The global lead acid battery market was valued at USD 37.98 billion in 2022 and is projected to experience a compound annual growth rate (CAGR) of 4.6% from 2023 to 2030. This anticipated growth is largely driven by the rising adoption of lead acid batteries in various applications, particularly in the automotive sector and Uninterruptible Power Supply (UPS) systems. Additionally, advancements in manufacturing techniques are expected to contribute to this expansion. The increasing need for lead acid batteries in off-grid power generation is also anticipated to enhance market size. The ongoing developments within the transportation industry, along with a surge in energy storage applications, are likely to propel demand in the coming years. Furthermore, the heightened need for UPS across multiple sectors—such as banking, oil and gas, healthcare, and chemicals—has further stimulated industry demand.
However, the environmental impact of lead batteries poses significant challenges to market growth. The declining prices of lithium batteries have also hindered the demand for lead acid batteries, mainly due to the rapid advancements in lithium technology. As costs continue to decrease, the appeal of lithium-ion technology in various energy storage markets is expected to further restrain the growth of the lead acid battery sector.
Gather more insights about the market drivers, restrains and growth of the Lead Acid Battery Market
The progress of the automotive industry in emerging markets such as India, Brazil, Mexico, South Korea, Indonesia, Thailand, and Vietnam is likely to broaden the global market landscape. The increasing demand for environmentally friendly electric vehicles, combined with ongoing technological innovations, is projected to significantly boost the demand for lead acid batteries in the years ahead.
Product Segmentation Insights
In terms of value, Starting, Lighting, and Ignition (SLI) batteries represented the largest segment of the lead acid battery market, capturing over 53.0% of the total market share in 2022. Despite this significant share, the SLI segment is projected to experience relatively slow growth, primarily due to the rising demand for alternative battery types, such as stationary and motive batteries. Nevertheless, this segment is expected to see some expansion driven by increasing needs in high-power applications, particularly in the automotive sector.
The growth in vehicle manufacturing—especially in key markets like China, Japan, India, Brazil, Mexico, South Korea, and the United States—is anticipated to further support the expansion of the SLI battery segment in the coming years. A notable example of this trend is the agreement signed in October 2018 between Amara Raja Batteries and Johnson Controls, aimed at launching new battery technology in India. This initiative focuses on delivering advanced consumer features and adhering to stringent emission standards within the automotive industry. Such collaborations and innovations are likely to significantly boost the demand for lead-acid batteries throughout the forecast period.
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