Home Energy And Power Gel Battery Market Size, Segmentation and Regional Analysis Report 2031

Gel Battery Market Size, Share & Trends Analysis Report By Type (2V, 6V, 12 V), By Applications (Electric Mobility, Energy Storage and Distribution, Telecommunication, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Report Code: SREP54286DR
Last Updated : 02,Jan 2024
Author : Straits Research
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Market Overview

The global gel battery market size was valued at USD 2,115.20 million in 2022. It is projected to reach USD 3,116.42 million by 2031, growing at a CAGR of 4.40% during the forecast period (2023-2031). Factors such as easy recyclability of valve regulated lead acid (VRLA) batteries and expanding data centers, significantly drives the gel battery market demand by 2030.

The gel battery is a type of valve-regulated lead-acid (VRLA) battery. It is flexible and does not need any maintenance. Gel batteries give off less pollution and can be used in places with little airflow. The silica is part of the gel battery's electrolyte. It has a lower recharge voltage than other types of lead-acid batteries. Gel batteries are popular because they don't need much maintenance, don't leak, work well in a wide range of temperatures, don't rust at the terminals, and so on. But the availability of alternatives and people's dislike of being overcharged are two things that are expected to slow market growth during the forecast period.

 


Market Dynamics

Global Gel Battery Market Drivers:

Easy Recyclability of Valve Regulated Lead Acid (VRLA) Batteries

One type of valve-regulated lead-acid (VRLA) battery is the gel battery. Compared to lithium-ion batteries, VRLA batteries are simple to recycle. Compared to lithium-ion batteries, VRLA batteries are less expensive to dispose of. Gel batteries recycle more frequently than lithium-ion batteries, making them more environmentally beneficial. Lithium-ion batteries are still a relatively new technology and the equipment required to recycle them is still being developed, making them overpriced or expensive. However, they are not recycled as frequently as gel batteries. However, it is projected that lithium-ion battery recycling will eventually catch up to that of gel batteries as the market for these batteries expands along with it.

Global Gel Battery Market Restraint:

Market Accessibility to Alternatives

Some alternatives to gel batteries on the market include nickel-based batteries, lithium-ion batteries, and absorbent glass matt (AGM) batteries. Long charge times, weight, sensitivity to overcharging, and other drawbacks of gel batteries are a few. As a result, some consumers are switching from gel batteries to lithium-ion, nickel, and zinc-based batteries. The failure of gel batteries to provide the best performance drives the demand for the batteries, as mentioned above. Lithium-ion batteries have been shown to outperform gel batteries in terms of charging, capacity, and efficiency, except for cost and recycling considerations. It has been well established that lithium-ion batteries have a high energy density, meaning they can store more energy.

Global Gel Battery Market Opportunities:

Expanding Data Centers

Due to their high power-to-weight ratio and solid current surge, lead-acid batteries are frequently used in such data centers since they can handle the significant energy output from high internet traffic. Lead-acid batteries with valve regulation are typically favored in data centers because they are notorious for their erratic power supply. Companies worldwide are growing their data centers to handle varied data complications as the need to extend the edge of the internet becomes more evident. The number of hyperscale data centers is rapidly growing, especially in China and the United States. Thus, the demand for VRLA batteries may increase due to the construction of many new data centers in the upcoming years. Therefore, the proliferation of data centers during the projected period will likely present favorable growth possibilities.

 

Study Period 2019-2031 CAGR 4.40%
Historical Period 2019-2021 Forecast Period 2023-2031
Base Year 2022 Base Year Market Size USD 2,115.20 Million
Forecast Year 2031 Forecast Year Market Size USD 3116.42 Million
Largest Market Asia Pacific Fastest Growing Market Europe
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Regional Analysis

Asia-Pacific Dominates the Global Gel Battery Industry

The global gel battery market share is divided into four regions: North America, Europe, Asia-Pacific, and LAMEA. 

Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 4.80% during the forecast period. The most prominent geographical market for gel batteries worldwide, Asia-Pacific, accounted for around 39.9% of the total share in 2019. China, India, Japan, and others play a significant role in the Asia-Pacific region. High automobile production and sales, increasing industrialization, an increase in population, and a rise in the need for UPS systems are some elements promoting this region's growth. The telecom industry is a growing source of gel battery revenue. The automobile industry's electric vehicle market is increasing to lower carbon footprints. Regarding economic growth, Asia-Pacific is still a developing region and is generally price-sensitive.

Europe is expected to grow at a CAGR of 3.85% during the forecast period. Germany, France, Italy, Spain, the U.K., and the rest of Europe are all included in the analysis of Europe. Germany is one of the nations that have been luring investments for the construction of battery manufacturing plants from other nations across the world. This has heightened competitiveness among all battery types, including Li-ion, gel, and absorbed glass matte batteries. Additionally, Germany has seen a surge in the use of solar energy. Valve-regulated lead acid (VRLA) battery manufacturers now have attractive opportunities thanks to this aspect. Europe has been actively participating in the government's mandated renewable targets as part of its legislative strategy.

The U.S., Canada, and Mexico are all included in the analysis of North America. Due to various factors, including a firmly established consumer base in the renewable energy sector and significant competitors in the U.S. and Canada, North America has a substantial impact on the industry. Gel battery market growth is anticipated to be hampered by the region's adoption of lithium-ion batteries. Significant gel battery producers like C&D Technologies, Exide Technologies, and others are essential factors in the growth of the North American gel battery market. These businesses concentrate on product development, which releases sophisticated gel batteries on the market.

Brazil, Saudi Arabia, the United Arab Emirates, South Africa, and the rest of LAMEA are all examined. Brazil has one of the fastest expanding economies in the world due to the expansion of numerous industries, including telecommunications, energy and distribution, and others. This element will produce attractive chances for gel batteries in the upcoming years. Although LAMEA had the smallest market share in 2019, the area has considerable growth potential as we advance. Due to price-sensitive behavior and subpar economic performance in some countries, consumers in the region tend to favor cost-competitive energy sources. Due to this, lead-acid batteries are preferred over alternatives like lithium-ion batteries.

 

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Segmental Analysis

The global gel battery market is segmented by type and application.

Based on this, the global gel battery market is bifurcated into 2V, 6V, and 12V.

The 12V segment is the highest contributor to the market and is estimated to grow at a CAGR of 4.50% during the forecast period. Wheelchairs, golf carts, other light traction devices, automatic guided vehicles, hand pallet trucks, railway rolling stock applications, motorcycles, scooters, power sport vehicles, mobility scooters, and other devices all employ 12V gel batteries. Due to its widespread acceptance in many applications, such as energy storage and distribution, communications, broadband, and others, it held a 43.8% market share in 2019. Due to its qualities, including excellent retention time, extended service life, ease of handling, lack of distilled water addition, and others, it is used in the applications mentioned above.

There are several uses for 2V gel batteries, including in telecommunications equipment, power stations, solar-powered sites, uninterruptible power supplies, renewable energy initiatives, power generation and distribution, and power stations. Deep cycle applications and backup use of 2Vgel batteries are typical when longer-term performance is needed. These battery types were created to achieve maximum capacity in constrained locations. Due to their extremely low gas emissions, they also have the advantages of conventional vented batteries with positive plates while also requiring less maintenance.

Numerous products, including rail, golf, electric vehicles, communications, toys, floor scrubbers, cleaning equipment, and other items, employ 6V gel batteries. Due to its widespread use in industries including telephony and electric vehicles, the 6V gel battery segment amassed a 36.8% market share in 2019. Due to its components and design, higher voltage capacity, extended use, and slower discharge rate are used in the abovementioned applications.

Based on application, the global gel battery market is bifurcated into electric mobility, energy storage and distribution, telecommunication, and others.

