Analysis of Lithium Ion Battery in Data Centres

Analysis of Lithium Ion Battery in Data Centres
Industry Trends and Insights

Table of Content
1. Executive Summary 3
2. Li-ion Battery Application Status and Requirements 8
3. Data Centre Li-ion Battery Market Size 22
4. Data Centre Li-ion Battery Market Application Scenario Analysis 35
MA3C-18 2
Executive Summary
Return to contents
3
Data Centre Battery Market
Lead Acid Vs Li-ion Batteries
Key Takeaway: Li ion batteries account for 15% of data center battery market in 2020, however this is
expected to increase to 38.5% by 2025
Total Data Centre Battery Market: Lead Acid Vs. Total Data Centre Battery Market: Lead Acid Vs.
Li-ion Revenue Split, 2020 Li-ion Revenue Split, 2025
Li Ion,
15.0%
Li Ion, 38.5%
Lead
Acid, Lead Acid,
85.0% 61.5%
Note: All figures are rounded. The base year is 2020. Source: Frost & Sullivan
4
Data Centre Li-ion Battery Market
Segmentation by Region
Key Takeaway: APAC accounted for the biggest share of Li ion battery market in data centres in
2020 with a share of 39%. China accounted for 13.7% and RoAPAC contributed 25.4%
Total Li-ion Data Centre Battery Market: Revenue Forecast by Region, 2020
ROW,
12.0% North
RoAPAC, America,
25.4% 26.0%
China, Europe,
13.7% 23.0%
RoAPAC = Rest of APAC
5
Segmentation by Industry Type
Key Takeaway: IT and Telecom are the two largest revenue contributors in 2020 with a combined
share of 53.0%. They are also expected to be the fastest growing segments.
Total Li-ion Data Centre Battery Market: Revenue Forecast by Industry, 2020
Others,
17.0% IT, 30.0%
Government,
18.0%
Banking & Telecom,

Financial, 23.0%
12.0%
6
Segmentation by Application Type
Key Takeaway: The enterprise segment dominates the market revenues with 48.0% share in 2020,
followed by hyper-scale cloud segment with 31%.
Total Li-ion Data Centre Battery Market: Revenue Forecast by Application, 2020
Edge , 3.0%
Colocation,
18.0%
Enterprise &
Govt, 48.0%
Hyperscale
Cloud,
31.0%
7
Lithium Battery Application Status and
Requirements
Return to contents
8
Global Li-ion Batteries Market – Trends and Overview
Li-ion Battery Chemistry Overview
Total Li-ion Batteries Market: Demand Total Li-ion Batteries Market: Demand
Breakdown by Chemistry Type, Global, 2020 Breakdown by Chemistry Type, Global, 2025
2020 2025
Others* Others* LCO
NCA 5.0% NCA 3.0% 11.0%
9.0% 9.0%
LCO
34.0% LMO
LMO LFP
11.0%
11.0% 18.0%
NCM
19.0%
NCM
LFP
48.0%
22.0%
LCO—Lithium Cobalt Oxide LMO—Lithium Manganese Oxide
NCA—Lithium Nickel Cobalt AluminiumOxide LFP—Lithium Iron Phosphate
NCM—Lithium Nickel Manganese Cobalt Oxide
• Share of NCM is expected to increase to 48% in 2025, from 19% in 2018, following a shift in battery chemistries by major
manufacturers.
• This is attributed to its better charge life than cobalt, in addition to cost competitiveness. Furthermore, with concerns
surrounding the secure supply of cobalt persisting, the move is expected to be much faster.
*Others include Lithium Titanate Oxide (LTO). Note: All figures are rounded. The base year is 2020. Source: Frost & Sullivan
9
Li-ion Battery Production Overview
Total Li-ion Batteries Market: Battery Production Capacity for Major Participants,
Global 2018, 2020, and 2025
160 150
140
Production Capacity (Gwh)
120 110
105
100
100 90 88 90
80
60 60 60
60 50
40 34 32 32 32 30
15 19
11 13 11
20 10 8 4 5 10
1
0
Companies
2018 2020 2025
10
Li-ion Battery Manufacturing Capacity
Capacity Capacity
in 2018 in 2020 New Capacity
By 2023, 299GWh
capacity will be supplied
by the top 10 Mega
Factories globally.
34 174
GW h GW h
Total Li-ion Batteries Market:
Battery Production Capacity,
China’s battery production is Global, 2018–2020
fostering growth globally. Poland Ochang US
(38GWH)
Michigan Ulsan S. Korea

