Industrial Battery Market Size, Share, Growth, and Industry Analysis, By Type (Lead-acid Batteries, Lithium-based Batteries & Nickel-based Batteries), By Application (Telecom & Data Communication, Industrial Equipment, Uninterruptible Power Supply (UPS)/Backup & Grid-Level Energy Storage), and Regional Forecast to 2033

INDUSTRIAL BATTERY MARKET OVERVIEW

The global Industrial Battery Market size was USD 19046.97 million in 2024 and is projected to touch USD 34637.33 million by 2033, exhibiting a CAGR of 6.87% during the forecast period.

The industrial battery is an important market of the energy market as the need for an efficient and effective battery increases in numerous sectors of society. On the back of shifting towards renewables and increasing concerns for the reliability of power supply for industries including manufacturing, telecommunication, and logistics, the demand for industrial batteries is expanding rapidly. Advancements in this front, especially in the lithium-ion battery and flow batteries, are improving performance and increasing market growth. Growing awareness as industries try to conserve energy and seek better standards in energy consumption, the industrial battery market will experience change and investment in the future years.

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GLOBAL CRISES IMPACTING INDUSTRIAL BATTERY MARKET-COVID-19 IMPACT

"Industrial Battery Industry Had a Positive Effect Due to Sustainability, resilience during COVID-19 Pandemic"

The Global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing Higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

Constraints such as limitations in supply chain and manufacturing during the COVID-19 outbreak first negatively affected the industrial battery market. Nevertheless, as some industries changed and started implementing new practices of operations, it was observed that there are common tendencies in the direction of automation and digitalization, which has led to the further need of utilizing reliable energy storage systems. This shift, along with increased investment in renewable power applications, was expressed as a driver of increased sales of industrial batteries during the pandemic. This focus on sustainability and resilience in energy systems has benefited the market, and it will continue to breed growth and innovation in the next few years.

LATEST TREND

"Market is growing due to lithium-ion demand"

There are currently a number of trends present in the industrial battery market, such as the gradual incorporation of superior types of batteries, effective power storage solutions that are eco-friendly, and the incorporation of intelligent technologies. One of which is the increasing need for lithium-ion batteries because of their high energy density, high efficiency, and low price. These batteries are gradually being adopted in different end uses, which include renewable energy storage, EVs, and other applications, as manufacturers strive to get more out of their systems while at the same time, cutting down on emissions. Moreover, applications for the second life of used batteries are also being developed and actively implemented to use the exhausted batteries for energy-related applications and decrease waste.

INDUSTRIAL BATTERY MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Lead-acid Batteries, Lithium-based Batteries & Nickel-based Batteries

• Lead-acid Batteries: Lead-acid batteries are probably the oldest and most common type of battery that is used in industries currently; they are known to be cheap and durable. Their overall use is dominant in uninterruptible power supplies (UPS), forklifts, and backup power systems because of the high performance in demanding modes. Although their market share has been threatened by the new complex methods of producing batteries, such as AGM or completely sealing the battery, lead-acid batteries are still common because they are recyclable and already widely used.

• Lithium-based Batteries: Industrial battery-type lithium-based batteries, especially lithium ion and lithium iron phosphate batteries, are becoming very popular in the industrial battery market due to their high energy density, high efficiency, and long cycle life. Today, several technologies and applications are using these batteries for renewable energy storage systems, electric vehicles, and portable electronics, leading to new technological advancements and financial investment in batteries. Lithium-based batteries are believed to be probably going to dominate the whole market in the next few years with decaying costs and even better performances.

• Nickel-based Batteries: Ni-Cd, Nickel Metal Hydride (Ni-MH) batteries are high-rate discharge and have good performance in low and high temperatures. Although the NiCd batteries were criticized due to environmental problems, they are still widely used for reliable applications like emergency lighting, power tools, etc. The growing concern for more environment-friendly systems has gradually revived the use of NiMH batteries in technologies such as HEV and RES.

By Application

Based on Application, the global market can be categorized into Telecom & Data Communication, Industrial Equipment, Uninterruptible Power Supply (UPS)/Backup & Grid-Level Energy Storage

• Telecom & Data Communication: Industrial batteries are used in the telecom and data communication industries to give standby power in case of power failure or any other calamities. These batteries are indispensable for supporting the functioning of cellular towers, data centers, and communication networks where availability and short response times are of essence. At the same time, the demand for high-speed internet and data services is growing in parallel with the requirements for powerful energy storage systems in this field.

• Industrial Equipment: Industrial batteries serve different equipment, such as forklifts, automated guided vehicles (AGVs), and manufacturing equipment, among others, to boost efficiency in working operations. The change in personal power tools and related equipment to electric motors popular in the warehouses and factories is promoting replacement and adoption of enhanced battery technologies, including lithium batteries. As emission standards and operating costs are on the rise, the industrial equipment segment is turning to new battery technologies.

• Uninterruptible Power Supply (UPS): An Uninterruptible Power Supply (UPS) depends on industrial batteries to give an instant source of electricity during power blackouts for key processes and apparatus. These batteries are critically important to facilities where the loss of power can result in the loss of data, such as health care centers, financial institutions, or information technology departments. Due to the current trend of instability and reliability associated with the UPS market, the market for industrial batteries is now on the rise.

• Grid-Level Energy Storage: Common energy storage at the grid level uses battery power storage with the aim of regulating energy supply and demand, especially with continually increasing renewable energy storage technologies like solar and wind energy. These large-scale battery systems are used to store abundant energy produced at some hours, when the demand is low, and supply that energy when the demand is high to improve the stability of the grid. The constant evolution toward cleaner energy generation systems and growing interest in other renewable assets are driving the demand for commercial-scale energy storage systems on the grid.

