The global advanced lead–acid battery market size is expected to grow at a CAGR of 7.3% during 2022–2030, to reach USD 42.6 billion by 2030. The growth can be mainly attributed to the high recycling rate, enhanced performance, low maintenance, and low cost of such batteries, and their rising demand in several sectors such as data center, automotive, industrial, education, and manufacturing.
One of the key driving factors of the industry is the rising demand for automobiles. These batteries are used in automobiles for starting, lighting, and ignition purposes, and also provide power to vehicle accessories such as air conditioners, radio systems, wipers, music players, and charging plugs. With the increase in population and purchasing power in developing countries, vehicle production has increased over the years. Thus, the automotive industry is a leading end user of lead–acid batteries.
For instance, the sales of electric vehicles are expected to jump from 3 million in 2017 to 23 million by 2030. This means the requirement for such batteries is expected to rise rapidly over the next few years. In addition, the high use of two-wheelers in highly populated countries, due to their preference as a mode of transportation, is also boosting the sales of such batteries. Thus, the above-mentioned factors will help grow the lead–acid battery market in the long term.
The world is inclining toward renewable resources. For instance, all EU countries have adopted national renewable energy action plans, attributing to an increasing number of offshore and onshore renewable energy installations in Germany, Italy, Sweden, and the U.K. These renewable energy systems increase the demand for lead–acid batteries, as they need batteries for the storage of renewable energy and for supplying electricity at all times. Thus, the increasing inclination toward renewable sources is projected to provide lucrative opportunities for industry players.
The APAC region accounted for the largest market revenue, of USD 9,435 million, in 2022, and it is projected to witness the same trend in the coming years as well. The surge in population in the region is the major factor driving the demand for lead–acid batteries.
Due to the rapid economic growth in major APAC nations such as China and India, the income levels in these countries have increased rapidly. The rising income levels have helped in aiding the growth of the regional automotive industry. As a result, countries such as China, India, Japan, and South Korea have emerged as one of the largest automotive markets in the world. The sales of automobiles directly boost the demand for lead–acid batteries, as they serve as automotive batteries for supplying electrical current to motor vehicles.
Furthermore, the surging need for lead–acid batteries in the residential and commercial sectors and the increasing government focus on minimizing the adverse effects of conventional batteries on nature are also boosting the regional market growth.
Some of the major players operating in the advanced lead–acid battery market are EnerSys, Exide Industries Ltd., GS Yuasa International Ltd., Clarios, Leoch International Technology Limited Inc., East Penn Manufacturing Co., Crown Battery, Furukawa Battery Co. Ltd., Amara Raja, and HOPPECKE Batteries Inc.