The North America industrial battery market is expected to grow at a CAGR of over 8.47% during the forecast period of 2020 – 2025. Declining lithium-ion battery prices, increasing demand from data centers and telecom sectors along with rising renewable energy integration are some of the major 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 be the fastest growing segment in the industrial battery market over the forecast period, owing to its major factors like better performance, high energy density, etc. when compared to other batteries.
- The rising focus on technologically advanced batteries and use of artificial intelligence in the R&D phase of battery manufacturing is likely to create a massive opportunity for the battery companies to invest and redirect their resources to make a breakthrough battery technology.
- United States is expected to be the fastest and largest growing market during the forecast period, owing to the expansion in renewable power infrastructure and industrial production in the country.
Key Market Trends
Lithium-ion Battery (LIB) Technology to be the Fastest Growing Market
- 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, 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.
- Lithium-ion forklift batteries provide an extra edge to the material handling applications by reducing labor costs and improving productivity. Lithium-ion forklift batteries can be fast-charged in cold temperatures (even inside freezers), and they can maintain their capacity in cold temperatures better than their lead-acid counterparts.
- The forklifts order in 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. The increasing demand for fast delivery of products also has pushed for improvements in logistics and distribution, in emerging regions like 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.
- Therefore, based on the above-mentioned factors, lithium-ion battery technology is expected to witness significant demand and be the fastest growing for industrial battery market during the forecast period.
United States to Dominate the Market
- The United States is one of the major hotspots for industrial batteries across the world, on account of robust industrial infrastructure, surging deployment of battery-based energy storage projects, and expansion in renewable power infrastructure. Moreover, the favorable policy toward the deployment of energy storage systems in the United States is likely to drive the industrial battery market in the coming years.
- The United States has witnessed growth in the number of warehouses in recent years, and the growth is expected to continue in the future, on account of increasing consumer spending (in-store and online), trade, business inventories, and industrial production. The surge in the number of warehouses in the country leads to increase in demand for forklifts, which, in turn, is anticipated to drive the market for industrial batteries in the United States during the forecast period.
- The requirement for data centers in the country is growing at a rapid pace, due to increasing connectivity and other factors, which means that roughly 600 zettabytes of new data are created each year (that is 600 trillion gigabytes). To keep pace with the growth of data, there is a requirement to build about 4,000 new facilities, to handle the increase in internet traffic by 2020.
- Lithium-ion batteries are one of the fastest-growing energy storage markets in the United States due to their high energy densities, high power, low self-discharge, and near 100% efficiency. The United States has 35,000 metric ton of lithium in reserves alone, which is a big boost for the manufacturing of industrial lithium-ion battery.
- The United States is witnessing the rising deployment of solar and wind power infrastructure, which needs to be supported by energy storage systems. In July 2019, the electric power distribution company, AES Corporation initiated the construction of a new battery-based energy storage project of capacity 400 MWh which, upon completion, is anticipated to be the largest battery system operating in the United States.
- Therefore, based on the above-mentioned factors, United States is expected to have a positive impact on the industrial battery market during the forecast period.
The North America industrial battery market is moderately fragmented. Some of the major players includes Exide Industries Ltd, GS Yuasa Corporation, East Penn Manufacturing Company Inc., Panasonic Corporation, and EnerSys.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support