Study Period | 2019 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Market Size (2025) | USD 8.81 Billion |
Market Size (2030) | USD 18.87 Billion |
CAGR (2025 - 2030) | 16.44 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
North America Industrial Battery Market Analysis
The North America Industrial Battery Market size is estimated at USD 8.81 billion in 2025, and is expected to reach USD 18.87 billion by 2030, at a CAGR of 16.44% during the forecast period (2025-2030).
The North American industrial battery landscape is experiencing significant transformation driven by rapid digitalization and infrastructure modernization. The United States has witnessed remarkable growth in battery storage capacity, with utility-scale additions reaching 6.4 GW in 2023, marking a 70% annual increase from the previous year. This surge in storage capacity deployment reflects the broader industry shift toward reliable industrial backup power solutions and grid stabilization technologies. The integration of advanced industrial battery technologies across various industrial applications has become increasingly critical as businesses prioritize operational resilience and sustainable power management solutions.
The expansion of data center infrastructure across North America has emerged as a significant market catalyst. Major technology companies are making substantial investments in the region, exemplified by Microsoft's USD 500 million commitment in 2024 to expand its cloud computing and AI infrastructure in Quebec through multiple new data centers. The proliferation of data centers has been accompanied by a parallel increase in warehousing and storage facilities, with the United States alone recording 22,053 warehousing enterprises in 2023, highlighting the growing demand for reliable industrial power solutions across various sectors.
The telecommunications sector's evolution continues to shape the industrial battery market, driven by increasing connectivity demands and infrastructure expansion. According to recent surveys, internet penetration in the United States reached 97.1% in 2024, necessitating robust backup power solutions for critical telecommunications infrastructure. This high level of connectivity has spurred the development of advanced battery systems capable of supporting the increasing power requirements of modern telecommunications equipment while ensuring uninterrupted service delivery.
The renewable energy sector's growth has created new opportunities for industrial energy storage applications, particularly in grid stabilization and energy storage. Canada's wind, solar, and energy storage sectors demonstrated strong momentum with an 11.2% growth in 2023, adding 2.3 GW of new installed capacity. This expansion includes significant investments in utility-scale wind and solar projects, complemented by industrial power storage solutions that enhance grid reliability and enable efficient renewable energy integration. The trend toward renewable energy adoption has catalyzed innovations in battery technology, particularly in areas of efficiency, durability, and storage capacity.
North America Industrial Battery Market Trends
Declining Cost of Lithium-ion Battery Prices
The continuous decline in lithium-ion battery prices has emerged as a significant driver for the industrial battery market, with prices reaching USD 139 per kWh in 2023, representing an over 82% decrease compared to 2013 levels. This substantial price reduction is primarily attributed to sustained research and development efforts focused on improving battery materials, reducing non-active material costs, enhancing cell design, and increasing production yields. The trend is further supported by major investments in battery manufacturing capacity, particularly with companies like Gotion High-Tech announcing a USD 2 billion gigafactory in Illinois in September 2023, targeting both energy storage system and electric vehicle markets.
The economic viability of lithium-ion batteries has been further strengthened by government initiatives and investments. In November 2023, the US Department of Energy announced funding of USD 3.5 billion under the Infrastructure Law to expedite indigenous production of advanced batteries. This investment, coupled with technological advancements in battery manufacturing processes, has enabled manufacturers to achieve economies of scale, resulting in more cost-competitive products. The industry has also witnessed significant developments in battery technology, such as the introduction of AI-driven optimization, exemplified by LG Energy Solution's "Optimal Cell Design AI Recommendation Model" in July 2024, which has reduced battery design time from two weeks to just 24 hours, further contributing to cost reductions and improved efficiency.
Increasing Demand for Energy Storage Systems (ESS)
The surge in demand for industrial energy storage systems has become a crucial driver for the industrial lithium battery market, particularly as countries accelerate their transition toward renewable energy integration and grid stability. In 2023, the United States energy storage sector witnessed remarkable growth, with 7,881 MW of new storage installations and 20,609 MWh of new storage capacity deployed. This expansion is further evidenced by ambitious developments such as the April 2024 approval of five battery energy storage system projects by the New York City Industrial Development Agency, totaling approximately 42.5 MW, demonstrating the growing recognition of energy storage as a critical component of modern power infrastructure.
