Industrial Batteries Market

Global Industrial Batteries Market Research Report: By Battery Type (Lead-acid, Lithium-based), By End Use (Motive Power, Grid-level Energy Storage), and Region (North America, Europe, Asia-Pacific, and Rest of the World) Global Industry Analysis, Size, Share, Growth, Trends, Regional Analysis, Competitor Analysis and Forecast 2023-2031.

Energy & Power | September 2023 | Report ID: EMR00199 | Pages: 217

The Global Industrial Batteries Market was valued at USD 18.2 billion in 2022 and is estimated to reach approximately USD 42.5 billion by 2031, at a CAGR of 9.8% from 2023 to 2031. The industrial battery industry has experienced rapid expansion and change in recent years, becoming a vital component of numerous industries throughout the world. Industrial batteries are large-capacity energy storage systems created to power a variety of systems and applications, including backup power options and the integration of renewable energy sources. For industries including manufacturing, telecommunications, data centers, and healthcare to operate continuously, these batteries are essential. They are crucial for controlling power peaks, cutting down on downtime, and supporting crucial equipment during outages. The market for industrial batteries is being fueled in part by the rising use of renewable energy sources like solar and wind power, which depend on batteries for grid stability and energy storage. In addition, the rising popularity of electric vehicles (EVs) and hybrid electric vehicles (HEVs) has accelerated the development of battery technology, resulting in cost savings and innovation. Battery technologies that are ecologically benign and sustainable are becoming more and more important as environmental concerns increase. Because they have a higher energy density and a smaller carbon footprint than conventional lead-acid batteries, lithium-ion batteries, for example, are becoming more popular. Due to technical improvements, governmental incentives, and the demand for dependable, sustainable energy solutions across numerous industries, the industrial batteries market is anticipated to continue growing.

 

 

INDUSTRIAL BATTERIES MARKET: REPORT SCOPE & SEGMENTATION

Report Attribute

Details

Estimated Market Value (2022)

18.2 Bn

Projected Market Value (2031)

42.5 Bn

Base Year

2022

Forecast Years

2023 - 2031

Scope of the Report

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment- By Battery Type, By End Use, & Region

Segments Covered

By Battery Type, By End Use, & Region

Forecast Units

Value (USD Billion or Million), and Volume (Units)

Quantitative Units

Revenue in USD million/billion and CAGR from 2023 to 2031

Regions Covered

North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and the Rest of World

Countries Covered

U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others

Report Coverage

Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis.

Delivery Format

Delivered as an attached PDF and Excel through email, according to the purchase option.

 

Global Industrial Batteries Market Dynamics

A dynamic and varied landscape impacted by numerous interrelated factors best describes the industrial batteries industry. As on-going research and development results in improved battery chemistries, higher energy densities, and longer lifespans, technological developments play a crucial role. Industrial batteries are in high demand as essential parts of energy storage systems due to environmental concerns and energy sustainability goals, which has a substantial impact on market dynamics. Another transformational driver is the electric vehicle (EV) revolution, which is generating a greater need for better battery technology, notably lithium-ion batteries. As businesses work to ensure a steady supply of battery materials, this change has an impact on manufacturing strategy as well as supply chain dynamics. The industrial batteries market can best be described as a dynamic and complex landscape affected by several interrelated elements. Technology advancements are essential as new battery chemistries, greater energy densities, and longer lifespans are produced by ongoing research and development. Due to environmental concerns and the need for energy sustainability, industrial batteries are in high demand as crucial components of energy storage systems, which has a significant impact on market dynamics. The electric vehicle (EV) revolution, which is creating a higher need for better battery technology, particularly lithium-ion batteries, is another transformative force. This change affects both manufacturing strategy and supply chain dynamics as companies strive to maintain a consistent supply of battery materials.

 

Global Industrial Batteries Market Drivers

  • Renewable Energy Integration

The market for industrial batteries is being significantly stimulated by the incorporation of renewable energy sources like solar and wind power. There is an increasing need to capture and store energy from erratic renewable sources as the globe focuses more on decreasing carbon emissions and combating climate change. By acting as energy storage devices that close the gap between energy production and consumption, industrial batteries play a crucial part in this transformation. Because the sun doesn't always shine and the wind doesn't constantly blow, renewable energy sources are fundamentally unpredictable. This sporadic nature makes it difficult to maintain a steady and dependable power source. The need for industrial batteries is growing as governments and businesses set high goals for boosting the capacity of renewable energy sources. In order to maximize energy efficiency, lessen dependency on fossil fuels, and improve grid resilience, grid operators, commercial organizations, and even home users are investing in energy storage solutions.