China
(23GWH)
(108GWH)
Dalian Poland
(5GWH)
China Nanjing
Nevada
By 2021, China is expected to

hold 62% of the global
Tianjin Uyang production capacity. Chinese
manufacturers CATL and BYD
are set to dominate, owing to
the huge domestic demand for
Luoyang xEVs and eBuses in China.
Shenzhen Ningde
Xian
Source: Frost & Sullivan
11
Which Industries are Using Li-ion Batteries?
Industries that use Li Ion batteries are segmented as follows –
• Industrial, including batteries used in fork lifts, drills, telecom, data centres, and other industrial
applications
• Grid and energy storage, including batteries used for back-up power applications by residential,
commercial, and utility customers
• Automotive, including batteries used in EVs
• Consumer electronics, including batteries used in consumer electronics equipment (such as laptops,
mobile phones, and other wireless devices)
Among the industry segments, automotive and industrial dominated the market, with a total share of 70.4% in
2020. The combined share of these 2 segments is likely to increase to 74.2% by the end of 2025, due to
growing inclination towards EVs and industrial applications. The penetration of EVs, including passenger
vehicles, buses, and industrial applications such as cordless drills and forklifts, is expected to provide a
massive impetus for the Li-ion batteries market growth during the forecast period.
Increasing adoption of clean energy technologies, along with a growing demand for energy storage systems
(ESS), is expected to increase the overall contribution of energy storage applications in the total market from
13% in 2020 to 15% by 2025. Consumer electronics contributed to 16.6% of the total market in 2020, this is
expected to come down to 10.8% by 2025.
12
Which Industries are Using Li-ion Batteries? (Continued)
Total Li-ion Battery Market: Revenue Forecast Total Li-ion Battery Market: Revenue Forecast
by Industry, 2020 by Industry, 2025
Consumer Grid &

Energy Consumer Grid &
Electronics, Electronics, Energy
16.6% Storage,
13.0% 10.8% Storage,
15.0%
Industrial,
25.6%
Industrial,
29.2% Automotive, Automotive,
41.2% 48.6%
13
Price Forecast
Key Takeaway: Steady decline in battery price is likelyto be witnessed, with prices to eventually go
below $100 per kWh by 2028.
Total Li-ion Batteries Market: Price Forecast, Global, 2015–2025

CAGR (2018–2025) = (8.2%)
400
350
350
300 273
239
250
Price ($/KWh)
200
190
200 175
161
149
133
150 120
110
100
50
0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Year
Note: All figures are rounded. The base year is 2020 Source: Frost & Sullivan
14
Revenue Forecast
Total Li-ion Batteries Market : Revenue Forecast, 2019–2025
CAGR (2017 – 2025) = 18.2%

140 20.0
19.5
120
19.0
Growth Rate (%)

100 18.5
Revenue ($ ) Billion
80 18.0
17.5
60 17.0
40 16.5
16.0
20
15.5
0 15.0
2019 2020 2021 2022 2023 2024 2025
Revenue 48.61 56.7 66.7 78.7 93.3 110.9 132.5
Growth Rate (%) 16.7 17.6 18.0 18.5 18.9 19.4
Revenue Growth Rate (%)
Note: All figures are rounded. The base year is 2020 Source: Frost & Sullivan
15
What is Driving the Growth of Li Ion Batteries?
Total Li-ion Batteries Market: Key Market Drivers, Global, 2019–2025
Drivers 1–2 Years 3–4 Years 5–7 Years

The automotive sector continues to enhance
growth prospects for Li-ion batteries’ revenue H H H
globally.
Rise in storage applications in the energy sector