The momentum in energy storage system adoption is reinforced by substantial government support and industry initiatives. In September 2023, the US Department of Energy allocated USD 325 million for 15 projects across 17 states to accelerate the development of long-duration energy storage technologies. This commitment is complemented by significant private sector investments, such as Arevon Energy's February 2024 securing of USD 1.1 billion in debt and tax equity financing for a solar-plus-storage project in California, which includes a 150 MW/600 MWh battery energy storage system. These developments are particularly crucial as grid operators face increasing challenges in managing intermittent renewable energy sources, with battery storage systems providing essential services such as frequency regulation, peak shaving, and backup power capabilities.
Segment Analysis: By Technology
Lead-acid Battery Segment in North America Industrial Battery Market
The industrial lead-acid battery segment continues to dominate the North American industrial battery market, commanding approximately 59% of the total market share in 2024. This significant market position is attributed to the segment's widespread adoption across various industrial applications, particularly in uninterrupted power supply (UPS) systems, telecommunications, and material handling equipment. The segment's dominance is further reinforced by the high recyclability rate of industrial lead-acid battery, which, according to the Battery Council International report in 2023, has prevented over 160 million lead batteries from going to landfills annually. The established infrastructure for lead-acid battery recycling in North America, comprising more than 14 recycling facilities and over 300,000 retail distribution and collection facilities, has contributed to maintaining its market leadership position.
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Lithium-ion Battery Segment in North America Industrial Battery Market
The industrial lithium-ion battery segment is experiencing the most rapid growth in the North American industrial battery market, with a projected CAGR of approximately 18% during the forecast period 2024-2029. This remarkable growth trajectory is driven by several factors, including the declining costs of industrial lithium-ion battery, their superior energy density, and increasing adoption in energy storage systems. The segment's expansion is further supported by significant investments in battery manufacturing capabilities across North America. For instance, in November 2023, E-One Moli announced plans to establish a USD 1.05 billion battery manufacturing facility in Maple Ridge, British Columbia, which will become Canada's largest factory for high-performance battery cells. Additionally, the US Department of Energy's announcement in November 2023 of USD 3.5 billion in funding from the Infrastructure Law to enhance domestic production of advanced batteries demonstrates the strong governmental support driving this segment's growth.
Remaining Segments in Technology
Other battery technologies in the North American industrial battery market, including industrial nickel-cadmium battery, nickel-metal hydride, and zinc-carbon batteries, continue to serve specific niche applications where their unique characteristics are particularly valuable. These technologies maintain their relevance in specialized industrial applications such as emergency lighting, smoke detection, and specific military applications where their distinct properties like high-temperature tolerance and reliability are crucial. The development of new battery technologies, such as sodium-sulfur and flow batteries, is also contributing to this segment's evolution, particularly in grid-scale energy storage applications where long-duration energy storage capabilities are essential.
Segment Analysis: Application
Forklift Segment in North America Industrial Battery Market
The industrial forklift battery segment has emerged as the dominant force in the North American industrial battery market, commanding approximately 34% market share in 2024, equivalent to USD 2.59 billion. This segment's prominence is primarily driven by the rapid expansion of warehousing and logistics facilities across the United States and Canada. The increasing adoption of electric forklifts, supported by stringent emission regulations and the push for sustainable material handling solutions, has significantly boosted the demand for industrial forklift battery in this segment. Furthermore, this segment is experiencing the fastest growth trajectory, projected to expand at around 18% CAGR from 2024 to 2029, driven by the booming e-commerce sector and the subsequent need for efficient warehouse operations. Major retailers and logistics companies are increasingly investing in electric forklifts powered by advanced battery technologies, particularly lithium-ion batteries, which offer improved performance and reduced maintenance requirements compared to traditional lead-acid batteries.
