Advanced Lead Acid Battery Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024-2030)

Advanced Lead Acid Battery Market Trends & Drivers

• The surging need for UPS systems is acting as a driver for the lead–acid battery market. UPS systems play a crucial role in distributing uninterrupted electricity supply and protecting data loss, equipment, and load surges. Additionally, owing to the rapid urbanization and industrialization in developing countries across the globe, the requirement for electronic devices and electricity is increasing, which, in turn, is propelling the need for UPS systems.
• Furthermore, several sectors including industrial, manufacturing, healthcare, research institutions, educational institutions, chemicals, and oil and gas further add to the demand for lead–acid batteries, as all these sectors require uninterrupted electricity supply for the proper functioning of machinery. Due to these factors, the need for such batteries is expected to be high and it will attribute to the market growth.
• Traditionally, conventional batteries were the key energy storage solution for a large number of applications, as they were compatible with a wide range of consumer electronics. However, with the commercialization of electric vehicles and advanced energy storage solutions to feed power grids, the demand for dynamic energy storage solutions is increasing. Additionally, such batteries have high load current and take less time to charge, up to five times faster than conventional batteries, and also provide a high output.
• Since conventional batteries have limitations in terms of meeting the performance standards of advanced technological products, companies engaged in the manufacturing of lead–acid batteries have started shifting their focus toward the development of advanced-performance batteries. Also, these are ideal for use in EVs, electrical grids, renewable energy projects, and hybrid power systems, and have proved beneficial in overcoming the limitations of conventional batteries. Thus, these factors boost the market growth.

Advanced Lead Acid Battery Market Analysis

Motive Category Holds a Larger Revenue Share

Based on type, the motive category accounted for a larger revenue share, of more than 58%, in 2022, and it is also projected to maintain the same trend throughout the analysis period. This is primarily attributed to the extensive use of motive advanced batteries in the automotive sector because of their high discharge and charge rates. A motive battery provides power to a motor that drives an electric vehicle, such as a forklift truck or golf cart, and powers the accessories of EVs such as headlights. These are also widely adopted in non-electric vehicles such as transport vehicles.

In addition, motive lead–acid batteries are also known as traction power batteries. Further, these are referred to as industrial lead–acid batteries, which provide a steady current for a longer duration.

Whereas, the stationary category is projected to grow at a higher CAGR, of around 8.1%, over the next few years. The growth can be mainly ascribed to the increasing demand for smoothly integrated solar PV solutions, which need battery banks with high capacity. Additionally, stationary batteries are majorly adopted as a standby power supply in the hospital, energy, and other industries. Also, rapid urbanization and government concerns toward solar PV solutions, in which batteries are the main equipment for storage of the generated power, are the key factors driving the growth of the industry.

VRLA Battery Holds the Largest Share

The VRLA battery category accounted for the largest revenue share, of 66%, in 2022, and it is also projected to grow at the highest CAGR, of 8.2%, in the coming years. This type of battery is also known as the sealed lead–acid (SLA) or maintenance-free battery. VRLA battery is the enhanced version of a semi-concentric sulfuric acid electrolyte battery and does not require any regular addition of water to the cells, which is why, it is mostly preferred in the automotive and industrial sectors. These are also used in applications where a large amount of power storage is needed at a low cost.

Propelling Demand for Electric Vehicles Drives the Industry

Electric vehicles, such as plug-in hybrid electric vehicles (PHEV), hybrid electric vehicles (HEV), and pure battery electric vehicles (BEV), are in high demand, as they enable clean and efficient transportation. In addition, regulatory governmental norms for limiting the global temperature and reducing greenhouse gas emissions are further augmenting the need for these vehicles.

Furthermore, several EV manufacturers, such as Ford Motor Company, Nissan Motor Corporation, and Tesla Inc., are making advanced electric car models. Lead–acid batteries are widely used as a power-generating source in EVs, owing to their high specific energy and energy density. Altogether, the above-mentioned factors indicate that the increasing demand for electric vehicles is expected to boost the lead–acid battery market.

Geographical Analysis

The European market is expected to grow significantly during the forecast period. This can be due to the high demand and production of vehicles and the presence of the well-established automotive industry in the region. With the increase in automobile production, the need for lead–acid batteries is also rising. For instance, electric cars accounted for around 17% of the automobile sales in 2021 in the region. Also, many leading manufacturers in the region are undergoing product developments to develop advanced batteries and cater to the growing demand.

For instance, in Germany, the number of electric vehicles on road is estimated to exceed 2 million by the end of 2023. With the increase in demand for such automobiles, the requirement for such batteries will be high, as consumers are shifting to more cost-effective and environment-friendly vehicles.

Report Breakdown

Based on Type

• Motive
• Stationary

Based on Construction Method

• Valve Regulated Lead Acid (VRLA) Battery
• Flooded Battery

Based on End-Use Industry

• Automotive and Transportation
• Energy and Power
• Industrial
• Commercial & Residential

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • U.A.E.

Top Advanced Lead–Acid Battery Manufacturers