 

  • Electric Vehicle (EV) Revolution

The industrial battery industry is primarily driven by the electric vehicle (EV) revolution, which is characterized by a sharp increase in the use of electric cars and other vehicles. As customers and governments throughout the world priorities environmentally friendly transportation options and work to cut greenhouse gas emissions, this revolution is altering the automotive sector. The demand for high-performance, long-lasting batteries to power these EVs is rising as more people and fleets transition to electric vehicles. Due to their excellent energy density and efficiency, lithium-ion batteries in particular have taken the place of all other batteries as the de facto norm. Because of this, battery producers are making significant investments in expanding manufacturing and advancing battery technology. The EV revolution also includes electric buses, lorries, and even two-wheelers, which are gaining popularity across a range of industries. The variety of electric vehicles is boosting demand for industrial batteries in a variety of applications.

 

Restraints:

  • Impact of Battery Manufacturing and Disposal

The market for industrial batteries is significantly constrained by environmental issues. Although batteries are necessary for energy storage and electric transportation, their production and disposal can have a negative impact on the environment. The extraction of raw minerals like lithium, cobalt, and nickel during the manufacturing of batteries, especially those employing specific chemistries like lithium-ion, can destroy ecosystems and cause resource depletion. Industrial batteries must also be disposed of carefully due to the risk of harmful chemical leaks and the buildup of electronic waste. Poor disposal methods brought on by insufficient recycling infrastructure can harm soil and water sources. In order to solve these issues, the industry is actively looking for sustainable and environmentally friendly solutions, such as recycling and researching battery chemistries with lower environmental impact.

 

  • Risks Associated with Battery Storage and Handling

The market for industrial batteries is severely constrained by safety issues, which are principally brought on by the possible dangers involved in the handling, storage, and use of large-scale battery systems. Industrial batteries, especially lithium-ion models, contain flammable electrolytes and are prone to thermal runaway, which, if not controlled properly, can result in fires or explosions. In applications like energy storage facilities and electric vehicle charging stations, where sizable battery banks are gathered in one place, these safety risks are of particular concern. Implementing strict safety procedures, suitable thermal management systems, and cutting-edge monitoring technologies is necessary to ensure the secure functioning of industrial batteries. The cost and complexity of battery installations are increased by these safety precautions. The improvement of battery designs and materials, as well as the creation of strict safety standards and guidelines, are needed to address these safety issues. It also necessitates placing a priority on education and training for staff members in charge of managing and maintaining industrial battery systems.

 

Opportunities:

  • Enhancing Grid Stability and Efficiency

Grid optimization is a big market opportunity for industrial batteries. To meet the demands of the changing energy landscape, power grids must be modernized and optimized. Industrial batteries are essential to this shift because they enable grid operators to store excess energy during times of low demand and release it during times of high demand. With the help of this dynamic energy storage capability, the grid is more stable, intermittent renewable energy sources like solar and wind are less disruptive, and costly infrastructure upgrades are not as necessary. Industrial batteries can also help with load balancing, ensuring that electricity production and consumption are in real-time balance. As a result, energy waste is decreased, transmission losses are minimized, and grid efficiency is raised. The integration of smart grid technologies, coupled with advanced battery management systems, allows for real-time monitoring and control of battery assets.

 

  • Advancements in Battery Technology

The potential for market expansion for industrial batteries is closely correlated with ongoing developments in battery science. Industrial batteries are becoming more appealing for a variety of applications thanks to ongoing research and innovation in this area that improves battery performance, longevity, and cost-effectiveness. Battery chemistry is one key area of advancement. In contrast to conventional lithium-ion batteries, novel materials and chemistries like solid-state batteries provide better energy densities, longer cycle lives, and improved safety. These developments address important issues in fields like energy storage and electric cars, where energy density and safety are crucial. Additionally, improvements in control software and battery management systems (BMS) allow for more effective battery operation, extending battery life and improving system performance as a whole.

 

Segment Overview

By Battery Type

Based on battery type, the global industrial batteries market is divided into lead-acid and lithium-based. The lead-acid-based category dominates the market with the largest revenue share.The technology behind lead-acid batteries is time-tested and has been in use for more than a century. They are made up of a sulfuric acid solution (electrolyte), sponge lead (negative electrode), and lead dioxide (positive electrode). In applications needing dependable and economical energy storage, lead-acid batteries are frequently utilized. They can be found in grid energy storage, uninterruptible power supply (UPS), backup power systems, and numerous industrial uses. They are renowned for being inexpensive, strong, and dependable. Lead-acid batteries are appropriate for applications where power spikes are frequent because they can supply high surge currents. Lithium plays a significant role in the electrodes of lithium-based batteries, notably those that use lithium-ion and lithium-polymer versions. They are renowned for being extremely light and having a high energy density.