Remaining Segments in Application Market
The telecom and industrial UPS battery segments collectively represent significant portions of the North American industrial battery market, with telecom accounting for about 27% and UPS comprising roughly 23% of the market in 2024. The telecom sector's demand is primarily driven by the ongoing expansion of 5G infrastructure and the need for reliable backup power solutions for cell towers and communication facilities. The UPS segment maintains its crucial position in the market due to the growing number of data centers and critical infrastructure facilities requiring uninterrupted power supply. Other applications, including emergency lighting systems, railway applications, and various industrial equipment, constitute the remaining market share, contributing to the diverse application landscape of industrial batteries in North America.
North America Industrial Battery Market Geography Segment Analysis
Industrial Battery Market in the United States
The United States dominates the North American industrial battery market, commanding approximately 90% of the total market share in 2024, while also demonstrating remarkable growth potential with a projected CAGR of nearly 17% during 2024-2029. The country's leadership position is reinforced by its ambitious deployment of battery-based industrial energy storage projects and expansion in renewable power infrastructure. The U.S. Energy Information Administration reports that the country's utility-scale battery storage capacity is set to nearly double, with developers planning to add 14.3 GW to the existing 15.5 GW capacity. This expansion is particularly concentrated in states like Texas and California, which are expected to contribute 82% of the new capacity. The country's robust industrial infrastructure, coupled with favorable policies toward energy storage systems deployment, continues to drive market growth. The federal government's proactive approach, including significant investments in long-duration energy storage demonstration projects, further strengthens the market's foundation.
Industrial Battery Market in Canada
Canada's industrial battery market is experiencing significant transformation, driven by the country's ambitious clean energy goals and growing focus on renewable energy integration. The nation's power sector is rapidly evolving toward green technology, supported by its commitment to reduce greenhouse gas emissions by 40-45% below 2005 levels by 2030. The country has witnessed remarkable progress in battery energy storage technology, with several projects in development stages. According to the Canadian Renewable Energy Association, the country demonstrated consistent growth in wind, solar, and energy storage sectors, with significant additions in utility-scale installations. The Ontario government's completion of Canada's largest battery storage procurement, securing a total capacity of 2,195 megawatts, exemplifies the country's commitment to expanding its energy storage capabilities. This robust infrastructure development, combined with supportive government policies and increasing investments in renewable energy projects, positions Canada as a key player in the North American industrial battery landscape.
Industrial Battery Market in Mexico
Mexico's industrial battery market is witnessing substantial growth, driven by increasing adoption of battery energy storage systems and rising penetration of renewable energy in the country's electricity mix. The nation has set ambitious targets for its renewable power sector, including a commitment to deploy an additional 30 GW of renewable energy by 2030, aiming for a renewable energy mix of 50% by 2050. The country's strategic position as a manufacturing hub, particularly due to its proximity to the United States and special relations under trade agreements, has attracted significant foreign direct investment. The development of battery energy storage projects, such as the Energy Storage-as-a-Service initiative for Mexico's industrial sector, demonstrates the country's growing emphasis on advanced energy solutions. The expansion of data centers, manufacturing facilities, and telecommunications infrastructure further drives the demand for industrial backup power solutions, making Mexico an increasingly important market in the North American region.
Industrial Battery Market in Other Countries
The industrial battery market in other North American territories, including various Caribbean nations and smaller regional markets, demonstrates varying degrees of development and adoption patterns. These markets are characterized by their unique energy needs, infrastructure development stages, and regulatory frameworks. While smaller in scale compared to the major markets, these regions show potential for growth, particularly in sectors such as telecommunications, renewable energy integration, and industrial applications. The development of these markets is often influenced by factors such as government initiatives, infrastructure modernization efforts, and increasing awareness of sustainable energy solutions. The growing focus on renewable energy adoption and grid modernization in these regions presents opportunities for industrial power solution providers to expand their presence and contribute to the overall development of the North American industrial battery market.
North America Industrial Battery Industry Overview
Top Companies in North America Industrial Battery Market
The industrial battery landscape in North America is characterized by continuous product innovation and strategic expansions by key players like EnerSys, GS Yuasa Corporation, and Saft Groupe SA. Companies are heavily investing in research and development to enhance battery performance, particularly in lithium-ion technology and energy storage solutions. Operational agility is demonstrated through the establishment of new manufacturing facilities and the modernization of existing plants to meet growing demand. Strategic partnerships and collaborations, especially in the renewable energy and telecommunications sectors, have become increasingly common as companies seek to strengthen their market positions. The industry witnesses ongoing efforts to develop sustainable battery solutions, with manufacturers focusing on recyclability and environmental compliance while expanding their distribution networks across the region.
