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2020

Lead-acid Battery Market

Lead-Acid Battery Market Size, Share, Competitive Landscape and Trend Analysis Report by Product (SLI, Stationary, and Motive), Construction Method (Flooded and VRLA), and Application (Automotive, UPS, Telecom, and Others): Global Opportunity Analysis and Industry Forecast, 2019-2026

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Author's: Krunal Yeware | Eswara Prasad
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Lead–Acid Battery Market Outlook - 2026

The global lead–acid battery market size was valued at $39.7 billion in 2018, and is projected to reach $59.7 billion by 2026, growing at a CAGR of 5.24% from 2019 to 2026. 

A lead cell is made from three basic components, which are anode, cathode, and electrolyte; where the anode is the negative terminal, cathode is positive terminal, and electrolyte connects both these terminals to drive an electrochemical reaction to produce electricity.

The global lead–acid battery industry is growing significantly across the globe, and it is likely to register a CAGR of 5.2% during the forecast period. Some of the factors that surge the demand for lead–acid batteries such as rise in SLI applications in the automotive industry, growth in renewable energy production, and high demand for energy storage devices. Lead-acid batteries are widely used in various applications telecommunications, data centers, healthcare facilities, emergency lighting systems, and other applications due to their unique characteristics and cost-effectiveness.

Developing countries are experiencing the growth of infrastructure development, urbanization, and expanding telecommunications networks which boosts the demand for reliable power supply and backup power solutions. Lead-acid batteries are a preferred choice for providing backup power in areas with intermittent or unreliable grid supply. Lead–acid batteries are also used in off-grid or remote locations where access to electricity is limited, which boosts the lead–acid battery market share in coming years.

Lead-acid batteries are used as backup power systems in industries to provide uninterrupted power supply during outages or as a backup to critical equipment in various applications. Lead-acid batteries are used in large material handling equipment applications which drives the demand for lead-acid batteries in industrial applications. Expansion of the telecom industry in countries such as the U.S., Brazil, India, and the UK leads to the adoption of lead–acid batteries.

A battery that is composed of sponge metallic lead anode, lead-dioxide cathode, and sulphuric acid solution electrolyte is called a lead–acid battery. It is the first battery which is use for commercial applications. It contains toxic lead but can be recycled.       

The global lead–acid battery industry is growing significantly across the globe and it is likely to register a CAGR of 5.2% during the forecast period. Some of the factors that surge the demand for lead–acid batteries are growing SLI applications in the automotive industry, growth in renewable energy production, and high demand for energy storage devices. Expansion of the telecom industry in countries such as the U.S., Brazil, India, and the UK is leading to greater need for UPS systems as a power back up, which leads to superior adoption of lead–acid batteries as a cost-competitive energy. However, increasing adoption as well as popularity of lithium-ion batteries hampers the market growth to a great extent. 

Lead Acid Battery Market

Lithium-ion batteries are the major alternatives to lead–acid batteries, as they have greater benefits. Therefore, these factors are anticipated to challenge global lead–acid battery market growth during the forecast period. Major technology giants including Google and Samsung are looking forward to expanding their data centers to simplify data complexities. Hence, leading to rise in need for UPS systems in data centers across the globe, which may create healthy growth opportunities to the global lead–acid market during the forecast period. Expansion of data centers and resulting demand for heavy weight lead–acid batteries is the key global lead–acid battery market trend observed in the recent years. 

Moreover, with the increase in penetration of renewable energy sources like solar and wind power boosts the demand for energy storage systems and components in the market. Lead-acid batteries are suitable for short-duration energy storage applications and may be cost-effective for small-scale renewable energy projects which boosts the lead–acid battery market trends in forecast period. Lead-acid batteries are used to store excess energy generated from renewable sources and deliver it when needed, ensuring a more stable and reliable power supply.

Researchers and manufacturers are working on advancements in lead-acid battery technology to improve their performance and characteristics. The advancements include developments in areas such as enhanced energy density, increased cycle life, faster charging capabilities, and improved tolerance to deep discharges. These advancements aim to expand the application range of lead-acid batteries and make batteries more competitive with alternative battery technologies. Moreover, the increased focus on sustainability and environmental concerns presents opportunities for lead-acid battery recycling and the development of more sustainable battery materials.

In addition to their many advantages, lead-acid batteries are extremely dangerous for the environment. Lead-acid batteries contain lead, a toxic and environmentally hazardous material. Improper disposal or recycling of lead-acid batteries may lead to environmental contamination and health risks. Stringent regulations and growing environmental concerns restrain the demand for lead-acid batteries, particularly in regions with strong sustainability initiatives or regulations.

