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Lead–Acid Battery Market Overview
The global lead–acid battery market was valued at $56.9 billion in 2017 and is projected to reach $70.7 billion by 2023, witnessing a CAGR of 3.7% during the forecast period. The growing demand of electric vehicles, increasing use of uninterrupted power supply (UPS) systems in industrial sectors, and rapid industrialization in developing nations are likely to generate growth opportunities and propel the market demand during the forecast period.
GLOBAL LEAD–ACID BATTERY MARKET, BY APPLICATION, MILLION UNITS (2013–2023)
Lead–acid battery is a rechargeable cell which can convert chemical energy into electrical power. This battery comprises plates of lead and lead oxide, immersed in a sulfuric acid solution. The oxide component of the sulfuric acid solution oxidizes the lead plate and generates electric current during the discharge cycle.
Based on construction, the lead–acid battery market can be classified into flooded and valve regulated lead–acid (VRLA). In 2017, flooded battery held the larger share, comprising a market share of more than 50.0%, in terms of value. The market for flooded lead–acid batteries is likely to be driven by increased applications of automotive and marine industries, owing to their low cost and high-power output.
The lead–acid battery market is bifurcated on basis of type into standby, motive, and starting, lighting, and igniting (SLI). SLI category dominated the market and held a market share of more than 55.0%, in terms of value, in 2017. This was attributable to several factors such as low cost, high durability and reliability, and high demand from the automotive industry. Furthermore, increasing application in telecommunication networks and hybrid vehicles are likely to open new potential avenues for SLI batteries.
Based on application, the lead–acid battery market is classified into automobile, utilities, construction, telecommunication, marine, leisure, UPS, and others. The others category includes military and mining applications. Automotive category was the largest application area, contributing more than 60.0% of market share in terms of value in 2017, owing to high degree of preferability, easy affordability, high performance, and low susceptibility to failure.
Globally, APAC held the largest market share, in terms of value, in 2017. Additionally, the market will exhibit the fastest growth in the APAC region, advancing at a CAGR of 4.6% during the forecast period. This growth is likely to be exhibited due to increased application rate in automotive, oil and gas, manufacturing, and healthcare sectors.
Lead–Acid Battery Market Dynamics
The major trend identified in the lead–acid battery market are technological advancements in the battery ecosystem and shift in preference from conventional generators to stationary lead–acid battery in telecom industry. Globally, the commercialization of electric vehicles and co-creation of novel equipment, devices, and machinery have envisaged the need of developed dynamic energy storage solutions. Moreover, since conventional batteries have limitations in terms of meeting the performance standards of such advanced technological products, companies engaged in the manufacturing of lead–acid batteries have started shifting their focus toward the development of improved and high-performance batteries.
The major drivers identified in the lead–acid battery market are growing demand for electric vehicles and UPS systems. Additionally, demand from automotive, power, healthcare, and telecom industries in developing nations is likely to propel market growth during the forecast period.
Automotive industry is a leading end user of lead–acid batteries. These batteries are predominately used for starting, lighting, and ignition purposes in automobiles. Furthermore, they provide power to vehicle accessories such as wipers, radio, air conditioners, and charging plugs. The significant demand of these batteries from automobile industry is likely to drive the market growth in the forthcoming years.
Lead–acid batteries have low cost and are easily rechargeable power devices. Hence, these play a crucial role in generation of backup power in developing countries such as India, Mexico, Indonesia, South Korea, Thailand, and Vietnam. Additionally, emerging industries such as manufacturing, healthcare, chemicals, and oil and gas require uninterrupted electricity supply for proper functioning of plants and machineries. This coupled with regulatory support and private investments in these sectors are likely to offer growth opportunities for lead–acid battery market.
The lead–acid battery market is witnessing stiff competition from lithium-ion batteries. Lithium-ion batteries are preferred substitutes due to longer lifecycle and better performance characteristics. Additionally, lead–acid battery emits hazardous or flammable gases. These batteries contain lead and lead alloy grid, lead paste, electrolyte, and plastics which are toxic, explosive, and are categorized potential risk hazards. Moreover, government regulations aimed at regulating lead and residue discharge that are likely to hamper growth of lead-acid battery market.
Lead–Acid Battery Market Competitive Landscape
Some of the major players operating in the global lead-acid batter market include Johnson Controls International plc, GS Yuasa Corporation, Exide Technologies, EnergySys Limited, Fujian Quanzhou Dahua Battery Co. Ltd., B.B. Battery Co. Ltd., Yokohama Industries Berhad, Hitachi Chemical Energy Technology Co. Ltd., C&D Technologies Inc., ATLASBX Co. Ltd., AC Delco Corporation, First National Battery Corporation, and Amara Raja Corporation.