With more and more companies joining industrial battery supply battle, we were wondering can supply finally surface the demand in this growing market.
Global Industrial Battery Supply And Demand
With industries switching to green power sources and UPS becoming a vital part of mass production, we couldn’t help but wonder what it means for general industrial battery supply. The global pandemic of Covid-19 and a temporary pause in production definitely impacted decreasing demand for industrial battery products. While we don’t have enough suppliers, especially for Li-SOCL2 batteries, the statistics have changed a bit.
So, how is the market currently looking, and what is expected to happen in the next few years?
What Can You Get On The Market
First of all, let’s explain what industrial battery supply implies. There are two types of suppliers on the market – Li-ion industrial battery companies and non-Li-ion ones. As you can tell by the name, the main difference is in the battery type they’re producing and supplying you with.
Lithium-ion suppliers produce lithium batteries mainly mixed with cobalt oxide, iron phosphate, manganese oxide, and more. The suppliers own these chemistries, and each of them is trying to make a mix that will be the best seller. Each of these battery factories chooses the industry they’re targeting and makes the mix based on the needs of this particular one. For example, in China and Japan, most batteries are meant to be used in electric vehicle production.
On the other hand, non-Lithium-ion suppliers are focusing on industrial battery in markets that do not require lithium. They’re trying to point out all the bad sides of lithium mining and usage since those batteries are highly corrosive and can cause damage if not disposed of properly. That’s how we’ve got sodium-sulfur batteries, zinc-based batteries, advanced lead-acid batteries, and more.
Industrial Battery Supply In 2021
Compared to a period between 2015 and 2020, we can see an evident decline in both import and export of industrial battery products. Of course, most of this decreasement is due to the Covid-19 pandemic since the industry itself is growing and there’s more and more demand. With the change of perception about power sources we have been using so far and the growing demand for chemicals by the end users, the industrial battery supply future looks brighter than ever.
The global industrial battery market was estimated at $9 billion in 2020, with a forecast of steady yearly growth of 6.5%. It mainly relies on UPS devices as backup batteries, which became a necessity regardless of the industry. With more frequent power outages, having a backup system is a vital part of any production and data handling process. The development of electric vehicle production led by Tesla and high demand from data centers and the telecom industry has increased the demand by far. And that’s how end users have impacted industrial batteries supply and pre-determined a considerable success.
The Future Of Industrial Battery
While regions such as the Asia Pacific and Latin America are expected to increase the industrial battery supply due to manufacturers’ demands, North America and Europe are imposing laws about green energy sources and the adoption of electric vehicles. In its own way, all this is making the demand rise, which, of course, impacts the supply. Once the market becomes profitable, many players want to take the piece of the cake.
Since we’ve already mentioned that we have Li-ion and non-Li-ion suppliers, it’s important to note that current statistics work for lithium-based producers. However, many startups and large companies decide to try something new and go with unconventional non-lithium-based products. Will this give any result is yet to be seen, but if the green initiative wins, we may see a switch from lithium to other chemicals.
All research takes 2016 as the historical year for industrial battery, but the future may bring something unexpected. Regardless of the percentage, which varies a bit depending on the literature you read, everyone agrees that this is the market of the future, and it can only grow.
One of the leading companies currently is Tadiran Batteries. With innovative technologies and following the trends of clean energy sources, this company sets future trends in industrial battery supply.
FAQ
How much is the industrial battery supply market worth?
Standing at $9 billion in 2020, the industrial battery market is expected to overcome $10.7 billion by 2027.
What does industrial battery imply?
Industrial batteries are more powerful and advanced than consumer ones, designed to power supply many industries, from aerospace to medical.
Playing the article for the visually impaired
