Carbon Black in Lead-Acid Battery Market is Expected to Reach $591.4 million by 2027

According to a new report published by Allied Market Research, titled, “Carbon Black in Lead-Acid Battery Market: Opportunity Analysis and Industry Forecast, 2020–2027,” 

The global carbon black in lead-acid battery market was valued at $417.1 million in 2019, and is projected to reach $591.4 million by 2027, growing at a CAGR of 4.6% from 2020 to 2027.

Lead-acid batteries are the most popular and large-capacity rechargeable batteries. They are very inexpensive on a cost-per-watt-base, which makes them cost-effective energy sources for automobiles, electrical vehicles, forklifts, marine, and uninterruptible power supply (UPS) systems. These batteries are built with numerous individual cells containing a layer of lead alloy plates. Typically lead-acid battery is composed of 35.0% of sulphuric acid and 65.0% water. Apart from this, other additives such as carbon black are also used in the battery to provide additional strength. Carbon black with a selected combination of properties such as high surface area, high conductivity, and high hydrophobicity is used in lead-acid batteries to provide improved charge acceptance and cyclability as well as reduced hydrogen evolution.

The growth carbon black in lead-acid battery market is mainly driven by lead-acid battery as a low-cost energy source and its recyclable nature. It has more than a 90% recycling rate, which means a very little amount of lead goes into waste; thereby, causing least impact on environment. This further increases the popularity of lead-acid battery; thereby, fueling its demand. The global battery sector is in the middle of technology revolution and governments from various geographies are looking forward to accelerating their move toward low-carbon energy sources. As a result, renewable energy generation activities are growing significantly and governments are also setting mandatory renewable energy targets by aiming electrification as well as decarbonization. Lead-acid battery technology is one of the technologies that has the performance capability to meet these energy targets. Therefore, lead-acid batteries are expected to support governmental approaches during the forecast period. This is expected to drive the demand for lead-acid battery, which eventually will drive the demand of carbon black during the forecast period. However, rise in popularity as well as the demand for lithium-ion battery limits the demand of the lead-acid battery, which is expected to restrain the demand for carbon black from lead-acid battery manufacturers.

By battery type, the flooded battery segment accounted for the largest market share in 2019. The adoption of flooded batteries is high in diesel-electric submarines, nuclear submarines, and in the automotive industry due to which there is a great demand for flooded batteries in the market. In addition, forklift trucks also use such batteries in material handling applications due to their low-cost. Flooded lead-acid battery dominated the global carbon black in lead-acid battery market with more than four-fifths of the total market share in 2019.

By grade, the specialty grade segment emerged as the leader in 2019, as it meets the significantly increased requirements for emerging start-stop/hybrid electric vehicles and stationary energy-storage application, which include high dynamic charge acceptance (DCA) and long cycle life during micro-cycling at partial state of charge. Specialty grade dominated the global market with more than four-fifths of the total market share in 2019.

Region wise, the carbon black in lead-acid battery market size is studied across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific accounted for the major global carbon black in lead-acid battery market share in 2019, and dominated the global market with nearly two-fifths of the total market share in 2019.

The major player studied and profiled in the global carbon black in lead-acid battery market are Imerys, Orion Engineered Carbons S.A., Cabot Corporation, SGL Carbon SE, Aditya Birla Group, Denka Company Limited, Superior Graphite, Shandong Jinkeli Power Sources Technology Co., Ltd, Continental Carbon Company, and Israzion Ltd.

COVID-19 analysis:

• According to the International Monetary Fund (IMF), due to the outbreak of novel coronavirus (COVID-19) pandemic, the global economy is expected to shrink by 3.0% in 2020. Many countries are under strict lockdown, which has forced several sectors to shut down their operations. This has halted manufacturing activities and reduced the demand and production of lead-acid batteries. Due to this the demand for carbon black additive from lead-acid manufacturers is anticipate to decline during the forecast period.
• According to the United Nations Industrial Development Organization (UNIDO), the Micro, Small & Medium Enterprises (MSME) sector across the developing economies, such as India, has been worst affected due to COVID-19 outbreak and the lockdown imposed thereafter. This is expected to decline the demand for lead-acid batteries and the carbon black additives used within. In addition, in the second half of 2020, some countries have started to lift restrictions and gradually start business operations in various sectors. Even with the gradual lifting of the lockdown, it is expected to be challenging for the manufacturing sector to get back to normal working conditions. This is expected to subsequently affect the market growth in coming years.
• The production of lead-acid batteries and carbon black additive is also likely to hamper during and after the lockdown due to non-availability of workers. According to the UNIDO, 30.0%–70.0% of pre-COVID-19 workforce of lead-acid battery and carbon black manufacturing companies has migrated back to their hometowns due to uncertainties and loss of income during the lockdown. This non-availability or less availability of workforce is expected to directly affect the annual production of lead-acid battery and carbon black.
• Automotive industry accounts for 60.0% share in terms of consumption of lead-acid battery globally. The automotive industry has been affected badly amid the lockdown imposed due to the COVID-19 outbreak and has recorded decline in production of vehicles (passenger & commercial) by 20.0% in 2020. Automotive manufacturers have halted their production activities due to disrupted supply chains of automotive components and decline in demand for passenger vehicles across the globe. The decline in production of passenger and commercial vehicles and downfall in numbers of newly registered vehicles are likely to decrease the demand and production for lead-acid battery which eventually will decline the demand of carbon black additive from battery manufacturers during the forecast period.
• E-bike industry accounts for 7.0% share in terms of consumption of lead-acid battery globally. Due to the COVID-19 pandemic, commuters are mostly avoiding public transportation. E-bikes are considered a safe, convenient, and affordable alternative to public transportation. Also, compared to other transportation systems, e-bikes are cheaper, easier to charge, and do not require huge investments in supportive infrastructure. This is estimated to boost the sales of e-bikes in 2020 and 2021. However, post-2021, the market is expected to return to normalcy. The sale of e-bikes was dampened in the first quarter of 2020, as e-bike stores were closed due to lockdowns. However, now that the lockdown has been lifted in most countries, including China, India, Japan, the U.S., Italy, and France, the sale of e-bikes has increased. This is likely to surge the demand of lead-acid battery from e-bike manufacturers which eventually will rise the production of battery and will surge the demand of carbon black additives from battery manufacturers.
• UPS system manufacturing industry accounts for 21.0% share in terms of consumption of lead-acid battery globally. The COVID-19 pandemic has posed business continuity challenges among various verticals, including construction and real estate, IT, healthcare, and manufacturing, owing to global lockdowns. It has impacted supply chains such as import and export control as per regional government policy and future influence on the industries. It has impacted the demand of UPS system in a negative way. The demand for UPS systems from enterprises is expected to be negative throughout 2020, particularly in retail, energy, transportation, IT, and government sectors. Due to this the demand for lead-acid battery is anticipate to decline from UPS system manufacturers resulting in decrease in production of lead-acid battery and the demand of carbon black additives from battery manufacturers.

Key findings of the study

• In 2019, Asia-Pacific dominated the global carbon black in lead-acid battery market with around 39.8% of the share in terms of revenue
• The flooded lead-acid battery segment dominated the global carbon black in lead-acid battery market with around 83.5% of the share in terms of revenue
• The valve regulated lead-acid (VRLA) battery segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 5.9% from 2020 to 2027
• Asia-Pacific is projected to grow at a highest CAGR of 5.0% in terms of value
• The specialty grade segment dominated the global carbon black in lead-acid battery market with around 85.6% of the share in terms of revenue
• The conductive grade segment is projected to grow at the highest CAGR of 5.7% in terms of revenue