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The Latin America Telecommunications Battery Market size is estimated to grow by USD 190.36 million at a CAGR of 8.31% between 2023 and 2028. Market expansion hinges on various factors, including the escalating power consumption in the telecommunications industry, growing emphasis on renewable energy generation, and the surge in data usage. These elements collectively drive market growth, reflecting evolving technological trends and environmental considerations. The rising power consumption in the telecommunications sector underscores the need for efficient energy solutions to support expanding networks and infrastructure. Simultaneously, the increasing focus on renewable energy generation signifies the transition towards sustainable and eco-friendly power sources. Additionally, the rise in data usage highlights the demand for robust infrastructure and energy-efficient solutions to manage growing digital traffic. Thus, the interplay of these factors delineates the landscape for the anticipated expansion of the market, presenting opportunities for stakeholders in the telecommunications and renewable energy sectors. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018-2022.
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The lead-acid battery segment is estimated to witness significant growth during the forecast period. A lead-acid battery is composed of a sponge metallic lead anode, a lead-dioxide cathode, and a solution of sulfuric acid as an electrolyte. A lead-acid battery is predominantly used as a power source in telecommunication applications. The low discharge rate, large electrolyte reserves, resistance to corrosion, and rechargeable properties are some of the characteristics of lead-acid batteries that result in their widespread use in the telecommunications sector.
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The lead-acid battery segment was the largest segment and was valued at USD 235.15 million in 2018. The Latin America - telecommunications lead-acid battery market is expected to witness significant growth owing to the surge in the number of telecom towers in the region. Innovations such as adding carbon value to lead-acid batteries help in increasing their efficiency and overcoming technical drawbacks associated with slow charging, short lifecycle, and maintenance requirements. However, they offer lower energy density than Li-ion batteries. Moreover, a significant number of telecom tower installations in Latin America have been utilizing lead-acid batteries for many years. Technological advances in terms of increased lifecycle, discharge performance, charge acceptance, and reduced costs are driving the growth of lead-acid battery installations in the Latin American telecommunication industry thus driving the growth of the market in focus during the forecast period.
The market witnesses robust growth driven by the need for reliable power solutions in the telecom industry. With a focus on mitigating power outage risks, telecom batteries serve as vital backup power sources for data centers and communication networks, ensuring seamless communication services even in harsh conditions. Advanced battery technology, including lithium batteries, offers long-lasting performance and durability, meeting stringent UL and UN certifications for quality and safety. The rise in smartphones penetration underscores the importance of energy storage devices in sustaining internet connectivity and supporting the evolving needs of the telecom sector in Latin America. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing focus on renewable energy generation is notably driving the market growth. The continuous rise in global energy demand, clean energy initiatives, and subsidies for power generation using sustainable sources are promoting the use of renewable energy sources, such as solar and wind. Moreover, certain major Latin American countries, such as Brazil, Nicaragua, Uruguay, Costa Rica, Mexico, and Chile, are some of the world's highest users of renewable energy. In fact, Latin America generates more than half of its energy from renewable resources. In addition, several countries have introduced benefits, such as incentives, feed-in tariffs, and tax credits, to boost the installation of renewables.
Moreover, telecom companies in Latin America are likely to adopt solar panels on telecom towers to maintain energy sufficiency, which is likely to drive the demand as efficient storage solutions which results in the market expansion. Therefore, the increasing focus on renewable energy generation is expected to drive the growth of the market during the forecast period.
High operating costs of telecom towers are an emerging trend shaping the market growth. Energy costs involved in diesel generators account for around one-third of the overall operating expenditure (OPEX) in telecom towers. The usual operational expenditure incurred on grid-based telecom towers could be two-fifths lower than that on diesel-based generator sets. Battery maintenance in telecom towers located in remote areas is quite challenging, as these towers require continuous monitoring. The high operating costs in telecom towers are expected to pose a major hindrance to the growth of the market. Thus, original equipment manufacturers (OEMs) of batteries for the market need to come up with highly efficient batteries that can minimize maintenance costs and OPEX.
However, the installation of high-efficiency batteries, such as Li-ion and lead-acid batteries, has advantages in terms of the power-weight-volume ratio. Also, it gives them a long lifespan. Therefore, the switch to batteries for critical power supply is driving the growth of the market during the forecast period.
The declining costs of lithium-ion batteries are a significant challenge hindering market growth. Lead-acid batteries are preferred to lithium-ion batteries mainly because of their low cost. In addition, lead-acid batteries can provide a high burst of instantaneous power that is required for cranking applications. However, lithium-ion batteries offer several advantages over lead-acid batteries. Lithium-ion batteries can offer superior performance, owing to their advantages, such as higher current density, longer power-holding capacity, and longer shelf life, when compared with lead-acid batteries.
Consequently, they are witnessing higher preference in the telecommunications sector. Therefore, the reduced cost of lithium-ion batteries is expected to hamper the profitability of companies, which will, subsequently, have a negative impact on the market. Such factors are expected to hinder the market growth during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Accumulatorenwerke HOPPECKE Carl Zoellner and Sohn GmbH - The company offers telecommunications batteries such as grid Xtreme VR, grid power FNC, and grid Xtreme VR green series.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
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In the market, ensuring a reliable backup power source is paramount for maintaining seamless operations in the face of power outage. VRLA batteries, certified with UL and UN certifications, offer long-lasting performance and reliability, especially in electric utility applications and extreme temperatures. With the advent of 5G and progressive network densification, demand rises for batteries with enhanced performance and battery integrity. Green telecom towers leverage battery technologies like lithium ion batteries and solar power systems to address environmental concerns while optimizing efficiency and space utilization. The market responds to the increasing penetration of smartphones and Internet of Things (IoT) devices, driving investments in telecom infrastructure and advancements in battery technologies despite regulatory challenges.
Furthermore, in the market, reliability and longevity are paramount. Batteries with UL and UN certifications assure quality and safety, enduring high temperatures and standard conditions while maintaining performance over their life cycle. Lead-acid and lithium-ion batteries dominate, offering options from low capacity to high capacity, tailored to diverse telecom needs. Their efficient use of space helps minimize air conditioning and cooling costs, crucial in the region's climate. As telecom infrastructure investments surge, demand for long-lasting solutions grows, ensuring uninterrupted connectivity and powering the advancement of telecommunications in Latin America. The market for telecom battery solution is increasingly prioritizing long lasting computer batteries with UL certification and UN certification over regular options for enhanced reliability and safety compliance.
MarketScope |
|
Report Coverage |
Details |
Page number |
162 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.31% |
Market Growth 2024-2028 |
USD 190.36 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.85 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accumulatorenwerke HOPPECKE Carl Zoellner and Sohn GmbH, BYD Co. Ltd., C and D Technologies Inc., East Penn Manufacturing Co. Inc., EnerSys, ETERNITY TECHNOLOGIES FZ LLC, Exide Technologies, GS Yuasa International Ltd., Hitachi Ltd., Leoch International Technology Ltd., LG Chem Ltd., Panasonic Holdings Corp., Polarium Energy Solutions AB, Power Sonic Corp., Resonac Holdings Corp., Samsung SDI Co. Ltd., Shandong Sacred Sun Power Sources Co. Ltd., TotalEnergies SE, Victron Energy BV, and Zhejiang Narada Power Source Co. Ltd. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Capacity
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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