Battery Racks Market Size & Industry Share - Growth Trends & Forecasts (2023 - 2030)

Based on the Rack Type :

Based on the rack type, the market is segregated into standard, seismic, relay, and VRLA. Standard racks segment accounted for the largest revenue share in the year 2022. The high-durability, flexibility and acid-proof nature of standard battery racks is driving the growth of the market. Standard battery racks made up of steel provide a customizable solution for organizing and accommodating any type of battery such as lead-acid battery or nickel-cadmium battery. The ability of steel standard racks to provide high durability and strength is propelling the growth of the market. For instance, in September 2022, Littelfuse, Inc. introduced Energy Storage Rack (ESR) series to provide protection to batteries from fault currents to prevent equipment damage and system failures. Consequently, the application of battery racks in data centers and telecommunication industry for efficient storage of all types of batteries is accelerating the growth of the market.

The VRLA (Valve Regulated Lead Acid Battery) segment is expected to register the fastest CAGR growth during the forecast period. The VRLA racks are specifically designed for Valve Regulated Lead Acid Batteries. The sealed construction of the VRLA batteries allow safe operation in applications including UPS systems. Moreover, VRLA battery racks provide efficient monitoring and maintenance of the batteries in battery racks, resulting in market growth. Furthermore, the application of Valve Regulated Lead Acid Batteries (VRLA) in households to power wheelchairs and mobility scooters is expected to drive the market growth during the forecast period.

Based on the Material :

Based on the material, the market is separated into steel, plastic, plastic coated, and others. Steel segment accounted for the largest revenue share in the year 2022. The high durability and strength of steel battery racks is driving the growth of the market. Steel battery racks offer robustness and structural integrity to safely organize and store batteries. Moreover, battery racks are manufactured using folded steel plate that is coated with black polyethylene (PE) material, thereby providing electrolyte protection and electrical insulation. Therefore, the ability of black polyethylene (PE) to provide protection against electric shock is driving the growth of the market.

Moreover, steel battery racks are also expected to register fastest CAGR growth during the forecast period due to their ability to support heavy battery loads and provide long-term stability. Steel battery racks play a crucial role in providing protection to the battery in case of short circuits and fire hazards. For instance, in May 2022, LG Energy Solution launched two new ESS products called RESU FLEX and a new containerized ESS solution for efficient storage of batteries. Consequently, the ability of steel battery racks to provide protection to the infrastructure where the batteries are installed is contributing to the growth of battery racks market.

Based on the Application :

Based on the application, the market is segmented into power storage, power generation, telecommunication, and others. The power storage segment accounted for the largest revenue share of 35.27% in the year 2022. Battery racks play a crucial role in storing and managing electricity from various sources such as solar and wind energy. Lithium-ion batteries, VRLA batteries, and others are widely used in large scale plants to help electricity grids ensure a reliable supply of renewable energy. As a result, the demand for battery racks for storage of the aforementioned batteries is driving the growth of the market. For instance, in February 2023, Volvo Penta expanded into battery energy storage for applications including utilities, factories, decentralized microgrids and EVs charging stations. Therefore, battery racks are required to efficiently store energy in order to ensure continuous power supply.

The telecommunication industry is expected to emerge as the fastest-growing segment during the forecast period. Telecommunication industry involves providing cable TV and internet facilities to the customers. As a result, uninterrupted power supply is essential for efficient functioning of telecommunication industry. Therefore, battery racks play an essential role in providing extended power source in case of power outage.

Based on the Region :

The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

North America accounted for the largest revenue share in the year 2022. The increasing adoption of renewable energy sources such as solar and wind energy. The integration of renewable energy into the grid requires efficient energy storage solutions. Therefore, battery racks play a crucial role in storage of excess power for future purposes. Moreover, the adoption of battery racks in the telecommunication industry for the protection of critical infrastructure is further accelerating the growth of the regional market.

The Asia-Pacific region accounted for a revenue share of USD 828.74 Million in 2022 and is expected to reach USD 1150.46 Million in 2030, registering a CAGR of 4.5% during the forecast period. In addition, in the region, China accounted for a revenue share of 27.9% in 2022. Energy storage incentives and policies by the government of countries such as India and China is driving the growth of the market. Favorable initiatives and policies are implemented to promote energy storage in the region. For instance, in April 2023, TATA Power and Asian Development Bank (ADB) signed an agreement to boost Delhi's power distribution through grid enhancements and battery energy storage system. Consequently, the increasing adoption of energy storage systems is expected to drive the market growth during the forecast period.