The technology used by lead-acid batteries to store and transform electricity is outdated. Lead-acid batteries have relatively slower charging and discharging rates compared to some other battery technologies. Slow charging factor may be a restrain the demand for lead-acid batteries in applications which require rapid energy transfer or high-power output.

The global lead–acid battery market is segmented on the basis of product, construction method, application, and region. By the product, it is segmented into SLI, stationary, and motive. By construction, it is bifurcated into the flooded lead–acid battery and valve regulated sealed lead–acid battery (VRLA). By application, the global lead–acid battery market divided across automotive, UPS, telecom, and others. The automotive segment is further divided into passenger cars, electric bikes, and transportation vehicles. Region wise, it is studied across North America, Europe, Asia-Pacific, and LAMEA.

Among all regions, Asia-Pacific was the largest regional market in 2018 and is expected to be the largest during the forecast period. High demand for cost-effective energy storage devices, active participation of Asian countries in mandatory renewable energy targets, and growth in population, and rise in demand for UPS systems mainly drive the growth of the lead–acid battery market. Moreover, flourishing automotive production across the globe further contributes to the growth of this market.  

The major player studied and profiled in this market are EnerSys, Exide Industries, Crown Battery, East Penn, HOPPECKE, NorthStar, Hitachi Chemical, Teledyne Technologies, Hankook AltasBX, and C&D Technologies.  

Global Lead–Acid Battery Market, by Product

By product, the SLI segment was accounted for the largest global lead–acid battery market share in 2018. The primary advantage of SLI batteries is long cycle-life and weight reduction in vehicles. Therefore, rise in vehicle sales drives the growth of SLI batteries as a cost-effective energy source. As per an article published by Elsevier B.V. in 2017, the demand for SLI batteries is expected to increase for many small and cheap ICE vehicles, especially in developing countries such as India, Indonesia, and China. This can be attributed to the lack of strict regulatory concerns governing the use of vehicle batteries and issues of CO2 emission penalties. Furthermore, these batteries are considered as a cost-effective source of energy by vehicle owners, who replace batteries after a specific time instead of buying expensive alternatives, such as lithium-ion battery, available in the market

Lead-Acid Battery Market
By Product
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SLI is projected as the most lucrative segment.

Global Lead–Acid Battery Market, by Construction Method

By construction method, the flooded battery segment emerged as the global leader over other construction methods. The demand for flooded lead–acid batteries is also high in diesel-electric submarines to power electric motors and nuclear submarines as an emergency power backup. Therefore, increasing marine trade activities are likely to offer healthy growth opportunities for flooded lead–acid batteries during the forecast period. The use of these batteries in forklift trucks is also rising significantly in response to their cost-effective nature, as forklift trucks are mainly used in the material handling industry, where productivity and low cost are of immense importance.  

Lead-Acid Battery Market
By Construction Method
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Flooded Battery is projected as the most lucrative segment.

Global Lead–Acid Battery Market, by Application 

By application, the automotive segment dominated the global market in 2018. Balanced supply demand gap in the automotive industry, trend for electric vehicles, and demand for cost competitive energy sources are the major factors that drive the growth of lead battery market. 

Lead-Acid Battery Market
By Application
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Automotive is projected as the most lucrative segment.

Global Lead–Acid Battery Market, by Region

Asia-Pacific is the largest regional market in this and accounted for around 40% of the total share in 2018. The countries that are key contributors to Asia-Pacific include China, India, Japan, South Korea, and Australia. Some of the factors that drive the growth of this region include high automotive production and sales, rapid industrialization, rise in population, and surge in demand for UPS systems. Revenue for lead–acid batteries in Asia-Pacific mainly comes from the automotive sector, owing to strong demand for passenger cars, coupled with rising awareness and adoption of electric vehicles. The electric vehicle segment in the automotive sector is developing at a significant pace to reduce carbon footprints. The lead–acid battery is considerably used in electric vehicles and its adoption rate is growing gradually.

Lead-Acid Battery Market
By Region
2026
Asia-pacific 
North America
Europe
LAMEA

Asia-Pacific holds a dominant position in 2018 and would continue to maintain the lead over the forecast period.

Key Strategies

  • October 2022, EnerSys the global leader in stored energy solutions for industrial applications, has strengthened its manufacturer representative agreement with Industrial Battery & Charger, Inc. (IBCI). The exclusivity agreement includes the complete line of EnerSys, NexSys and IRONCLAD batteries, as well as IMPAQ, NexSys+ and Express® chargers. This development will help the company to boost the revenue in the near future.

