Railway Battery Market Analysis | 2022-2027

“The Railway Battery Market is likely to grow at a significant CAGR of 2.4% in the long run to reach US$ 0.5 billion in 2027”.

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Market Dynamics

Introduction

After being tested in planes, helicopters, and container ships, battery power is now making its way to trains to replace diesel-fuelled generators that have powered locomotives for over a century. The total cost of ownership (TCO) of a battery electric train is significantly lower than that of a diesel-powered train.

Switching to battery-powered electricity will likely reduce greenhouse gas emissions while improving local air quality. These battery-electric approaches promise a cleaner environment, lower rail fuel costs, and fewer premature deaths from air pollution.

Recent Product Developments

Long service life, low maintenance cost, and reduced cost are the indispensable focus areas of the leading players. Some of the recent product developments are:

• EnerSys’ NexSys PURE Thin Plate Pure Lead (TPPL) batteries help reduce the unexpected operating costs associated with conventional lead-acid batteries.
• Hawker Maintenance-free batteries by EnerSys.
• SCiB™ rechargeable Li-ion batteries by Toshiba Corporation, deliver both high energy and high power. They are also suitable as a backup power source that drives a train in case of emergency because of their safety and durability.

Recent Market JVs and Acquisitions

Some companies in the battery market are performing mergers & acquisitions to quickly gain the leading position and tap growing opportunities in this rapidly expanding market. For instance;

• In 2019, EnerSys acquired N Holding AB (Parent company of NorthStar) for US$ 182.5 million. The acquisition expanded the former’s ability in TPPL batteries.
• In 2016, the market leader, Saft was bought out by Total Energies for US$ 1.1 billion. This acquisition helped Total Energies to expand its renewable energy business.

COVID-19 Impact

The unexpected outbreak of the pandemic in 2020 dampened the market demand. As a result, there has been a significant drop in demand for batteries across industries. Furthermore, the ongoing supply chain crisis is elevating the industry's challenges. The current battery production in the USA is struggling to keep up with the rising demand. In addition to the lack of manufacturing of li-ion batteries in North America, there is also a shortage of cathode and anode materials, for which the USA is entirely dependent on producers overseas.

The crisis in the battery supply chain paired with the travel restrictions caused major revenue losses to industry stakeholders in the first year of the pandemic (a notable decline of 3.0% in 2019-2020). However, the industry has been gradually rebounding from the year 2021. The growth in the adoption of autonomous and high-speed railways creates ample opportunities for lead-acid and lithium-ion batteries. Furthermore, ardent efforts are being made toward the conversion of diesel trains to battery electric trains to create a cleaner environment and lower fuel costs for railways.

Segments Analysis

By Battery Type

“Lead-acid batteries are likely to remain the most dominant ones in the years to come”. 

The market is segmented into lead-acid batteries, lithium-ion batteries, and nickel-cadmium batteries. Among these battery types, lithium-ion batteries recorded the least decline (2.1%) in 2019-2020 and are also expected to make the fastest recovery during the forecast period. This growth is attributable to the numerous advantages offered by li-ion technology such as high energy density, low self-discharge, and low to minimal maintenance. 

Lead-acid battery, on the other hand, was the segment with the highest sales in 2021. Lead-acid batteries can be used in a wide range of railway applications, such as onboard power supplies and starter batteries.

Key Players

The market is highly populated with the presence of several local, regional, and global players. The following are the key players in the Railway Battery Market (arranged alphabetically)

• Amara Raja Batteries Ltd.
• East Penn Manufacturing Co.
• Enersys
• Exide Technologies, LLC
• GS Yuasa Corporation
• HOPPECKE
• Saft
• Shandong Sacred Sun Power Sources Co., ltd.
• Toshiba Corporation
• Zhejiang Narada Power Source Co., Ltd.

Note: The above list does not necessarily include all the top players in the market.

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Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

What Deliverables Will You Get in this Report?

Research Methodology

• This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s railway battery market realities and future market possibilities for the forecast period. 
• The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances

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