The Lead Acid Battery Market is estimated to be valued at US$ 55.61 Bn in 2023 and is expected to exhibit a CAGR of 8.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Lead acid batteries are rechargeable batteries that are mainly composed of lead and lead dioxide electrodes submerged in sulfuric acid. They are commonly used in automotive, industrial, commercial, residential, and utility sectors. Lead acid batteries are highly preferred due to their low cost, high cranking power, reliability, and low self-discharge rate. They are primarily used for starting, lighting, and ignition in automotive vehicles. Moreover, lead acid batteries find applications in motive power in diesel-electric submarine and electric rail applications.
Market Dynamics:
One of the major drivers for lead acid battery market is rising demand for electric vehicles. Due to increasing concerns regarding greenhouse gas emissions and environmental pollution, governments around the world are promoting adoption of electric vehicles. As lead acid batteries provide high cranking power, they are mainly used for starting vehicles. Thus, growing electric vehicles industry will augment the demand for lead acid batteries over the forecast period. Additionally, increasing industrialization in emerging economies has led to growth in motive power applications which employ lead acid batteries. For instance, diesel-electric locomotives, electric forklifts, telecom tower installations use large capacity lead acid batteries. Furthermore, growing infrastructure development activities are also fueling the demand for motive power equipment and heavy machinery that utilize lead acid batteries.
Segment Analysis
The lead acid battery market is dominated by the automotive sub-segment. Lead acid batteries are predominantly used in automobiles for starting, lighting and ignition purposes. Around 60% of the global lead acid battery market share comes from the automotive sub-segment as lead acid batteries provide economical and reliable performance in passenger cars, commercial vehicles and motorcycles.
PEST Analysis
Political: The regulations related to recycling of used lead acid batteries help curb environmental pollution and promote sustainability.
Economic: Growth in automotive sales and increasing rural electrification in developing nations are fueling demand for lead acid batteries.
Social: Growing consumer awareness about environmental issues boosts adoption of recycled lead acid batteries.
Technological: Advancements in valve regulated lead acid batteries help improve battery performance and life in renewable energy storage applications.
Key Takeaways
The Global Lead Acid Battery Market Growth is expected to witness high, exhibiting CAGR of 8.2% over the forecast period, due to increasing automobile production and sales globally. The Asia Pacific region dominates the market with China being the largest producer and consumer of lead acid batteries. India is another major and fast-growing market in the region supported by rising rural electrification and automotive manufacturing.
Regional analysis: The Asia Pacific region dominates the global lead acid battery market with a share of over 50% in 2023 led by China, India and other Southeast Asian countries. China has emerged as the leading manufacturer and consumer of lead acid batteries worldwide driven by the huge automotive industry in the country. India is envisioned to register the fastest growth during the forecast period on account of burgeoning automotive production and increasing rural electrification projects.
Key players: Key players operating in the lead acid battery market are Johnson Controls, ATLASBX Co. Ltd., Exide Technologies, East Penn Manufacturing Co, Crown Battery Manufacturing Company, C&D Technologies INC., GS Yuasa Company, Leoch International Technology Ltd, Chaowei Power Holdings Limited, and Camel Group Co. Ltd., Hoppecke Batterien GmbH & Co. KG. These companies are focusing on capacity expansions and new product launches to consolidate their market position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
