Global Industrial Batteries Market: Rising demand for back-up power in the industrial sector coupled with demand for batteries in grid-level energy storage application is driving the market growth.

The global industrial batteries market size was valued at USD 18.23 billion in 2020 and is expected to grow at USD 28.35 billion in 2027 at a compound annual growth rate (CAGR) of 6.3% from 2021 to 2027. Rising demand for back-up power in the industrial sector coupled with demand for batteries in grid-level energy storage application is driving the market growth. In addition, extensive usage of these batteries in various applications, such as UPS and motive power, is anticipated to fuel the market expansion. The U.S. accounted for the largest market share in 2019 in the North America regional market and the trend is projected to continue over the forecast period on account of growing product application scope in telecom & data communication, uninterruptible power supply (ups) and others.

Moreover, the strong presence of major manufactures, such as Exide, Johnson Controls, and Odyssey, in the U.S. is expected to promote market growth in the region over the forecast period. Rising demand for forklift in U.S. and Canada on account of growing manufacturing industry coupled with an increasing number of warehouses will also augment the market growth as lead-acid batteries are used on a large scale for motive power applications, such as forklift in the manufacturing industry.

Lead-acid battery accounted for the largest share of over 47% in 2019 and is estimated to be the dominant segment in the forecast period. Lead-acid batteries find application in Uninterruptible Power Supply (UPS) systems as they provide high power density and enhanced life expectancy. A UPS system is an electrical equipment that provides power supply when the main power or input power sources fail. The high electric manageability of lead-acid batteries is expected to fuel the segment growth over the forecast period.

They are also used in motive industry applications including forklifts on account of their low cost, reliability, and well-established supply chain. Rapid industrialization and a growing number of manufacturing units are expected to propel the segment growth in the future. Expansion of warehouse space, growing e-commerce sector, and high demand for forklift truck replacement along with growing investments by players in emerging economies are also expected to augment segment growth over the next eight years.

The Industrial batteries market is segmented on the basis of battery type, end-user and region. On the basis of battery type Lead-Acid, Lithium-Based, and Other. On the basis of end-user Motive Power, Telecom & Data Communication, Uninterruptible Power Supply (UPS)/Backup, Grid-Level Energy Storage.

Asia Pacific was the leading regional market in 2019 and accounted for over 34% of the global share. It is also estimated to be the fastest-growing regional market over the forecast period owing to a strong industrial base and rise in civil infrastructure activities, especially in China, India, Australia, and several Southeast Asian. Various initiatives by the Indian government are encouraging industrial establishments in the country, which is anticipated to drive the demand for industrial batteries over the forecast period.

Developing economies in the region have witnessed strong growth in industrial and commercial sectors including IT, telecom, and others, resulting in high demand for industrial batteries for back-up power in these facilities.

Key players are: Johnson Controls, Inc.; Exide Technologies, Inc.; Enersys, Inc.; SaftGroupe S.A.; GS Yuasa Corp.; Northstar Battery Company LLC; C&D Technologies, Inc.; Robert Bosch GmbH; East Penn Manufacturing Co.