Lead–Acid Battery Market to Generate Revenue Worth $70.7 Billion by 2023

  • Published: October 2018

The global lead-acid battery market was valued at $56.9 billion in 2017, and it is projected to reach $70.7 billion by 2023, progressing at a CAGR of 3.7% during the forecast period (2018–2023). The automotive category held the largest share in the market, during the historical period (2013–2017), among all applications.

The lead-acid battery market is expected to witness the fastest growth in the category of oil and gas, during the forecast period. The market growth in this category is mainly driven by the increasing oil and gas exploration activities, wherein lead–acid batteries are used to provide power to the drilling equipment.

Technological Advancements in Lead-Acid Batteries the Key Trend

Lead-acid batteries are high in demand, as they serve as the primary energy storage solution for a large number of applications, and they can be easily integrated with a wide range of consumer electronics. But the conventional batteries cannot always meet the performance standards of technically enhanced products, so companies are engaged in the development of high-performance variants, which has become a prominent lead–acid battery market trend. These advanced energy storage devices are ideal for electric vehicles (EV) and hybrid power systems, where they have overcome the limitations of conventional lead–acid batteries.

Increasing Demand for Electric Vehicles the Major Market Driver

The initiatives implemented by the government in numerous countries to limit the emission of greenhouse gases and check the global temperature rise are increasing the demand for EVs. Lead–acid batteries are widely used as a power generating source in EVs, owing to their high energy density and storage capacity. For instance, the Clean Energy Ministerial (CEM), a France-based organization, established a multi-government policy forum — the Electric Vehicles Initiative (EVI) — in 2010, for increasing the adoption of EVs globally. Thus, the increasing demand for EVs is expected to boost the lead–acid battery market growth.

Segmentation Analysis of Lead–Acid Battery Market

Lead–Acid Battery Market

The flooded category held the larger share, in the construction segment, during the historical period, in terms of value. This is because flooded batteries provide a cost-effective solution for entry-level start-stop systems. Additionally, the demand for these variants is surging for marine applications, as their effective power output is appreciably high.

Starting, lighting, and ignition(SLI)was the largest category, in the lead-acid battery market, by type, in 2017, in terms of value. This can be attributed to the low cost and easy maintenance of such devices, which results in their high demand from the automotive industry.

The oil and gas category is expected to exhibit the fastest revenue growth over the forecast period, among all applications, on account of the growing installation of energy storage systems and increasing use of UPSs during exploration and production activities.

Geographical Analysis of Lead–Acid Battery Market

APAC and Europe are expected to account for over 55.0% share in the lead-acid battery market by 2023. This can be mainly attributed to the high production volume of vehicles by the well-established automotive industry in the regions.

North America, LATAM, and MEA also hold considerable shares in the global lead-acid battery market, on account of the growing use of such devices in EVs and telecommunication network equipment.

The U.S. is expected to lead the North American market, generating revenue of over $7.2 billion in 2023. This can be mainly attributed to the increasing demand for EVs and growing investments in the power transmission and distribution sector.

Mexico is projected to be the fastest-growing lead–acid battery market in the LATAM region. The country is a major hub for automobile manufacturing, with its exports market located in the U.S., Canada, and several Central American nations. The large-scale production of automobiles results in a high demand for lead–acid batteries in the nation.

Saudi Arabia is expected to hold a considerable share in the MEA lead-acid battery market, over the forecast period. The kingdom is witnessing a radical change in its economy, as it forays into high-end manufacturing industries, such as automobiles, and UPS. The growth of such industries will likely boost the sale of lead–acid batteries in the country.

Competitive Landscape of Lead–Acid Battery Market

The lead–acid battery market is consolidated in nature, and Johnson Controls International plc, GS Yuasa Corporation, Exide Technologies, and EnergySys Limited are some of the major players.

In October 2017, Amara Raja Batteries Ltd. launched a new battery technology, absorbed glass mat (AGM), as well as gel platform-based batteries, within the lead–acid space, while keeping the low-cost factor by considering the alternative chemistries. With this development, the company expanded its lead–acid portfolio. It also developed flat-plate-gel and tubular-gel battery variants that year.

Some other important players operating in the lead–acid battery market are B.B. Battery Co. Ltd., C&D Technologies Inc., ATLASBX Co. Ltd., and Amara Raja Batteries Ltd.