 

During an economic slowdown, overall economic activity tends to slow down which leads to a decrease in demand for various products and services. Slow economic situation may directly impact the demand for lead-acid batteries, especially in sectors such as automotive, industrial, and construction, which are major consumers of these batteries. Lower demand from these sectors may result in decreased sales and production of lead-acid batteries. Economic slowdowns may intensify competition among battery manufacturers and suppliers. Companies may resort to price reductions and discounts to maintain or capture market share in the market.

Russia and Ukraine countries are significant players in the global market. Both the countries leads in supply chain, with Russia being a major lead producer and Ukraine being a key supplier of lead concentrates. The conflict may disrupt the extraction, processing, and transportation of lead, potentially leading to supply chain disruptions for lead-acid battery manufacturers. The war situation may result in reduced availability of raw materials and increased costs which impacts overall market growth.

Key Benefits for Stakeholders:

  • The report provides an in-depth analysis of the lead–acid battery market forecast along with the current and future market trends
  • This report highlights the key drivers, opportunities, and restraints of the market along with the impact analyses during the forecast period
  • Porter’s five forces analysis helps analyze the potential of buyers & suppliers and the competitive scenario of the global lead–acid battery industry for strategy building
  • The global Lead–acid battery Market analysis covers major factor that impact the global market growth including growth, restraints, and opportunity factors
  • The qualitative data in this report aims on market dynamics, trends, and developments

Lead-Acid Battery Market Report Highlights

Aspects Details
Lead-Acid Battery Market By Construction Method
By Construction Method
  • Flooded
  • Valve Regulated Sealed Lead–acid battery (VRLA)
Lead-Acid Battery Market By Product
By Product
  • SLI
  • Stationary
  • Motive
Lead-Acid Battery Market By Application
By Application
  • Automotive
  • UPA
  • Telecom
  • Others
Lead-Acid Battery Market By Region
By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (Germany, France, Italy, Spain, UK, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, South Korea, Australia, Rest of Asia-Pacific)
  • LAMEA  (Brazil, Saudi Arabia, UAE, South Africa, Rest of LAMEA)
Key Market Players
Key Market Players

Hitachi Chemical Co. Ltd., Teledyne Technologies Inc., Hankook AtlasBX Co. Ltd., Accumulatorenwerke HOPPECKE Carl Zoellner & Sohn GmbH, HBL Power Systems Ltd., Exide Industries Limited, C&D Technologies Inc., Enersys, East Penn Manufacturing Company, GS Yuasa Corporation

Analyst Review

According to CXOs of leading companies, the global lead–acid battery market is likely to witness a significant growth during the forecast period. In the rechargeable battery sector, major competition is seen in two prominent battery types, namely, traditional lead–acid battery and a lithium-ion battery. After comparison between these batteries, it is analyzed that lead–acid battery is the finest one and is still the battery of choice among most consumers. Some factors such as cost-competitive energy source, increasing renewable energy production, long-lasting nature, and recyclability associated with lead-acid batteries make them highly preferable for all applications. Due to which the market is witnessing a significant growth across the globe. 

A lithium-ion battery is considered to be a suitable alternative to a heavyweight lead–acid battery; which is better in terms of efficiency, capacity, and charging time. But it is anticipated to take another decade for lithium-ion batteries to replace the lead–acid battery as it is still in the developing phase in terms of recyclability. Therefore, the lead–acid battery market is expected to witness promising growth opportunities for the next 10 years.

Author Name(s) : Krunal Yeware | Eswara Prasad
Frequently Asked Questions?

Growing demand of lead-acid battery as a cost efficienct energy storage solution, highest recyclability asociated with this battery type, and increasing mandatory renewable energy targets are the factors that drive the growth of this market.

The global lead-acid battery market anticipared to register growth of 5.24% in 2026.

To get latest version of lead acid battery market report

Asia-Pacific and Europe region anticipated to provide profitable growth to this market during the forecast period.

Growing efforts to reduce overall energy costs and therefore resulting demand for lead-acid as a cost effective energy storage device in renewable energy sector is the key trend observed inb this market

Based on top growing big corporation, we select top 10 players.

Automotive, UPS, telecome, and others are the major application areas of the lead-acid battery.

Market players have been adopting various strategies such as new product development and launch, mergers & acquisition, strategic, and agreements to stay competitive in this market.

Automotive market holds largest market share in the global lead-acid battery market.

The global lead-acid battery market is valued at $39.7 billion in 2018.

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Lead-acid Battery Market

Global Opportunity Analysis and Industry Forecast, 2019-2026