Battery Racks Market Analysis and Forecast to 2032: By Material (Steel, Plastic, Plastic Coated, and Others), Product Type (Standard, Seismic, Valve Regulated Lead Acid (VRLA), and Others), Placement (Horizontal, Vertical), Application (Utility, Telecommu

Battery Racks Market Analysis and Forecast to 2032: By Material (Steel, Plastic, Plastic Coated, and Others), Product Type (Standard, Seismic, Valve Regulated Lead Acid (VRLA), and Others), Placement (Horizontal, Vertical), Application (Utility, Telecommunications, Data Center, Industrial Manufacturing, and Others), and Region

The global battery racks market is expected to grow rapidly over the next 10 years to reach a value of more than the US $4.9 billion by 2032.

Battery racks are utilized to store a number of batteries on it. The racks are simple and reliable means for the storage of batteries and are used for installation, maintenance, and operation of the batteries, thereby, fueling the growth of the global battery racks market. Additionally, the need for battery storage is also initiating the growth of the battery racks industry. Increasing awareness regarding the benefits of battery racks is expected to positively impact revenue growth of the market over the forecast period.

Battery racks are designed to provide accommodation for numerous types of batteries such as lead-acid (Pb) or nickel-cadmium in it for their vertical or horizontal placement. The racks are designed to sustain earthquakes and have features such as tough and rigid, manageable, and acid-resistant. In addition, the metal bars of the racks are plastic-coated so that they can provide a protective coating. Further, the racks are built with hinged components and have customized features. They also comprise a battery enclosure with series string & cabling for current protection and disconnects.

Market Scope and Structure Analysis

Market Trends and Drivers

One of the factors driving the growth of the global battery racks market is the growing demand for high-performance and efficient battery storage systems in several industries such as power storage, data centers, and telecommunication. Increasing awareness regarding the benefits of battery racks market is expected to positively impact revenue growth of the market over the forecast period. In addition, developments in the battery energy storage system along with ease of operation & installation of battery racks positively contribute to the growth of the global battery racks market. Further, battery racks safeguard the batteries and permit easy handling of them. Hence, the rising demand for battery racks from emerging economies to store batteries effectively is expected to cater to the growth of the battery racks industry. Besides, the rise in the number of data centers in addition to small and medium-sized companies is increasing the demand for batteries, which further leads to the growth of the global battery racks market. Furthermore, technological advancements in battery storage systems are anticipated to offer lucrative opportunities for the market players.

Market Restraints & Challenges

One of the major factors hindering the global battery racks market growth is the fluctuating raw material prices. In addition, the other concern & risk connected with electricity & batteries is fire hazards and electrical short-circuits. Besides, open-rack batteries can possibly cause deadly electric shocks to any individual who comes in contact with output points or terminals. Therefore, the necessity to locate such units in a battery room along with the restricted access is the other factor anticipated to result in limits to adoption, particularly for people who have budget limitations or space constraints.

Global Battery Racks Market Overview

The global battery racks market report is bifurcated on the basis of product type, material, placement, and application, and region.

Global Battery Racks Market By Material

On the basis of material, it is segmented into steel, plastic, plastic coated, and others. The steel segment is driving the growth of the battery racks market due to its exceptional properties and benefits. As a sturdy and durable material, steel ensures the structural integrity of battery racks, making them reliable and long-lasting. Its high tensile strength and resistance to corrosion and wear guarantee the safe containment and support of various battery types. Moreover, steel's versatility allows for the customization of racks to fit specific battery configurations, meeting the diverse needs of industries and applications. The steel segment's cost-effectiveness and low maintenance requirements make it an attractive choice for businesses seeking efficient and economical storage solutions. As the demand for energy storage systems increases across sectors like renewable energy, automotive, and telecommunications, the steel-based battery racks market is poised to see continued expansion in the coming years.

