Industrial Batteries Market by Battery Type (Lead-acid, Lithium-ion), End-Use Industry (Stationary, Motive), and Region (North America, Asia Pacific, Europe, Middle East & Africa, South America) - Global Forecast to 2029
Industrial Batteries Market
The global Industrial batteries market is valued at USD 21.2 billion in 2024 and is projected to reach USD 34.7 billion by 2029, growing at 10.3% cagr from 2024 to 2029. The need for industrial batteries is rising as the stationery end-use sector expands. The worldwide market for industrial batteries is also significantly influenced by the growing use of lithium-ion batteries in the renewable energy industry.
Attractive Opportunities in the Industrial Batteries Market
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Industrial Batteries Market Dynamics:
Driver: Increase in demand for recycled products and materials
The increasing interest in utilizing recycled materials and batteries is anticipated to promote research and development in the recycling of both batteries and materials. The upward path in material costs, coupled with a growing demand for eco-friendly or recycled products, is projected to create various sectors for growth within the battery recycling market. The mounting interest in recycled products and materials serves as a significant change, expected to have a substantial impact on the electric vehicle battery recycling market. This heightened demand is driven by a worldwide movement toward sustainable practices, a heightened environmental consciousness, and a growing awareness of the limited availability of natural resources.
Restraints: Safety issues related to storage and transportation of spent batteries
Spent batteries has hazardous chemicals, including acids and heavy metals such as mercury. In July 2007, a fire sparked by a lithium-based battery led to the ignition of over 132,000 liters of chemicals, resulting in the closure of two major highways in the UK. These batteries retain some charge after use, posing a risk of unexpected discharges that can harm people or property. It's crucial to handle all batteries cautiously, assuming they still have a charge unless properly labeled, and store them carefully, especially small batteries that could be swallowed by children. Larger lithium-based batteries, commonly found in cars, may be incorrectly identified as lead-acid batteries if not labeled accurately by local manufacturers. To prevent hazards, these batteries must be separated from used lead-acid batteries before storage. Concerns about the potential dangers associated with used batteries have led to regulations by state or national governments governing their storage and transportation.
Opportunity: Rising adoption of lithium-ion batteries due to decline in prices
Expensive lithium-ion batteries have held back market growth since the 1990s. These batteries have various parts, and some are subsidized. The main part, called the cell, makes up about half the cost, with the rest going to electronics, assembly, and packaging. Recent promises from battery and car companies suggest a significant price drop. A Bloomberg NEF survey shows the average battery pack cost went down to USD 137 per kWh in 2020, dropping 88% since 2010. Predictions say prices might go as low as USD 58 per kWh by 2030 and USD 44 per kWh by 2035. Tesla's Gigafactory-1 is one effort to increase battery production and lower prices. With advancements like large-scale manufacturing and better technology, lithium-ion battery prices are expected to decrease. This decline is likely to boost the renewable energy and grid storage markets, favoring lithium-ion batteries and increasing their market share. As a result, there could be a growing demand for recycling used automotive lithium-based batteries.
Challenge:High recycling cost and dearth of technologies
The Centre for Energy Economics (CEE) reports that globally, only 1-3% of lithium is recovered from all applications. Companies like Toxco (US) and Umicore (Belgium) are working on technologies to extract lithium from batteries. However, challenges for the industry include the high recycling costs, lack of proper storage for used batteries, and a shortage of recycling technologies. Recycling lithium-ion batteries is costly, and traditional methods can be energy-intensive. This makes recycling economically challenging compared to extracting materials from raw sources. Additionally, the diverse chemistries of lithium-ion batteries, varying among manufacturers, make it difficult to develop universal and cost-effective recycling processes. The need for customized recycling solutions adds complication and cost to the process, negatively impacting the market for electric vehicle battery recycling.
Industrial Batteries market: Ecosystem
Prominent companies in this market include well-established, and financially stable manufacturers of Industrial Batteries market. These companies have been operating in the market for several years and possess a diversified product portfolio and strong global sales and marketing networks. Prominent companies in this market include.
"Lithium-ion batteries, by battery type, is estimated to account for the highest CAGR during the forecast period."
The market for lithium-ion industrial batteries is anticipated to expand significantly in terms of value, during the forecast period. Due to its advantages over other battery types, including being more compact, lightweight, and portable, these batteries are becoming more and more popular across a range of applications.
"Stationary, by end-use, is estimated to account for the highest CAGR during the forecast period."
