The Gel Battery Market Projected to Grow at a CAGR of 4.0% and Generate a Revenue of $2,776.9 Million by 2028 - Research DiveDownload Sample Reports Overview
The global gel battery market is predicted to be valued at $2,776.9 million by 2028, surging from $2,069.5 million in 2020, at a noteworthy CAGR of 4.0%.
Impact Analysis of COVID-19 on the Gel Battery Market
The coronavirus outbreak has led to huge losses and uncertainties for functioning of different industries. Gel battery market has experienced negative impact due to lockdown imposed across various countries and social distancing norms during which only essential activities were permitted. This led to closure of gel battery manufacturing units. In addition, import-export restrictions led to delay in the availability of raw materials such as silica, lead, cathode, anode, electrolyte, and others required for the manufacturing of gel battery. Many workers working in the gel battery industry lost their jobs and manufacturers faced huge economic turmoil. The social distancing norms have affected the smooth functioning of businesses and increased the fear of spread of COVID-19 virus among public. Closed borders and the ban on travel and delivery of goods have drastically reduced the demand for gel battery as the applications where gel battery is used such as race cars, electric vehicles, sailboats, golf cars, and others are greatly hit by the pandemic.
Government initiatives and support in the form of incentives to support the battery manufacturers during pandemic are introduced. For instance, as stated on September 26, 2020, in the Time of India, popular news platform, government plans $4.6 billion incentives for battery manufacturers to support the electric vehicle manufacturing process. This will promote the adoption of electric vehicles and reduce the dependency on oil. In addition, on January 27, 2021, the European Commission, approved $3.5 billion fund for battery research project. This project will boost the innovation & research in the battery space.
Global Gel Battery Market Analysis
Gel battery market has gained huge popularity owing to increase in demand for solar power systems and other renewable sources of energy. Gel battery is widely used in solar power plants as it is maintenance free and there is no need to add water as it uses gel as an electrolyte. Also, these batteries are safe to operate as there is no liquid inside and can be installed sideways as well. This battery has long cycle life as it has low self-discharge that enhances the shelf life of the battery. Also, gel battery keeps the electrolyte present inside it steady which endures long standby life to the battery. Furthermore, gel battery has high heat tolerance, and it is good for extreme weather conditions. Low inner resistance facilitates quick discharging and charging for better performance in solar batteries. Hence, gel battery is used in solar power plants as they offer shock & vibration resistance and has very low evaporation rate, driving the market growth.
Gel batteries need to be charged at a slower rate compared to lead acid battery. In addition, after charging is complete one must stop charging, as overcharging can develop voids with its electrolyte. The extent of damage caused due to overcharging of gel battery cannot be repaired and the battery may lose its charging capacity. These factors are estimated to restrain the market growth during the forecast period.
Gel battery is best suited for deep cycle applications and their life span ranges from 500 to 5000 cycles which is estimated to generate huge growth opportunities during the forecast period. The gel battery is used in various deep cycle and deep discharge applications such as electronics, sailboats, floor scrubbers, golf cars, personnel carriers, portable power, and others. In addition, gel battery is used in different standby and emergency backup applications such as cable TV, uninterrupted power systems (UPS), emergency lighting, computer backup, and others. As gel battery has minimal corrosion, it is widely used in sensitive electronic equipment. These batteries do not produce hydrogen smoke. Hence, there is no need to place them in special ventilation areas during charging which is estimated to generate excellent growth opportunities in the upcoming years.
Global Gel Battery Market, Segmentation
The global gel battery market is segmented based on type, application, and region.
The type segment is further classified into 2V, 6V, and 12V. Among these, the 12V sub-segment is anticipated to have a dominant market share and shall surpass $1,316.6 million by 2028, with an increase from $962.3 million in 2020. Most of the cars, race vehicles, watches, televisions, refrigerators, and other electrical appliances operate on 12V. The 12V power systems require only one battery and they work well for short wire runs and low-power applications. With the help of 12V system you intend to run appliances directly from batteries and it is a safer voltage for direct current (DC) circuits compared to any higher operating voltages.
The application segment is further classified into electric mobility, telecommunication, energy storage & distribution, oil & gas, and others. Among these, the energy storage & distribution is anticipated to have a dominant market share and shall surpass $815.0 million by 2028, with an increase from $596.2 million in 2020. The gel battery is used in energy storage & distribution such as in renewable energy sources, as the battery requires low maintenance and is spill proof. These batteries offer versatile energy storage option for remote or confined installations. For instance, the gel battery developed by Rolls Battery, the company that offers premium deep cycle batteries, offers superior quality gel battery lines that have excellent life cycle and are backed by an industry-leading warranty.
The gel battery market for the Asia-Pacific region is projected to witness rapid growth. This region’s market generated a revenue of $674.6 million in 2020 and is projected to reach up to $935.8 million by 2028. Asia-Pacific countries such as South Korea and China are largest manufacturers as well as exporters of gel battery to the world. In 2020, South Korea exported lead-acid batteries worth $16.8 billion, whereas China exported lead-acid batteries worth $7.1 billion in 2020. Lead acid batteries include all battery types such as gel battery, flooded battery, absorbent glass mat (AGM), and others. JYC Battery Manufacturer Co., Ltd. is the largest gel battery manufacturer in China. JYC has developed gel series battery with special separators and silica gel that immobilizes the electrolyte present inside the battery. This enhances the battery performance and life cycle at different temperature range.
Key Players in the Global Gel Battery Market
Some of the leading gel battery market players are –
- Exide Technologies
- BSB Power Company Limited
- Leoch International Technology Limited Inc.
- Power Sonic Corporation
- Exponential Power
- Canbat Technologies Inc.
- C&D Technologies, Inc.
- B.B. Battery
- Vision Group
- JYC Battery Manufacturer Co. Ltd.
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Gel Battery Market:
- Bargaining Power of Suppliers: The gel battery market manufacturers depend on various suppliers for the purchase of raw materials such as silica gel, lead, and others. Hence, suppliers can use their bargaining power to gain high profits from the gel battery manufacturers.
Thus, the bargaining power of suppliers is high.
- Bargaining Power of Buyers: In this market, the concentration of buyers is moderate due to the presence of alternate batteries such as flooded lead acid batteries, lithium-ion, and others.
Thus, buyer’s bargaining power will be moderate.
- Threat of New Entrants: The threat of new entrants is low as huge capital investment is required to setup gel battery manufacturing plant. Also, manufacturers have to adhere to government regulations such as import-export tax, regulations on harmful emissions, and others.
Thus, the threat of the new entrants is low.
- Threat of Substitutes: There are various substitute batteries available in the market such as lithium-ion battery which have gained huge popularity owing to increase in adoption of electric vehicles globally.
Thus, the threat of substitutes is high.
- Competitive Rivalry in the Market: The gel battery market manufacturers are focusing on enhancing their production capacity, introducing new features to enhance the life cycle of gel battery, and others.
Therefore, competitive rivalry in the market is moderate.