The electric mobility segment owns the highest market and is estimated to grow at a CAGR of 4.20% during the forecast period. Gel batteries are used in electric mobility applications, including power sports vehicles, golf carts, autonomous guided vehicles, hand pallet trucks, wheelchairs, and electric mobility scooters. During the projected period, developing regions are anticipated to see a significant increase in the penetration of electric scooters. This aspect might open up the profit potential for gel batteries in emerging markets. Electric scooters are more prevalent in developed regions like North America and Europe. Compared to other places, Europe has accepted electric vehicles very swiftly. The market share for gel batteries in European electric vehicles is 30.4%.

Gel batteries have many uses, including renewable energy projects like solar and wind turbine units, power plants, locations with unstable grids, wind and solar power in hostile conditions, and more. Additionally, gel batteries are utilized in uninterruptible power supplies, automatic solar gates, and power generation and distribution. In areas like Asia, solar renewable energy projects have seen significant expansion. The need for gel batteries in the region has been spurred by China's and India's growing reliance on solar energy.

Community access television (CATV)/broadband, cleaning devices, clocks, elevators, emergency power supplies (skyscrapers), marine, medical equipment, toys, floor scrubbers, and other items are alternative uses for gel batteries. Due to the development in demand for broadband, gel batteries saw an increase in demand in the Asia-Pacific area. Due to the expansion of the commercial sectors, broadband has seen notable growth throughout the Asia-Pacific region (i.e., the I.T. sector, database companies, and others). Development in the retail industry and a young population have led to increased broadband use, particularly in nations like India.

 

Market Size By Type

Market Size By Type
  • 2V
  • 6V
  • 12 V

  • List of key players in Gel Battery Market

    1. Exide Technologies
    2. BSB Power Company Limited.
    3. Power-Sonic Corporation
    4. Leoch International Technology Limited Inc.
    5. Storage Battery Systems LLC
    6. Canbat Technologies Inc.
    7. C&D Technologies Inc.
    8. B.B. TECH (Changsha) Co.
    9. JYC Battery Manufacturing Co. Ltd.
    10. Vision Group

    Gel Battery Market Share of Key Players

    Gel Battery Market Share of Key Players

    Recent Developments

    • August 2022- MIT researchers created new low-cost battery designs using inexpensive components. The innovative battery architecture aids in delivering affordable backup storage for renewable energy sources by using aluminum and sulfur as its two electrode materials and a molten salt electrolyte in between.
    • January 2022- BYD and FAW were preparing to build a battery manufacturing plant with a 45 GWh annual capacity in northern China. FAW FinDreams New Energy Technology, a joint company between BYD and FAW, was founded with a registered capital of 140 million euros. 51% of the joint venture is owned by BYD, with the remaining 49% by FAW Group.

    Gel Battery Market Segmentations

    By Type (2019-2031)

    • 2V
    • 6V
    • 12 V

    By Applications (2019-2031)

    • Electric Mobility
    • Energy Storage and Distribution
    • Telecommunication
    • Others

    Frequently Asked Questions (FAQs)

    How big is the gel battery market?
    The global gel battery market size was valued at USD 2,115.20 million in 2022. It is projected to reach USD 3,116.42 million by 2031, growing at a CAGR of 4.40% during the forecast period (2023-2031).
    Europe has the highest growth rate in the gel battery market.
    Key verticals adopting the gel battery market include: Exide Technologies, BSB Power Company Limited., Power-Sonic Corporation, Leoch International Technology Limited Inc., Storage Battery Systems, LLC, Canbat Technologies Inc., C&D Technologies, Inc., B.B. TECH (Changsha) Co., JYC Battery Manufacturing Co., Ltd., Ltd., and Vision Group.
    Easy recyclability of valve regulated lead acid (VRLA) batteries are the key drivers for the growth of the gel battery market.
    Expanding data centers is one of the upcoming key trends in the gel battery market.


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