Lead acid batteries are widely used in automotive vehicles for starting, lighting and ignition purposes due to their energy density and cost-effectiveness. These batteries are used as a backup power source for automotive applications such as cars, buses, trucks, motorcycles, forklifts and other heavy-duty automobiles. Apart from automotive, lead acid batteries are also utilized in utility, UPS, telecom and other industrial applications.
The global Lead Acid Battery Market is estimated to be valued at Us$ 55.61 Bn in 2023 and is expected to exhibit a Cagr OF 3.0% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The global lead acid battery market is witnessing high growth owing to increase in production of automotive vehicles across the globe. According to the International Organization of Motor Vehicle Manufacturers (OICA), the total vehicle production increased from around 93 million units in 2017 to over 94 million units in 2018. The growth in automotive production is resulting in increased demand for lead acid batteries, which is a key driver for the market growth over the forecast period.
Another major driver for lead acid battery market is increasing sales of electric vehicles. As lithium-ion battery is expensive for energy storage in conventional vehicles, lead acid batteries continue to dominate the automotive battery market, especially in developing countries. Rapid adoption of electric vehicles for their environmental benefits will further propel the demand for lead acid batteries in years to come.
SWOT Analysis
Strength: Lead acid batteries have high energy density, making them suitable for use in automotive start-stop applications and other mobility solutions. They are also inexpensive to manufacture and recycle compared to other battery technologies. The mature production processes allow for large economies of scale in manufacturing.
Weakness: Lead acid batteries have low energy density compared to lithium-ion batteries. They are also heavy which affects vehicular performance and range. Frequent water replenishment is also required to maintain the batteries. Deep discharge can damage the battery plates resulting in reduced life cycle.
Opportunity: Growing demand for automotive batteries from the passenger car and commercial vehicle segments provides major growth opportunities. Increasing penetration of micro-hybrid and start-stop technology will drive lead acid battery adoption. Emerging markets in Asia Pacific and Central & South America offer significant greenfield opportunity.
Threats: Stringent environmental regulations around lead usage and disposal pose challenges. Battery chemistries like lithium-ion have significant performance benefits and are gaining traction for certain applications. Declining costs of alternatives threaten the price advantage of lead acid batteries.
Key Takeaways
The Global Lead Acid Battery Market Demand is expected to witness high growth over the forecast period supported by robust demand from the automotive industry.
The Asia Pacific region currently dominates the market owing to large production and vehicle parc in countries like China, India and Japan. China has emerged as the largest producer and consumer of lead acid batteries globally with the presence of major global players and an expanding automotive industry.
Key players operating in the lead acid battery market are Exide Technologies, Johnson Controls, GS Yuasa, and Panasonic. These players are focusing on expanding production capacities and global footprint to tap high growth opportunities in developing markets. While established players have a dominant presence, local manufacturers also have a substantial share in regional markets.
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