Lead Acid Battery Market Size – USD 45.17 Billion in 2021, Market Growth – at a CAGR of 4.2%, Market Trends – Growth of automotive sector
The Lead Acid Battery Market size is expected to reach USD 65.98 Billion in 2030 and register a revenue CAGR of 4.2% over the forecast period, according to the latest report by Reports and Data. Steady market revenue growth of lead acid battery is due to various factors, such as cost-competitive energy storage solution and increase in renewable energy generation target. However, safety issues related to battery usage are certain restraints that are expected to affect the market revenue growth.
The Lead Acid Battery are a type of rechargeable battery which have relatively low energy density. Their ability to supply high surge currents means that the cells have a relatively large power-to-weight ratio. These features, along with their low cost, make them attractive for use in motor vehicles to provide high current required by starter motors. Most of the world’s lead-acid batteries are used in automobile starting, lighting, and ignition batteries. Traction batteries are used in golf carts and other battery electric vehicles. Large lead-acid batteries are also used to power electric motors in diesel-electric submarines when submerged and are used as emergency power on nuclear submarines as well.
Market Synopsis of Lead Acid Battery Market
The global Lead Acid Battery Market size was USD 45.17 Billion in 2021 and is expected to register a revenue CAGR of 4.2% during the forecast period. Market revenue growth is primarily driven by factors such as rapid technological advancements in energy and telecom sectors, rising focus on renewable energy resources, high demand for energy storage systems, increasing automotive demand, and growing popularity of Electric Vehicles (EVS) worldwide. Rapid expansion of various industries and sectors in countries such as the U.S., China, India, Brazil, and others, and modernization of manufacturing and production facilities is resulting in high demand for power generators, Uninterruptible Power Supply (UPS) systems, and power storage units for additional or backup power.
Valve Regulated Lead Acid (VRLA) batteries have been used for decades and continue to be the most commonly used types of batteries in a number of applications and end-uses due to reliability and durability. Also, design life of sealed lead acid batteries can range between three to five years, all the way up to 12+ years, and this would depend on the battery manufacturing process.
Further key findings from the report suggest
- Among type segment, motive segment accounted for largest market revenue share in 2020 and is expected to register a faster revenue CAGR during the forecast period due to increasing demand for forklift applications. It has been observed that lead-acid batteries power almost 70% of the total forklifts manufactured. A motive type battery powers the motor that drives an electric vehicle such as a forklift truck. They also provide power for a specific purpose on an electric vehicle, such as the lift on a fork light truck. Additionally, motive type batteries power accessories such as headlights on an electric vehicle. Since lead-acid batteries aid in bringing down the total cost of ownership, their augmented implementation in forklifts is expected to fuel segment revenue growth over the forecast period.
- Among end use segment, transportation segment accounted for largest market revenue share in 2020 due to rise in demand for electric vehicles. Volatility of crude oil prices have affected countries that are dependent solely on imports. Rise in crude oil prices have led to rise in inflation. Hence, automobile sector is focusing on adopting electric vehicles as an alternative means which help in carbon reduction. Lead acid battery is used in different vehicles for different purposes, so as the automobile industry is witnessing steady demand, it would also allow Lead Acid Battery Market revenue to grow due to its cost-effective installation.
- Lead Acid Battery Market in Asia Pacific accounted for largest revenue share in 2020 and is expected to register fastest revenue CAGR during the forecast period due to requirement of cost-effective energy storage solutions in developing counties. The industrial and commercial & residential sectors, along with the transportation sector, are major consumers of these battery systems. China, Singapore, South Korea, Japan, and India are considered the main industrial hubs and offer tremendous growth opportunities for the lead-acid battery market. High demand in the region is owing to rising investment in smart battery-operated technologies. The rise in automobile production, increase in demand for uninterrupted power supply, government support, and increase in the level of Foreign Direct Investment (FDI) are expected to drive market revenue growth.
- Companies profiled in the global market report include Panasonic Corporation, Exide Industries Ltd., Hitachi Chemical Company Ltd., Amara Raja Batteries Ltd., HBL Power Systems Ltd., Zhejiang Narada Power Source Co., Ltd., Crown Battery Corporation, C&D Technologies Inc., GS Yuasa International Ltd., and Camel Group Co. Ltd.
- Major Companies:
- Exide Industries Ltd.
- GS Yuasa International Ltd.
- Advanced Power Solutions VN
- Chaowei Power Holdings Ltd.
- HBL Power Systems Ltd.
Type Outlook (Revenue, USD Million; 2019–2030)
End-use Outlook (Revenue, USD Million; 2019–2030)
- Commercial & Residential