Global Lead-Acid Battery Market By Type (SLI, Stationary, and Motive), By Application (Automotive, UPS, Telecommunication, and Others), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2023-2032

Report Overview

The Global Lead Acid Battery Market size is expected to be worth around USD 59 Billion by 2033, from USD 33 Billion in 2023, growing at a CAGR of 6.9% during the forecast period from 2024 to 2033.

Lead acid batteries are a type of rechargeable battery that have been widely used for decades due to their reliability and cost-effectiveness. These batteries are composed of lead plates immersed in an electrolyte solution of sulfuric acid. They are commonly used in various applications such as automotive, uninterruptible power supply (UPS) systems, renewable energy storage, and telecommunications.

The lead acid battery market has witnessed steady growth over the years. This can be attributed to several factors. Firstly, lead acid batteries have a relatively low cost compared to other battery technologies, making them an attractive option for many industries. Additionally, their well-established manufacturing processes and infrastructure contribute to their widespread availability and affordability.

In recent years, there has been an increasing focus on renewable energy and energy storage systems, which has provided new opportunities for lead acid batteries. These batteries are used in off-grid and grid-connected renewable energy systems to store excess energy generated during peak production for later use. Lead acid batteries also play a crucial role in providing backup power in UPS systems, ensuring uninterrupted power supply in critical applications like data centers and hospitals.

Despite their advantages, lead acid batteries do face challenges. One primary challenge is their relatively low energy density compared to newer battery technologies. This limits their application in situations where compactness and high energy density are required. Additionally, the environmental impact of lead acid batteries, particularly the disposal and recycling of lead and sulfuric acid, raises concerns regarding pollution and sustainability.

In response to these challenges, the industry is focusing on improving the performance and efficiency of lead acid batteries. Efforts are being made to enhance their energy density, cycle life, and environmental sustainability through advancements in materials and manufacturing processes. Additionally, regulations and initiatives promoting the recycling and responsible disposal of lead acid batteries are being implemented to minimize their environmental impact.

Lead-acid batteries, recognized for their environmental stewardship, boast an impressive recycling rate of over 97%. This high recyclability underscores their role as sustainable energy storage solutions in a market increasingly focused on environmental responsibility. However, these batteries necessitate a slow and extended charging process, typically taking 8 to 10 hours, often conducted overnight to enhance safety and efficiency. This characteristic, while ensuring thorough charging, may pose constraints on their use in applications requiring rapid energy replenishment.

In terms of electrical characteristics, lead-acid batteries deliver a nominal voltage of 2.0V per cell. When assembled in a series of six cells, they provide a total voltage of 12.0V, making them suitable for a wide range of automotive and backup power applications. Yet, their charge and discharge efficiency varies significantly, ranging from 50% to 95%, influenced by factors such as design and specific use case. This variability highlights the importance of selecting the appropriate battery type to match the intended application to maximize efficiency and lifespan.

Moreover, lead-acid batteries exhibit a self-discharge rate ranging from 3% to 20% per month. This characteristic necessitates periodic recharging, even when not in active use, to maintain their state of charge and readiness for operation. The need for regular maintenance, along with the extended charging time, may impact their suitability for certain applications, especially those requiring high availability and minimal downtime.

Key Takeaways

• The Lead Acid Battery Market is anticipated to surge to USD 59 billion by 2032, exhibiting a steady Compound Annual Growth Rate (CAGR) of 6.9% during the forecast period.
•  Lead-acid batteries possess a nominal voltage of 2.0V per cell, requiring a series configuration of 6 cells to achieve a total voltage of 12.0V.
• Ni-MH batteries, with a lower nominal voltage of 1.25V per cell, necessitate a 10-cell series to reach 12.5V, slightly exceeding the voltage output of their lead-acid counterparts.
• Both battery types offer a capacity of 100Ah. However, their energy capacities vary slightly due to differences in voltage, with lead-acid batteries providing 1,200Wh and Ni-MH batteries offering a slightly higher 1,250Wh. This difference influences their suitability for energy-intensive applications.
• Lead-acid batteries are notably heavier, weighing 34.3 kilograms, and occupy a volume of 13.4 liters, reflecting their denser structure.
• In contrast, Ni-MH batteries are more lightweight at 15.6 kilograms and have a smaller volume of 5.2 liters, indicating their higher energy density and efficiency in space utilization.
• A key performance metric for batteries, especially for deep-cycle applications, is the depth of discharge. Deep-cycle batteries, which include specific types of both lead-acid and Ni-MH batteries, can sustain a DoD greater than 50%, with some models capable of reaching up to 80%. This capability is crucial for applications requiring long-lasting power on a single charge.

