CAGR: 3% Current Market Size: USD 79 BillionFastest Growing Region: North America
Largest Market: APACProjection Time: 2022-2029Base Year: 2021
The Global Lead Acid Battery market is expected to grow from USD 79 billion in 2021 to USD 100 billion by 2029, at a CAGR of 3% during the Projection period 2022-2029. The growth of this market is mainly driven owing to the increasing development in infrastructure.
The lead acid battery is the most conventional type of rechargeable battery and is used in a wide range of industries. Also because cells have a high power to weight ratio, it offers the advantage of supplying high surge current. Lead acid batteries are desirable for usage in the automobile industry due to their high power to weight ratio and low price. Battery terminals, plates, cells, separators, and containers are the components of lead acid batteries. The majority of data centers in the region use a lot of power. To maintain a steady supply of power, battery technologies are used in backup systems, which are essential for data center power and storage. Salesforce is one of many software companies that plans to continue invest in data center and enterprise cloud computing infrastructure. The proliferation of relevant features, such as valve-regulated lead acid batteries, will result from the increase of data center infrastructure. The need for data centers to centralize, store, and disseminate information is also expected to grow as IT infrastructure advances. Globally, there is a high reliance on ongoing communication, and information sharing is rising. Together with the growing frequency of unplanned power outages, these and other factors will create profitable expansion prospects for the lead acid battery business.
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Market Dynamics:
Drivers:
The demand for lead acid batteries is predicted to rise across a number of industries, including the automotive, telecom, oil and gas, mining, manufacturing, and chemical ones. Lead acid batteries provide several advantages over other types of batteries, including affordability, a high current carrying capacity, tolerance to overcharging, and a wide variety of sizes and specifications. Lead acid batteries can be recycled, and in some regions the recycling rate for lead acid batteries is over 90%. Along with saving resources and lowering pollution, this also lowers battery prices. The global lead acid battery market is being driven by all these benefits and the large range of applications.
Restraints:
The global market for lead acid batteries is being constrained by the increased demand for lithium-ion batteries. Global demand for lead acid batteries has been reduced as a result of the rapid development of lithium-ion batteries over the past several years. Lithium-ion batteries have the benefits of low energy consumption, indoor charging, and environmental safety. They may be monitored using Battery Management Systems (BMS). For instance, the automotive and clean energy business Tesla Inc. announced in February 2021 that it would use Lithium-Ion batteries instead of Lead Acid 12V batteries in its upcoming models (Model S and Model X).
Opportunities:
With rising demand for electric vehicles, the demand for lead-acid batteries is also increasing as the are designed to be high power and are inexpensive, safe, and reliable. Advanced high-power lead-acid batteries are being developed, but for now these batteries are only used in commercially available electric-drive vehicles for ancillary loads.
Challenges
Lead acid battery have low usable capability. Usually around 30% to 40% of usage is taken into consideration. For instance, 600 Ah battery bank have a capacity of 300 Ah. Lead batteries comes with limited life cycle. They are to be replaced within two years. Lead batteries wastes energy and are less efficient.
Segmentation Analysis:
The global lead acid battery market has been segmented based on application, construction, sales channel, and regions.
By Application
The application segment is stationary, motive, and SLI. The SLI segment led the largest share of the lead acid battery market with a market share of around 37.3% in 2021. Due to the increased demand for other products, such as stationery and motive, it is anticipated to develop slowly over the Projection period. However, it is projected that rising demand in high power applications, such as the automobile industry, will favourably impact the segment's growth. Over the course of the Projection period, growth is anticipated to be aided by rising car production, particularly in China, Japan, India, Brazil, Mexico, South Korea, and the United States. For instance, Amara Raja Batteries and Johnson Controls signed a contract in October 2018 to provide a new battery technology in India that offers high-end consumer features and stringent pollution criteria for the automotive sector. During the Projection period, it is predicted that such initiatives will fuel the need for lead-acid batteries.
By Construction
The construction includes flooded and VRLA. The VRLA segment led the lead acid battery market with a market share of around 63.08% in 2021. Favorable characteristics including strong temperature resistance and minimal electrolyte evaporation and spillage will boost product demand. Additionally resistant to shock and vibration, this kind of battery. They have advantages over traditional flooded units in terms of installation, safety, and energy density.
By Sales Channel
The sales channel includes OEM and aftermarket. The aftermarket segment led the lead acid battery market with a market share of around 74.08% in 2021. The great adaptability of aftermarket products across a diverse variety of applications, including automobiles, UPS systems, and motor vehicles is attributed with driving growth. The demand for the product will also be boosted by the growing need for affordable and dependable power storage and supply solutions.
Global Lead Acid Battery Market- By Regional Analysis:
The regions analyzed for the lead acid battery market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The Asia Pacific region dominated the Lead Acid Battery market and held the 40% share of the market revenue in 2021.
Global Lead Acid Battery Market- Country Analysis:
Germany's lead acid battery market size was valued at USD 6.19 billion in 2021 and is expected to reach USD 7.13 billion by 2029, at a CAGR of 1.8% from 2022 to 2029.
The rising demand from a wide range of industries, including the telecom, oil and gas, automotive, mining, manufacturing, and chemical sectors, is the main driver of demand in the German market. The demand for lead acid batteries has also increased as a result of the presence of major automobile manufacturers in Germany.
