LEAD ACID BATTERY MARKET ANALYSIS

Lead Acid Battery Market Size and Trends

Lead acid battery market is estimated to be valued at USD 50.32 Bn in 2024 and is expected to reach USD 72.13 Bn by 2031, growing at a compound annual growth rate (CAGR) of  5.3% from 2024 to 2031.

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The lead acid battery market is expected to witness moderate growth over the forecast period. Though lead acid batteries have significant applications in automotive sector especially for automobiles in developing countries, increasing focus towards developing low-maintenance batteries such as lithium-ion batteries is expected to hamper the growth of this market. Replacement of existing lead acid batteries will continue to boost its demand. However, stricter environment regulations regarding usage of lead will be a major challenge. Growth of electric vehicles provides opportunities for this market, as these vehicles require bulk energy storage solutions largely served by lead acid batteries presently. Developments targeting reduced usage of lead in batteries can provide long-term opportunities for market participants.

Increasing hybrid and electric vehicle adoption

Increasing demand for hybrid and electric vehicles across the globe has been one of the key drivers of growth for lead acid batteries. Unlike lithium-ion batteries used in premium EVs, lead acid batteries are more cost effective and their technology is more mature. As a result, these are increasingly being used as starting, lighting and ignition batteries in hybrid vehicles which have both an internal combustion engine as well as an electric motor. With automakers aggressively expanding their EV/hybrid lineups to comply with stricter emission regulations, the lead acid battery market is expected to witness growth. Recent breakthroughs in material science and manufacturing technologies have also enabled lead acid batteries to last longer which widens their appeal for automotive applications.

For instance, in July 2020, EnerSys a stored energy systems and technology provider for industrial applications, partnered with Blink Charging Company, a leading electric vehicle (EV) charging equipment provider, to develop high-power wireless DC fast charging systems for integrated battery storage in transportation applications.

The prominence of renewable sources of energy such as solar and wind has been rising across both developed and developing nations. For optimum utilization of power generated from intermittent renewable sources, large-scale energy storage is becoming indispensable. While technologies such as pumped hydro and lithium-ion batteries are also being adopted, lead acid batteries still offer a viable and cost-effective option for hundreds of megawatts of energy storage applications worldwide. Their ability to provide deep discharge cycles at an affordable upfront cost makes them suited for applications like rural electrification, microgrids and load balancing in power distribution systems. Major renewable energy product manufacturers are also integrating lead acid batteries into their portfolio to address the storage requirements of their solar panel and wind turbine offerings. This is expected to significantly contribute to the demand for lead acid batteries in the coming years.

For instance, in May 2023, C&D Technologies a technology company that produces and markets systems for the power conversion and storage of electrical power introduced the Pure Lead Max VRLA battery designed for data centres. This innovation, backed by an industry-leading eight-year warranty, features proprietary pure-lead technology, a catalyst design for extended life, and sustainability benefits through recycled materials. The battery promises up to 38% lower maintenance costs and a reduced footprint, emphasizing longevity and performance.