The global Lead Acid Battery Market is estimated to be valued at US$47.5 billion in 2023, growing at a CAGR of 8.2% during the forecast period of 2023 to 2030, according to a new report published by Coherent Market Insights.
Market Overview:
Lead acid batteries are widely used in various industries such as automotive, renewable energy, and telecommunications. These batteries provide high power density, longer life cycle, and are cost-effective compared to other battery technologies. The increasing demand for lead acid batteries in automotive and renewable energy applications is driving the growth of the market. The automotive industry is increasingly adopting lead acid batteries for starting, lighting, and ignition (SLI) systems in vehicles. These batteries are also extensively used in off-grid renewable energy systems for storing electricity generated from solar panels and wind turbines.
Market Key Trends:
One key trend observed in the lead acid battery market is the shift towards advanced lead acid battery technologies. Manufacturers in the market are focusing on developing advanced formulations and adding additives to improve the performance and lifespan of lead acid batteries. For instance, East Penn Manufacturing Co. has developed the Deka Gel battery, which offers longer cycle life and improved deep-cycling capabilities compared to traditional flooded lead acid batteries. This trend is expected to drive the growth of the lead acid battery market in the coming years.
Porter’s Analysis
Threat of New Entrants: The threat of new entrants in the lead-acid battery market is moderate. While the market is highly competitive, it also requires significant capital investment for setting up production facilities. Additionally, established players have strong brand recognition and extensive distribution networks, making it difficult for new entrants to gain market share.
Bargaining Power of Buyers: The bargaining power of buyers in the lead-acid battery market is high. Buyers have access to various brands and products, giving them the ability to negotiate for better prices and terms. Moreover, with the increasing adoption of renewable energy storage solutions, buyers have more alternatives to choose from, further strengthening their position.
Bargaining Power of Suppliers: The bargaining power of suppliers in the lead-acid battery market is moderate. Lead, one of the primary raw materials for battery production, is widely available. However, fluctuations in lead prices and supply can impact the profitability of battery manufacturers. Suppliers can influence prices to some extent, but manufacturers have the option to switch suppliers if necessary.
Threat of New Substitutes: The threat of new substitutes in the lead-acid battery market is low. Despite the emergence of alternative battery technologies, such as lithium-ion, lead-acid batteries continue to dominate the market due to their reliable performance, cost-effectiveness, and long-established market presence.
Competitive Rivalry: The competitive rivalry in the lead-acid battery market is high. The market is characterized by the presence of numerous global and regional players, each striving to gain a larger market share. Intense competition leads to price wars and increased investment in research and development to introduce innovative products and technologies.
Key Takeaways
The Global Lead-Acid Battery Market Demand is expected to witness high growth, exhibiting a CAGR of 8.2% over the forecast period. This growth can be attributed to increasing demand for energy storage solutions in sectors such as renewable energy, automotive, and industrial applications. Government initiatives promoting renewable energy adoption and the growing need for uninterrupted power supply are also driving market growth.
In terms of regional analysis, Asia Pacific is the fastest-growing and dominating region in the lead-acid battery market. The region’s rapid industrialization, coupled with increasing demand for electric vehicles, is fueling the demand for lead-acid batteries. Furthermore, countries like China and India have significant investments in renewable energy projects, driving the need for energy storage solutions.
Key players operating in the lead-acid battery market include 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 hold significant market shares and are actively engaged in partnerships, product launches, and strategic acquisitions to strengthen their foothold in the market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.
Leave a Reply