Lead Acid Battery Market to Surpass $106 Billion by 2029
Heightened demand from transportation sector
Lead acid batteries are one of the foremost energy sources in multiple end-use industries, such as transportation, automotive, industrial, grid storage, motive, and stationary industries. The lead acid battery market is maintaining its hegemony in the transportation sector owing to a surge in the production of passenger vehicles and two-wheelers. The extensive use of conventional vehicles in emerging economies of China, India, and Brazil are poised to strengthen the lead acid battery demand in the global market. Automobile manufacturers are opting for lead acid batteries, as they deliver high power density and are easy to produce and recycle. According to the latest market study, the transportation industry will account for nearly 39% of the total global value share by the end of the forecast period
Further, the adoption of electric vehicles and e-bikes powered with lead acid batteries have tremendously increased and are expected to unlock future growth prospects in the global market. Flooded batteries are gaining significant traction compared to absorbent glass mat (AGM) batteries, according to the study.
- Absorbent Glass Mat (AGM) lead acid battery is estimated to generate $15 billion during the forecast period and is estimated to account for 38% of the overall value opportunity in the global market by the end of 2029.
- The transportation sector is projected to expand 1.4 times as compared to 2019, by witnessing a compound annual growth rate of 4%.
- Asia-Pacific excluding Japan is foreseen to maintain its dominance throughout the assessment period, accounting for more than 39% of the share in the global market.
- Stationary industrial lead acid battery is forecasted to expand 2.9X times compared to the commercial industrial battery by the end of forecast duration.
“Growing demand for green energy and efficient performance at low costs is foreseen to offer new growth prospects for lead acid battery manufacturers,” the report analyst said.
The report reveals some of the prominent market players, including Furukawa Electric Co. Ltd, Hitachi Chemical Co., Narada Power Source Co. Ltd, NorthStar, Leoch International Technology Ltd, Crown Battery Corp., Exide Industries Limited, GS Yuasa Corp., and others. Prominent manufacturers are focusing on acquisitions as a key strategy to strengthen their global presence. For instance:
- In January 2017, Furukawa Battery Co. Ltd., a subsidiary of Furukawa Electric Co., signed an agreement with I-WIND (Inter Far East Wind International Co. Ltd.) for the supply of ultra battery, which is to be utilized in wind power generation projects.
- In June 2017, Narada Power Source Co. signed a contract of cooperation in energy storage with Upside Consulting GmbH and Upside Invest GmbH & Co., KG, in order to build, operate, and sell a storage system together for the service of primary frequency regulation.