H H H
enhances the growth of Li-ion batteries.
Steady decline in Li-ion battery prices boosts
market revenue. H H H
Growth in mobile and computing technologies will

boost Li-ion battery usage in consumer electronics. M H H
Increasing use of Li-ion batteries in industrial

applications drives the market. M M M
Impact Ratings: H = High, M = Medium, L = Low
16
Global Hotspots
Total Li-ion Batteries Market: Hotspots, Global, 2019

Poland is emerging as a China will
More than €100 billion has been strategic destination and continue to be
invested in Europe as of 2018, and the already boasts a Li-ion battery the key
EU Commission expects another production capacity of destination for
€50 billion in funding to be self- 7–8 GWh. Li-ion batteries.
sufficient in Li-ion battery production. Eastern China
accounts for
more than 75%
of the country’s
Tesla’s Giga Factory in the United production
States is likely to be the world’s capacity.
largest battery plant, with an annual India’s expected
capacity of 35GWh. requirement
of lithium is likely to
be 350,000 tonnes
per year.
Chile has the highest reserves by far

(7.5 million tonnes) and the highest Australia leads the world in lithium
production per annum (8,800 production, extracting lithium from
tonnes). traditional hard-rock mines and
exporting a proportion of it to China
and other Asian countries.
17
Global Li-ion Batteries Market
Key Benefits of Li-ion Batteries
 Enhanced
 Longer Life Charge/discharge
cycles
 Less Weight
 Lower total cost of
 Smaller Size ownership
 Higher Energy and  Reduced cooling
Power Density Benefits costs
of Li-ion  Faster Recharge

Batteries
 Less maintenance  Enhanced Shelf Life
 Greater sustainability  Improved Reliability

and Availability
 Higher Shelf Life
Further Reduces  Greater Sustainability
Energy Costs
18
Li-ion Batteries in Data Centres
Why do data centres need Li-ion batteries?
Long Cycle Life

Li-ion batteries have a far longer cycle life than lead-acid batteries; Li-ion
batteries allows for more charge/discharge cycles without degrading the battery.
Long Float Charging Life

The float charging life of Li-ion batteries is more than twice that of lead-acid
batteries; this makes them last 2 to 3 times longer than lead-acid batteries,
avoiding the need replacement within the 10 - 15 year life cycle of the battery.
High Discharge Efficiency, Low Capacity Loss in Fast Discharge

Li-ion batteries are highly suited for data centres that require the discharge of
energy at a high rate, in a short span of time.
High Energy Density, Small Footprint

Li-ion batteries offer high energy density which makes them approximately 70%
lighter and smaller than lead-acid batteries. They are preferred in scenarios with
limited space.
Lower cost of operations (lower TCO)

Li-ion batteries offer long-term savings in reduced operating costs, resulting in a
lower TCO; they offer 20 to 40% lower TCO compared to lead-acid batteries.
Source: Frost & Sullivan.
19
Why do data centres need Li-ion batteries?
Reduced Risk
Li-ion batteries require fewer refreshes, which reduces the risk of incidents
during battery replacement work; thus increasing reliability and availability.
Faster Recharge
Li-ion batteries take significantly less time to charge when compared to lead-
acid batteries. Typically, li-ion battery can be fully recharged in about two hours,
whereas lead-acid batteries take 10 – 12 hours for thesame.
Reduced Cooling Costs

Li-ion batteries are designed to operate safely at higher temperatures with much
less degradation than lead-acid batteries and hence reduce cooling costs .
Higher Shelf Life Further Reduces Energy Costs

