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Global lead acid battery market is estimated to witness a rise in revenue from US$ 46.96 Bn in 2022 to US$ 82.02 Bn by 2030 at a CAGR of 6.53% during the forecast period 2023-2031.
The global lead acid battery market has been witnessing steady growth over the years, driven by increasing demand from various end-use industries such as automotive, UPS, and telecom. Lead-acid batteries are widely used due to their ability to provide reliable and efficient energy storage solutions at a relatively low cost. The market is expected to continue growing in the future due to the increasing demand for energy storage solutions and the growing focus on renewable energy sources.
One of the major drivers of the market is the increasing demand for electric vehicles (EVs). Lead-acid batteries are widely used in traditional internal combustion engine (ICE) vehicles and are also used in some low-speed EVs. However, the growth of the EV market has been largely driven by lithium-ion batteries, which offer higher energy density and longer life. Nonetheless, lead-acid batteries are expected to continue playing a role in the EV market, particularly in the hybrid electric vehicle (HEV) segment, where they can be used in combination with other battery chemistries to provide energy storage solutions.
Another driver of the lead acid battery market is the growing demand for energy storage solutions for renewable energy sources such as solar and wind power. Lead-acid batteries are well-suited for these applications due to their ability to provide reliable and efficient energy storage at a relatively low cost. As the use of renewable energy sources continues to grow, the demand for lead-acid batteries is expected to increase.
The market is also driven by the increasing demand for UPS systems, particularly in data centers and other critical infrastructure. Lead-acid batteries are widely used in UPS systems due to their ability to provide reliable and efficient backup power. As the demand for UPS systems continues to grow, the demand for lead-acid batteries is expected to increase.
The Asia-Pacific region is the largest market for lead-acid batteries, accounting for a significant share of the global market. This is driven by the growing automotive and industrial sectors in countries such as China and India, which are among the largest consumers of lead-acid batteries.
Low Cost of the Lead Acid Battery to Keep Grabbing Attention of Price Sensitive Consumers
The lead-acid battery is one of the most affordable types of rechargeable batteries on the market. Compared to other battery technologies, such as lithium-ion, nickel-cadmium, and nickel-metal hydride batteries, lead-acid batteries are significantly cheaper to manufacture in the global lead acid battery market. This low cost is due to the fact that lead and sulfuric acid, the primary materials used to make lead-acid batteries, are abundant and relatively inexpensive.
This low cost has led to the widespread use of lead-acid batteries in a variety of applications, particularly in the automotive industry. Lead-acid batteries are commonly used as starting batteries in vehicles because they can deliver high currents for short periods of time and are relatively cheap. They are also used in deep-cycle applications, such as in golf carts and forklifts, where they are discharged and recharged on a regular basis.
High Reliability and Longevity to Drive Market Growth
Another driver of the lead acid battery market is the reliability and longevity of the technology. Lead-acid batteries have been used for over 150 years and are a proven technology. They are known for their ability to withstand harsh environments and extreme temperatures, making them ideal for use in automotive and industrial applications.
In addition, lead-acid batteries have a relatively long lifespan compared to other battery technologies. With proper maintenance, lead-acid batteries can last up to 10 years or more, making them a cost-effective solution for long-term energy storage applications.
Growing Environmental Concerns to have Negative Impact on the Lead Acid Battery Market Growth to Some Extent
While lead-acid batteries have many advantages, they also have one significant restraint: environmental concerns. Lead-acid batteries contain lead, a toxic heavy metal that can cause serious health problems if not handled properly. In addition, the sulfuric acid used in lead-acid batteries is corrosive and can cause damage to the environment if not disposed of properly.
To mitigate these environmental concerns, governments and regulatory bodies around the world have established strict guidelines for the manufacturing, use, and disposal of lead-acid batteries. These regulations have led to increased costs for manufacturers and users of lead-acid batteries, and have also led to the development of alternative battery technologies that are more environmentally friendly.
Segmental Insights of the Global Lead acid battery market
Based on type, the flooded battery segment holds the highest share in the global lead acid battery market in 2022. Flooded lead-acid batteries are the most commonly used type of lead-acid batteries due to their low cost and reliability. They are widely used in applications such as automotive, telecom, and UPS systems. Increasing marine trade activities are likely to offer healthy growth opportunities for flooded lead-acid batteries during the forecast period.
On the other hand, the VRLA (Valve-Regulated Lead-Acid) battery segment is anticipated to grow at the highest CAGR during the forecast period. VRLA batteries are technologically more advanced than flooded batteries and have a longer life cycle with excellent performance levels. VRLA batteries are widely used in applications such as renewable energy storage, telecom, and UPS systems.
