Lead Acid Battery Market Driven by Increasing Demand of Automotive Industry for Battery Based Applications

Lead acid batteries are electrochemical storage devices that are widely used as a power source in numerous applications due to its low cost, reliability and recyclability. Lead acid batteries are commonly used in motor vehicles to power ignition, lights, and other accessories, as well as in industrial uses such as backup power for telecommunications systems, electric power storage, and photovoltaic applications. The batteries find applications in motive and stationary lead acid batteries that include passenger cars, motorcycles, commercial vehicles, inverters, solar systems, and uninterrupted power supply (UPS).

The global lead acid battery market is estimated to be valued at US$ 55.61 Bn in 2023 and is expected to exhibit a CAGR of 3.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
The increasing demand from the automotive industry for lead acid battery based applications is driving the growth of the lead acid battery market. Lead acid batteries are used extensively in automotive for engine starting, lighting and ignition systems, as well as functions like power windows, power steering, vehicle security systems and more. In addition, development of new applications of lead acid batteries such as micro-hybrid vehicles are also augmenting the growth of the market. However, increasing adoption of lithium-ion batteries in electric vehicles due to their high energy density presents a challenge to the growth of the lead acid battery market.

SWOT Analysis
Strength: Lead acid batteries have high power-to-weight and power-to-volume ratio which makes them suitable for starting lighting and ignition applications in automobiles. They are proven, durable and reliable technology with high cycle life. The recycling process for lead acid batteries is also well established which makes the technology environment friendly.

Weakness: Lead acid batteries have low energy density and require regular maintenance in the form of water refills. The life of these batteries is also affected due to excessive charging and discharging. Changes in temperature also impact the performance of lead acid batteries.

Opportunity: Due to the anticipated growth in automotive production in developing regions like India and South East Asia, there will be increased demand for lead acid batteries for starting lighting and ignition applications in vehicles. Growing demand for stationary energy storage due to rising integration of renewable energy will also drive new opportunities.

Threats: Stringent environmental regulations related to the use and disposal of lead may hamper growth. Rising popularity of lithium ion batteries due to higher performance is also a key threat as these batteries are slowly replacing lead acid batteries in certain applications like motorcycles and wheelchairs.

Key Takeaways
The Global Lead Acid Battery Market Size is expected to witness high growth over the forecast period owing to rising automotive production. The global lead acid battery market is estimated to be valued at US$ 55.61 Bn in 2023 and is expected to exhibit a CAGR of 3.0% over the forecast period 2023 to 2030.

The Asia Pacific region currently dominates the market and is expected to retain its leading position during the forecast period supported by strong growth in automotive and industrial sectors in countries like China, India and South Korea. Rapid economic expansion and rising demand for vehicles in Asia Pacific countries will drive the need for lead acid batteries over the coming years in the region.

Key players operating in the lead acid battery market are Sun Pharma, UCB Farchim SA, Yangtze River Pharmaceu, Exide Technologies, Johnson Controls, GS Yuasa, and EnerSys. These companies are focusing on capacity expansion and product innovation to strengthen their position. For instance, Exide Technologies is working towards developing advanced valve regulated lead acid batteries with enhanced power and energy capabilities for stationary applications in telecom towers and data centres.

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