By end-use industry, the industrial batteries market with the fastest growth is the stationery end-use. Grid level applications, UPS, and telecommunications are examples of stationary end-use industries. Because off-grid and on-grid renewable energy installations are steadily increasing in both developed and developing nations, the grid level application has the greatest compound annual growth rate (CAGR) of all the other applications. For many years, batteries have been used in energy storage applications. But as a resource to enable larger levels of power generation from renewable energy, battery storage technology has gained more attention recently.
"Asia Pacific is estimated to account for the highest CAGR during the forecast period."
During the forecast period Asia Pacific is anticipated to dominate the global market for industrial batteries. This can be attributed to the region's rapid industrialization, rising need for renewable energy, and expanding automotive industry, which includes the development of electric vehicles (EVs). The need for effective energy storage solutions is fueled by the significant investments made in smart grid and infrastructure development by nations like China, India, and Japan. Government programs promoting renewable energy and developments in battery technology are also driving market expansion in this area.
Source: Secondary Research, Expert Interviews, and MarketsandMarkets Analysis
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Industrial Batteries Market Players
Major companies in the Industrial Batteries Market include Enersys (US), C&D Technologies, Inc. (US), GS Yuasa International Ltd. (Japan), Exide Industries Ltd. (India) and Leoch International Technology Limited Inc (China) , among others. A total of 26 major players have been covered. These players have adopted agreements, product launches, joint ventures, acquisitions, investments, expansions, and mergers as the major strategies to consolidate their position in the market.
Industrial Batteries Market Report Scope
|
Report Metric |
Details |
|
Market Size Available for Years |
2019–2022 |
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Base Year Considered |
2023 |
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Forecast Period |
2024–2029 |
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Forecast Units |
Value (USD Billion/Million) and Volume (Gwh) |
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Segments Covered |
|
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Geographies Covered |
Asia Pacific, Europe, South America, Middle East & Africa, and North America |
|
Companies Covered |
Enersys (US), Exide Industries Ltd. (India), C&D Technologies, Inc. (US), GS Yuasa International Ltd. (Japan), Leoch International Technology Limited Inc (China), Samsung SDI Co., Ltd. (South Korea), SK Innovation Co., Ltd (South Korea), LG Chem (South Korea), Yuasa Battery (Thailand) Public Company Ltd. (Thailand), and U.S. Battery (US) are the major players in the market. |
This research report categorizes the Industrial batteries market based on Battery Type, End-Use Industry, and Region.
Based on battery Type, the Industrial batteries market has been segmented as follows:
- Lithium-ion
- Lead Acid
- Others
Based on end-use industry, the Industrial batteries market has been segmented as follows:
- Stationary Industrial Batteries
- Motive Industrial Batteries
Based on region, the Industrial batteries market has been segmented as follows:
- Asia Pacific
- Europe
- North America
- South America
- Middle East & Africa
Recent Developments
- In Sep-2022 Umicore and PowerCo had announced the founding of a joint venture for precursor and cathode material production in Europe. From 2025 onwards, the joint venture will supply PowerCo's European battery cell factories with key materials. It also aims to include elements of refining and battery recycling based on Umicore's technology.
- In March 2022, Neometals and Mercedes-Benz confirmed their plans for a battery recycling joint venture. Through the JV, the companies intend to build a 2,500-ton-per-year lithium-ion battery recycling plant in Germany.
- In November 2022, Li-Cycle Corp. has announced a strategic partnership with Vines Energy Solutions, a battery & cell pack manufacturer and a member company of Vingroup. Through this partnership, Li-Cycle provided its recycling solutions to Vines Energy Solutions
Frequently Asked Questions (FAQ):
What is the key driver for the Industrial Batteries market?
Growing adoption of lithium-ion batteries in renewable energy sector as a driving force for the Industrial Batteries market
Which region is expected to register the highest CAGR in the Industrial Batteries Market during the forecast period?
The Industrial Batteries Market in Asia Pacific is estimated to register the highest CAGR during the forecast period.
What is the major source of EV battery?
The passenger segment holds a prominent position in the Industrial Batteries market due to the widespread use of passenger cars and the increasing adoption of electric vehicles (EVs). As the demand for electric passenger cars continues to rise, the number of spent EV batteries from this segment also increases, driving the need for effective recycling solutions.
Who are the major players of the Industrial Batteries market?
The key players operating in the market include Glencore (Switzerland), GEM Co., Ltd. (China), ERAMET (France), Li-Cycle Corp (Canada), Umicore (Belgium).
What is the total CAGR expected to record for the Industrial Batteries Market during 2024-2029?
The market is expected to record a CAGR of 10.3 % from 2024-2029. .
