by Lead acid batteries have evolved as a major energy storage solution for automotive and industrial applications. They offer high surge power, long service life, and low impedance all at an affordable cost. As such, they remain a cornerstone technology for starting, lighting and ignition applications in automobiles. In the industrial sector, they continue to serve as backup power and energy storage solutions for telecom networks, railways, utilities among others.
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 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing Demand for Stationary Energy Storage Applications: One of the key drivers for lead acid battery market size is the increase in sales of stationary energy storage systems deployed in renewable energy integration, and for commercial and industrial backup power systems. Lead-acid batteries are the dominant technology used in such stationary energy storage systems owing to their long lifespan, high cycling efficiency, and low capital cost. Their use in stationary energy storage is expected to grow further on account increasing penetration of renewable energy sources like solar and wind power globally.
Another driver referred from the heading is the growing demand for stationary energy storage applications. The use of lead-acid batteries is rising significantly in stationary storage use cases like industrial UPS systems, commercial UPS, residential and off-grid energy storage systems due to advantages like high specific energy, low self-discharge, high surge power delivery and ability to work reliably under extreme hot and cold temperatures. Furthermore, lead-acid batteries can deliver thousands of charge-discharge cycles over their lifetime at an affordable upfront cost, making them well-suited for deep-cycle daily use in stationary storage markets.
Segment Analysis
The lead acid battery market can be segmented into two primary segments- automotive batteries and industrial batteries. The automotive batteries segment dominates the market with over 60% share as lead acid batteries are widely used to start engines in automobiles owing to their high cranking power, affordability and reliability. The automotive OEM and aftermarket segments constitute a bulk of demand. Within industrial batteries, the telecommunications and power backup segments account for sizable shares.
PEST Analysis
Political: Government regulations promote the usage of lead acid batteries in several industries like automotive, telecommunications due to their recyclability and cost effectiveness.
Economic: Rise in automobile sales, industrialization and demand for power backup especially in developing regions will drive market growth.
Social: Increasing demand for reliable and affordable energy storage solutions from consumers and industries augur well for the market.
Technological: Continuous R&D is ongoing to improve battery life, performance and recycling with reduced environmental footprint.
Key Takeaways
The global lead acid battery market is expected to witness high growth over the forecast period driven by robust demand from automotive and industrial verticals. 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 to 2031, as highlighted in a new report published by Coherent Market Insights. .
Regionally, Asia Pacific accounts for around 60% share led by China, India and ASEAN countries. It will remain the fastest growing region supported by rising vehicle parc, industrialization and investments in telecom infrastructure.
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..
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