MARKET DYNAMICS

Market dynamics include driving and Restraining Factors, opportunities and Challenges stating the market conditions.

Driving Factors

"Market growth is fueled by demand for reliable energy storage"

The evolution towards more sustainable non-fossil sources of energy like solar and wind power imposes high demands on the reliability of storage technologies; this factor has been major in driving the growth of the industrial batteries market. These energy sources are volatile; hence, reliable energy storage methods are mandatory with regard to efficient power supply. The increase in demand for energy storage systems has caused a shift in the use of modern batteries, lithium-ion batteries.

"Market growth is driven by improvements in battery technology efficiency"

Energy density, charge acceptance rate, and battery life improvements that have been achieved in battery science are the key drivers of the industrial battery market. Improved characteristics make the new generation batteries more appropriate for various types of utilization in industry, communication, or automobiles. Due to increasing manufacturer focuses on newly developed technologies, and this is resulting industrial battery market growth .

Restraining Factor

"High initial costs hinder market growth of industrial battery technologies"

One significant Restraining Factor for the industrial battery market is the high initial costs associated with advanced battery technologies, particularly lithium-ion batteries. Although these batteries offer long-term savings through improved efficiency and lifespan, the upfront investment can be a barrier for many businesses, especially small and medium enterprises. This cost factor can hinder the widespread adoption of modern energy storage solutions in various industrial sectors.

Opportunity

"Market growth is driven by the expanding electric vehicle sector"

One of the biggest growth areas for the industrial battery market is the fast-growing EV market. As governments across the globe continue to set new and stringent limits for emissions and encourage the use of electric cars, there is a rising need to advance the battery capacity to meet the demands of charging points. This trend not only gives direction to emergent and progressive battering technology but also supports investment in energy storage systems, which can interconnect effectively with renewable energy systems. Hence, there is mutually proportional growth expected between the industrial battery market and the EV sector in the future years.

Challenge

"Supply chain disruptions threaten market growth for battery manufacturing industries"

An important threat that industries manufacturing batteries experience is disruption of supply chains, which has been made worse by tension arising from political relations, trade barriers, and the continuation of COVID-19. Such disruptions can result in a scarcity of materials that are fundamental constituents of batteries, comprising lithium, cobalt, and nickel. The kind of shortages augur well with rising costs apart from constraining the manufacturing capabilities to contribute towards demand increment, thereby may actually slow down the market evolution. 

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INDUSTRIAL BATTERY MARKET REGIONAL INSIGHTS

• North America

"North America's market growth for industrial batteries is driven by demand"

They include the technological development in the region, large investments in renewable energy such as solar and wind power, and manufacturing capabilities in the metropolis. North America is the largest market in the industrial battery segment. The United States has a central part in this growth because it is home to innovation and demand for high-performance batteries for different applications. Specifically, the growth of the United State industrial battery market is driven by rising demand for electric cars and energy storage systems backed by regulatory policies that boost production of clean energy. On the other hand, increased players in battery production increase the region's competitiveness and market leadership.

• Europe

"Europe's market growth for industrial batteries is driven by sustainability"

Europe holds remarkable industrial battery market share owing to its sustainable targets and increased legal measures to curb emissions. Due to efforts in striving to reduce greenhouse gas emissions by the European Union shifting to renewable energy production and consumption, there has been a surge in energy storage technologies, including lithium-ion batteries. Furthermore, the increasing number of electric vehicle users across the European countries is resulting in a good market demand for improved battery options of industrial battery solutions. Also, local battery manufacturing plants form a part of the regional supply chain that creates smother local content ratios within the European battery supply chain system.

• Asia

"Asia's market growth is driven by rising demand"

The market of industrial batteries has its emphasis on Asia owing to its increased industrial development and urbanization in countries such as China, Japan, and South Korea. Currently, China takes 60% of the global shares to battery production and components and leads the development of lithium-ion technology; China is also the biggest market for electric vehicles, which require substantial quantities of industrial batteries. In addition, rising demand for clean energy within the region and government encouragement of energy storage also drive the market forward. Having key industrial battery manufacturers and constant investments in research heading towards development can undoubtedly put Asia as a crucial contender in the international industrial battery market.

KEY INDUSTRY PLAYERS

"Market growth is driven by investment in efficient battery technologies"

Leading industrial battery market participants are pumping in capital to research better technologies that will make battery systems more efficient and less costly. Their concern for environmental sustainability, especially when combined with network construction and cooperation, enhances the development speed of energy storage materials. Also, these firms are increasing production abilities and finding new applications, hence increasing the need for sophisticated industrial batteries around the globe.

List of Top Industrial Battery Companies

• Saft Groupe (France)
• GS Yuasa (Japan)
• Hoppecke (Germany)
• Exide Technologies (US)
• Northstar (US)

KEY INDUSTRY DEVELOPMENT

October 2024: A recent development in the industrial battery market occurred , when Exide Industries Ltd.announced a significant expansion of its manufacturing capabilities by launching a new state-of-the-art lithium-ion battery production facility in Tamil Nadu, India. This facility aims to enhance Exide's production capacity to meet the growing demand for advanced energy storage solutions, particularly in the context of electric vehicles (EVs) and renewable energy applications. The company expects the new facility to bolster its competitiveness in the rapidly evolving battery landscape and contribute to India's transition to cleaner energy sources.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential Applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

This research report examines the segmentation of the market by using both quantitative and qualitative methods to provide a thorough analysis that also evaluates the influence of strategic and financial perspectives on the market. Additionally, the report's regional assessments consider the dominant supply and demand forces that impact market growth. The competitive landscape is detailed meticulously, including shares of significant market competitors. The report incorporates unconventional research techniques, methodologies and key strategies tailored for the anticipated frame of time. Overall, it offers valuable and comprehensive insights into the market dynamics professionally and understandably.