The global industrial battery market size was valued at US$ 20,500 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 9.04% from 2023 to 2030. The global industrial battery market is expected to witness strong growth due to the rise in the number of automobiles and material-handling equipment. With the rapid development in the industrial sector, the market is likely to grow rapidly. Another factor that is expected to contribute to the market growth is the increase in adoption of renewable energy sources in various parts of the world.
Global Industrial Battery Market: Regional Insights
The global industrial battery market is regionally segmented into North America, Latin America, Asia Pacific, Europe, Middle East, and Africa.
North America is expected gain a strong share in the global industrial battery market over the forecast period. This is owing to countries in the region such as the U.S. and Canada are considered one of the biggest hotspot for industrial batteries around the globe, due to presence of strong industrial infrastructure, expansion of renewable power infrastructure, and increasing deployment of battery-based energy storage projects in the U.S. Along with this, favorable policies regarding use of energy storage systems in the U.S. are also aiding in the growth of the global industrial battery market across North America.
Moreover, Asia Pacific is also anticipated to witness substantial growth in the global Industrial Battery market over the forecast period. This can be attributed to increasing growth of telecom industry, and significant growth in renewable power generation capacity in countries such as China. The demand for batteries in telecom industry across the region is increasing due to increasing shift toward renewable energy sources in the industry. Thus, due to aforementioned reasons, the market is likely to witness a strong growth in the region.
Figure 1. Industrial Battery Market, Revenue Share (%), By Region, 2022
Global Industrial Battery Market Drivers:
Declining cost of lithium-ion battery to boost the market growth
Increasing number of manufacturers are focused on reducing the cost lithium ion technology. The cost of lithium-ion batteries has decreased steeply in the last decade. The cost of lithium ion battery was US$ 176 per kWh in 2018, which was a 17.75% decrease compared to the cost in 2017. Moreover, the rise in production volume is also driving the decrease in cost of these batteries, along with the increased capacity. This in turn has created a competitive environment for manufacturers, which again leads to decrease in cost of the lithium-ion batteries. Thus, global industrial battery market is expected to witness substantial growth over the forecast period, due to decreasing cost of lithium ion batteries.
Rise in demand from data centers to augment the market pace
The growing adoption of machine learning (ML) and artificial intelligence (AI) along with emergence of 5G, the construction and deployment of data center as well as upgrading efforts in existing data centers are increasing all over the world. As per Coherent Market Insights, by 2025, the amount of data is likely to be more than 175 zettabytes all over the world. Several data centers around the globe are now moving to modern lithium-ion batteries from lead-acid battery cells. This is thus, supporting growth of the global industrial battery market.
Industrial Battery Market Report Coverage
|Base Year:||2022||Market Size in 2022:||US$ 20,500 Mn|
|Historical Data for:||2017 to 2021||Forecast Period:||2023 to 2030|
|Forecast Period 2023 to 2030 CAGR:||9.04%||2030 Value Projection:||US$ 40,979.6 Mn|
Saft Groupe SA, C&D Technologies Inc., Panasonic Corporation, East Penn Manufacturing Company Inc., Amara Raja Batteries Ltd., EnerSys, GS Yuasa Corporation, and Exide Industries Ltd.
|Restraints & Challenges:||
Global Industrial Battery Market Opportunities:
Technological development in batteries to create business opportunities
Technological developments and advances in materials have increased the output and reliability of modern battery systems substantially. Along with this, economies of scale have reduced the cost required drastically. Batteries such as lithium-ion, lead-acid, and nickel-based batteries have been dominating the market significantly for a long time; however, these batteries also have limitations due to which manufacturers continue to be involved in technological development of these batteries. This in turn is anticipated to offer several growth opportunities in the global industrial battery market over the forecast period.
Increasing use of AI in R&D phase of battery manufacturing to offer growth opportunities
The increase in battery life is viewed as one of the major improvements in batteries in recent times, as the number of cycles newer batteries can go through has increased. There is a heavy spending on research and development by battery manufacturers for improving the life of battery further. In March 2019, researchers at Massachusetts Institute of Technology, Stanford University, and Toyota Research Institute announced the development of a machine learning model, which using artificial intelligence and comprehensive experimental data collection can predict the service life of a battery with precision. Such uses of Ai for R&D of batteries is further providing market players with multiple growth opportunities, which is likely to support the market growth in the near future.