 

By End-Use

Based on end-use, the global industrial batteries market is segmented into motive power, grid-level energy storage. The motive power segment dominates the industrial batteries market. Motive power batteries are primarily designed for powering vehicles and equipment. They find extensive use in electric forklifts, industrial trucks, golf carts, and other electric vehicles used within warehouses, manufacturing facilities, distribution centers, and airports. In motive power applications, lead-acid batteries have historically been dominant due to their ability to provide high discharge currents. However, there is a growing trend towards the adoption of lithium-ion batteries, especially in electric forklifts and other industrial vehicles, as they offer advantages such as longer cycle life, faster charging, and reduced maintenance.Grid-level energy storage batteries are deployed at utility-scale facilities to store electrical energy, enabling grid operators to balance supply and demand, improve grid stability, and incorporate renewable energy sources effectively. They play a crucial role in integrating intermittent renewable energy sources like solar and wind into the power grid. Lithium-ion batteries are the predominant choice for grid-level energy storage due to their high energy density, efficiency, and rapid response times. Other technologies like flow batteries and advanced lead-acid batteries are also used in specific applications.

 

Global Industrial Batteries Market Overview by Region

The global industrial batteries market is categorized into North America, Europe, Asia-Pacific, and the Rest of the World. Asia Pacific emerged as the leading region, capturing the largest market share in 2022.The area has experienced tremendous industrialization and economic growth, which has raised the need for dependable power sources for infrastructural expansion and technological improvement. As a result, the market for industrial batteries is flourishing. To lower greenhouse gas emissions and dependency on fossil fuels, several Asia-Pacific nations are aggressively pursuing electrification in a variety of industries, including transportation. Particularly in the areas of electric vehicles (EV) and hybrid electric vehicles (HEV), this has increased demand for industrial batteries. In the region, many nations are making significant investments in wind and solar energy. The market for industrial batteries is being driven further by the increased demand for energy storage solutions as intermittent renewables take on a larger share of the energy mix.Electronics, consumer products, and industrial machinery are all manufactured extensively throughout Asia Pacific. Industrial batteries are in high demand as a result of the need for a constant power supply in factories and warehouses. Governments in the region are encouraging the use of energy storage and sustainable energy by providing incentives, subsidies, and regulatory assistance, which is fostering a favourable climate for the industrial batteries market to grow.

 

 

Global Industrial Batteries Market Competitive Landscape

In the global industrial batteries market, a few major players exert significant market dominance and have established a strong regional presence. These leading companies remain committed to continuous research and development endeavors and actively engage in strategic growth initiatives, including product development, launches, joint ventures, and partnerships. By pursuing these strategies, these companies aim to strengthen their market position, expand their customer base, and capture a substantial share of the market.

 

Some of the prominent players in the global industrial batteries market 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 various other key players.

 

Global Industrial Batteries Market Recent Developments

In September 2023, Recycling goals under the new EU battery regulation are "challenging" and "fanciful" in nature. EU Battery Regulation Setting the New Standard for Sustainable Battery Value Chains.

 

In August 2023,NITI Aayog Proposes Incentives To Boost The Production Of EV Batteries. Incentives have been proposed by NITI Aayog in the form of production-linked incentive (PLI) programmes, tax advantages, and royalties.

 

Scope of the Global Industrial Batteries Market Report

Industrial Batteries Market Report Segmentation

ATTRIBUTE

DETAILS

By Battery Type

  • Lead-acid
  • Lithium-based

By End-Use

  • Motive Power
  • Grid-level Energy Storage

By Geography

  • North America (USA, and Canada)
  • Europe (UK, Germany, France, Italy, Spain, Russia and Rest of Europe)
  • Asia Pacific (Japan, China, India, Australia, Southeast Asia and Rest of Asia Pacific)
  • Latin America (Brazil, Mexico, and Rest of Latin America)
  • Middle East & Africa (South Africa, GCC, and Rest of Middle East & Africa)

Customization Scope

  • Available upon request

Pricing

  • Available upon request

 

Objectives of the Study

The objectives of the study are summarized in 5 stages. They are as mentioned below:

 

  • Global Industrial Batteries Market Size and Forecast:

To identify and estimate the market size for the global industrial batteries market segmented by battery type, by end use region and by value (in U.S. dollars). Also, to understand the consumption/ demand created by consumers of industrial batteries between 2019 and 2031.

 

  • Market Landscape and Trends:

To identify and infer the drivers, restraints, opportunities, and challenges for the global industrial batteries market

 

  • Market Influencing Factors:

To find out the factors which are affecting the sales of industrial batteries among consumers

 

  • Impact of COVID-19:

To identify and understand the various factors involved in the global industrial batteries market affected by the pandemic

 

  • Company Profiling:

To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company's past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.