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The study involved four major activities in estimating the current size of the Industrial batteries market. Exhaustive secondary research was done to collect information on the market, peer markets, and parent market. The next step was to validate these findings, assumptions, and sizing with the industry experts across the Industrial batteries value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, market breakdown and data triangulation were used to estimate the market size of segments and subsegments.
Secondary Research
Secondary sources for this research study include annual reports, press releases, and investor presentations of companies; white papers; certified publications; and articles by recognized authors; gold- and silver-standard websites; Industrial batteries manufacturing companies, regulatory bodies, trade directories, and databases. The secondary research was mainly used to obtain key information about the industry’s supply chain, the total pool of key players, market classification, and segmentation according to industry trends to the bottom-most level and regional markets. It has also been used to obtain information about key developments from a market-oriented perspective.
Primary Research
The Industrial batteries market comprises several stakeholders, such as such as raw material suppliers, technology support providers, Industrial batteries manufacturers, and regulatory organizations in the supply chain. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. Primary sources from the supply side included industry experts such as Chief Executive Officers (CEOs), vice presidents, marketing directors, technology and innovation directors, and related key executives from various key companies and organizations operating in the Industrial batteries market . Primary sources from the demand side included directors, marketing heads, and purchase managers from various sourcing industries. Following is the breakdown of the primary respondents:
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Market Size Estimation
Both the top-down and bottom-up approaches have been used to estimate and validate the total size of the Industrial batteries market. These approaches have also been used extensively to estimate the size of various dependent subsegments of the market. The research methodology used to estimate the market size included the following:
The following segments provide details about the overall market size estimation process employed in this study
- The key players in the market were identified through secondary research.
- The market shares in the respective regions were identified through primary and secondary research.
- The value chain and market size of the Industrial batteries market, in terms of value and volume, were determined through primary and secondary research.
- All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the market covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
- The research included the study of annual and financial reports of the top market players and interviews with industry experts, such as CEOs, VPs, directors, sales managers, and marketing executives, for key insights, both quantitative and qualitative.
Global Industrial Batteries Market Size: Bottom-Up Approach
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Global Industrial Batteries Market Size: Top-Down Approach
Data Triangulation
After arriving at the overall market size using the market size estimation processes as explained above, the market was split into several segments and sub-segments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment, the data triangulation and market breakdown procedures were employed, wherever applicable. The data was triangulated by studying various factors and trends from both the demand and supply sides in the industrial batteries sector.
Market Definition
The industrial batteries market encompasses the production and distribution of batteries and battery packs designed for large-scale applications in sectors such as manufacturing, transportation, energy storage, and infrastructure. These batteries, manufactured for industrial and professional use, serve as rugged high-drain standby power sources. They are integral for providing reliable power in critical operations, including backup power for data centers, renewable energy storage, and powering industrial machinery and electric vehicles. Specifically used in motive and stationary power applications, the market is characterized by advancements in battery technologies, including lithium-ion and lead-acid batteries, which offer improved efficiency, longevity, and environmental sustainability. As industries increasingly adopt electrification and seek sustainable energy solutions, the demand for robust and efficient industrial batteries continues to rise.
Key Stakeholders
- Raw material manufacturers
- Technology support providers
- Manufacturers of industrial batteries market
- Traders, distributors, and suppliers
- Regulatory Bodies and Government Agencies
- Research & Development (R&D) Institutions
- End-use Industries
- Consulting Firms, Trade Associations, and Industry Bodies
- Investment Banks and Private Equity Firms
Report Objectives
- To analyze and forecast the market size of Industrial batteries market in terms of value and volume
- To provide detailed information regarding the major factors (drivers, restraints, challenges, and opportunities) influencing the regional market
- To analyze and forecast the global Industrial batteries on the basis of battery type, end-use industry, and region.
- To analyze the opportunities in the market for stakeholders and provide details of a competitive landscape for market leaders
- To forecast the size of various market segments based on four major regions: North America, Europe, Asia Pacific, Middle East & Africa, and South America along with their respective key countries
- To track and analyze the competitive developments, such as acquisitions, partnerships, collaborations, expansion, agreements and expansions in the market
- To strategically profile the key players and comprehensively analyze their market shares and core competencies
Available Customizations
With the given market data, MarketsandMarkets offers customizations according to the client-specific needs.
The following customization options are available for the report:
- Additional country-level analysis of the Industrial batteries market
- Profiling of additional market players (up to 5)
Product Analysis
- Product matrix, which gives a detailed comparison of the product portfolio of each company.
Generating Response ...
Growth opportunities and latent adjacency in Industrial Batteries Market