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.
Lead acid batteries are electrochemical cells that use lead plates and lead oxide to store chemical energy that is converted to electricity. They are rechargeable but have a shorter lifespan than lithium-ion batteries. However, they are more inexpensive to produce. Lead acid batteries are used in automotive, data communication, and stationary power applications such as emergency lighting, power backup, and storing excess power from solar panels. They offer advantages such as high surge power, long shelf life, and robustness.
Market key trends:
One of the key trends in the lead acid battery market is the growing demand from the stationary lead acid battery applications. Standby power and renewable energy storage are fueling demand growth in this segment. Furthermore, the adoption of microgrids and hybrid power solutions is supporting stationary lead acid battery deployment. Additionally, increased investments in data centers as well as the proliferation of smart grid infrastructure globally are expected to propel segment growth over the forecast period. Stationary lead acid batteries offer reliability as backup power solutions and are safer and less expensive than lithium-ion alternatives. Their flooding technology makes them ideal for off-grid and remote locations.
Threat of new entrants: The lead acid battery market requires high initial investments, which act as a barrier for new players. Also, established brands have strong relationships with end-users.
Bargaining power of buyers: Buyers have moderate bargaining power due to the presence of numerous established players. However, differentiated product offerings increase switching costs.
Bargaining power of suppliers: A few major suppliers exist for raw materials like lead, which gives them significant influence over pricing. However, the threat is moderate due to availability of substitutes.
Threat of new substitutes: Emerging lithium-ion technologies pose a threat, but lead acid batteries still have cost advantages in certain applications like automotive.
Competitive rivalry: The market is fragmented with the presence of global and local players. Price competition is high due to insignificant product differentiation.
The Global Lead Acid Battery Market Demand is expected to witness high growth, exhibiting CAGR of 8.2% over the forecast period, due to increasing adoption in automotive and stationary storage applications.
Regionally, Asia Pacific dominates the global market and is expected to maintain its lead position during the forecast period supported by growing demand from China, India, and other developing Asian countries. North America and Europe are also expected to offer lucrative opportunities for market 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. The market is highly fragmented with the presence of both global and regional market participants. Major players are focusing on new product launches and mergers & acquisitions for increased market share.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it