Industrial Batteries Market Size, Share & Industry Analysis, By Type (Lead Acid Battery, Lithium-Ion Battery, and Others), By Application (Forklift, UPS/Data Centers, Telecom, Energy Storage System (ESS), and Others), and Regional Forecast, 2024-2032

The global industrial batteries market size was valued at USD 21.22 billion in 2023 and is projected to grow from USD 22.51 billion in 2024 to USD 41.28 billion by 2032, exhibiting a CAGR of 7.87% during the forecast period. Asia Pacific dominated the industrial batteries market with a share of 48.20 % in 2023.

Industrial batteries are witnessing robust growth globally, urged by government initiatives promoting renewable energy and sustainable activities. Strict government regulations regarding these batteries are focusing on investments in energy storage solutions to improve grid stability, ease power variations, and reduce carbon emissions. Strict environmental laws and subsidies for electric vehicles are also boosting market growth. With increasing importance on energy efficiency and decarburization, industrial batteries are poised to play an essential role in the transition toward a clean and more resilient energy infrastructure. For instance, in March 2024, as per the data of the U.S. government, the manufacturing sector will receive USD 4.8 million in grant funding that will support a wide variety of projects, covering battery storage technology, onsite solar, and waste heat recovery system installations. Such initiatives in the market are anticipated to expand at a steady pace.

The COVID-19 pandemic negatively impacted the global market. Several sectors faced a decline in numbers due to the spread of the virus. The battery market also faced several issues during the lockdown. This is due to the unavailability of raw materials, shutdown of manufacturing plants, and closure of the borders. Pause in the industrial applications affected the market.

Industrial Batteries Market Trends

Advancements in Battery Technologies to Boost Market Growth

In recent years, technology has been implemented in each possible product. Batteries are one of the essential devices that need to improve as per the applications. It requires improved energy density, enhanced safety features, and faster charging capabilities. Manufacturing companies are investing in research and development to build next-generation battery technologies that address the growing needs of industries, such as electric vehicles and off-grid power systems. These technological progressions are driving fluctuations in raw material prices and efficiency gains, making industrial batteries growth more striking to a wider range of applications. Such applications will drive the global industrial batteries market growth in the forecast period.

Industrial Batteries Market Growth Factors

Sudden Shift toward Renewable Sources is Boosting the Demand for Industrial Batteries

Recently, many businesses have been focusing on renewable energy. This is one of the consistent sources of clean energy. An industrial battery storage system ensures a constant and reliable power supply by storing additional energy. This energy can be generated during peak renewable production times. This is one of the major factors driving the market growth. In addition to this, Industrial battery storage systems act as a steadying force on the electrical grid by delivering instantaneous power when demand fluctuations occur. This improves grid reliability and minimizes the risk of power interruptions. Rising renewable energy sources, such as wind, hydro, and solar are boosting the industrial battery demand. It will continue to grow in the forecast years as this is just the initial period of the future goals.

Rising Applications in Industrial Sector is Backing Battery Market

The industrial sector is one of the most important economic pillars that contribute to the global GDP. Many countries are focusing on industrialization due to the open opportunities in the market. Moreover, the rising industrial application is one of the primary reasons driving the market. For instance, In February 2024, according to data from the Ministry of Statistics and Programme Implementation, India's industrial production increased to 3.8% in December 2023, up from 2.4%. Such rapid growth in emerging countries will directly influence the market. Applications, such as automation, manufacturing, and power generation will back industrial batteries globally.

RESTRAINING FACTORS

Upsurge of Alternative Battery Storage Technologies May Hinder Market Growth

The significant growth in alternative battery storage technologies, such as fuel cells, super capacitors, and flywheels sourced with UPS, are substitutes for rechargeable batteries. This alternative may hinder market growth. UPS is one of the favorable sources being used in commercial, residential, and industrial areas. On October 19, 2023, Bengaluru Electricity Supply Company (BESCOM) assured legislatures of Industries associations that the company will deliver uninterested power supply to their units. Such initiatives by businesses and governments will lead to alternatives for batteries.

Industrial Batteries Market Segmentation Analysis

By Type Analysis

Rapid Expansion of Telecom Sector Backs Lead Acid Battery Segment

By type, the market is segmented into lead acid battery, lithium-ion battery, and others. Lead acid batteries are dominant, driven by their application in the telecom sector. The telecom sector is rapidly growing in urban and rural areas. This approach is backing the lead acid battery globally. In addition, the rising innovation in the battery market is also one of the major factors driving the demand for lead-acid batteries.

