Lead acid battery market is estimated to be valued at USD 50.32 Bn in 2024, exhibiting CAGR of 5.3% over the forecast period 2024-2031. Lead acid batteries continue to remain indispensable in conventional vehicle starting lighting and ignition applications, especially in emerging nations. Furthermore, demand from the telecommunications industry is expected to drive the global market growth.
Market Dynamics:
Rising automotive production and surging demand for SLI batteries: The automotive industry has been a major growth propeller for the global lead acid battery market over the years. Lead acid batteries are predominantly used in all types of vehicles for starting, lighting and ignition applications. With rising vehicular production worldwide, especially in developing nations, demand for SLI batteries has witnessed a simultaneous increase.
Emerging opportunities in telecommunications industry: Telecom industry has emerged as an important end user sector. Uninterruptible power supply systems rely heavily on lead acid batteries for backup power requirements in telecom towers. With rapid network upgrades and 5G deployments, consumption of lead acid batteries is set to spike in telecommunications in the coming years.
Growing Demand for Automobiles
One of the major drivers for the lead acid battery market is growing demand for automobiles globally. Lead acid batteries are commonly used in automotive applications such as starting, lighting and ignition in conventional gasoline and diesel-powered vehicles. With rising incomes and standards of living in developing economies, the sales of passenger cars and commercial vehicles are increasing rapidly. This is leading to higher demand for lead acid batteries from automobile OEMs and aftermarket channels.
Increasing usage of UPS systems
Another key factor propelling the lead acid battery market is surging deployment of uninterrupted power supply (UPS) systems across various end-use industries like IT & telecom, healthcare, banking, manufacturing, and many others. UPS systems protect electronics and equipment from power fluctuations, outages, blackouts, and offer backup power when main utility fails. With digitization and constant internet connectivity becoming a norm, data centers, servers, networking devices urgently require stable and reliable power sources like lead acid batteries to function without disruptions. This is significantly boosting the consumption of lead acid batteries in the UPS industry.
Higher raw material prices
One of the major restraints negatively impacting the lead acid battery market is fluctuating raw material prices. Lead, which is the key raw material, experiences volatile pricing trends in the global commodities market. During times of high lead prices, battery manufacturers face shrinking margins and profitability. Similarly, rising costs of plastic cases and separators consumed for battery manufacturing also dent the finances of players. Unpredictable swings in prices of critical inputs increase the production costs for lead acid batteries, thereby restricting the market expansion to some extent.
Environmental regulations on lead usage
Stringent environmental regulations pertaining to the usage of lead pose another challenge for lead acid battery suppliers. As lead is a toxic heavy metal, its production, transportation, recycling, and disposal are heavily regulated in many countries to curb pollution. Many developed nations have imposed restrictions on using lead batteries in automotive and other applications, preferring alternative environment-friendly battery chemistries. Such policies and government rules aimed at minimizing lead emissions into the atmosphere negatively impact the market attractiveness of lead acid batteries over time as newer regulations emerge.
Increasing demand from developing economies
One of the key opportunities for participants in the lead acid battery industry is the rising installation of renewable energy farms in developing regions. Countries like India, China, Brazil, and nations in Africa are aggressively investing in solar and wind power generation initiatives. Since renewable energy is intermittent in nature, large-scale energy storage solutions like lead acid batteries are crucial during times when the sun is not shining or wind is not blowing. This growing ‘green energy’ space generates huge prospective demand for lead acid batteries used in energy storage projects.
Boom in rural electrification
Another promising market avenue is the ongoing push for rural electrification programs across underdeveloped and emerging economies. As most developed nations achieve near-total household electrification, developing Asian, African, and South American countries are undertaking ambitious projects to supply electricity in remote villages and towns off-grid. These are setting up mini-grids and micro-grids powered by lead acid batteries along with renewable sources like biomass, solar homes systems, and wind turbines, thereby presenting a major commercial chance for battery makers.
Link: https://www.coherentmarketinsights.com/market-insight/lead-acid-battery-market-984
Key Developments:
- In June 2021, EnerSys which is a stored energy systems and technology provider for industrial applications announced a significant investment exceeding USD 100 million over the next three years to boost Thin Plate Pure Lead (TPPL) capacity. This initiative, projecting a growth of 15%, collectively upgraded TPPL capacity by more than USD 500 million/year.
- In January 2021, Kolkata Discom CESC which is a integrated electrical utility company, partnered with Exide to implement a 315kWh grid-tied battery energy storage system in a low-voltage distribution system. This partnership led to improved peak load control, a significant advancement in West Bengal, India.
Key Players:
ATLASBX Co. Ltd., B. B. Battery, C&D Technologies, Inc., Camel Group Co., Ltd., Chaowei Power Holdings Limited., Clarios, Coslight Technology International Group Co. Ltd., Crown Battery Corporation, East Penn Manufacturing Co., Enersys, Exide Industries Ltd., Furukawa Electric Co., Ltd., GS Yuasa Corporation, Hitachi Chemical Company, Ltd., Hoppecke Batterien GmbH & Co. KG., Johnson Controls, Leoch International Technology Ltd., Narada Power Source Co. Ltd., Shandong Sacred Sun Power Sources Co. Ltd., SiteTel Sweden AB (NorthStar), Yokohama Batteries Sdn. Bhd., Zhangzhou Huawei Power Supply Technology Co., Ltd. are the major players.