China Lead Acid Battery’s market size was valued at USD 12 billion in 2021 and is expected to reach USD 14.7 billion by 2029, at a CAGR of 2.6% 2022 to 2029. In China, the need of a consistent and effective power supply has increased. High-capacity batteries are also in high demand due to the widespread use of devices like inverters, UPS systems, and switchgear. These factors fuels the demand for lead acid batteries in the country.
India's Lead Acid Battery market size was valued at USD 10 billion in 2021 and is expected to reach USD 11.9 billion by 2029, at a CAGR of 2.3% from 2022 to 2029. India's market for lead acid batteries is growing as a result of the country's flourishing telecom sector and increased technological advancement. The rising subscriber base in India over the past ten years has been mostly attributed to the expanding population, the era of digitization, and the introduction of 4G services. It is anticipated that this trend will continue with the impending rollout of 5G services throughout the nation. As a result of the companies' need to build more telecom towers across the nation to accommodate rising customer numbers, there is now a substantial market for backup lead-acid batteries.
Key Industry Players Analysis:
To increase their market position in the global Lead Acid Battery business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2021-2029 |
Base year |
2021 |
CAGR (%) |
3% |
Market Size |
79 billion in 2021 |
Projection period |
2022-2029 |
Projection unit |
Value (USD) |
Segments covered |
By Application, By Construction, By Sales Channel, and Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
C&D Technologies, Shandong Sacred Sun Power Sources, GS Yuasa International, Enersys, B.B. Battery, Middle East Battery Company, Exide Industries, MUTLU, Narada Power Source Co., Ltd. Leoch International Technology, and Amara Raja Batteries, among others |
By Application |
|
By Construction |
|
By Sales Channel |
|
Regional scope |
|
Scope of the Report
Global Lead Acid Battery Market by Application:
Global Lead Acid Battery Market by Construction:
Global Lead Acid Battery Market by Sales Channel:
Global Lead Acid Battery Market by Region:
Global Lead Acid Battery market size was USD 79 billion in 2021
Global Lead Acid Battery market grow at a CAGR of 3% from 2022 to 2029.
Leading market players active in the global lead acid battery market are C&D Technologies, Shandong Sacred Sun Power Sources, GS Yuasa International, Enersys, B.B. Battery, Middle East Battery Company, Exide Industries, MUTLU, Narada Power Source Co., Ltd. Leoch International Technology, and Amara Raja Batteries.
Aftermarket is a leading segment based on sales channel in lead acid battery market.
Asia Pacific is the fastest growing market for lead acid battery market.
Political Factors- The elements that can affect the long-term profitability of lead acid batteries in a particular nation or market are heavily influenced by political concerns. More than a dozen countries use lead acid batteries in their manufacturing processes, exposing them to a variety of political systems and environmental concerns. Success in such a dynamic industry as materials requires diversifying systemic political environment risks across numerous nations. Before entering or making investments in the lead acid battery business, potential participants should carefully consider the following factors: political stability and the significance of the materials sector to the national economy, military invasion risk, Level of corruption, particularly levels of government bureaucracy and meddling in the materials industry, protection of intellectual property, trade restrictions and tariffs relating to materials, and more.
Economical Factors- The aggregate demand and investment in an economy are determined by the macroenvironmental factors, such as the inflation rate, savings rate, interest rate, foreign exchange rate, and economic cycle. At the same time, microenvironmental elements like industry norms have an impact on the firm's competitive edge. To predict the growth trajectory, the lead acid battery sector can make use of national economic factors like growth rate and inflation as well as industry-specific economic indicators like materials industry growth rate and consumer spending.
Social Factor- The way of life and culture of the society have an effect on the organisational ethos in a preferred manner. In order to comprehend a market's players and create a marketing message that appeals to its consumers, lead acid battery marketers must take into account the common beliefs and attitudes of the population. Demographics and skill levels of the population, class structure, hierarchy, and power structures in society, educational attainment and industry-specific educational standards, culture (gender roles, social conventions, etc.), entrepreneurial spirit, and the general nature of society are all social factors that have an impact on the industry.
Technological Factors- Numerous industries are being rapidly disrupted by technology. A good example to demonstrate this idea is the energy industry. The industry has been changing quite quickly over the past five years, not even giving the established firms a chance to adapt. An industry should be analysed technologically, as well as the rate at which technology disrupts it. Slow technological disruption will allow more time, whereas rapid disruption may give a firm little time to adapt and be profitable. Understanding recent technological advancements made by Battery Minerals Limited's rivals is part of technology analysis. Technology's impact on product offering, Impact on cost structure in the Materials industry, Impact on value chain structure in sector, and Rate of technological diffusion.
Environmental Factors- Different markets have various norms or environmental requirements, which might have an effect on an organization's profitability there. States frequently have differing liability and environmental regulations even within the same nation. For instance, in the United States, Florida and Texas have differing liability provisions in the event of accidents or environmental catastrophes. Similar to this, many European nations offer substantial tax incentives to businesses engaged in the renewable energy industry.
Legal Factors- Many nations' institutions and legal systems are not strong enough to safeguard an organization's intellectual property rights. Before entering such markets, a company should carefully consider its options because doing so could result in the theft of its secret competitive advantage. Laws governing discrimination, copyright, patents, intellectual property, consumer protection, e-commerce, employment, health and safety, and data protection are just a few of the legal aspects that affect lead acid batteries.
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