 

Intended Audience

  • Raw Material Suppliers
  • Retailers, Wholesalers, and Distributors
  • Governments, Associations, and Industrial Bodies
  • Investors and Trade Experts

Research Methodology

Our research methodology has always been the key differentiating reason which sets us apart in comparison from the competing organizations in the industry. Our organization believes in consistency along with quality and establishing a new level with every new report we generate; our methods are acclaimed and the data/information inside the report is coveted. Our research methodology involves a combination of primary and secondary research methods. Data procurement is one of the most extensive stages in our research process. Our organization helps in assisting the clients to find the opportunities by examining the market across the globe coupled with providing economic statistics for each and every region.  The reports generated and published are based on primary & secondary research. In secondary research, we gather data for global Market through white papers, case studies, blogs, reference customers, news, articles, press releases, white papers, and research studies. We also have our paid data applications which includes hoovers, Bloomberg business week, Avention, and others.

Data Collection

Data collection is the process of gathering, measuring, and analyzing accurate and relevant data from a variety of sources to analyze market and forecast trends. Raw market data is obtained on a broad front. Data is continuously extracted and filtered to ensure only validated and authenticated sources are considered. Data is mined from a varied host of sources including secondary and primary sources.

Primary Research

After the secondary research process, we initiate the primary research phase in which we interact with companies operating within the market space. We interact with related industries to understand the factors that can drive or hamper a market. Exhaustive primary interviews are conducted. Various sources from both the supply and demand sides are interviewed to obtain qualitative and quantitative information for a report which includes suppliers, product providers, domain experts, CEOs, vice presidents, marketing & sales directors, Type & innovation directors, and related key executives from various key companies to ensure a holistic and unbiased picture of the market. 

Secondary Research

A secondary research process is conducted to identify and collect information useful for the extensive, technical, market-oriented, and comprehensive study of the market. Secondary sources include published market studies, competitive information, white papers, analyst reports, government agencies, industry and trade associations, media sources, chambers of commerce, newsletters, trade publications, magazines, Bloomberg BusinessWeek, Factiva, D&B, annual reports, company house documents, investor presentations, articles, journals, blogs, and SEC filings of companies, newspapers, and so on. We have assigned weights to these parameters and quantified their market impacts using the weighted average analysis to derive the expected market growth rate.

Top-Down Approach & Bottom-Up Approach

In the top – down approach, the Global Batteries for Solar Energy Storage Market was further divided into various segments on the basis of the percentage share of each segment. This approach helped in arriving at the market size of each segment globally. The segments market size was further broken down in the regional market size of each segment and sub-segments. The sub-segments were further broken down to country level market. The market size arrived using this approach was then crosschecked with the market size arrived by using bottom-up approach.

In the bottom-up approach, we arrived at the country market size by identifying the revenues and market shares of the key market players. The country market sizes then were added up to arrive at regional market size of the decorated apparel, which eventually added up to arrive at global market size.

This is one of the most reliable methods as the information is directly obtained from the key players in the market and is based on the primary interviews from the key opinion leaders associated with the firms considered in the research. Furthermore, the data obtained from the company sources and the primary respondents was validated through secondary sources including government publications and Bloomberg.

Market Analysis & size Estimation

Post the data mining stage, we gather our findings and analyze them, filtering out relevant insights. These are evaluated across research teams and industry experts. All this data is collected and evaluated by our analysts. The key players in the industry or markets are identified through extensive primary and secondary research. All percentage share splits, and breakdowns have been determined using secondary sources and verified through primary sources. The market size, in terms of value and volume, is determined through primary and secondary research processes, and forecasting models including the time series model, econometric model, judgmental forecasting model, the Delphi method, among Flywheel Energy Storage. Gathered information for market analysis, competitive landscape, growth trends, product development, and pricing trends is fed into the model and analyzed simultaneously.

Quality Checking & Final Review

The analysis done by the research team is further reviewed to check for the accuracy of the data provided to ensure the clients’ requirements. This approach provides essential checks and balances which facilitate the production of quality data. This Type of revision was done in two phases for the authenticity of the data and negligible errors in the report. After quality checking, the report is reviewed to look after the presentation, Type and to recheck if all the requirements of the clients were addressed.

Frequently Asked Questions

The global industrial batteries market forecast period is 2023 - 2031
According to industrial batteries market research, the market is expected to grow at a CAGR of ~9.8% over the coming years.
Asia-Pacific is expected to register the highest CAGR during 2023 - 2031
Asia-Pacific held the largest share in 2022
The major players operating in the global industrial batteries market 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 various others.