Global Battery Racks Market By Product Type

Based on product type, it is analyzed across standard, seismic, VRLA, and others. The VRLA (Valve Regulated Lead Acid) battery segment is a driving force in the battery racks market. VRLA batteries are known for their maintenance-free operation and sealed design, making them ideal for various applications. Their versatility and reliability have led to increased demand across industries, such as telecommunications, data centers, renewable energy systems, and emergency backup power solutions. As businesses and consumers seek efficient and environmentally friendly energy storage options, VRLA batteries, housed in sturdy and efficient battery racks, have emerged as a preferred choice. The growing need for uninterrupted power supply in critical infrastructures has further bolstered the demand for VRLA-based battery racks, contributing significantly to the market's expansion.

Global Battery Racks Market By Placement

By placement it is categorized into horizontal and vertical. The demand of horizontal battery racks market is expected to grow significantly in the forecast period. The horizontal battery racks can accommodate any type of battery and have horizontal mounting cells.In the forecast period, the demand for horizontal battery racks is projected to experience a substantial upsurge, driven by several key factors. The rapid expansion of renewable energy sources, such as solar and wind, has created a pressing need for efficient energy storage solutions. Horizontal battery racks offer a space-saving and easily scalable option for storing large quantities of batteries, making them ideal for commercial and industrial applications.

Additionally, the rising adoption of electric vehicles (EVs) worldwide is expected to fuel the demand for horizontal battery racks as charging infrastructure continues to develop. Moreover, the increasing use of battery energy storage systems in off-grid and remote areas further bolsters market growth. Technological advancements leading to enhanced battery performance and safety will also contribute to the market's expansion. Furthermore, the growing awareness of sustainable practices and the need to reduce carbon footprints in various industries are likely to boost the adoption of horizontal battery racks. Government initiatives and incentives promoting energy storage installations are expected to play a vital role in driving the market forward. Lastly, the ability of horizontal battery racks to facilitate seamless battery maintenance and replacement will add to their appeal, further stimulating demand in the forecast period.

Global Battery Racks Market By Application

By application, it is divided into utility, telecommunications, data center, industrial manufacturing, and others. The demand of battery racks market for utility is expected to grow significantly in the forecast period. The utility sector is expected to hold a significant share of the market due to rise in deployment of power storage battery racks in small, medium, and large organizations globally. In addition, there has been an increase in demand for efficient and reliable electricity supply in several regions globally. The escalating demand for electricity and renewable energy are accountable for the high demand for battery energy storage racks in the utility sector. Thus, the demand of battery racks market for utility would rise in the forecast period.

Geographical Analysis of Global Battery Racks Market

Region-wise, it is studied across North America, Europe, Asia-Pacific, and LAMEA. APAC accounts for the largest market share in the battery racks market owing to countries like China, India, Japan South Korea, and others, are investing in the R&D of battery storage devices. In addition, factors such as rapid development across manufacturing industries, and growing demand for effective battery racks are anticipated to propel the growth of the Asia-Pacific battery racks market. In addition, steady growth in industrialization and development in telecommunications industry are also expected to lead to the growth of the market. Moreover, presence of several medium to large players in the region is also attributable to rapid revenue growth. Thus, the demand for battery racks market would have positive influence in the forecast period.

Major Players of Global Battery Racks Market

The global battery racks market report includes players such as Vertiv Holdings Co., EnerSys, Amphenol Network Solutions, Eagle Eye Power Solutions, LLC, Schneider Electric, EnviroGuard, Mesa Technical Associates, Inc., Newton Instrument Co., EATON, YHI Power, C&C Power, Inc., Narada Power, STEELMAXenergy, AIB Kunstmann Reserve GmbH and Alliance Metal Solutions.

Prominent players in the industry such as Narada Power, Enviroguard, and Vertiv deals in battery racks with 24V output to the market. For instance, Vertiv Group Corp. NetSure 24V VRLA battery rack specifically for the Data Center and Telecom industries. These battery racks are Seismic Zone 4 compliant, compatible with any DC power system, have pre-cabled trays, and have optional circuit breaker per string.

