Global Emergency Lighting Battery Market is estimated to be valued at US$ 6.47 Bn in 2024, exhibiting a CAGR of 6.1% over the forecast period (2024-2031). Stricter safety regulations and compliance mandates across industries have increased the demand for emergency lighting systems. Furthermore, large-scale infrastructure modernization programs aimed at making critical facilities like hospitals, data centers more disaster resilient is also driving the need for reliable backup lighting solutions.
Market Dynamics:
Increasing safety regulations: Stringent life and fire safety norms by regulatory bodies have made emergency lighting installations mandatory in several commercial spaces like retail stores, offices, and public buildings. This is a key factor driving the emergency lighting battery market.
Greater emphasis on infrastructure modernization: Most countries are focusing on modernizing their critical infrastructure like hospitals, airports, and utilities through measures like strengthening backup power infrastructure. This provides a thrust to emergency lighting upgrades and replacements. The market is estimated to continue growing steadily due to the rising requirements from such infrastructure development programs.
Government Mandates Requiring Emergency Lighting to Drive Market Growth
Government safety regulations have mandated the installation of emergency lighting in various commercial and industrial facilities. Compliance with these regulations is expected to be a major driver for the emergency lighting battery market. Regulations such as NFPA Life Safety Code 101 in the US and EN 50172 in the EU require emergency lights to be operational for a minimum of 90 minutes in the event of a power outage. This is driving increased demand for high-performance, long-lasting battery packs that can power emergency lights for the stipulated time periods. Manufacturers are developing innovative NiCad, sealed lead-acid and lithium-ion batteries to meet the runtime requirements specified in safety standards.
Increasing Construction of Green Buildings to Boost the Adoption of LED Emergency Lights
The growing emphasis on sustainable and energy-efficient construction is fueling demand for LED emergency lighting solutions. LED lights consume less power compared to traditional incandescent or fluorescent lamps and offer longer lifespan. They are ideal for use in green buildings and establishment certified under the LEED rating system. Most emergency LED lamps can deliver light for 3 hours on NiCad batteries while consuming very little power. Their lower operating costs and maintenance requirements make them an attractive option for commercial real estate owners and developers involved in green construction projects. This growing ‘green’ building trend will continue driving sales of high-performance LED lamps integrated with emergency batteries.
Fluctuations in Metal Prices Pose Challenge for Lead-acid Battery Makers
Lead-acid batteries remain the most commonly used type for emergency lighting applications due to their lower costs. However, they are vulnerable to fluctuations in global metal prices, which can squeeze profits of battery manufacturers. Lead is the major raw material used in the production of traditional flooded or VRLA lead-acid batteries. Its price movements influence the manufacturing cost and impact the margins of players in this industry. Any sudden surge in lead commodity rates can shrink profitability until battery makers pass on increased costs to customers. This inherent volatility associated with lead prices poses a risks to the stability and expansion plans of lead-acid battery suppliers.
Declining Costs Hamper Migration to Advanced Battery Technologies
Despite advantages such as longer lifespan and shorter recharge times, technologies like lithium-ion and nickel-cadmium batteries have seen limited adoption for emergency lighting due to their higher upfront costs compared to entrenched lead-acid batteries. Even as their prices reduce over time, the initial costs remain a hurdle against wide acceptance. As long as lead-acid batteries continue becoming more affordable due to economies of scale and design improvements, buyers might hesitate shifting to modern chemistries that demand a higher capital outlay. This cost barrier poses a challenge for battery companies aiming to drive replacement of traditional lead-acid packs with advanced lithium, NiCad or other emerging energy storage solutions.
Rise of Outdoor Lighting Infrastructure to Unlock New Vertical
Municipalities across major urban centers are massively investing in smart LED street lighting projects to reduce energy expenditure. Coupled with rapid growth of smart cities, this rising Outdoor Lighting market presents a multi-billion dollar opportunity for emergency lighting manufacturers. Outdoor or street lights require efficient, durable and rugged battery backup that can keep them operational in emergencies for the prescribed runtimes. Leading suppliers are developing high-capacity batteries optimized for outdoor applications and the varying climatic stresses. They target to increase sales of their proprietary batteries integrated into LED street light fixtures procured by municipalities and urban planners engaged in ‘smart city’ initiatives globally.
Popularity of Solar Micro-grids Enabling Off-Grid Electrification
In remote rural regions starved of access to centralized electricity networks, solar micro-grids have emerged as a sustainable off-grid electrification solution. They integrate battery energy storage with renewable energy sources like solar PV to provide uninterrupted power for lighting and other needs in electrified villages and towns. The energy storage module, usually large-format lead-acid or lithium batteries, also allows emergency lighting during power outages. This growing popularity of decentralized renewable micro-grids presents an attractive window for battery suppliers to tap the emerging off-grid energy market through partnership with solar project developers and technology providers. It can serve as a new revenue channel in developing economy regions.
Link - https://www.coherentmarketinsights.com/market-insight/emergency-lighting-battery-market-1766
Key Developments:
- In April 2024, EnerSys, a global leader in stored energy solutions for industrial applications, announced that it had finalized an all-cash agreement to acquire Bren-Tronics, Inc., a top manufacturer of portable power solutions for military and defense applications, for $208 million, with the deal expected to close in the second quarter of 2024 pending regulatory approvals and customary closing conditions.
- In June 2023, Duracell, a prominent brand in battery technology, introduced a new range of rechargeable batteries specifically designed for emergency lighting applications, aiming to ensure reliable power solutions during power outages or emergencies.
- In January 2023, Exide Industries Limited, a leading manufacturer of lead-acid batteries in India, revealed plans to expand its manufacturing facility to boost production capacity for emergency batteries, addressing the increasing demand for dependable power solutions in critical situations.
- In November 2022, Schneider Electric, a global leader in energy management and automation, announced a strategic partnership with Signify, the top name in lighting, to incorporate advanced emergency lighting solutions into Schneider Electric's extensive portfolio, enhancing safety and sustainability during power outages or emergencies.
- In August 2021, Saft Groupe S.A., a leading French manufacturer specializing in advanced battery technologies for industrial applications, disclosed its acquisition of a battery technology firm to enhance its product offerings, particularly in the expanding sectors of renewable energy and electric mobility.
Key Player:
Panasonic Corporation, Exide Technologies, Saft Groupe S.A., Duracell Inc., Energizer Holdings, Inc., VARTA AG, Yuasa Battery, Inc., A123 Systems LLC, LG Chem Ltd., Samsung SDI Co., Ltd., Schneider Electric, C&D Technologies, Inc., East Penn Manufacturing Company, Leoch International Technology Limited, and Enersys