The higher shelf life of Li-ion batteries enables data centre operators to avoid
trickle charging the batteries during lengthy construction projects. Much less
energy is used to maintain battery charge as well during normal operations.
Greater Sustainability
Li-ion batteries do not contain hazardous chemical materials and are
increasingly easier to recycle.
20
Customer Concerns About Li-ion Batteries in Data Centres
Shorter Track
Initial Cost Reliability Compatibility
Record
One of the primary Reliability is one of the The other concern for Data centre operators
concern for data centre bottlenecks in the data centre operators is who are considering to
operators regarding Li- development of lithium- pertaining to the relatively replace their existing
ion batteries is the ion batteries to large- shorter track record of Li- battery string with Li-ion
significantly higher initial scale energy storage ion battery development are concerned if their
costs. Li-ion batteries are technologies. Generally, in data centres. existing UPS system is
typically 1.3 to 2 times the reliability problems of compatible with Li-ion
more expensive than lithium-ion batteries are Data centre operators technology.
lead-acid batteries. combustion or even display a certain level of
explosion. skepticism towards They are concerned if the
On the other hand, Li-ion deploying new techno- installed UPS system will
battery prices have been The root causes of these logy that does not have operate property with Li-
reducing steeply and is problems are internal enough data to prove ion batteries as the
expected continue in the short circuits inside the tangibility.Li-ion is charging circuit and
future as well, making batteries and internal perceived to be a controls for Li-ion differ
them a viable option. thermal runaway caused relatively new, evolving from lead-acid batteries.
This trend is expected to by external factors such technology, with still a They feel that significant
offset the concern on as overcharge, squeeze, few unknowns. This hardware and embedded
initial cost. puncture, and drop. makes them nervous and software upgrades may
uneasy to deploy. be required.
21
Data Centre Li-ion Battery Market Size
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22
Total Data Centre Battery Market Size (Li-ion + Lead Acid)
Revenue Forecast
Total Data Centre Battery Market: Revenue Forecast, 2020–2025
CAGR (2017 – 2025) = 8.7%

1,600.0 12.0
1,400.0
10.0
Growth Rate (%)

1,200.0
Revenue ($ Million)
8.0
1,000.0
800.0 6.0
600.0
4.0
400.0
2.0
200.0
- 0.0
2020 2021 2022 2023 2024 2025
Revenue 909.0 977.4 1,056.7 1,148.4 1,254.7 1,378.1
Growth Rate (%) 7.5 8.1 8.7 9.3 9.8
23
Total Data Centre Battery Market
Lead Acid Vs. Li-ion
Total Data Centre Battery Market: Lead Acid Vs. Li-ion Total Data Centre Battery Market: Lead Acid Vs. Li-ion
Revenue Split, 2020 Growth Rate Comparison, 2020 - 2025
Li Ion, 40.0%
15.0%
32.8% 33.4% 34.1%
35.0%
30.5%
30.0%
Lead 25.4%
Acid,
25.0%
85.0%
Growth Rate
20.0%
Lead Acid Growth Rate
Total Data Centre Battery Market: Lead Acid Vs. Li-ion
15.0% Li Ion Growth Rate
Revenue Split, 2025
10.0%
Li Ion,
38.5% 4.4%
5.0% 2.9%
Lead 1.9%
Acid, 0.4% -0.1%
61.5% 0.0%
2020 2021 2022 2023 2024 2025
-5.0% Year
24
Li-ion Data Centre Battery Market Size – Total Market
Revenue Forecast
Total Li-ion Data Centre Battery Market: Revenue Forecast, 2020–2025
CAGR (2017 – 2025) = 31.2%

600.0 40.0
35.0
500.0
Growth Rate (%)

30.0
Revenue ($ Million)
400.0
25.0
300.0 20.0
15.0
200.0
10.0
100.0
5.0
0.0 0.0
2020 2021 2022 2023 2024 2025
Revenue 136.3 171.0 227.2 303.2 406.5 530.6
Growth Rate (%) 25.4 32.8 33.4 34.1 30.5
25
Li-ion Data Centre Battery Market Size – By Region
Per Cent Revenue Forecast By Region
Total Li-ion Data Centre Battery Market: Total Li-ion Data Centre Battery Market:
Revenue Forecast by Region, 2020 Revenue Forecast by Region, 2025
ROW,
ROW, 11.0%
North North
12.0%
RoAPAC, America, America,
25.4% RoAPAC, 24.0%
26.0%
24.5%
Europe,
China, Europe, China,
22.0%
13.7% 23.0% 18.5%
ROW = Rest of the World; includes LATAM, Middle East and Africa; RoAPAC = Rest of APAC Note: All figures are rounded. The base year is 2020. Source: Frost & Sullivan
26
Revenue Forecast By Region
Total Li-ion Data Centre Battery Market: Revenue Forecast by Region, 2020 - 2025
North America Europe China RoAPAC ROW

