Lead Acid Battery Market Analysis Report By Product, By Construction Method, By Application, By Region And Segment Forecasts From 2020 To 2027

Industry Insights

The global lead-acid battery market size was worth USD 58.95 billion in 2019. Increasing demand for lead-acid batteries in USP and automobiles is attributing to the growth of the market. Additionally, rising demand for these batteries in off-grid power generation is also bolstering their demand.

Increasing demand for energy storage coupled with development in the transportation industry is likely to spur market growth over the forecast duration. Further, growing demand from commercial vehicles, passenger cars, and motorcycle manufacturing industries is anticipated to bode well for the growth of the industry. Additionally, increasing demand for USP from industries such as BFSI, healthcare, chemical, and oil & gas is predicted to supplement the market growth.

However, the presence of lead is known to cause an adverse impact on the environment, which, in turn, is negatively affecting the market growth. Additionally, the cost reduction of lithium batteries has resulted in low demand for lead-acid batteries. Lithium-ion batteries are available at a low cost, due to which, they are gaining traction among end-use industries.

However, technological advancements in the automotive industry in countries such as Mexico, Brazil, India, Vietnam, Indonesia, and South Korea are projected to create a lucrative opportunity for the growth of the market. Rising demand for electric vehicles to curb vehicular emission is estimated to bolster the demand for these batteries over the next few years.

Product Insights

In 2019, Starting, Lighting, and Ignition (SLI) batteries accounted for the largest share in the lead-acid battery market by revenue. Increasing demand for these batteries in high power requirements is projected to drive this segment demand. However, the segment is estimated to witness moderate growth from 2020 to 2027 owing to increasing demand for other products such as motive and stationary.

Rapidly increasing demand for vehicles in India, China, Japan, U.S, Brazil, and other countries are expected to positively affect the market growth. For example, Amara Raja Batteries collaborated with Johnson Controls in October 2018 with an aim to offer advanced consumer features and stringent emission standards. Such initiatives by key players are expected to bode well for the growth of the market.

Construction Method Insights

In 2019, the flooded lead-acid battery segment occupied the largest share in the market. Rising demand for these batteries from stationary applications is projected to supplement its demand. However, the high cost incurred in the maintenance of these batteries is likely to hinder their market growth.

Valve Regulated Lead Acid (VRLA) category occupied over 33.0% of the share in the market and is estimated to witness maximum growth rate during forecast years. Benefits such as low maintenance and high output make them suitable to be used in automotive, which, in turn, drive their demand. Moreover, these batteries provide resistance against vibration, extend shelf-life and reduce terminal corrosion. Additionally, easy availability of different sizes is anticipated to drive the demand for these batteries.

Application Insights

The automotive segment accounted for the largest share in 2019 by revenue. The growing use of lead-acid batteries in automobiles coupled with advancement in the automotive sector is attributing to the segment growth. Major players such as Mahindra, Nissan, TATA, Mitsubishi, Honda, Maruti Suzuki, and Hyundai are driving the demand in the Asia Pacific owing to their strong regional presence and robust distribution base.

In 2019, the UPS system held 9.41% of the share in the market by revenue. This segment is projected to register a 6.8% CAGR over the forecast duration. Increasing use of UPS systems from different industries such as manufacturing, research institutes, education, healthcare, and others are predicted to drive the segment growth.

Regional Insights

In 2019, Asia Pacific accounted for the largest share in the lead-acid battery market. The rapid rise in the construction industry in countries such as Malaysia, Vietnam, India, China, Indonesia, and Japan is anticipated to drive regional growth. As per the Society of Indian Automobiles Manufacturers, the overall sale of automobiles increased by 14.22% in 2017-2018 as compared to 2016-2017. Growing automobile industries are projected to drive the demand for SLI lead-acid batteries.

Owing to the growing demand for energy storage batteries from India and China, APAC is projected to offer lucrative growth opportunities over the forecast duration. In addition, supportive government initiatives, FDI, and various private-public partnerships are likely to fuel regional growth.

Impact of COVID-19

The market has been hit badly by the COVID-19 outbreak. As the pandemic outbreak led to the closure of several end-use industries such as manufacturing, construction, automotive, and others, the demand for lead-acid battery gone down considerably in the past few months. Moreover, with lockdown in major countries such as Germany, Italy, India, and the U.S, the supply chain of raw materials required for lead-acid were disrupted severely, thereby, leading to low production of these batteries. However, the demand for these batteries is gaining traction from healthcare industries as UPS, which, in turn, offers a bright prospect for the market players involved.

Lead Acid Battery Market Share Insights

Owing to the presence of several key players, the market is highly fragmented. Most of the companies are from China, U.S, and Japan with their global presence. To gain a competitive advantage in the market, the key players adopt strategic initiatives such as mergers & acquisitions and joint ventures. Owing to the increasing investment by several players in research & development and continuous focus on innovative product launches, there exists high competition in the market. Major market participants are Johnson Controls, North Star, Crown Battery Manufacturing, Exide Technologies, and East Penn Manufacturing Co among others.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Million Insights has segmented the global lead-acid battery market report on the basis of product, construction method, application, and region:

• Product Outlook (Revenue, USD Million, 2016 - 2027)
    • SLI
    • Stationary
    • Motive

• Construction Method Outlook (Revenue, USD Million, 2016 - 2027)
    • Flooded
    • VRLA

• Application Outlook (Revenue, USD Million, 2016 - 2027)
    • Automotive
    • UPS
    • Telecom
    • Electric Bikes
    • Transport Vehicles
    • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2027)
    • North America
        • The U.S.
    • Europe
        • Germany
        • The U.K.
        • Italy
        • Russia
    • the Asia Pacific
        • China
        • India
    • Central & South America
        • Brazil
    • MEA
        • South Africa