The lead acid battery uses lead plates and lead oxide to store energy electrochemically in battery cells. It finds widespread application in starting, lighting, and ignition applications in automotive and motorcycle industries. Lead acid batteries are commonly used for vehicle applications owing to their affordability, reliability, and sustainability. These batteries are easy to manufacture and recycle with widespread collection and recycling infrastructure. Vehicle batteries account for more than 60% of the global lead acid battery market.

The global lead acid battery market is estimated to be valued at US$ 64.07 Mn in 2024 and is expected to exhibit a CAGR of 3.0% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

One of the key drivers for the growth of the global lead acid battery market size include its widespread adoption in vehicle batteries. Lead acid batteries remains the technology of choice for starting, lighting, and ignition applications in automotive owing to their cost effectiveness and reliability. Their recyclability and sustainability also contributes to their preference for automotive applications. Vehicle production has been growing steadily across various regions of the world. According to recent data from International Organization of Motor Vehicle Manufacturers, approximately 92.2 million vehicles were produced globally in 2021 registering a growth of 3.4% over previous year. Such steady rise in vehicle production is anticipated to fuel the demand for lead acid batteries during the forecast period. Another driver is the steady growth of material handling industry which utilizes lead acid batteries for industrial fleet vehicles such as forklifts. Growth in e-commerce and rise of cold chain logistics is anticipated to drive future demand.

SWOT Analysis

Strength: Lead-acid batteries have three main strengths - they are inexpensive to produce, have a long shelf life, and work well in high-drain applications like engine starting. Most lead-acid batteries can sit on the shelf for up to a year before needing a charge. They are also durable and suitable for frequent deep discharges.

Weakness: Lead-acid batteries have low energy density and short life cycles compared to newer technologies like lithium-ion. They also have drawbacks like being heavy and requiring maintenance in the form of water topping. Environmental concerns have also emerged over lead toxicity as the batteries near their end of life.

Opportunity: Growing demand for start-stop technology in automobiles and the need for large energy storage systems for renewable energy integration offer opportunities for lead-acid batteries. Developing countries also provide a market as people look for affordable battery options. Further material and design improvements can boost the technology's competitiveness.

Threats: Strict environmental regulations around lead pose a long-term threat. Advanced battery technologies like lithium-ion also threaten lead-acid's dominance in some existing segments due to their higher performance and no use of toxic materials. Pricing pressures and subsidies for alternatives are other threats.

Key Takeaways

The global lead acid battery market is expected to witness modest growth over the forecast period. Despite drawbacks, lead-acid remains the goto technology for automotive starting, lighting and ignition applications owing to its affordability. The growing market for electric vehicles also provides an opportunity as these vehicles require robust energy storage for auxiliary loads. The global lead acid battery market is estimated to be valued at US$ 64.07 Mn in 2024 and is expected to exhibit a CAGR of 3.0% over the forecast period 2024 to 2031.

Regional analysis
Asia Pacific dominates the global market and is expected to retain its position through 2031. China dominates demand as it is a major manufacturer of lead acid batteries for both domestic needs as well as exports. India is another fast growing market driven by the automotive industry.

Key players
Key players operating in the lead acid battery market are Sun Pharma, UCB Farchim SA, Yangtze River Pharmaceutical (Group) Co., Ltd., Livzon Pharmaceutical Group Inc., Nanjing Sanhome Pharmaceutical Co.,Ltd., PKU Healthcare Corp., Ltd., Qilu Pharmaceutical Co., Ltd., Jilin Huakang Pharmaceutical Co., Ltd., Sichuan Hengrui Pharmaceutical Co., Ltd., Shaixi Taiyuan Pharmaceutical Co., Ltd., Guangdong Guoyuan Sinopharm Co., Ltd., Suzhou Dawnrays Pharmaceutical Co., Ltd., Zhejiang Zhebei Pharmaceutical Co., Ltd., Nanjing Chang'ao Pharmaceutical Co., Ltd., Xinhua Pharmaceutical (Gaomi) Co., Ltd..

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