Year
($ Million) ($ Million) ($ Million) ($ Million) ($ Million)
2020 35.5 31.4 18.6 34.6 16.4
2021 43.8 39.0 24.9 43.2 20.2
2022 57.2 51.3 35.2 57.0 26.4
2023 75.2 67.9 50.0 75.6 34.6
2024 99.2 90.2 71.0 100.5 45.5
2025 127.3 116.7 98.1 130.0 58.4
CAGR (2020–
29.1% 30.1% 39.4% 30.3% 29.0%
2025)
27
Regional Attractiveness
Total Li-ion Data Centre Battery Market: Regional Attractiveness, Global, 2020
45.0
Attractiveness Prospec t*
North America, RoAPAC,
40.0
$35.5 M $34.6 M
35.0 High Low
Europe,
$31.4 M
Revenue ($ Million)
30.0
China,
25.0 $18.6 M
20.0
15.0
10.0 ROW, $16.4 M
5.0
0.0
25.0 27.0 29.0 31.0 33.0 35.0 37.0 39.0 41.0 43.0 45.0
CAGR, 2020 - 2025 (%)
*Size of the bubble represents market size in 2020.
28
Li-ion Data Centre Battery Market Size – By Industry Type
Per Cent Revenue Forecast By Industry
Revenue Forecast by Industry, 2020 Revenue Forecast by Industry, 2025
Others,
Others, IT, 31.0%
IT, 30.0% 16.5%
17.0%
Government, Government,
18.0% 16.5%
Banking & Telecom, Banking &

Financial, 23.0% Financial, Telecom,
12.0% 10.0% 26.0%
29
Revenue Forecast By Industry
Total Li-ion Data Centre Battery Market: Revenue Forecast by Industry, 2020 - 2025
Banking &
IT Telecom Government Others
Year Financial
($ Million) ($ Million) ($ Million) ($ Million)
($ Million)
2020 40.9 31.4 16.4 24.5 23.2
2021 51.7 40.4 19.8 30.3 28.9
2022 69.1 55.0 25.4 39.5 38.2
2023 92.8 75.2 32.7 51.8 50.6
2024 125.2 103.3 42.3 68.3 67.5
2025 164.5 137.9 53.1 87.5 87.5
CAGR (2020–
32.1% 34.5% 26.5% 29.0% 30.4%
2025)
30
Industry Attractiveness
Total Li-ion Data Centre Battery Market: Industry Attractiveness, Global, 2020
50.0 IT,
$40.9 M Attractiveness Prospec t*
45.0
40.0 High Low
35.0 Government,
Revenue ($ Million)
$24.5 M Telecom,
30.0 $31.4 M
25.0
20.0
Others,
15.0 $23.2 M
10.0 Banking & Financial,

$16.4 M
5.0
0.0
25.0 27.0 29.0 31.0 33.0 35.0 37.0 39.0 41.0 43.0 45.0
CAGR, 2020 - 2025 (%)
31
Li-ion Data Centre Battery Market Size – By Application Type
Per Cent Revenue Forecast By Application
Revenue Forecast by Application, 2020 Revenue Forecast by Application, 2025
Edge , 3.0% Edge , 3.0%

Colocation, Colocation,
18.0% 16.0%
Enterprise & Enterprise &

Govt, 48.0% Govt, 44.0%
Hyperscale
Hyperscale
Cloud,
Cloud, 37.0%
31.0%
32
Revenue Forecast By Application
Total Li-ion Data Centre Battery Market: Revenue Forecast by Application, 2020 - 2025
Enterprise & Govt. Hyper-scale Cloud Colocation Edge

Year
($ Million) ($ Million) ($ Million) ($ Million)
2020 65.4 42.3 24.5 4.1
2021 80.7 55.1 30.1 5.1
2022 105.4 75.9 39.1 6.8
2023 138.2 104.9 50.9 9.1
2024 182.1 145.5 66.7 12.2
2025 233.4 196.3 84.9 15.9
CAGR (2019–2025) 29.0% 36.0% 28.2% 31.2%
33
Application Attractiveness
Total Li-ion Data Centre Battery Market: Application Attractiveness, Global, 2020
80.0
Enterprise & Govt., Attractiveness Prospec t*
$65.4 M
70.0
60.0 High Low