By Type Analysis

In 2022, the SLI (Starting, Lighting, and Ignition) batteries segment held a dominant position within the lead-acid battery market, capturing more share. This commanding presence can be attributed to the essential role that SLI batteries play in the automotive industry. These batteries are crucial for providing the necessary power to start vehicle engines, as well as for running the lighting and ignition systems. The widespread use of SLI batteries across both passenger and commercial vehicles underscores their integral contribution to automotive functionality.

The leading position of the SLI batteries segment is further bolstered by the continuous growth in the automotive sector, including the increasing production and sales of vehicles globally. This growth is driven by the rising demand for vehicles in emerging economies, coupled with the ongoing replacement of old vehicles in established markets.

Additionally, advancements in lead-acid battery technology have enhanced the performance and reliability of SLI batteries, making them more attractive for automotive applications. Manufacturers have focused on improving the lifespan and charge retention of these batteries, thereby ensuring their dominance in the OEM (Original Equipment Manufacturer) and aftermarket segments of the lead-acid battery market.

By Application Analysis

In 2022, the Automotive segment occupied a leading position within the lead-acid battery market, reflecting the indispensable role these batteries play in the sector. This segment’s dominance is underscored by its critical function in powering a wide array of automotive applications, from starting the engine to powering the electrical systems in vehicles. The enduring preference for lead-acid batteries in the automotive industry, due to their reliability, cost-effectiveness, and well-established recycling processes, significantly contributes to their market share.

The prominence of the Automotive segment is further reinforced by the global expansion of the automotive industry, which has seen steady growth in vehicle production and sales. This expansion is particularly noticeable in emerging markets, where economic development and increasing consumer purchasing power have led to a higher demand for vehicles.

Additionally, the segment benefits from the robust nature of lead-acid batteries, which are preferred for their durability and ability to perform under varying climatic conditions. This makes them especially suited for automotive applications, ranging from conventional vehicles to electric hybrids, where they are often used for auxiliary power functions.

Note: Actual Numbers Might Vary in the final report

Key Market Segments

Based on Type

• SLI
• Stationary
• Motive

Based on Application

• Automotive
• UPS
• Telecommunication
• Electric bikes
• Transport vehicles
• Others

Drivers

Technological Advancements and Telecom Sector Expansion

The demand for lead acid batteries is significantly bolstered by continuous technological advancements and the expansion of the telecom sector. Innovations aimed at enhancing battery efficiency, lifespan, and environmental footprint directly address the operational requirements of the telecom industry, which relies heavily on reliable backup power solutions to ensure uninterrupted service. As the telecom sector grows, spurred by the global demand for better and more extensive communication services, the need for lead acid batteries as a cost-effective, dependable energy storage solution intensifies.

Restraints

Competition from Low-Cost Alternatives in Energy Storage

Despite their established presence in the market, lead acid batteries face considerable competition from low-cost alternatives in energy storage. Emerging technologies, such as lithium-ion batteries, offer higher energy densities, longer lifecycles, and faster charging times. These characteristics make them attractive for a range of applications, from electric vehicles to portable electronics, potentially displacing lead acid batteries in segments where their performance advantages are deemed critical.

Growing Opportunities

Increase in Renewable Energy Generation Target

The global shift towards renewable energy sources presents a significant opportunity for the lead acid battery market. As countries and corporations set ambitious targets for renewable energy generation, the demand for efficient, scalable, and reliable energy storage solutions escalates.

Lead acid batteries, with their ability to provide high surge currents and stability in renewable energy systems like solar and wind power installations, stand to gain from this transition. The integration of lead acid batteries into renewable energy infrastructures can facilitate the balancing of supply and demand, enhancing grid stability and energy security.

According to the IEA, renewables will experience the fastest growth in the electricity sector. This means that they can cater to 30% of power demand in 2023. This is up from 24% in 2017. Renewables will contribute more than 70% to global electricity generation during this time period. This growth would be led both by photovoltaics ground mount modules followed by wind, hydropower, and bioenergy.

