It’s been an exciting year for the energy industry. Even though crude oil prices are expected to remain bottomed out until 2017, exciting frontiers such as emerging markets and alternative energy are sparking innovation all over the planet.
Looking up close at the stationary battery market reveals more signs for optimism. The new Research and Markets report “Global Stationary Lead Acid Battery Market 2015-2020″ found that the global SLA market will grow at a rate of 6.7% between 2014 and 2020 as more industries become reliant on stationary battery installations to support their operations.
What’s Driving the Demand for Stationary Batteries?
First, some background. Lead-acid batteries are rechargeable stationary batteries that use lead electrodes with sulfuric acid as an electrolyte. These stationary batteries have the capacity to provide high surge currents, which makes them a cost-effective power source for a variety of applications. Plus, the best sealed lead acid battery requires little to no stationary battery maintenance.
What’s more, the report found that “sealed lead-acid or VRLA batteries have enhanced features such as safe handling capabilities that ensure smooth and effective product functionality during power outages. Though there are limited technological advances in the lead-acid battery market, vendors are introducing new products with enhancements such as longer life and durability.”
Power America Can Depend On: Stationary Batteries Provide Power To the Telecommunications, Oil and Gas, and Utilities Sectors
Utility, oil and gas, and new alternative energy companies all need to remain operational 24/7/365. Unfortunately, life isn’t always so cooperative. During inevitable problems like severe weather events or power outages, stationary battery installations provide a ready source of stand by power. The UPS back up battery and stand by generator installations are increasingly seen as a necessity by a variety of industries.
And nowhere is that more true than the telecommunications industry. Our world now revolves around telecommunications. We use smartphones and digital media to stay connected with friends and family; we use computers all day long at work; and public agencies depend on these tools to keep the country up, running, and ready for anything.
That’s why telecommunications are the largest driver of growth in the SLA market, fueling both new stationary battery installations and lead acid battery replacement sales.
Conclusions: SLAs and Energy Storage Systems Go Green in 2016
Of course, like other areas of the energy sector, stationary batteries are diversifying as people demand environmentally friendly energy storage systems. Global sales of lithium ion energy storage batteries are also growing fast, with sales set to triple from less than $2 billion this year to $6 billion by 2020.
And while concerns over the environmental impact of the standard lead-acid battery has slowed growth in the market, that’s starting to change. This year, more than 98% of all battery lead will be recycled; moreover, the new lead acid battery replacement you buy will contain anywhere from 60-80% recycled lead and plastic. In part thanks to the greening of the energy storage industry, global demand for batteries will hit $132 billion next year.