Revenue ($ Million)
50.0
40.0 Colocation,
$28.2 M
30.0
Hyper-scale Cloud,
$42.3 M
20.0
Edge Data Centres,
10.0 $4.1 M
0.0
25.0 27.0 29.0 31.0 33.0 35.0 37.0 39.0 41.0 43.0 45.0
-10.0
CAGR, 2020 - 2025 (%)
34
Li-ion Data Centre Battery Market
Solutions To Improve Reliability of Li-ion Battery
Select Stable Cell Materials

Among all the cell materials, LFP has highly stable molecular structure and no fire when
thermal runaway. LFP decomposition does not generate O2, which dramatically reduce
the explosion risk. For example, nail test is used to verify the reliability of LFP. After a
short-circuit thermal runaway occurs inside the cell, no fire and explode.
Ensure System Level Reliability

The BMS management system of lithium batteries is particularly important. Multi-level
BMS management must be used to identify faults and maintain in advance to control
thermal runaway in the early stage to prevent fires. For example,
• The reliability of the cell is predicted by the internal short circuit algorithm.
• The BMS system has the current sharing control function.
Combine With Prevention and Fire Fighting

The reliability of Lithium battery depends on prevention. Once a fire occurs, the
impact must be minimized to prevent the fire from spreading in the cabinet. In addition,
the cabinet must be equipped with fire extinguishing methods. When a fire occurs, the
cabinet can be started to quickly extinguish the fire. In-cabinet fire extinguishing
modes can be module-level or cabinet-level.
35
Li-ion Data Centre Battery Market Size – By Battery Chemistry
Lithium Iron Phosphate (LFP) Vs. Nickel Cobalt Manganese (NCM)
Revenue Forecast by Chemistry, 2020 Revenue Forecast by Chemistry, 2025
NCM
NCM Battery,
Battery, 16.0%
38.0%
LFP
Battery,
62.0% LFP
Battery,
84.0%
Total Li-ion Data Centre Battery Market: Year-on-Year Growth Rate by Chemistry, 2020 - 2025
50.0% 44.0% 43.0%

42.0%
40.0%
31.5% 37.0%
Growth Rate
30.0%
LFP Battery
20.0% NCM Battery
10.0% 15.5% 15.7%

9.4% 7.3% 4.4%
0.0%
2021 2022 2023 2024 2025
36
Li-ion Data Centre Battery Market
Key Benefits of LFP Battery
• LFP Batteries offer high thermal stability

and generate less heat in high
temperature environments.
STRUCTURAL STABILITY
• Its inherent olivine three-dimensional
structure prevents the release of oxygen
due to thermal runaway.
• LFP Batteries offer far higher reliability

and safety when compared to NCM.
HIGH RELIABILITY
• LFP batteries eliminate the risk of fire in
case of internal short circuit. It limits the
surface temperature of the cell at 80° C.
• As LFP Batteries leverage nano-scale

phosphate cathode material, it is able to
offer good electrochemical performance
with low resistance; thus providing high ENHANCED PERFORMANCE
current rating and long cycle life.
• LFP Batteries are more tolerant to full

charge conditions and is less stressed
than NCM batteries.
37
Application Scenario Analysis
Return to contents
38
Li-ion Data Centre Battery Market – Application Scenario 1
Government and Enterprise Segment
Total Li-ion Data Centre Battery Market: Impact of Features, Government and Enterprise Segment, 2020
Long Cycle Life
Greater Long Float

Sustainability Charging Life
Key features that will have
the biggest impact in the
Government and Enterprise
segment are – Higher Shelf Life High Discharge
Efficiency
 Long Cycle Life
 Long Float Charging Life

Reduced Cooling High Energy
Density, Small
 Reduced Risk Costs
Footprint
 Lower cost of operations

(lower TCO) Lower Cost of
Faster Recharge Operations (lower
Reduced Risk TCO)
*Ratings indicate the impact level of Li Ion battery features as preferred by the data centre operator
Source: Frost & Sullivan Scale = 0 indicates low impact; 5 indicates high impact
39
Government and Enterprise Segment
Applicable Government and

