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    Railway Battery Market Report

    Railway Battery Market Report
    Report code - SR2153 Published On : Oct,2022 No. of Pages: 120
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    Railway Battery Market Size, Share, Trend, Forecast, Competitive Analysis, and Growth Oppo See more...

    Market Highlights

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

    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.

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    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 is creating ample opportunities for both 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. Overall, the railway battery market is likely to rebound at a modest CAGR of 2.4% in the long run to reach US$ 0.5 Billion in 2027.

    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 in reducing 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.

    Market Segments' Analysis

    Segmentations

    List of Sub-Segments

    Dominant and Fastest-Growing Segments

    Battery Type

    Lead-acid Batteries [Flooded, VRLA-Gel, and VRLA-AGM], Lithium-ion Batteries, and Nickel-cadmium Batteries

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

    Lithium-ion batteries are increasingly gaining acceptance in the rail industry.

    Rail Type

    Regular Trains, High-Speed Trains, Metros, Mono Rails & Trams, Locomotive, Rail Coaches, and EMUs.

    Among different trains, metros remain the biggest demand generator for batteries.  

    Region

    North America, Europe, Asia-Pacific, and Rest of the World

    Asia-Pacific, specifically, China, India, and Japan are the rail industry hubs in the region and are creating a mammoth demand for batteries.   

    Based on the battery type, the railway battery 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.

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    Based on the rail type, the market is classified into regular trains, high-speed trains, metros, monorails & trams, locomotives, rail coaches, and EMUs. Metros and high-speed trains are expected to remain the key demand generators of batteries during the forecast period. High-speed and autonomous trains are mostly powered by power lines and are large energy consumers. As a result, a large number of energy-saving and storage systems are used to improve performance.

    In terms of regions, Asia-Pacific is expected to remain the largest and fastest-growing market for railway batteries during the forecast period. Rail expansion in key countries, such as China, Japan, India, and South Korea, is booming. In addition, China and India have some of the world's largest rail networks, and high-speed trains and metro trains are popular modes of transportation in Japan. The rising demand for trains is expected to open up enormous opportunities for battery players in the region. Europe is also likely to create sizeable opportunities in the coming five years, driven by the expansion of the high-speed rail network, stringent emission regulations, and an increase in the region's adoption of lithium-ion battery technology.

    Know the high-growth countries in this report.

    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.

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

    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.

    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. The following are the key features of the report:

    • Market structure: Overview, industry life cycle analysis, supply chain analysis.
    • Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
    • Market trend and forecast analysis.
    • Market segment trend and forecast.
    • Competitive landscape and dynamics: Market share, Product portfolio, New Product Launches, etc.
    • Attractive market segments and associated growth opportunities.
    • Emerging trends.
    • Strategic growth opportunities for the existing and new players.
    • Key success factors.

    The railway battery market is segmented into the following categories. 

    Railway Battery Market, by Battery Type

    • Lead-Acid Batteries
      • (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
      • (Lead-acid Battery Type Analysis: Flooded, VRLA-Gel, and VRLA-AGM)
    • Lithium-Ion (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
    • Nickel-Cadmium (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)

    Railway Battery Market, by Rail Type

    • Regular Trains (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
    • High-Speed Trains (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
    • Metros (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
    • Mono Rails & Trams (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
    • Locomotive (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
    • Rail Coaches (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
    • EMUs (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)

    Railway Battery Market, by Region

    • North America (Country Analysis: The USA, Canada, and Mexico)
    • Europe (Country Analysis: Germany, France, The UK, Russia, and Rest of Europe)
    • Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)
    • Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)

    Report 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

    Custom Research: Stratview research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com

    A Bird's Eye View of the Market

    The railway battery market is estimated to grow at a modest CAGR of 2.4% by 2027, driven by the ongoing transition in the railway industry from diesel trains to battery electric trains to eliminate pollution and lower fuel costs.

    Saft, Amara Raja Batteries Ltd., Toshiba Corporation, Enersys, Exide Technologies, LLC, HOPPECKE, GS Yuasa Corporation, Zhejiang Narada Power Source Co., Ltd., East Penn Manufacturing Co., and Shandong Sacred Sun Power Sources Co., ltd. are the leading players in the railway battery market.

    Asia-Pacific is estimated to remain dominant in the railway battery market in the foreseeable future. Growth in rail expansion in key countries, such as China, Japan, India, and South Korea, is driving the railway battery demand in the region.

    Lithium-ion is estimated to be the fastest-growing battery type in the market in the coming years, owing to many advantages offered by lithium-ion battery technology such as higher energy densities and cycle life, which are well-suited to the needs of the railway industry.

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