Global Industrial Battery Market Trends:
Increasing focus of companies to find cheaper, lighter, and more powerful battery solutions is a recent trend
Several battery companies are focused on experimenting in order to achieve chemistries that are denser, cheaper, lighter, and more powerful. Various companies are engaging in extensive research on different types of battery technologies such as lithium-sulfur batteries, sodium-ion batteries, graphene batteries, foam batteries, and micro-supercapacitors among others. All these batteries show potential to transform the landscape of battery market in the coming future. This trend is likely to continue in the global industrial battery market over the forecast period.
Rise in demand for data processing is a growing trend
The demand for data processing is increasing significantly all over the world due to rise in use of internet, use of technologies such as AI, ML, and IoT, and increasing data collection. This in turn is leading to companies such as Microsoft, Google, IBM, and Amazon among others heavily investing in data centers. As a result, the demand for data processing is increasing all over the world. The newer data centers come with larger capacities of processing data. Thus, this trend is expected to boost growth of the industrial batteries in the coming future.
Global Industrial Battery Market Restraints:
Demand-supply mismatch of raw materials to obstruct the market growth
As the cost of lithium-ion batteries is decreasing, the demand for minerals and batteries needed for manufacturing is increasing significantly. This is further leading to rise in prices of minerals and in some cases, it is creating shortage of mineral supply. Due to the growing investments in manufacturing of electric vehicles, consumer electronics sector is competing with the EV industry for lithium-ion batteries. The rise in costs of minerals is hindering the efforts of battery manufacturers trying to reduce cost of batteries. Thus, these factors are expected to hamper growth of the global industrial battery market over the forecast period.
Unfavorable conditions arising due to Covid-19 pandemic to limit the market growth
The coronavirus outbreak impacted several industries across the globe. It majorly impacted the supply chain in energy industry, specifically industrial batteries and renewable energy technologies. Due to the pandemic, the world has been acknowledging its overdependence on the Asia Pacific regions, specifically China for the major raw materials. Thus, due to restricted transportation, major market activities were hindered during the pandemic, which is expected to negatively impact growth of the global industrial battery market over the forecast period. However, as the pandemic situation has return to normal in almost all the regions, the market is likely to regain its growth in the near future.
Figure 2: Industrial Battery Market, Revenue Share (%), By Application, 2022
Global Industrial Battery Market Segmentation:
The global industrial battery market report is segmented into Battery Type and Application
Based on Battery Type, the market is segmented into Lithium-ion, Lead-acid, Nickle-based, and Other Battery Types. Out of which, Lithium-ion is expected to dominate the global market over the forecast period and this is attributed to the favorable capacity-to-weight ratio of these batteries. Moreover, due to the properties such as higher energy density, decreasing cost, and better performance, demand for these batteries is increasing, which is also driving growth of the segment.
Lead-Acid Battery segment is also expected to witness significant growth in the near future and this is owing to the growing applications of lead-acid batteries. Moreover, low cost of these batteries is creating strong demand for them, which is further supporting growth of the segment.
Based on Application, the market is segmented into Forklift, Telecom, UPS, and Other Applications. Out of which, Forklift is expected to dominate the global market over the forecast period and this is attributed to the increasing use of industrial batteries in the forklift segment. Market players in industrial equipment manufacturing are making use of lithium power for replacing fossil fuel powered forklifts/trucks, which is driving growth of the segment.
Telecom segment is also expected to witness significant growth in the near future and this is owing to the increasing shift of telecom companies toward energy efficient solutions for optimizing use of energy. This in turn is leading to companies leveraging high-efficiency batteries such as advanced VLRA batteries and lithium-ion batteries for archiving energy efficiency.
Global Industrial Battery Market: Key Developments
Global Industrial Battery Market: Key Companies Insights
In October 2022, OneCharge Inc. U.S. provider of lithium batteries signed strategic partnership with Nexilon Energy Systems Private Limited an India based company to design, manufacture and sell lithium batteries for material handling equipment and ground support equipment in India
In May 2022, Nexcharge, a joint venture between Exide industries limited (Excide) and Leclanch announced inauguration of li-ion battery production plant in Gujarat, India
The global industrial battery market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R&D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global industrial battery market are Saft Groupe SA, C&D Technologies Inc., Panasonic Corporation, East Penn Manufacturing Company Inc., Amara Raja Batteries Ltd., EnerSys, GS Yuasa Corporation, and Exide Industries Ltd.
*Definition: Industrial batteries are used in a variety of applications such as electric forklifts, construction machinery and robotics. There are several factors that need to be considered when choosing the best industrial battery. These include battery size, voltage, and temperature.
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