Lead acid batteries are the most common type of rechargeable battery used in automotive and household applications like emergency lighting, electric tools, backup power systems, wheelchairs and others due to their low manufacturing cost and durability. They provides starting, lighting and ignition functions to automobile engines. They are also used in numerous industrial applications to start turbines, power trucks, telecommunications systems and solar installations. The global market is primarily driven by increasing demand from passenger vehicles and commercial vehicle segments.
The global lead acid battery market is estimated to be valued at US$ 64.07 Mn in 2024 and is expected to exhibit a CAGR of 3.0% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The demand for lead acid battery market size is increasing at a robust pace primarily due to growing automotive sector. As per estimates, over 90 million vehicles were sold globally in 2021, registering a significant growth over the previous year. The automotive industry has witnessed exponential growth especially in emerging nations like China, India and countries in Southeast Asia. Expansion of automotive industry has necessitated higher demand for lead acid batteries, which are used in almost every gasoline-powered vehicle for starting, lighting and ignition functions. The worldwide automotive battery market consumes over 70% of the total lead produced mainly for manufacturing lead acid batteries. Growing automotive sales coupled with replacement requirement of old batteries in existing vehicles is the key factor augmenting the growth of lead acid battery market over the forecast period.
SWOT Analysis
Strength: Lead acid batteries are cost effective and has a stable performance making it suitable for backup power applications. They are also recyclable and environment friendly.
Weakness: Lead acid batteries have low energy density and require regular maintenance in the form of water topping. They also have a shorter life cycle compared to other batteries.
Opportunity: Increasing demand for UPS systems from the telecom sector and growing sales of automobiles especially in developing nations are driving growth opportunities. Rising focus on renewable energy is also augmenting demand.
Threats: Stiff competition from lithium-ion batteries due to their higher performance. Stringent environmental regulations around the use of lead could also hamper market prospects.
Key Takeaways
The global lead acid battery market is expected to witness steady growth. The global lead acid battery market is estimated to be valued at US$ 64.07 Mn in 2024 and is expected to exhibit a CAGR of 3.0% over the forecast period 2024-2031.
The Asia Pacific region currently dominates the global market and is expected to maintain its leading position throughout the forecast period. This can be attributed to large automotive manufacturing bases and rising sales of vehicles in countries like China, India, and Southeast Asian nations. Moreover, growing demand for UPS systems from communication towers and data centers is also fueling the APAC market.
Key players operating in the lead acid battery market are Sun Pharma, UCB Farchim SA, Yangtze River Pharmaceutical (Group) Co., Ltd., Livzon Pharmaceutical Group Inc., Nanjing Sanhome Pharmaceutical Co.,Ltd., PKU Healthcare Corp., Ltd., Qilu Pharmaceutical Co., Ltd., Jilin Huakang Pharmaceutical Co., Ltd., Sichuan Hengrui Pharmaceutical Co., Ltd., Shaixi Taiyuan Pharmaceutical Co., Ltd., Guangdong Guoyuan Sinopharm Co., Ltd., Suzhou Dawnrays Pharmaceutical Co., Ltd., Zhejiang Zhebei Pharmaceutical Co., Ltd., Nanjing Chang’ao Pharmaceutical Co., Ltd., Xinhua Pharmaceutical (Gaomi) Co., Ltd.. The major players are emphasizing on geographical expansion and new product development to strengthen their foothold in the market.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it