Global Industrial Batteries Market Size Analysis Report - Market Share, Forecast Trends and Outlook (2024-2032)

Industrial Batteries Market Growth

Industrial batteries refer to electrochemical devices that convert chemical energy into electricity by converting high-level active materials to alternate state during discharge. They are used for controlling forklifts, electric vehicles, heavy machinery hardware, and trucks, among others. These batteries are designed to withstand extreme temperatures, high vibrations, and heavy usage.

Increased adoption of electric vehicles due to rising environmental concerns is aiding the growth of the industrial batteries market. Lithium-based batteries are deployed in electric vehicles due to their long life cycle, no memory effects, and high specific capacity, among others. Rising utilisation of industrial batteries by the healthcare sector in critical care systems and health monitoring systems, among others in healthcare centres and hospitals is further supporting the growth of the market across the globe.

Industrial Batteries Market Trends

The rising requirement for reliable and continuous sources of energy for powering heavy-duty equipment is providing lucrative industrial batteries market opportunities. Industrial batteries can also be used in extreme temperatures and remote locations due to their longer lifespan. The market expansion is also being aided by novel product innovations and introduction of green industrial batteries for addressing the rising environmental concerns by reducing the carbon footprint.

The growing use of renewable energy sources, like solar and wind, has spurred the need for grid-level energy storage. Industrial batteries are critical for balancing energy supply and demand and supporting the resilience of energy systems, particularly in countries investing heavily in green infrastructure like China and the US.

Recent Developments

As per the industrial batteries market dynamics and trends, Moses Lake, Washington, is emerging as a major hub for battery production, thanks to companies like Group14 and Sila. Supported by USD 100 million grants each from the U.S. Department of Energy, these companies are setting up facilities to manufacture advanced silicon battery materials and components for electric vehicles (EVs). Group14’s plant, set to be the largest of its kind for silicon battery materials, represents a key step in securing a robust U.S.-based battery supply chain.

Industry Outlook

As per the industrial batteries industry analysis, the U.S. Energy Information Administration (EIA) projects that battery storage capacity in the U.S. will nearly double in 2024, adding over 14 gigawatts (GW) to the grid. This expansion is part of a broader trend toward increased battery storage to support renewable energy sources, which is critical for balancing supply and demand and meeting the country’s clean energy goals.

Battery prices have fallen dramatically, by more than 90% over the past 15 years, according to the International Energy Agency (IEA). This drop in costs has enabled battery applications to expand rapidly across the power and transport sectors. The IEA reports that, globally, battery storage deployment in the power sector alone grew by over 130% in 2023, largely due to the adoption of renewable energy and electric vehicles, further boosting the industrial batteries industry revenue. Battery demand is expected to continue growing sharply as the world seeks to meet climate targets set during COP28, including a sixfold increase in energy storage by 2030.

Supply chain challenges for critical materials like nickel, cobalt, and lithium are pushing battery manufacturers and automakers to prioritise sustainable sourcing. Some companies are exploring alternatives, like aluminium, for components like battery bus bars and charging cables due to their cost-effectiveness and lower environmental impact.

Technological advancements, increasing demand for renewable energy storage, and regulatory support strengthen the market.

• Industrial batteries are used across various sectors, including manufacturing, telecommunications, healthcare, and data centers, ensuring steady demand from a wide range of industries and boosting the growth of the industrial batteries industry. 
• Industrial batteries are essential for energy storage systems, particularly in renewable energy projects like solar and wind, where they help manage grid stability.
• Continuous innovation in battery technology, such as advancements in lithium-ion batteries, improves energy density, performance, and lifespan, making industrial batteries more efficient and reliable.
• Increasing environmental regulations are pushing industries to adopt cleaner, more sustainable energy storage solutions, further boosting the industrial batteries market value.

High initial costs, limited lifecycle, dependency on raw materials, and market competition may impact the market growth.

• High initial costs of industrial batteries can be a barrier to adoption.
• Many industrial batteries have a finite lifespan, and recycling them remains a complex and expensive process, which raises concerns over waste and environmental impact.
• The availability of critical raw materials like lithium, cobalt, and nickel, which are essential for battery production, can be volatile, affecting production costs and supply continuity.
• Intense market competition affects profit margins, market share and industrial batteries demand forecast.

