DEEP CYCLE BATTERY MARKET, SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Deep Cycle Battery Market, Size and Trends

The deep cycle battery market is estimated to be valued at USD 2.57 billion in 2024 and is expected to reach USD 4.32 billion by 2031, growing at a compound annual growth rate (CAGR) of 7.7% from 2024 to 2031.

Deep cycle batteries are essential for numerous industrial and commercial applications that require long-lasting, low-maintenance energy storage solutions.

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The deep cycle battery market is driven by the rising demand for cleaner energy alternatives and the increasing focus on utilizing renewable energy sources that produce intermittent power like solar and wind energy. As the renewable energy sector continues to expand significantly in the coming years, the demand for deep cycle batteries as an integral part of energy storage infrastructure is also expected to rise substantially. Their ability to provide power over extended periods of time makes them suitable for the agricultural, industrial, marine, RV, and golf cart applications that are incorporating more renewable energy-based solutions.

Growth in Off-grid Electrification

The increasing need for off-grid electrification in rural and remote areas is a major driver boosting the demand for deep cycle batteries. Access to reliable electricity continues to remain a challenge in many developing regions around the world as grid connectivity has failed to keep up with the pace of development. According to the International Energy Agency, over 700 million people worldwide still lack access to electricity with Sub-Saharan Africa being the worst affected region. To bridge this energy access gap, many developing nations are actively promoting off-grid renewable energy solutions especially solar home systems which offer a clean and affordable alternative. Deep cycle batteries which are specially designed for frequent discharge-recharge cycles play a critical role in such off-grid solar power systems by efficiently storing the energy generated from solar PV panels during the day for lighting and appliances use after sunset. Moreover, deep cycle batteries have a longer service life than conventional car batteries making them more suitable for off-grid household power requirements in remote villages and towns not connected to the central grid. The rising roll-out of large-scale off-grid electrification projects across Asia, Africa and Latin America by governments, development agencies and private renewable energy companies is creating steady demand growth for deep cycle batteries.

For instance, in January 2021, KiloVault launched the new 1200 HLX and 1200 CHLX heavy-duty deep-cycle lithium batteries. These batteries, with a capacity of 1,200 Watt-hours, are designed for applications such as marine and RV/camper use, golf carts, medical devices, and off-grid solar energy storage, with the ability to handle continuous charging and discharging currents.

The emergence of new energy storage applications beyond traditional uses in solar home systems and UPS systems is another key driver fueling the demand for deep cycle batteries. With concerns over intermittent renewable energy supply and carbon emission goals, many developed nations are focusing on modernizing their power grids to integrate higher shares of variable renewable energy sources like solar and wind through large-scale energy storage installations. Technical advances are also enabling the use of battery storage in electric vehicles, microgrids, and behind-the-meter residential storage systems. Deep cycle batteries are well-suited for stationary storage applications owing to their ability to charge-discharge hundreds or thousands of times over many years. Additionally, their maintenance-free sealed designs make them suitable for use in indoor energy storage installations unlike flooded lead-acid variants. The uptake of battery storage is growing across many markets driven by factors like declining battery prices, new revenue streams through ancillary power grid services, time-of-use tariff arbitrage, and enhanced grid resiliency. The rapid cost declines witnessed in lithium-ion batteries is also boosting their competitive position versus conventional lead-acid batteries for several grid and residential storage roles.

For instance, on February 7, 2024, the U.S. Department of Energy's Advanced Materials and Manufacturing Technologies Office announced a US$15.7 million funding opportunity to boost the domestic manufacturing of next-generation batteries and energy storage systems.