Dynamic Market with Strong Regional Players
The North American industrial battery market exhibits a moderately consolidated structure, with a mix of global conglomerates and specialized regional manufacturers. Global players leverage their extensive research capabilities and established brand presence, while regional specialists capitalize on their deep understanding of local market needs and nimble response capabilities. The market demonstrates a healthy balance between large-scale manufacturers offering comprehensive product portfolios and specialized firms focusing on specific applications or technologies. The competitive dynamics are further shaped by the presence of both traditional lead-acid battery manufacturers and emerging players specializing in advanced battery technologies.
The industry has witnessed significant merger and acquisition activities, primarily driven by the need to acquire new technologies and expand geographical presence. Companies are increasingly pursuing vertical integration strategies to secure raw material supply chains and enhance manufacturing capabilities. Strategic partnerships between battery manufacturers and end-users, particularly in the telecommunications and data center sectors, have become more prevalent. The market also sees collaboration between established players and technology startups, combining traditional manufacturing expertise with innovative battery solutions.
Innovation and Sustainability Drive Future Success
Success in the industrial power solution market increasingly depends on companies' ability to develop innovative, energy-efficient solutions while maintaining cost competitiveness. Incumbent players must focus on expanding their technology portfolios, particularly in advanced battery chemistries and smart battery management systems. Building strong relationships with key industrial sectors, especially in emerging applications like renewable energy storage and electric material handling equipment, has become crucial. Companies need to invest in sustainable manufacturing practices and circular economy initiatives to meet growing environmental concerns and regulatory requirements.
For contenders seeking to gain market share, differentiation through specialized solutions and superior technical support services offers a viable path forward. The market presents opportunities for new entrants with innovative technologies that address specific industry pain points or offer improved performance characteristics. Success also depends on developing robust distribution networks and after-sales service capabilities. Companies must carefully navigate the regulatory landscape, particularly regarding battery safety standards and environmental compliance, while building strong relationships with key industrial customers to ensure long-term success in this competitive market.
North America Industrial Battery Market Leaders
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Exide Industries Ltd
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GS Yuasa Corporation
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East Penn Manufacturing Company Inc.
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EnerSys
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Panasonic Holding Corporation
- *Disclaimer: Major Players sorted in no particular order
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North America Industrial Battery Market News
- July 2024: LG Energy Solution unveiled its "Optimal Cell Design AI Recommendation Model," a cutting-edge AI tool that can derive the optimal battery cell design in a mere 24 hours compared to the previous two-week timeline.
- July 2024: Under Canada’s Critical Minerals Research, Development, and Demonstration (CMRDD) program, the Minister of Energy and Natural Resources unveiled investments exceeding USD 9 million. These funds are to be directed toward Saltworks Technologies Inc. (Saltworks) and NORAM Electrolysis Systems Inc. (NESI), bolstering British Columbia's battery supply chain. Of the total amount, USD 4,937,500 investment is earmarked for Saltworks to expedite the conversion of Canadian lithium brine into lithium battery precursors. Saltworks announced plans to achieve this through two innovative technologies it has pioneered. The initiative not only promises quicker access to lithium resources but also aims to mitigate investment risks within Canada's brine-to-battery lithium industry.
North America Industrial Battery Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Market Size and Demand Forecast in USD, Till 2029
- 4.3 Battery Price Trends and Forecasts, By Major Technology Type, Till 2029
- 4.4 Recent Trends and Developments
- 4.5 Government Policies and Regulations
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4.6 Market Dynamics
- 4.6.1 Drivers
- 4.6.1.1 Declining Costs of Lithium-ion Batteries
- 4.6.2 Restraints
- 4.6.2.1 Lack of Prominent Raw Material Reserves Required for Local Production
- 4.7 Supply Chain Analysis
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4.8 Porter's Five Forces Analysis
- 4.8.1 Bargaining Power of Suppliers
- 4.8.2 Bargaining Power of Consumers
- 4.8.3 Threat of New Entrants
- 4.8.4 Threat of Substitute Products and Services
- 4.8.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Technology
- 5.1.1 Lithium-ion Battery
- 5.1.2 Lead-acid Battery
- 5.1.3 Other Technologies (Nickel Cadmium Battery, Nickel Metal Hydride, Zinc Carbon, etc.)
