Challenges and Opportunities in the Lead Acid Battery Market

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The global lead acid battery market size was valued at USD 37.98 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 4.6% from 2023 to 2030. 

The global lead acid battery market size was valued at USD 37.98 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 4.6% from 2023 to 2030. 

The market is estimated to witness growth owing to the growing adoption of lead acid batteries in automobiles and Uninterruptible Power Source (UPS) along with some developments in the manufacturing methods. The increasing demand for lead acid batteries in off-grid power generation is expected to boost the market size. The development in the transportation industry, along with an increase in energy storage applications is projected to drive industry demand in the upcoming future. Growing demand for UPS in various sectors which includes banking, oil & gas, healthcare, and chemicals has propelled industry demand further.

The adverse effects of lead batteries on the environment remain key restraining factors to growth. Also, the declining cost of lithium batteries has stalled the demand for lead-acid batteries, primarily owing to the former’s technological advancement. Continuous reduction in costs is likely to reinforce demand for lithium-ion technology in various energy storage markets, which is also expected to restrain the market.

Gather more insights about the market drivers, restrains and growth of the Lead Acid Battery Market

Detailed Segmentation:

Product Insights

In terms of value, Starting, Lighting, and Ignition (SLI) batteries emerged as the largest product segment and accounted for more than 53.0% of the market in 2022. These are projected to witness sluggish growth due to higher demand for other types of products including stationary and motive. However, the segment is likely to expand due to increasing demand in applications requiring high power including automotive.

Construction Method Insights

In terms of value, the flooded lead acid battery segment emerged as the largest construction method segment and accounted for more than 65.0% of the market share in 2022. The segment is expected to lose market share owing to high maintenance costs along with complex construction. However, increasing demand for stationary applications will fuel industry growth over the forecast period.

Application Insights

In terms of value, automotive emerged as the largest application segment and accounted for more than 58.0% of the market in 2022. The extensive usage of lead acid batteries in the automotive sector is expected to grow as a result of the rising automotive sector globally. The presence of big automotive players such as TATA, Maruti Suzuki, Infinium Toyota, Mahindra, Mitsubishi, Hyundai, Honda, and Nissan have fuelled the growth of the automotive sector in the Asia Pacific due to their strong distribution channels and easy availability of their products at a cheaper price.

Regional Insights

Asia Pacific dominated the lead acid batteries industry and accounted for more than 55.0% share of the global revenue in 2022. The growing construction industry in emerging countries including China, India, Japan, Malaysia, South Korea, Vietnam, and Indonesia is projected to drive the utilization of lead-acid batteries. According to the Society of Indian Automobile Manufacturers, total automotive sales grew by 24.0 percent in 2020-2021 over 2021-2022. Expansion in the automobile sector will lead to significant growth in sales of SLI lead acid batteries.

Browse through Grand View Research's Power Generation & Storage Industry Research Reports.

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Key Companies & Market Share Insights

The market is fragmented in nature due to the presence of many manufacturers. The market is categorized with a large number of market players in the U.S., China, and Japan. Mergers & acquisitions and joint ventures are key characteristics of the market players, to increase their market presence. The industry is highly competitive with participants involved in continuous product innovation and R&D. 

Some prominent players in the global lead acid battery market include:

• East Penn Manufacturing Co.

• Exide Technologies

• Johnson Controls

• ATLASBX Co. Ltd.

• NorthStar

• C&D Technologies, Inc.

• Narada Power Source Co., Ltd.

• Amara Raja Corporation

• GS Yuasa Corp

• Crown Battery Manufacturing

• Leoch International Technology Ltd.

Lead Acid Battery Market Segmentation

Grand View Research has segmented the global lead acid battery market based on product, construction method, application, and region:

Lead Acid Battery Product Outlook (Revenue, USD Million, 2018 - 2030)

• SLI

• Stationary

• Motive

Lead Acid Battery Construction Method Outlook (Revenue, USD Million, 2018 - 2030)

• Flooded

• VRLA

Lead Acid Battery Application Outlook (Revenue, USD Million, 2018 - 2030)

• Automotive

• UPS

• Telecom

• Electric bikes

• Transport vehicles

• Others

 Lead Acid Battery Regional Outlook (Revenue, USD Million, 2018 - 2030)

• North America

o U.S.

• Europe

o UK

o Germany

o Italy

o Russia

• Asia Pacific

o China

o India

• Central and South America

o Brazil

• Middle East and Africa

o South Africa

o UAE

Order a free sample PDF of the Lead Acid Battery Market Intelligence Study, published by Grand View Research.

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