The Industrial Batteries Market is valued at USD 16.14 Billion in 2021 and is expected to reach USD 29.84 Billion by 2028 with a CAGR of 9.18% over the forecast period.
Global Industrial Batteries Market: Global Size, Trends, Competitive, Historical & Forecast Analysis, 2021-2028- Rising adoption of lithium-ion batteries in the renewable energy sector is one of the major factors driving the growth of the Global Industrial Batteries Market.
Industrial batteries are electrochemical devices that are used as a source of energy for large, coarse devices. They contain cathodes, anodes, and electrolyte solutions and are resistant to vibration and extreme temperatures. Lithium-ion, nickel-based, lithium titanate, lithium magnesium oxide, and lead-based batteries are some of the more commonly available types. They are widely used in medical devices, uninterruptible power sources (UPS), security alarms, tracking systems, and automobile accessories. Compared to traditionally used consumer batteries, industrial variants last longer and can be used in extreme environments and remote locations. As a result, industrial batteries are widely used in energy, grid storage, utility, and telecommunications systems.
The pandemic of Covid-19 in 2020 affected the growth of the industrial batteries market due to the disturbance in the supply chain network. The main battery components are mainly available in the Asia Pacific, but due to the pandemic, the region is highly dependent on raw materials. Lithium and cobalt batteries play a major role in cathodes and electrolytes. China dominates component production and controls approximately 80% of the global supply chain for this material, and many energy projects around the world have been shut down, affected the industrial battery market.
The global industrial batteries market is segmented based on battery type, application, and geography. Based on type, the market is segmented into Lithium-Ion Battery, Nickel-based, and Lead-based. Based on application, the market is segmented into telecom & data communication, uninterruptible power supply (UPS), energy, equipment, grid storage, and others (railways, utility, and security).
Some of the key players for global industrial batteries market are
On April 21st, 2022; Li-Cycle Holdings Corp., an industry leader in lithium-ion battery resource recovery and a leading North American lithium-ion battery recycler, announced that it concluded a commercial agreement with LG Energy Solutions to supply. For recycling and LGES and LG Chem, Ltd. ("LGC") along with the production of each scrap for sale of nickel sulfate from Li-Cycle's Rochester Hub. With the implementation of these agreements, LGC and LGES will now proceed to close the previously announced USD 50 million investment to purchase shares of Li-Cycle.
On March 11th, 2022; Exide entered into an agreement with a Chinese company to manufacture lithium batteries. As part of the agreement, Exide will commercialize SVOLT's proprietary technology in lithium-ion cells, the report said, adding that SVOLT Energy Technology will support Exide in setting up manufacturing projects in the coming years.
Increasing demand for lithium-ion batteries is one of the major factors driving the market growth as these offer better electrochemical performance than lead-acid, nickel-cadmium, and nickel-metal hydride batteries. These batteries have a longer life and offer increased power, better performance, and less self-discharge. Lithium-ion batteries are mainly used in energy storage systems that store energy generated from renewable energy sources such as solar and wind. For instance, according to the BrandEssence Market survey report globally; 29 percent of electricity generation in 2020 was due to renewable energy, most of which is hydropower (16.8 percent). In 2020, a record amount of more than 256 GW of renewable energy capacity was added globally.
In addition, various players in the market are trying to improve the performance of lithium-ion batteries which has made them an attractive option for static energy storage applications. Cells or batteries embedded in battery energy storage systems play an important role in determining the service life of these systems. LG Chem (South Korea), Panasonic (Japan), and Samsung SDI (South Korea) are some of the companies supplying lithium-ion batteries and installing them in their battery power storage systems.
Furthermore, there has been a significant increase in R&D initiatives undertaken by battery manufacturers to develop various battery chemicals. In addition, there is a great deal of focus on improving productivity by coming together with other players in the market through various agreements. And, many manufacturers are now investing in new products to market and make them available globally. For example; Narda Power launched a 512V high voltage lithium-ion battery backup power system, specifically for UPS and HDVC systems. RELiON has launched the InSight 12V, a new lithium-ion battery specifically for marine and RV applications.
However, high capital costs are expected to curb market growth to some extent, including security issues related to battery charging and disposal of lead-acid batteries. In addition, strict government regulation for the use of certain toxic chemicals in battery production is likely to hinder market growth. In spite of that, increasing advancements in this field may offer more opportunities for the further growth of the market.
North America is expected to dominate the global industrial batteries market and the United States is expected to attribute for the major share of this regional market. A strong production base and the rapid growth of the automotive industry in the US will increase the demand for commercial vehicles, such as battery-powered vehicles for forklift trucks, which will supplement the demand for industrial batteries.
The Asia-Pacific market is dominated by the countries such as China, India, Japan, and South Korea. Significant increases in renewable energy generation capacity, energy storage targets announced by electric utilities in 2020, and declining battery costs have led to a significant increase in energy storage capacity in the region. In February 2020, the Indian Department of Telecommunications issued instructions to telecom service providers to use renewable energy solutions and energy-efficient technologies. This will contribute to the increasing use of industrial batteries across India. Furthermore, in July 2021, the contemporary Amperex Technology Company Limited (CATL) launched the first generation of sodium-ion batteries and unveiled its innovative technology. These batteries could offer new solutions for use in industry and transportation, thus advancing the goal of carbon neutrality.
In Europe, demand for industrial batteries is expected to increase in many countries, including Italy, Germany, Spain, the UK, France, and Russia, due to increased costs of innovation and increasing purchasing power of manufacturers. In addition, the presence of key car manufacturers, especially in Germany, is expected to drive market growth.
|Historical data||2018 - 2021|
|Forecast Period||2021 - 2028|
|Market Size in 2021:||USD 16.14 Billion|
|Base year considered||2021|
|Forecast Period CAGR %:||
|Market Size Expected in 2028:||USD 29.84 Billion|
|Tables, Charts & Figures:||175|
|Industrial Battery Companies||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., LG Chem. and others.|
|Segments Covered||By Type, By Application|
|Regional Analysis||North America, U.S., Mexico, Canada, Europe, UK, France, Germany, Italy, Asia Pacific, China, Japan, India, Southeast Asia, South America, Brazil, Argentina, Columbia, The Middle East and Africa, GCC, Africa, Rest of the Middle East and Africa|
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