Colocation Edge
Segments Enterprise
Key Features and Benefits
Long Cycle Life

Context and Opportunity Call to Action
Long Float Charging Life • Government and enterprise data centre • For those enterprise data centres that
own and operate their own data centres do not wish to outsource their data
High Discharge Efficiency and are highly concerned about centre requirements to third party
availability of their mission critical service providers such as colocation
High Energy Density, applications. providers, it is highly recommended
Small Footprint
• It is imperative that the data centre that they explore Li Ion battery options
Lower Cost of Operations for their data centres
infrastructure solutions they deploy are
(lower TCO)
of high quality and display highest levels • Enterprise and Government data
Reduced Risk of reliability. centres need to work closely with Li
• The life expectancy of a li-ion battery is ion battery suppliers to educate
Faster Recharge themselves on the numerous benefits
15 years, as opposed to just five years
for a VRLA battery, resulting in fewer offered by Li ion batteries.
Reduced Cooling Costs battery refreshes. • While adoption of Li ion batteries in
colocation and hyper scale cloud data
Higher Shelf Life • With fewer li-ion battery refreshes
required, the risk of incidents during centres are increasing, the enterprise
battery replacement work is lower as segment should follow this trend and
Greater Sustainability adopt Li ion batteries.
well, meaning higher reliability.
40
Colocation Segment
Total Li-ion Data Centre Battery Market: Impact of Features, Colocation Segment, 2020
Long Cycle Life

Greater
Key features that will have the Sustainability Long Float
biggest impact in the Colocation Charging Life
segment are –
Higher Shelf Life
 High Discharge Efficiency
High Discharge
Efficiency
 High Energy Density, Small
Footprint
 Lower Cost of Operations

(lower TCO) High Energy
Reduced Cooling Density, Small
Costs Footprint
 Reduced Cooling Costs
 Higher Shelf Life Faster Recharge Lower Cost of

Operations (lower
Reduced Risk TCO)
41
Colocation Segment

Colocation Edge
Segments Enterprise
Long Cycle Life

Long Float Charging Life • Colocation providers are tasked with • Companies should focus on
providing uninterrupted power and developing strategies to offer
High Discharge Efficiency cooling to IT assets for the benefit of Li Ion batteries in their product
their clients. They are required to portfolio to improve ROI.
High Energy Density, choose the most optimum solution that
Small Footprint would help enhance the value of thier • Companies are required to embrace
Lower Cost of Operations customers and also more importantly newer technologies and get a better
(lower TCO) help reducing thier own operational understanding of the positive
expenditure. implications and benefits of Li Ion
Reduced Risk batteries, especially in a mission
• The power density of Li-ion technology critical environment.
Faster Recharge exceeds that of VLA or VRLA, so Li-ion
batteries deliver more power from a • Colocation operators need to establish
smaller footprint. This helps them to a working relationship with Li Ion
Reduced Cooling Costs
save valuable space, hence improving battery UPS OEMS to deploy test
the cabinet delivery rate. ROI is cases to evaluate the benefits of Li Ion
Higher Shelf Life batteries so that they can witness
considered as a key performance metric
for colocation providers and they have a tangibility first hand.
Greater Sustainability
big focus on improving ROI
42
Edge Data Centres
Total Li-ion Data Centre Battery Market: Impact of Features, Edge Segment, 2020
Long Cycle Life

Greater Long Float
Sustainability Charging Life
Key features that will have the
biggest impact in the Edge
segment are – Higher Shelf Life High Discharge
Efficiency
 Long Cycle Life
 High Energy Density, Small

Footprint High Energy
Density, Small
Reduced Cooling Footprint
 Lower Cost of Operations Costs
(lower TCO)
 Faster Recharge Lower Cost of