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5.2 Application
- 5.2.1 Forklift
- 5.2.2 Telecom
- 5.2.3 UPS
- 5.2.4 Other Applications
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5.3 Geography
- 5.3.1 United States
- 5.3.2 Canada
- 5.3.3 Rest of North America
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
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6.3 Company Profiles
- 6.3.1 C&D Technologies Pvt. Ltd
- 6.3.2 East Penn Manufacturing Company Inc.
- 6.3.3 EnerSys
- 6.3.4 Exide Industries Ltd
- 6.3.5 GS Yuasa Corporation
- 6.3.6 Leoch International Technology Limited Inc.
- 6.3.7 Panasonic Holding Corporation
- 6.3.8 Saft Groupe SA
- *List Not Exhaustive
- 6.4 List of Other Prominent Companies (Company Name, Headquarter, Relevant Products & Services, Contact Details, etc.)
- 6.5 Market Ranking Analysis
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
North America Industrial Battery Industry Segmentation
Industrial batteries are electrochemical devices that convert higher-level active materials into an alternate state during discharge. They are designed to last far longer than consumer batteries and are used in more challenging environments. These batteries are made for two general applications: float (or standby) duty and deep cycling (especially traction batteries for forklift trucks, etc.).
The North American industrial batteries market is segmented by technology, application, and geography. By technology, the market is segmented into lithium-ion batteries, lead-acid batteries, and other technologies (nickel cadmium, nickel metal hydride, zinc carbon, etc.). By application, the market is segmented into forklift, telecom, UPS, and other applications. By geography, the market is segmented into the United States, Canada, and the Rest of North America. For each segment, the market size and forecasts have been done based on value (USD).
Technology | Lithium-ion Battery |
Lead-acid Battery | |
Other Technologies (Nickel Cadmium Battery, Nickel Metal Hydride, Zinc Carbon, etc.) | |
Application | Forklift |
Telecom | |
UPS | |
Other Applications | |
Geography | United States |
Canada | |
Rest of North America |
North America Industrial Battery Market Research FAQs
How big is the North America Industrial Battery Market?
The North America Industrial Battery Market size is expected to reach USD 8.81 billion in 2025 and grow at a CAGR of 16.44% to reach USD 18.87 billion by 2030.
What is the current North America Industrial Battery Market size?
In 2025, the North America Industrial Battery Market size is expected to reach USD 8.81 billion.
Who are the key players in North America Industrial Battery Market?
Exide Industries Ltd, GS Yuasa Corporation, East Penn Manufacturing Company Inc., EnerSys and Panasonic Holding Corporation are the major companies operating in the North America Industrial Battery Market.
What years does this North America Industrial Battery Market cover, and what was the market size in 2024?
In 2024, the North America Industrial Battery Market size was estimated at USD 7.36 billion. The report covers the North America Industrial Battery Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the North America Industrial Battery Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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North America Industrial Battery Market Research
Mordor Intelligence provides a comprehensive analysis of the industrial battery sector. We leverage decades of expertise in manufacturing battery research and consulting. Our extensive coverage includes various technologies such as industrial lithium battery, industrial lead acid battery, and industrial nickel cadmium battery systems. The report offers detailed insights into industrial power solution implementations across North America. It examines both traditional and emerging industrial energy storage technologies.
The analysis delves into crucial applications, including industrial forklift battery systems, industrial UPS battery installations, and industrial backup power solutions. Stakeholders gain valuable insights into industrial power storage trends, industrial deep cycle battery developments, and industrial backup battery innovations. The report, available as an easy-to-download PDF, provides a detailed examination of industrial lithium ion battery advancements and their impact on various sectors. Our research assists decision-makers in optimizing their industrial energy storage strategies while navigating technological transitions in the rapidly evolving industrial power landscape.