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 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 used for starting, lighting, and ignition requirements of automobiles. Lead acid batteries have high reliability, low cost, and less complex recycling process. They are widely used in automobiles, backup power systems, and many other applications which require large amounts of power for short periods.
Market key trends:
The increasing demand for automobiles across the globe is a major factor driving the growth of the lead acid battery market. As lead acid batteries are majorly used in starting, lighting and ignition of vehicles. According to the International Organization of Motor Vehicle Manufacturers, nearly 78 million vehicles were produced globally in 2019. In addition, the replacement market for traditional lead acid batteries in automobiles is also contributing to the market growth. According increasing concerns regarding emission of greenhouse gases leading to pollution, there has been a shift towards electric vehicles requiring large scale storage solutions which is expected to propel the demand for lead acid batteries in the coming years, considering their cost effectiveness in comparison to lithium-ion batteries.
SWOT Analysis
Strength: Lead acid batteries are economical and affordable which makes them suitable for use in automotive and other industrial applications. They are highly recyclable with global recycling rates of about 99%.
Weakness: Lead acid batteries have low energy density and require regular maintenance in the form of water addition. They are also heavy and pose environmental hazards if not disposed of properly.
Opportunity: Increasing adoption of electric vehicles and growing demand for automotive and UPS applications are driving the growth of the lead acid battery market. Supportive government policies toward use of clean energy sources also provide new opportunities.
Threats: Advancements in lithium-ion battery technology pose a threat as they have higher energy density and require no maintenance. Stringent environmental regulations related to use and disposal of lead pose challenges.
Key Takeaways
The Global Lead Acid Battery Market Size is expected to witness high growth, exhibiting CAGR of 8.2% over the forecast period, due to increasing adoption of electric vehicles. Lead acid batteries are still widely used in automotive starter motors and other industrial applications due to their affordability.
Regional analysis
Asia Pacific is expected to dominate the global lead acid battery market during the forecast period. The region accounts for more than 50% share of the global market due to presence of countries like China, India and Japan which are among the largest producers and consumers of lead acid batteries. Europe and North America are also significant markets driven by growing electric vehicles sales.
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 players are focusing on capacity expansion and new product development to strengthen their position 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