Growth in electric vehicles and increasing focus on energy efficiency is driving the market growth for industrial batteries.

• Development of advanced battery technologies with higher energy density opens new segments.
• Partnerships with energy companies can accelerate adoption and market expansion.
• Growth in electric vehicles and related infrastructure drives demand for industrial batteries. 
• Increasing focus on energy efficiency and sustainability enhances the industrial batteries market revenue.

Competitive Analysis of the Global Industrial Batteries Market

The global industrial batteries market is characterized by fierce competition among major players who leverage their advanced manufacturing capabilities, extensive distribution networks, and innovative product offerings.

Product Differentiation and Innovation:

• Technological Advancements: Companies differentiate their products through technological advancements, including improved battery life, higher energy density, and enhanced safety features.
• Product Portfolio: Offering a comprehensive product portfolio that caters to diverse industrial applications, such as telecommunications, data centers, and manufacturing, helps companies meet varying customer needs and aids demand of industrial batteries market.
• Customization: Providing customized battery solutions tailored to specific industrial requirements enhances customer satisfaction and loyalty.

Pricing and Cost Management:

• Competitive Pricing: Price competitiveness remains critical, driven by factors such as raw material costs, production efficiencies, and economies of scale.
• Cost Optimization: Effective cost management strategies, including supply chain optimization and lean manufacturing practices, are essential for maintaining profitability.

Distribution and Market Reach:

• Global Presence: Leading players have established strong global distribution networks, ensuring product availability across key regions and boosting industrial batteries demand growth. 
• E-commerce Channels: The rise of e-commerce platforms offers a significant channel for distributing industrial batteries, providing convenience and wider market access.

Industrial Batteries Industry Segmentations

On the basis of battery type, the market is divided into lead-acid and lithium-based, among others. Based on end use, the market is categorised into telecom and data communication, uninterruptible power supply (UPS), motive power, and grid-level energy storage, among others. On the basis of region, the industrial batteries market segmentation includes North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

Industrial Batteries Market Share by Battery Type

Lithium-based batteries are expected to account for a significant industrial batteries market share in the coming years owing to their vast number of applications in various industrial operations including industrial automation, grid-level storage, and UPS systems, among others. This battery demand is also expected to grow at a CAGR of 12.7% in the forecast period. The economic efficiency, improved performance, and high energy density are also boosting their utilisation among various sectors. The rising investments in research and development activities in order to enhance the performance of lithium-based batteries by various major market players are further supporting the segment growth.

Competitive Landscape

Toshiba Corporation, headquartered in Tokyo, Japan, is involved in the manufacturing of a wide range of consumer and business products including printers and copiers, HD television, LCD devices and laptops, among others. The company is also known to manufacture industrial batteries for their global customers.

Johnson Controls International plc is an industrial machinery manufacturing company that was founded in 1885 and is headquartered in Cork, Ireland. The company specialises in fire and hazard automation, building automation, security, and HVAC, among others.

Robert Bosch GmbH specialises in mobility solutions, artificial intelligence, sustainable technologies, energy and building technology, and industrial technology, among others. The company was founded in 1886 and is headquartered in Gerlingen, Germany.

Other industrial batteries market key players include Exide Industries Ltd., LG Energy Solution, Ltd., EnerSys, Inc., TotalEnergies S.E., C&D Technologies, Inc., East Penn Manufacturing Company, GS Yuasa Corporation, and Crown Battery, among others.

Industrial Batteries Market Regional Analysis

The Asia Pacific is anticipated to account for a significant share of the market over the forecast period with a CAGR of 10.1%. India and China are expected to grow at CAGRs of 10.7% and 9.7% between 2024 and 2032. This growth can be due to the rising demand for renewable energy storage from residential and commercial sectors. The rapid expansion of the automotive sector and the presence of a strong manufacturing base in the region are further aiding the industrial batteries demand. The increasing requirement for industrial vehicles including battery-operated forklifts is further boosting the market demand in the Asia Pacific.