However, hydropower is still the most important renewable source. It accounts for approximately 16% of global electricity demand in 2023. Next, wind caters to another 6%. Solar Photovoltaics and PV (4%) are the remaining 3%. The 2018 renewable generation target of 175GW per year in 2022 has been increased to 217GW in developing countries like India.

Floating solar technology is expected to contribute an additional 45 GW. As a result, energy storage will become more important as the generation grid grows. These batteries can also be installed at substations that receive the generated power. The implementation of these batteries will also increase with an increase in power generation.

Challenge

Limited Usage Capacity of Lead Acid Batteries

A notable challenge for the lead acid battery market is the inherently limited usage capacity of these batteries. Compared to newer battery technologies, lead acid batteries typically offer lower energy densities and shorter cycle lives, which can limit their applicability in high-performance or long-duration applications. This constraint necessitates ongoing research and development efforts to improve the performance metrics of lead acid batteries, ensuring they can meet the evolving demands of both traditional and emerging markets.

Latest Trends

SLI Battery Segment Dominates The Market Growth.

Since the beginning of time, SLI (starting, lighting, ignition) batteries have been part of almost all cars. SLI batteries can be used to provide short power bursts such as for starting an engine or running light electrical loads. These batteries provide extra power for vehicles that have an electrical load greater than the charging system’s (alternator). They also act as voltage stabilizers in the electrical systems, which helps to prevent voltage spikes from damaging other parts of the system.

SLI batteries were designed for automobiles. They are installed with the vehicle’s charging system. This means that the battery is always charged and discharged when the vehicle is in use. For more than 50 years, 12-volt batteries have been the most popular. Its normal voltage, while in use in the vehicle and charged by an alternator, is around 14 volts.

Regional Analysis

In 2022, the Asia-Pacific (APAC) region held a dominant position in the lead-acid battery market, showcasing its pivotal role in driving both production and consumption within this sector. The demand for Lead-Acid Battery in APAC was valued at USD 10.3 billion in 2022 and is anticipated to grow significantly in the forecast period.

The region’s dominance is attributed to its extensive automotive industry, burgeoning renewable energy sector, and the presence of leading battery manufacturers. Countries such as China, India, Japan, and South Korea have been at the forefront, leveraging their manufacturing capabilities and technological advancements to meet both domestic and global demand for lead-acid batteries.

The leadership of the APAC region in the lead-acid battery market is further reinforced by its rapid industrial growth and urbanization. These factors have led to an increased demand for lead-acid batteries across various applications, including automotive, UPS (Uninterruptible Power Supply), telecommunications, and energy storage solutions.

The region’s commitment to expanding renewable energy infrastructure, particularly solar and wind power, has also necessitated the use of lead-acid batteries for energy storage and grid stabilization purposes. Additionally, the APAC market benefits from favorable government policies aimed at promoting the use of cleaner and more sustainable energy sources, further bolstering the demand for lead-acid batteries.

Note: Actual Numbers Might Vary in the final report

Key Regions and Countries Covered in this Report:

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia
  • Netherland
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • New Zealand
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

The lead-acid battery market is characterized by the presence of several key players that dominate the industry through innovation, reliability, and comprehensive product offerings. These companies play a pivotal role in shaping market trends, driving technological advancements, and catering to the diverse needs of consumers across various sectors.

Top Key Players

• Exide Industries Ltd.
• GS Yuasa Corporation.
• Koyo Battery Co., Ltd.
• Leoch International Technology Ltd.
• Century Batteries Indonesia.
• Robert Bosch GmbH.
• Thai Bellco Battery Co. Ltd.
• Other Key Players

Recent Developments

• June 2023 – EnerSys announced the initiation of a non-binding Memorandum of Understanding (MoU) with Verkor SAS, a leading entity in the European battery technology sector. This agreement marks a significant step towards exploring the development of a lithium battery gigafactory within the United States. This strategic move is poised to enhance EnerSys‘s position in the global battery market, leveraging Verkor SAS‘s expertise to meet the growing demand for lithium batteries.
• May 2023 – EnerSys® unveiled the ODYSSEY® Connect battery monitoring system, introducing a groundbreaking solution in battery health and performance management. Featuring proprietary technology, this system is designed to actively monitor and track a wide array of battery health and performance indicators, ensuring optimal operations. The innovative aspect of the ODYSSEY® Connect lies in its ability to communicate this critical information via Bluetooth® to any compatible Apple® or Android™ smart device.

Report Scope