The global lead acid battery market was valued at USD 37.98 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 4.6% from 2023 to 2030. This expected growth is primarily driven by the increasing adoption of lead acid batteries across various applications, especially in the automotive sector and Uninterruptible Power Supply (UPS) systems. Moreover, advancements in manufacturing techniques are anticipated to further support this expansion. The rising demand for lead acid batteries in off-grid power generation is also expected to enhance the overall market size. Developments within the transportation industry, coupled with a surge in energy storage applications, are likely to drive demand in the coming years. Additionally, the growing need for UPS in sectors such as banking, oil and gas, healthcare, and chemicals has further stimulated demand within the industry.
However, the environmental impact associated with lead batteries presents significant challenges to market growth. The declining prices of lithium batteries have also negatively affected the demand for lead acid batteries, primarily due to rapid advancements in lithium technology. As costs continue to fall, the attractiveness of lithium-ion technology in various energy storage markets is expected to further constrain the growth of the lead acid battery sector.
The advancement 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 rising demand for environmentally friendly electric vehicles, combined with ongoing technological innovations, is projected to significantly enhance the demand for lead acid batteries in the coming years.
Gather more insights about the market drivers, restrains and growth of the Lead Acid Battery Market
Construction Method Segmentation Insights
In terms of market value, the flooded lead acid battery segment emerged as the largest construction method segment, accounting for over 65.0% of the market share in 2022. However, this segment is expected to lose market share due to high maintenance costs and complex construction requirements. Nevertheless, the increasing demand for stationary applications is expected to drive industry growth throughout the forecast period.
On the other hand, Valve Regulated Lead Acid (VRLA) batteries are anticipated to see the highest gains, contributing over 34.0% of the revenue market share by 2022. The rising demand for VRLA batteries in automotive applications, attributed to their high output and low maintenance requirements, will support market growth during the forecast period. Additionally, VRLA lead acid batteries, including Absorbent Glass Mat (AGM) types, provide high resistance to vibration, reduce terminal corrosion, extend shelf life, and maintain a low self-discharge rate. The broad availability of various sizes of AGM lead acid batteries is expected to further boost their demand over the next nine years.
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