On the basis of application, the automotive starter segment is estimated to hold the largest lead acid battery market share in the years to come. The increasing trend for electric vehicles and demand for cost-competitive energy sources in the market are the primary factors driving the growth of this segment. Lead-acid batteries are commonly used in traditional internal combustion engine (ICE) vehicles, and they also play a role in the hybrid electric vehicle (HEV) segment.
The forklifts & other vehicles segment is anticipated to grow at the highest CAGR over the forecast period. Forklift trucks are mainly used in the material handling industry, where productivity and low cost are of immense importance. Lead-acid batteries are widely used in forklifts due to their cost-effectiveness and ability to provide reliable power.
By region, Asia Pacific is expected to dominate the global lead acid battery market and is also anticipated to grow at the highest CAGR over the forecast period. Due to high automotive production and sales, rapid industrialization, rise in population and surge in demand for UPS systems. In addition to this, Asia Pacific is also expected to lead the global lead acid battery market due to the increasing adoption of electric vehicles in the region. Countries like China, India, and Japan are investing heavily in the development of electric vehicle infrastructure to reduce carbon emissions and promote sustainable transportation. Lead-acid batteries are widely used in low-speed electric vehicles and hybrid electric vehicles, which are gaining popularity in the region.
The demand for lead-acid batteries in the automotive sector in Asia Pacific is driven by the region's high population density, increasing urbanization, and rising disposable incomes. As a result, the demand for automobiles is expected to grow significantly in the region, driving the growth of the lead acid battery market.
Furthermore, the rise in industrialization in the region is driving the demand for lead-acid batteries in industrial applications, such as forklifts, power backup, and renewable energy storage. The region is witnessing a surge in demand for UPS systems due to the growing adoption of cloud computing and e-commerce platforms, which require reliable backup power solutions to avoid downtime.
North America and Europe are also expected to witness significant growth in the lead acid battery market due to the increasing demand for energy storage solutions and the growing focus on renewable energy sources. The rise in demand for electric vehicles in these regions is also driving the growth of the market.
In North America, the increasing adoption of renewable energy sources such as wind and solar power is driving the demand for lead-acid batteries for energy storage. The region is also witnessing a surge in demand for lead-acid batteries in the telecom and UPS sectors due to the increasing demand for reliable backup power solutions.
In Europe, the growing focus on reducing carbon emissions and promoting sustainable transportation is driving the adoption of electric vehicles, which is expected to drive the growth of the lead acid battery market. Furthermore, the increasing demand for energy storage solutions in the region is driving the demand for lead-acid batteries for renewable energy storage.
List of Key Companies Profiled:
Following are the different segments of the global lead acid battery market:
|Market Size Value in 2022||US$ 46.96 Billion|
|Expected Revenue in 2031||US$ 82.02 Billion|
|Unit||Value (USD Bn)|
|Segments covered||By Type, By Application, By Region|
|Key Companies||Clarios, Exide Technologies, CSB Energy Technology, Yuasa, EnerSys, East Penn Manufacturing, Fiamm, Sebang, Hankook AtlasBX, Amara Raja, C&D Technologies, Midac Batteries, ACDelco, Banner Batteries, First National Battery, Chilwee, Tianneng Holding Group, Shuangdeng Group (Shoto), Camel Group, Fengfan, Leoch, Narada Power, Sacred Sun Power Sources, Coslight Technology, Other Prominent Players|
|Customization Scope||Get your customized report as per your preference. Ask for customization|
The Global lead acid battery market is projected to grow at a CAGR of 6.53% during the forecast period 2023-2031.
Lead acid is deployed in a wide array of industries including automotive, industrial, manufacturing and utilities among others as they are used in back-up power supplies for alarm and smaller computer systems.
Lead-acid batteries are less expensive than other options, such as Li-ion batteries, and they are also more environmentally friendly.
The size of the global lead acid battery market in 2021 was US$ 46.96 Billion in 2022.
The global lead acid battery market is driven by the cost-competitive energy storage solution.
Type, application and region are the different segments of the global lead acid battery market.
Based on application, the global lead-acid battery market is segmented into automotive starter, motorcycles & electric bikes, forklifts & other vehicles, communication industry, UPS and others.
Low-cost alternatives in energy storage space are a restraining factor which inhibits the growth of the market during the forecast period.
UK is expected to project the highest CAGR in the Europe lead-acid battery market during the forecast period.
The flooded battery segment is estimated to have the highest market share in 2022.
Asia Pacific holds a major share in terms of revenue in the global lead acid battery market in 2022.
Clarios, Exide Technologies, CSB Energy Technology, Yuasa, EnerSys, East Penn Manufacturing, Fiamm, Sebang, Hankook AtlasBX, Amara Raja, C&D Technologies, Banner batteries, Tianneng Holding Group, Sacred Sun Power Sources and Coslight Technology among others.