May 29, 2024

Lead Acid Battery Market Is Expected To Be Driven By Rising Demand From Automotive Industry

The global lead acid battery market is mainly driven by its widespread use in automotive industry which include both electric vehicles and conventional vehicles. Lead acid batteries are primarily used in conventional vehicles for ignition, lighting and ignition systems owing to their cost effectiveness, high surge power and service life. They are integral part of automotive battery systems offering reliable power source for starting, lighting, ignition functions in passenger cars, commercial vehicles, motorcycles and other vehicles. Lead acid batteries is major battery type used in automotive industry accounting for more than 75% of rechargeable battery market for vehicles as of 2023.

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 3.0% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

Rising demand from automotive industry remains key growth driver for lead acid battery market. According to International Organization of Motor Vehicle Manufacturers, global passenger car production is expected to grow at CAGR of 2.5% during 2023-2030. This rising automotive production will subsequently increase demand for lead acid batteries. Moreover, retrofitting of old conventional vehicles with new lead acid batteries also contributes significantly to aftermarket sales. However, growing preference of lithium ion batteries for electric vehicles may restrict lead acid battery market growth over forecast period. Improved performance attribute and higher energy density of lithium ion batteries make them favorable for EVs. Additionally, stringent government regulations regarding usage of lead may further challenge market expansion.

 

Segment Analysis

 

The global lead acid battery market is dominated by the automotive segment which holds more than 60% share of the total market. Within the automotive segment, passenger cars sub-segment accounts for the largest share owing to rising sales of passenger vehicles across the globe. The increasing demand for starting, lighting and ignition applications from automotive industry drives the growth of this sub-segment.

PEST Analysis

Political: Increased government investments and initiatives towards development of renewable energy sector boosts the demand for lead acid batteries used in energy storage applications.

Economic: Growth in the automotive industry along with expansion of data centers and telecom towers drive the demand for large scale energy storage, favoring the growth of the lead acid battery market.

Social: Rising consumer awareness about environmental protection and sustainable energy encourages the development and adoption of battery-based technologies.

Technological: Continuous R&D in battery technology has led to development of advanced lead acid batteries with features like low self-discharge, improved cycle life and higher reserve capacity.

Key Takeaways

The Global Lead Acid Battery Market Demand is expected to witness high growth over the forecast period of 2023 to 2030.

The Asia Pacific region currently dominates the market and is expected to maintain its lead position during the forecast period. Factors such as high automobile production and presence of large automobile markets like China and India contribute to the dominant position of Asia Pacific region.

Key players operating in the lead acid battery market are Sun Pharma, UCB Farchim SA, Yangtze Storage Technologies. Sun Pharma is a pioneering supplier of lead acid batteries while UCB Farchim SA products are known for their superior performance and life.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it