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

In 2022, the global Lead Acid Battery market size was valued at USD 30.6 billion. Between 2023 and 2032, this market is estimated to register the highest CAGR of 6.9% and is expected to reach USD 59.6 billion. Over a century, the most commonly used and trusted batteries in the world are those that can be found in automobiles (starting, lighting, ignition), UPS, sub-marine standby, emergency power for electrical installations, and other applications.

This is the oldest type of rechargeable battery, which was invented in 1859. It is very popular because of its easy availability and low price index. The growth of lead-acid batteries will be influenced by the growing demand for electric vehicles and the increased use of continuous power supply for critical applications.

Two lead plates make up the lead acid battery. One is a positive plate that is covered with lead oxide paste and one is sponge lead. Between them, there is an insulating material (separator). The plates are submerged in an electrolyte of water and sulfuric acid, which stores the charge. It is suitable for many industrial and consumer applications due to its reliability and low cost.

The percentage of lead-acid battery batteries that can be recycled and processed is higher than the of lithium-ion. Due to the rise in electrical equipment like mobile phones, power banks, and advanced marine propulsion technology, there is a greater demand for energy storage systems which is driving the Lead Acid Battery Market.

Drivers:

Growing Applications In The Automotive To Boost The Lead Acid Battery Market Growth Globally.

Initiatives to bring green energy solutions into the automotive industry are key factors driving demand for lead-acid batteries. The top lead acid battery manufacturers are working hard to expand their production and distribution capabilities in different countries. Some companies collaborate directly with regional manufacturers to improve their industrial research activities.

The technological advances in vehicle technology such as hybrid vehicles, battery-operated vehicles, and electric vehicles will also be a strong factor in driving the market growth. There are many end-use industries that use lead-acid batteries, including automotive, uninterruptible energy supply (UPS), and telecommunications.

As emerging countries’ governments promote clean energy and more environmentally-friendly modes of transportation, the demand for lead acids batteries in this industry is increasing rapidly. The largest end-user of lead-acid batteries is the transportation sector. China is a very lucrative market for lead-acid battery production and export. This is due to the increasing demand from China’s automobile industry and the adoption of advanced technology with higher production capacities.

Restraints

Fluctuating Prices Of Raw Materials To Restraint The Growth Of The Market Globally.

The market for lead acid batteries has many end-uses. However, there are certain obstacles that could pose a problem to market growth in the forecasting period. Market growth could be impeded by fluctuating raw material prices and the increased use of low-cost alternatives. Stringent regulations regarding lead emission, as well as the shift to lithium-ion batteries, are two major obstacles that hinder the growth of the global lead acid battery market. The global lead acid market is being constrained by the rising demand for lithium-ion batteries.

COVID-19 Impact Analysis

There has been an explosion in digital commerce, smart devices, and IoT technology adoption since the COVID-19 epidemic. Given the high number of tech-savvy customers, digital devices will continue to be used. Rapid digitalization will lead to high data volumes and expansion of the data center infrastructure. This will encourage the use of lead-acid batteries in the sector, which in turn will improve the industry’s outlook.

Covid-19 had a significant impact on nearly all industries such as electronics and semiconductors, automotive manufacturing, etc. A number of technology companies have seen an increase in revenue because of significant consumer preferences for technological services. The pandemic has also led to significant technological growth in both developed and developing countries.

By Type Analysis

The largest share of the lead-acid market revenue was from SLI (Starting, Lighting, and Ignition) batteries. The market is expected to see a slowdown in growth during the forecast period due to increased demand for other products, such as stationery and motive. The segment is expected to see positive growth due to increased demand for applications that require high power, such as automotive.

The forecast period will see an increase in vehicle manufacturing, especially in China, India, Brazil, and South Korea. Amara Raja Batteries, for instance, signed an agreement with Johnson Controls to introduce a new Indian battery technology. It will provide advanced consumer features and meet strict emission standards. These initiatives will drive demand for lead-acid batteries during the forecast period.

By Application Analysis

In terms of revenue share, automotive was the largest segment. As the automotive sector grows, so will the extensive use of lead-acid batteries in its automotive sector. Due to their strong distribution channels, easy product availability, and low prices, large automotive players such as Infinium Toyota, Mahindra, Mitsubishi, Honda, TATA, and Maruti Suzuki have fueled the Asia Pacific’s automotive sector growth.

UPS holds the second-largest global market share in terms of revenue. This segment is expected to grow between 2023 and 2032. The segment is expected to grow due to increasing demand from various industries such as hospitals, industrial companies, educational institutes and corporate offices, research centers, and houses.

Key Market Segments:

Based on Type

• SLI
• Stationary
• Motive

Based on Application

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

Growing Opportunities

The Increase In The Renewable Energy Generation Target.

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.

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

APAC Region Dominates The Market Of The Lead-Acid Battery.

Due to the huge potential of South Asia and China’s e-mobility projects, the Asia Pacific market is the largest for lead-acid batteries. The Asia Pacific market for lead-acid batteries will be stimulated by the lack of infrastructure and a gap in electricity production. Europe has a stricter pollution standard, so finding an alternative source of energy in Europe is a good market for a lead-acid battery.

The lead-acid battery market will be stimulated by the conversion of public transportation utilities to an electric source, and a higher recycling rate in Europe. North America’s demand for lead acid batteries is expected to rise due to increased investment in hybrid vehicles, hybrid marine propulsion, wind, solar and utility storage. An increase in exploration activities and prompt use of hybrid propulsion because of rising concerns over marine pollution will drive overall growth in lead acid batteries in this region.

Key Regions and Countries Covered in this Report:

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Market Share & Key Players Analysis:

Due to the presence of many manufacturers, the market is fragmented. The market is characterized in part by the presence of many market players in the U.S. and China. Companies use a variety of strategies to expand their market reach, including joint ventures, mergers, and acquisitions.

With many participants engaged in product innovation and R&D, the market is fiercely competitive. EnerSys., Exide Industries Ltd., GS Yuasa Corporation, etc. are the major players in the industry. These companies drive the maximum share of the Global Lead-Acid Market.

Market Key Players:

Listed below are some of the most prominent Lead-Acid Battery industry 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:

• Amara Raja Batteries (ARBL), announced in July 2022 plans to expand its lead-acid business. There are several options for expanding geographically beyond India. The company is focusing on the development of lead-acid businesses in Africa, South-East Asia, and the Middle East as part of this expansion.
• The National Alliance for Advanced Transportation Batteries selected Tydrolyte as one of the top ten new battery technologies for 2019. According to the company, hydrolysate has a lower toxic level than toxic sulphuric acids in lead-acid batteries. This improves overall performance and battery life.
• In February 2020, the company has announced the launch of its SNS-TN series of valve-regulated stationary lead-acid batteries.
• Enersys and Blink Charging will collaborate to develop high-power inductive/wireless fast charging systems with energy storage options.
• EnerSys and TravelCenters of America (TA), a partnership, will offer OdysseyPerformance batteries for heavy-duty applications in all TA areas throughout the United States.

Report Scope: