According to a new report published by Allied Market Research titled, "Lead–Acid Battery Market by Product, Construction Method, and Application: Global Opportunity Analysis and Industry Forecast, 2019–2026," 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.
Lead is the key component in lead–acid batteries, which is soft in nature, therefore, a couple of other additives such as antimony, tin, calcium, and selenium are added to it. These additives are added to get extra mechanical strength and electrical properties. Although lead is hazardous in nature, it is recycled that further prevents environmental damage. This is the reason why lead–acid batteries are capable of meeting sustainable norms.
The global lead–acid battery market is already a matured sector, in terms of growth, which is expected to grow at a single-digit growth of 5.2% during the forecast period. The global lead–acid battery market growth of this 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. However, rise in popularity as well as the demand for lithium-ion battery limits the growth of the global lead–acid battery market. 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.
By construction method, the flooded battery segment accounted for the largest market share in 2018. 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.
By application, the automotive segment accounted for the largest global lead–acid battery market share in 2018. Lead–acid battery is used for SLI applications in the automotive industry due to its high current surge. As per the Battery, Recycling, and Manufacturing Associations, more than 250 million units of lead–acid batteries were sold in the automotive industry in 2017 due to flourishing growth in vehicle sales.
The major player studied and profiled in the global lead–acid battery market are EnerSys, Exide Industries, Crown Battery, East Penn, HOPPECKE, NorthStar, Hitachi Chemical, Exide Technologies, Teledyne Technologies, Hankook AltasBX, and C&D Technologies.
Key Findings of the Study:
- The global lead–acid battery industry sees a profitable growth opportunities for the next 10 years due to its existing consumer base across the globe
- By product, SLI batteries emerged as the global leader by acquiring 50% of the total market share in 2018, and is anticipated to be the largest market during the forecast period due to its application in the automotive industry
- By construction method, the flooded lead–acid battery segment accounted for around 85% of the total market share in response to the greater benefits associated with it over VRLA battery types
- By application, the automotive segment accounted for around 60% of the total market share in 2018. Consumers in passenger cars prefer low-cost energy sources for SLI applications due to which adoption of cost-effective lead–acid batteries is high in the automotive industry.
- Although the market is dominated by lead–acid batteries, lithium-ion batteries have emerged as a strong alternative and is likely to take over the overall market in the next 10 to 12 years
- Increasing mandatory renewable energy generation targets across the globe as a part of government legislative approach is expected to offer healthy growth opportunities during the forecast period