Lead acid batteries are extensively used in a variety of industrial and motive applications, owing to their economic feasibility, robustness, and reliability. These batteries are widely used for starting, lighting, and ignition applications in automotive vehicles. The growth in the global automotive industry has substantially boosted the demand for lead acid batteries. Lead acid batteries are also increasingly utilized as a power backup for industrial equipment and processes across different sectors such as manufacturing, oil & gas, mining, and petrochemical. The growing energy requirements of various industries have augmented the adoption of industrial motive batteries. Furthermore, lead acid batteries are commonly installed at telecom towers as an emergency backup to ensure uninterrupted network operations. The constant expansion and modernization of telecom infrastructure have supplemented the consumption of these batteries.
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.
Lead acid batteries offer advantages such as high surge capacity, safety, low investment, and recyclability. They find widespread usage in automotive starting, lighting, and ignition applications, industrial forklifts, telecommunications tower backup, and renewable energy integration. The need for reliable and cost-effective energy storage solutions in automobiles along with infrastructure and industrial equipment is propelling the demand for lead acid batteries.
Market key trends:
Some of the key trends in the lead acid battery market include rising demand for valve-regulated lead acid (VRLA) batteries and growing investments in renewable energy integration. VRLA batteries are gaining popularity due to their maintenance-free operations, leak-proof properties, and longer shelf life compared to conventional flooded lead acid batteries. They are increasingly adopted in automotive, industrial, and network communications applications. Furthermore, lead acid batteries are playing a pivotal role in stabilizing power grids through renewable energy storage. To meet climate change commitments, governments across regions are strongly supporting the deployment of solar and wind farms. This is augmenting investments in large-scale battery energy storage systems that utilize lead acid battery technologies. Rising requirements for ancillary services from renewable plants will propel the consumption of lead acid batteries over the forecast period.
Porter’s Analysis
Threat of new entrants: Medium. The lead acid battery market requires significant capital investment to start production facilities.
Bargaining power of buyers: High. Buyers have options from different manufacturers worldwide providing substitutable products.
Bargaining power of suppliers: Medium. Suppliers of lead and other raw materials have some pricing power but new suppliers can enter the market.
Threat of new substitutes: Medium. Technology advances have led to alternatives like Li-ion batteries gaining share but lead acid batteries still dominate certain applications.
Competitive rivalry: High. The market is mature with many global and regional players intensely competing on pricing, reliability and Total Cost of Ownership.
Key Takeaways
The Global Lead Acid Battery Market Size is expected to witness steady growth. 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.
Asia Pacific region currently dominates the market in terms of production and consumption due to high demand from countries like India, China and Japan. Key players operating in the lead acid battery market includes Sun Pharma, UCB Farchim SA, and Yangtze River Pharmaceu. Sun Pharma is one of the leading manufacturers of lead acid batteries globally.
The global lead acid battery market is projected to reach a value of US$ 55.61 Billion by 2024. Regional analysis comprises the Asia Pacific region is anticipated to maintain its dominance in the market over the forecast period attributable to the growing use of lead acid batteries in automotive and industrial applications in China, Japan and India. Key players operating in the lead acid battery market includes Sun Pharma, UCB Farchim SA, and Yangtze River Pharmaceu. Sun Pharma has a wide presence globally and offers a diversified portfolio of lead acid batteries catering to various applications.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
