The global Lead Acid Battery Market is estimated to be valued at US$ 47.5 billion in 2021 and is expected to exhibit a CAGR of 8.2% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
A) Market Overview:
Lead Acid Battery Market Size are widely used for multiple applications such as automotive, industrial, and stationary power backup systems. These batteries are known for their robustness and cost-effectiveness, making them the preferred choice for various industries. They find applications in vehicles, power generation plants, telecommunications, UPS systems, and more. With the increasing demand for energy storage solutions, the lead acid battery market is expected to witness significant growth in the coming years.
B) Market Dynamics:
1. Driver: Growing demand for renewable energy sources
The demand for renewable energy is witnessing a significant surge, driven by increasing concerns over climate change and the depletion of fossil fuels. Lead acid batteries play a crucial role in storing energy generated from renewable sources such as solar and wind. These batteries are used in off-grid and grid-tied systems to store excess energy and ensure a continuous power supply. With the shift towards clean energy sources, the lead acid battery market is expected to experience substantial growth.
2. Opportunity: Rising adoption of electric vehicles
The adoption of electric vehicles (EVs) is on the rise globally, driven by government initiatives, growing environmental awareness, and advancements in battery technology. Lead acid batteries are used in electric vehicles for starting, lighting, and ignition (SLI) systems. Additionally, they are used in hybrid electric vehicles (HEVs) and small electric vehicles (SEVs) for primary energy storage. With increasing investments in EV infrastructure and the transition towards sustainable transportation, the lead acid battery market is expected to witness significant opportunities.
C) Segment Analysis:
The automotive segment dominates the lead acid battery market due to the high demand for batteries in vehicles for starting and ignition systems. The industrial segment is also a significant contributor to market growth, owing to the extensive use of lead acid batteries in power backup systems, forklifts, and industrial equipment. The stationary power backup segment is expected to witness substantial growth, driven by the need for uninterrupted power supply in industries and commercial establishments.
D) PEST Analysis:
Political: Government regulations and policies aimed at promoting renewable energy sources and curbing carbon emissions are expected to positively impact the lead acid battery market.
Economic: The growing automotive industry, especially in emerging economies, coupled with the rising demand for energy storage solutions, is likely to drive the market's economic growth.
Social: Increasing environmental awareness among consumers, along with the need for reliable and sustainable power supply, is driving the demand for lead acid batteries.
Technological: Advancements in battery technology, such as improved energy density and longer lifespan, are driving the adoption of lead acid batteries in various applications.
E) Key Takeaways:
1. The global lead acid battery market is expected to witness high growth, exhibiting a CAGR of 8.2% over the forecast period, due to increasing demand for energy storage solutions and the rising adoption of electric vehicles.
2. Asia Pacific is the fastest-growing and dominating region in the lead acid battery market, driven by the presence of major automotive manufacturers and increasing investments in renewable energy projects.
3. Key players operating in the global lead acid battery market include Johnson Controls, ATLASBX Co. Ltd., Exide Technologies, East Penn Manufacturing Co, Crown Battery Manufacturing Company, C&D Technologies INC., GS Yuasa Company, Leoch International Technology Ltd, Chaowei Power Holdings Limited, and Camel Group Co. Ltd., Hoppecke Batterien GmbH & Co. KG. These players are focusing on product innovations, strategic collaborations, and mergers and acquisitions to strengthen their market presence.