COVID-19 Analysis

According to the International Monetary Fund (IMF), due to the epidemic of novel coronavirus, the worldwide economy decreased by over 3.0% in 2020. Several nations were under strict lockdowns in 2020 & 2021, which have impacted the supply of raw materials. Therefore, due to this, manufacturing activities of battery racks producers have been ceased. Moreover, demand for battery racks from data centers and energy & telecommunication industries has been dropped amid their stopped operations, due to government-imposed lockdown measures. This is anticipated to hamper the battery racks market growth during the forecast period.

Recent Developments

In March 2022, U.S.-based ESS Tech, Inc., which deals in long-duration batteries for commercial energy storage & utility-scale applications, announced that it is expanding its operations into Europe in order to meet the robust demand in the region for its long-duration energy storage (LDES) solutions.

In November 2021, in the U.S., Eaton has introduced an innovative lithium-ion-powered UPS battery racks. This LXP-P series battery racks are light-weight battery cabinets which are designed for large users requiring Megawatts of backup power and are integrated with pre-installed lithium-ion batteries.

In June 2021, South Korea-based LG Energy Solution, a company dealing in advanced lithium-ion batteries, supplied its latest state-of-the-art Transportable Rack (TR1300) to Moss Landing Energy Storage Facility of Vistra.

In May 2021, Schneider Electric, a global provider of energy management & automation solutions, has introduced high-quality and cost-effective Easy Rack Series solely in the Commonwealth of Independent States (CIS) and the Europe. This series is available in a variety of sizes, and is easy to install, and simple to scale & customize. It serves mission-critical applications, such as industrial environments and data centers.

Battery Racks Market Report Coverage

The report offers a comprehensive quantitative as well as qualitative analysis of the current Battery Racks Market outlook and estimations from 2022 to 2032, which helps to recognize the prevalent opportunities.

The report also covers qualitative as well as quantitative analysis of Battery Racks Market in terms of revenue ($Million).

Major players in the market are profiled in this report and their key developmental strategies are studied in detail. This will provide an insight into the competitive landscape of the Battery Racks Industry.

A thorough analysis of market trends and restraints is provided.

By region as well as country market analysis is also presented in this report.

Analytical depiction of the Battery Racks Market along with the current trends and future estimations to depict imminent investment pockets. The overall Battery Racks industry opportunity is examined by understanding profitable trends to gain a stronger foothold.

Porter’s five forces analysis, SWOT analysis, Pricing Analysis, Case Studies, COVID-19 impact analysis, Russia-Ukraine war impact, and PESTLE analysis of the Battery Racks Market are also analyzed.

Frequently Asked Questions

Q1. How big is the Battery Racks market?

Ans. The global battery racks market is expected to grow rapidly over the next 10 years to reach a value of more than the US $4.9 billion by 2032.

Q2. What is the Battery Racks market growth rate?

Ans. The growth rate of the Battery Racks market is 3.7%.

Q3. Which region holds a major market share for the Battery Racks market?

Ans. North America holds a major market share of the Battery Racks market in 2022.

Q4. Which segment accounted for the largest Battery Racks market share?

Ans. By material, plastic segment accounted for the largest Battery Racks market share.

Q5. Who are the key players in the Battery Racks market?

Ans. The global Battery Racks market report includes players such as Sonova Group, Demant A/S, GN Store Nord A/S, Cochlear Ltd., RION Co., Ltd., Starkey, Nurotron Biotechnology Co., Ltd., MED-EL, Audina Hearing Instruments, Inc., Elkon Pvt. Ltd., WS Audiology A/S, Eargo, Inc. and Horentek among others.

Q6. What are the factors driving the Battery Racks market growth?

Ans. The major factors driving the growth of the market are the owing demand for high-performance and efficient battery storage systems in several industries such as power storage, data centers, and telecommunication.

Q7. What are the key growth strategies of Battery Racks market players?

Ans. The key growth strategies of Battery Racks market players are product launch and product approval.

Q8. Which region will provide more business opportunities for the Battery Racks market during the forecast period?

Ans. The Asia-Pacific region will provide more business opportunities for the Battery Racks market during the forecast period.

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