Saturday, October 26, 2013: It is being reported that the emerging battery market will have a steady growth rate owing to the demand and revenue from stationary battery back-up systems for industrial users, hospitals and data centers, which is not entirely seen as the ‘flourishing’ part of the segment.
While there are constant innovations in the battery market to match up to the new market demand but certain market sectors have always relied on batteries.
Some industrial operations need uninterrupted power supply. According to a recent report released by Lux Research, a market analysis firm, the market for lithium-ion battery backup and UPS systems is expected to grow six fold between now and the end of the decade.
Commenting on the growth, Steve Minnihan, author of the report said, “The interesting thing is that the demand for these types of systems is actually shrinking slightly in the developed world as data center customers and others are constantly trying to reduce their total power demand. But in the developing world, the demand is growing very rapidly.”
According to Minnihan, developing countries are using UPS and battery backups in the same industry sectors where they’re applied in the U.S. Places like India, Southeast Asia and Africa, however, are building infrastructure at unprecedented rates, which drives demand for battery backup systems in new hospitals, manufacturing hubs and data centers, reported Clean Energy Authority.
“I think this is so interesting because it’s a very large market. There’s 800 gigawatts of power capacity in UPS and battery backup throughout the world. That makes this a very, very large market,” he added. Eight hundred gigawatts is roughly 15 percent of the global power demand.
It is evident that the need for battery backup is on the decline in developer countries. Operators will be switching from lead-acid batteries to Li-ion technology. The report stated, “Lithium-ion batteries will lead growth in the stationary battery backup market, climbing from $143 million to $553 million in the next six years.”
Minnihan added, “That surge in demand will help to eliminate a glut of lithium-ion battery supply and restore supply and demand balance to the battery market by 2017. This is impressive because the battery industry hasn’t seen the same degree of oversupply and market tumult that most new markets, such as the solar industry, typically experience.”
