by Lead acid batteries are electrochemical storage devices that are inexpensive and rechargeable. They are widely used in numerous applications such as transportation, motive power, and renewable energy backup power systems. Lead acid batteries are used in automobiles to power ignition, lights, and other vehicle functions. They are also deployed extensively for energy storage from renewable sources such as solar photovoltaic and wind turbines. Growing deployment of renewable energy across the globe is augmenting demand for battery storage systems, thereby propelling the lead acid battery market 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, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The increasing demand for energy storage solutions is expected to flourish the lead acid battery market over the forecast period. Rapid adoption of renewable energy across the globe is stimulating demand for energy storage systems to balance generation and consumption of electricity from intermittent renewable sources like solar and wind energy. As lead acid batteries are economical and have high cyclic efficiency, they are widely used for off-grid renewable energy applications such as solar micro-grids. Moreover, the growing electric vehicles industry is augmenting the need for large-capacity battery packs. Lead acid batteries are predominantly used in electric vehicles for starting, lighting, and ignition functions. These factors are propelling growth of the lead acid battery market. Furthermore, lack of Alternatives at low cost is also propelling growth of the lead acid battery market. Though lithium-ion batteries deliver high energy density, their costs are considerably higher than lead acid batteries. This makes lead acid batteries preferable for various stationary and automotive applications where initial costs are a major selection criterion.
Segment Analysis
The lead acid battery market can be segmented based on construction types into valve regulated lead acid (VRLA) battery and flooded lead acid battery. The VRLA battery segment is dominating and is expected to continue dominating during the forecast period. This is mainly due to the advantages offered by VRLA batteries like low maintenance requirements, quick charging capabilities and higher reliability. The VRLA batteries are preferred for application such as motive applications like electric forklifts, electric golf carts, emergency lighting and backup-power systems.
PEST Analysis
Political: Government policies supporting initiatives towards renewable energy adoption and electrification of transportation sector is positively impacting demand for lead acid batteries. Economic: Growing economies and disposable income across developing nations is driving sales of automotive and consumer electronics goods relying on lead acid batteries. Social: Increasing public and private investments in infrastructure development is propelling usage of uninterrupted power supply systems and electric vehicles requiring lead acid batteries. Technological: Advancements in battery chemistries are attracting investments but lead acid battery remains optimal for large scale energy storage applications due to cost competitiveness.
Key Takeaways
The Global Lead Acid Battery Market Size is expected to witness high growth over the forecast period supported by rapidly growing automotive production and sales. 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 dominated the market in historical period and is expected to continue dominating during the forecast period. In Asia Pacific, China accounted for largest share in 2021 led by strong manufacturing base of lead acid batteries and automotive industry in the country.
Key players operating in the lead acid battery market are Sun Pharma, UCB Farchim SA, Yangtze River Pharmaceutical Co. Key players are investing in expanding production capacities and new product development to cater to the growing demand. North America and Europe are other major markets for lead acid batteries driven by increasing sales of electric vehicles in the regions. Various government initiatives are further supporting renewable energy adoption and battery energy storage deployment.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
