Batteries for Material Handling Equipment Market to See 5% Annual Growth Through 2024

A push for automation and connected devices, along with consumer demand for faster product delivery are two factors driving growth in the North American market for batteries, charging and exchange systems for material handling equipment, according to a report by BCC Research. 

The market expects to see a compound annual growth rate (CAGR) of 5% through 2024 when it could be worth $3 billion.

Research Highlights

• Industrial battery chargers' market for consensus scenario should grow from $189 million in 2019 to $310 million by 2024 with a CAGR of 10.4% for the period of 2019-2034. 
• Currently, approximately 20% of industrial battery users employ battery smart management systems.
• The adoption rate for lithium-ion batteries in the material handling market in 2018 was 2.5%

“Costs for batteries will be a factor,” writes BCC Research analyst Stephen Schey. “A fast-charge battery may add up to 10% to the cost of the lead-acid battery either in a battery supplied from the manufacturer or in converting existing batteries. Lithium batteries are the most costly of available batteries, but continued technology developments spurred by the plug-in electric vehicle (PEV) market are expected to continue to drive down these costs.

“On the other hand, the expected lifetime of a lithium battery is frequently three to four times that of lead-acid. However, there is little actual experience with long-term use of lithium-ion in warehousing operations. Up-front costs for lithium-ion may be higher, but long-term benefits may be achieved.”

The Role of iIoT

The explosion in the ability of devices to send and receive data creates opportunities for more informed decision making and enables automated actions, the report adds. Just as big data is supporting other industries, the industrial internet of things (iIoT), or the wireless connected devices specific to the industrial sector, has great potential for quality control, sustainable practices, supply chain support and efficiency. iIoT relies on machine-to-machine (M2M) communications and data exchange. M2M technology enables warehouse software systems to manage automated equipment and robotic lift trucks to work with other equipment such as conveyors.