Faster Recharge
Operations (lower
Reduced Risk TCO)
43
Edge Data Centres

Colocation Edge
Segments Enterprise
Long Cycle Life

Long Float Charging Life • In traditional data centres, the battery • Edge data centres that require
system is an important fail-safe device. significant operational and
High Discharge Efficiency In the event of a power outage, strings maintenance activities can
of batteries provide power to the UPS significantly benefit from deploying Li-
High Energy Density, during the several minutes of ride- ion batteries.
Small Footprint through time in which the data centre
Lower Cost of Operations switches over to an auxiliary power • lithium-ion batteries for data centres
(lower TCO) source, such as a second utility feed or can achieve life spans of 3 to 4 times
generator. But in edge data centres or that of lead-acid batteries. This
Reduced Risk translates into fewer battery
remote IT deployments, the function of
the battery may be slightly different. In replacement cycles and fewer
Faster Recharge many cases, the battery system acts as operational disruptions.
the auxiliary power source for that
Reduced Cooling Costs facility. If a power outage occurs, the • The smaller size and reduced weight
batteries may provide backup power to of lithium-ion batteries provide better
Higher Shelf Life the UPS for 30 minutes or more. flexibility for use in remote facilities.
Thus it is recommended that edge
Greater Sustainability data centres deploy Li-ion batteries.
Source: Vertiv and Frost & Sullivan
44

Analysis of Lithium Ion Battery in Data Centres

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Analysis of Lithium Ion Battery in Data Centres

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Analysis of Lithium Ion Battery in Data Centres

Industry Trends and Insights

2. Li-ion Battery Application Status and Requirements 8

3. Data Centre Li-ion Battery Market Size 22

4. Data Centre Li-ion Battery Market Application Scenario Analysis 35

RoAPAC = Rest of APAC

Banking & Telecom,

Michigan Ulsan S. Korea

By 2021, China is expected to

Industries that use Li Ion batteries are segmented as follows –

Consumer Grid &

Total Li-ion Batteries Market: Price Forecast, Global, 2015–2025

Total Li-ion Batteries Market : Revenue Forecast, 2019–2025

CAGR (2017 – 2025) = 18.2%

Growth Rate (%)

Total Li-ion Batteries Market: Key Market Drivers, Global, 2019–2025

Drivers 1–2 Years 3–4 Years 5–7 Years

Rise in storage applications in the energy sector

Growth in mobile and computing technologies will

Increasing use of Li-ion batteries in industrial

Impact Ratings: H = High, M = Medium, L = Low

Source: Frost & Sullivan

Total Li-ion Batteries Market: Hotspots, Global, 2019

Chile has the highest reserves by far

of Li-ion  Faster Recharge

 Less maintenance  Enhanced Shelf Life

 Greater sustainability  Improved Reliability

Source: Frost & Sullivan

Long Cycle Life

Long Float Charging Life

High Discharge Efficiency, Low Capacity Loss in Fast Discharge

High Energy Density, Small Footprint

Lower cost of operations (lower TCO)

Reduced Cooling Costs

Higher Shelf Life Further Reduces Energy Costs

Total Data Centre Battery Market: Revenue Forecast, 2020–2025

CAGR (2017 – 2025) = 8.7%

Growth Rate (%)

Total Li-ion Data Centre Battery Market: Revenue Forecast, 2020–2025

CAGR (2017 – 2025) = 31.2%

Growth Rate (%)

North America Europe China RoAPAC ROW

2020 35.5 31.4 18.6 34.6 16.4

2021 43.8 39.0 24.9 43.2 20.2

2022 57.2 51.3 35.2 57.0 26.4

2023 75.2 67.9 50.0 75.6 34.6

2024 99.2 90.2 71.0 100.5 45.5

2025 127.3 116.7 98.1 130.0 58.4

10.0 ROW, $16.4 M

Banking & Telecom, Banking &

2020 40.9 31.4 16.4 24.5 23.2

2021 51.7 40.4 19.8 30.3 28.9

2022 69.1 55.0 25.4 39.5 38.2

2023 92.8 75.2 32.7 51.8 50.6

2024 125.2 103.3 42.3 68.3 67.5

2025 164.5 137.9 53.1 87.5 87.5

40.0 High Low

10.0 Banking & Financial,

Edge , 3.0% Edge , 3.0%

Enterprise & Enterprise &

Enterprise & Govt. Hyper-scale Cloud Colocation Edge

2020 65.4 42.3 24.5 4.1

2021 80.7 55.1 30.1 5.1