According to reports, the widening demand-supply gap in electricity is powering the stationary industrial battery (SIB) market in India. Delay in the setting up of new power plants due to land unavailability coupled with slow environmental clearances and fuel shortage has led to a surge in SIB installations in the country, as per a recent analysis by Frost & Sullivan.
The market for stationery industrial battery in India is dominated by lead acid batteries while other battery technologies (lithium Ion, flow batteries) are in their early stage. “The demand for back up power is expected to further intensify with growth in IT/IT-enabled services and the banking, financial services and insurance (BFSI) network as well as automated teller machine development, rising automation across business enterprises, and burgeoning enterprise solutions,” Frost & Sullivan said in a recent report.
The focus on renewable energy, especially solar, will drive the need for storage capacity, broadening the potential of the industrial battery market. However, improving awareness among Indian customers regarding alternative storage technologies such as flywheels, fuel cells and ultra capacitors may rein in SIB market potential.
“The slowdown in the Indian economy hindered investment flow in infrastructure, and various e-governance projects, thereby, affecting the SIB market. The uninterruptible power supply and telecom end-user segments, in particular, have witnessed a decrease in demand. Pricing pressures on participants will only increase as new players enter the market and existing suppliers expand operations and diversify product portfolios,” added the report.