Lead Acid Battery Market: Global Size, Share, Trends, Growth and Forecast, 2022-2032
Lead Acid Battery Market: Overview and Definition
The lead-acid battery is the oldest and most widely used rechargeable battery technology. It was invented in 1859 by French physicist Gaston Planté and has been used in a wide range of applications since then, including automotive, telecommunications, uninterruptible power supplies, and renewable energy storage.
Lead-acid batteries are electrochemical energy storage devices that convert chemical energy into electrical energy. They are made up of lead electrodes and an electrolyte solution of sulfuric acid. When the battery is charged, the lead plates are coated with lead dioxide and pure lead, and when the battery is discharged, the lead dioxide reacts with the sulfuric acid to produce lead sulfate and water, releasing electrical energy.
The global lead acid battery market size was estimated at USD 69.1 billion in 2021 and is expected grow with a CAGR of 6.8% over the forecasted period of 2022 to 2032. The global market is experiencing enormous growth rate primarily driven by several factors such as increased adoption of lead acid batteries in Uninterruptible Power Source (UPS) & automobile and flourishing telecommunication sector.
Lead acid batteries can store a charge and deliver high current for short periods of time. In these batteries, electrical energy is stored as chemical energy; however, this chemical energy can be converted to electrical energy as and whenever required. It is extensively being used in energy storage, automotive, and telecommunication industries as well as for several purposes in different sectors, such as manufacturing, utilities, marine, and pharmaceutical & chemical industries.
The global lead acid battery market is driven by mounting demand for power solutions with high efficiency and reliability during the forecast period. In addition to this, upsurge in renewable energy production around the globe significantly fuels growth of the market. However, increase in adoption of lithium-ion batteries due to their declining prices hampers growth of the market. On the other hand, rise in data center infrastructure has created lucrative opportunities for the market growth during forecast period.
The global market is observing extensive consolidations, geographical expansions, collaborations, new product launches, and acquisitions by the key market players. These strategies are embraced by the market players to enhance their product portfolio, expand the reach, and generate new revenue streams. For instance, in July 2020, Gridtential Energy, the lead battery maker has collaborated with US Battery, the flooded lead-acid battery firm on its Silicon Joule bipolar battery technology.
Geographical Coverage
Asia-Pacific region is estimated to possess the largest share of the global lead acid battery market. This is attributed to the fact that the region encompasses more number of developing countries with demand for cost-effective energy storage solutions. In this region, the residential, commercial, and industrial sectors, as well as the transportation sector, proved to be the main consumers of lead acid battery systems.
Moreover, the Asia-Pacific region is expected to be the most lucrative market in terms of CAGR during the forecast period due to growth in demand for energy storage batteries in emerging countries such as India and China.
On the other hand, North America region is expected to observe significant growth rate during the forecast period. This region offers lucrative growth opportunities due to the surge in demand for the uninterrupted power supply (UPS) along with the rising automotive sales. In addition, more number of UPS providers are introducing innovative products for range of applications such as data centers. This factor is further opportunistic for the market growth. For instance, March 2018, ZincFive, the American startup launched a modular UPS system for data centers which is based on Nickel-Zinc batteries.
Market Insights:
Product Insights:
On the basis of product type, the market is segmented into SLI, stationary, and motive. As per the estimation, SLI segment observed the biggest portion, regarding income in 2019 and may rule the innovation field, as far as size, by 2025. This is attributed to the features of SLI batteries such as long cycle-life and weight reduction in vehicles. Hence, growth in vehicle sales boosts adoption of SLI batteries as a cost-effective energy source. For instance, according to the Elsevier B.V. in 2017, the demand for SLI batteries is expected to increase for several cheap and small ICE vehicles, particularly in emerging countries such as China, India, and Indonesia.
On the contrary, stationary segment is projected to observe impressive development and rule the market (regarding development rates) over the conjecture time frame.
Consolidations and acquisitions, to generate new revenue streams and to expand the geographical presence have advanced as a significant piece of the current lead acid battery industry. For example, in October 2019, EnerSys, the global battery manufacturer acquired its competitor NorthStar for $182.5 million.
Application Insights
On the basis of application, the market is divided into automotive, UPS, telecom, electric bikes, transport vehicles, and others. The automotive application is estimated to hold largest share of the global lead acid battery market in 2019. This is attributed to the widespread adoption of lead-acid batteries in the automotive sector. In addition to this, the extensive presence of large automotive players, such as TATA, Mahindra, Mitsubishi, Maruti Suzuki, Honda, Infinium Toyota, Hyundai, and Nissan have fuelled the growth of the automotive sector in the Asia-Pacific, owing to their strong distribution channels in the region. The aforementioned factor further drives growth of the automotive application segment.
The UPS application portions may witness highest growth rate during the forecast period. This may be due to the increasing demand in several industries such as hospitals, educational institutes, research institutions, corporate offices, and houses.
Competitive Market Insights
The key business members of the market are EnerSys, Exide Industries, HOPPECKE, NorthStar, Crown Battery, East Penn, Teledyne Technologies, Hankook AltasBX, Hitachi Chemical, and C&D Technologies among others. These market players are adopting various strategies such as product launches and strategic collaboration to enhance their product portfolio, expand the reach, and generate new revenue streams.
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- Publication date: 18th February 2023
- Base year: 2022
- Forecast year: 2023-2033
- Format: PDF, PPT,Word,Excel
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