ion or nickel-based batteries. The easy availability of lead-acid batteries has resulted in the dominance of the industrial batteries market segment.
Lithium-ion batteries have shown fast growth and are forecasted to be the fastest-expanding segment through the forecast period. Technological advancements have been the key factor in augmenting the growth of this segment. Lithium-ion batteries are complex in nature as compared to lead-acid batteries. Manufacturing and disposing of these batteries require precise technologies and techniques.
Based on application, motive power dominated the market segment holding over 43% of the market share in 2022. Expansion of manufacturing units along with new manufacturing units being set up have augmented the segment growth. Increasing investments are resulting in expanding warehouse spaces, e-commerce, and other sectors. All these sectors require more motive power for smooth and reliable operations. The dominance of this segment may not remain throughout the forecast period due to the expansion of the renewable energy sector.
The electricity generated through renewable sources requires equivalent storage capacities. The shift from conventional energy sources towards renewable energy sources for the generation of electricity is the key reason for the fastest growth of the energy storage segment through the forecast period. The rise in demand for energy storage will in turn increase the demand for lithium-ion batteries.
Asia Pacific Dominated the Market Share in 2022, Owing to Fastest-Growing Markets
Asia Pacific dominated the regional segment in 2022 owing to the fastest-growing markets in the sectors of renewable energy generation, EVs, rapid industrialization, and urbanization. Asia Pacific held the global share of over 38% of the industrial batteries market. Rapid industrial growth and demand for energy efficiency to reduce heavy costs and other environmental impacts by key countries of the region such as China, India, and Australia are the key reasons for the dominance of the region.
Initiatives by the government of India have stimulated the growth of the market through the forecast period. In 2022, Indian Government announced rebates and other benefits worth over USD 30 billion to encourage manufacturers to further boost the manufacturing and export of industrial application batteries. The Indian market for industrial batteries is anticipated rise at a CAGR of over 9%.
North America is forecasted to be the fastest-growing market Owing to the Presence of Major Players
North America is forecasted to be the fastest growing market following Asia Pacific owing to powerful expansion in the industrial automotive sector. The presence of big manufacturers like Exide, Odyssey, and Continental Battery Company amongst others have resulted in strong potential and capacities of batteries available in the region. Increasing requirements for industrial vehicles will augment the growth of the industrial batteries market in the region. The U.S. has been a key player in the region contributing to the growth of this market.
Competitive Landscape
- Contemporary Amperex Technology Co., Limited.
- C&D Technologies, Inc.
- Exide Technologies, Inc.
- Enersys, Inc.
- GS Yuasa International Ltd.
- Saft
- Robert Bosch GmbH
- Victron Energy B.V.
- W. WEBB COMPANY
- SAMSUNG SDI CO., LTD.
- JOHNSON CONTROLS.
The global Industrial Batteries Market is segmented as follows:
By Battery Type
- Lead-acid
- Lithium-based
- Nickel-based
By Application
- Motive Power
- Grid-energy Storage
By Region
- North America
- The U.S.
- Canada
- Mexico
- Europe
- France
- The UK
- Spain
- Germany
- Italy
- Nordic countries
- Denmark
- Finland
- Iceland
- Sweden
- Norway
- Benelux Reunion
- Belgium
- The Netherlands
- Luxembourg
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- New Zealand
- Australia
- South Korea
- Southeast Asia
- Indonesia
- Thailand
- Malaysia
- Singapore
- Rest of Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- Kuwait
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
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Industrial Batteries Market By Battery Type
- February-2023
- 148
- Global
- energy-and-power
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