Introduction of New Chemistries and Applications Aids Development of Global Industrial Batteries Market, Finds Frost & Sullivan
- Strong demand in the long term will arise from advanced grid-level energy storage applications
SINGAPORE, Oct. 23, 2013 /PRNewswire/ -- The global industrial batteries market is evolving rapidly as the trend toward sustainability leads to the introduction of new battery chemistries and applications, focusing on increasing battery energy density and battery life. Expanding product portfolio in new applications and battery chemistries and exploring newer geographies will be crucial to achieve growth since the market is likely to witness strong competition as companies try to increase their global presence.
New analysis from Frost & Sullivan (http://www.powersupplies.frost.com) Global Industrial Batteries Market, finds that the market earned revenues of US$15.36 billion in 2012 and estimates this to reach US$21.98 billion in 2017. Of the different end-user segments, which includes telecom and data communication, uninterruptible power supply, industrial equipment, medical devices, aerospace and defense, telecom and data communication as well as grid level energy storage are expected to be key growth sectors. Asia-Pacific will be the biggest regional market.
The increasing use of new equipment across different sectors has not only augmented the uptake of industrial batteries but has also led to the upgrading of existing batteries.
"Advanced applications such as energy storage create new markets, as utilities are driven to provide better utility services and increase renewable energy penetration in the grid, that boosts demand for batteries in the long term," says Vishal Narain T, Industry Analyst for Frost & Sullivan's Energy and Environmental practice. "Moreover, battery manufacturers that traditionally offered only lead acid batteries are looking to diversify and add newer chemistries such as lithium ion and sodium nickel chloride to their portfolio inorganically and through greenfield expansion," he added.
However, concerns regarding the safety and business viability of new chemistries peg back the market growth of newer chemistries to a certain degree. Lithium-ion and sodium-sulfur batteries were suspected of causing fire accidents in industrial and vehicle applications. The battery-related problems witnessed in the Boeing Dreamliner that also led to widespread caution in adopting newer chemistries. Although these problems have been rectified, new industrial battery chemistries are still viewed skeptically.
In addition, the Eurozone debt crisis has affected major industrial battery firms in Europe and the supply markets in Asia-Pacific and other developing regions. As competition heats up further, owing to decreasing prices and the growth of domestically focused firms, battery suppliers will be compelled to engage in mergers and acquisitions to stay competitive.
"Market leadership is likely to shift to companies with robust product portfolios that can cater to strong future application segments," added Narain. "Battery manufacturers must broaden their presence in high-growth markets that are on the cusp of technological evolution, where end users are looking for better products."
Global Industrial Batteries Market is part of the Power Supplies & Batteries Growth Partnership Service program. Frost & Sullivan's related research services include: Asia-Pacific Lithium-Ion Batteries Market, Asia-Pacific Energy Storage Systems Market, Central and Eastern European Uninterruptible Power Supply (UPS) Market, European Battery Technologies for the Telecom Market, Global UPS Market, European Marine Generator Set Market, Argentinean and Chilean UPS Market, Mexican Market For Diesel Generators, and Global Non-renewable Inverter Market, among others. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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Global Industrial Batteries Market
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