As the world becomes aware of the merit of sustainable mobility, technological advancements in industrial batteries continue to increase at a commendable rate. Hence, lithium-ion batteries are considered one of the fastest-growing segments globally. Industrial battery manufacturers and EV makers are focusing on improving battery energy density and quick charging features. This market will reach its high in upcoming years, driven by the emergency power requirement.

By Application Analysis

Forklift Holds Maximum Share Due to Its Application in Industrial Activities

By application, the market is segmented into forklift, UPS/data centers, telecom, Energy Storage System (ESS), and others. The forklift segment holds the maximum industrial batteries market share globally. The applications of the forklift in industrial operations are on the higher side. Forklifts are used to streamline the storage, retrieval, and organization of goods. They play a crucial role in moving heavy construction materials and equipment.

Telecom is one of the fastest-growing segments globally due to its rapid expansion. For instance, in April 2024, the telecom industry witnessed growth in numbers led by Bharti Airtel and Reliance Jio. This achievement is backed by the initiative in the 5G connectivity and development.

UPS/data centers and Energy Storage Systems (ESS) also hold an ample share of the global market, driven by the rising demand for energy storage systems.

REGIONAL INSIGHTS

Geographically, the market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Asia Pacific is the dominating region driven by China, South Korea, and Japan. China holds the maximum share, which can compete with other areas alone. This is owing to the availability of manufacturers and deployment of the maximum energy storage system in terms of volume (GWh) in the country.

North America is the fastest-growing region, driven by the focus on the rapid industrialization and application of industrial batteries. For instance, independent research firm EBP US has published a new report that forecasts that the U.S. battery industry delivers roughly USD 8.1 trillion worth of domestic industrial economic output annually. Canada is also trying to develop the battery market by adding manufacturers and extending their supply chain.

Europe is also awarding subsidies to grow its battery industries. Rising industrial applications, such as UPS and Energy Storage in the battery market, are driving the European region.

Middle Eastern countries, such as UAE, Qatar, and Saudi Arabia, are focusing on energy-efficient products where industrial batteries play a crucial role. The dropping prices for lithium-ion batteries are one of the major reasons people are considering buying electric cars. The growth in the renewable energy sector also supports the market in Brazil and Mexico.

KEY INDUSTRY PLAYERS

Leading Players are Collaborating with Government, Organizations, and Industries to Create a Sustainable Future

The industrial batteries market is focused on investments and a strong product portfolio by leading market players, such as Exide, Amara Raja Batteries, and others. Exide is one of the leading global players in the industrial batteries market. It has been delivering energy products for more than an era and provides quality services to multiple sectors.

LIST OF TOP INDUSTRIAL BATTERIES COMPANIES:

• Exide (India)


• Amara Raja Batteries Ltd. (India)


• East Penn Manufacturing Company Inc. (U.S.)


• GS Yuasa Corporation (Japan)


• EnerSys (U.S.)


• C&D Technologies (U.S.)


• Johnson Controls International (Ireland)


• LG Chem (South Korea)


• Leoch International Technology Ltd. (Singapore)


• SK Innovation (South Korea)

KEY INDUSTRY DEVELOPMENTS:

• June 2024 – Smiths Interconnect, one of the leading global providers of connectivity products and solutions, announced the introduction of its new Hypertac Green Connect technology, designed to attack the dangerous issue of power loss in battery systems used in industrial applications.


• April 2024 – The Indian Ministry of Heavy Electrical announced that it had received seven bids to set up a giga-scale battery manufacturing plant. This deal will be in partnership with global players, such as Amara Raja Advanced Cell Technologies, Anvi Power Industries, Reliance Industries, and JSW Neo Energy.


• September 2023 – Eveready Industries India Ltd., one of India’s leading battery manufacturers, with almost 50% market shareholder, launched their new and improved range of Ultima Alkaline batteries.


• March 2023 – Schneider Electric confirmed the launch of its latest Battery Energy Storage System (BESS) build to be a part of a flexible and scalable architecture. BESS is the groundwork for a fully integrated microgrid solution that is determined by Schneider Electric’s controls, optimization, and electrical distribution.


• September 2021 – Panasonic Energy rescheduled to expand its manufacturing capacities in view of the low demand in North America. The plans have been changed to extend the manufacturing of batteries. The company will act accordingly as per the demand in the U.S.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

Report Scope & Segmentation