Industrial Battery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The industrial battery market is expected to register a CAGR of over 8.36% during the forecast period, 2020-2025. Declining lithium-ion battery prices, increasing demand from data centers and the telecom sector, and rising renewable energy integration across the world are some of the key factors driving the market. However, factors, such as uncertainty in raw material prices and availability of raw materials, such as cobalt, lead, and lithium, are likely to curtail the market growth rate during the forecast period.

• Among the different types of industrial battery technologies, lithium-ion battery (LIB) is expected to witness significant growth in the industrial battery market over the forecast period, majorly due to its favorable capacity-to-weight ratio. Other factors boosting the LIB adoption include its properties, like better performance, higher energy density, and decreasing price.
• The rising focus on technologically advanced batteries by end users and manufacturers is likely to create a massive opportunity for the battery companies to invest and redirect their resources to make a breakthrough battery technology.
• In 2018, Asia-Pacific dominated the industrial battery market across the world, owing to its rising demand for UPS, forklifts, and grid level energy storage system applications.

Scope of the Report

The scope of the industrial battery market report includes:

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Key Market Trends

Lithium-ion Battery (LIB) Technology to Witness a Significant Growth Rate

• Lithium-ion battery (LIB) is expected to witness significant growth in the industrial battery market over the forecast period, majorly due to its favorable capacity-to-weight ratio. Other factors boosting the LIB adoption include its properties, like better performance, higher energy density, and decreasing price.
• The price of LIB is usually higher compared to other batteries. However, leading players in the market have been investing in R&D activities to improve LIB's performance and price, in order to gain economies of scale. The emergence of new and exciting markets, such as energy storage systems (ESS), for both commercial and residential applications, is driving the demand for LIB.
• Lithium-ion batteries are witnessing massive demand in the battery energy storage market, owing to their declining prices. The United States Department of Energy (DOE) announced an interim price target of USD 125/kWh by 2020, and the prices for lithium-ion batteries are estimated to fall to as low as USD 73/kWh by 2030.
• Additionally, lithium-ion batteries are expected to hold the most significant share in the battery energy storage market in the coming years, as they require little maintenance, are lightweight, and have a reliable cycle life, high energy density regarding volume, and high charge/discharge efficiency.
• Globally, forklift orders doubled from 2009 till 2018. The United States witnessed an increase of nearly 150% during 2009-2018. The increase was partly due to the need for upgrading and replacing aging capital equipment. Adding to this, the increasing demand for the fast delivery of products has pushed for improvements in logistics and distribution, in both the developed and emerging regions, such as North America, Europe, and Asia-Pacific. This, in turn, is likely to boost the demand for industrial Li-ion batteries in the material handling industry in the coming years.

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