Lead acid batteries are an essential component in automotive starter motors, lighting systems and ignition systems of conventional vehicles. They are a reliable and inexpensive means of storing electric power in most motor vehicles and industrial machines. With growing environmental concerns, electric vehicles have gained considerable popularity in recent years. Lead acid batteries offer a lower upfront cost and proven record of operation in vehicular applications compared to lithium-ion batteries. They remain the battery of choice for automotive and uninterruptible power supply applications.
The global Lead Acid Battery Market is estimated to be valued at US$ 55.61 Billion 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 key trends:
The lead acid battery market is witnessing the trend of increasing preference for renewable energy solutions. Growing environmental concerns and rising fuel prices are compelling economies worldwide to shift from conventional power sources to renewable energy sources such as solar and wind. Lead acid batteries are increasingly finding applications for off grid energy storage in solar and wind power projects. Their cost effectiveness and ability to withstand high cycle efficacy make them suitable for renewable energy storage applications. Moreover, technological advancements are allowing lead acid batteries to deliver higher energy densities at reduced costs. Manufacturers are developing advanced lead acid batteries with thinner plates and advanced additives for improving performance.
Threat of new entrants: Low. Established players dominate production and distribution channels, creating barriers.
Bargaining power of buyers: Moderate. Large automotive manufacturers can negotiate prices but lead acid batteries have few substitutes for certain applications.
Bargaining power of suppliers: Low. Raw materials like lead, acid and other inputs are commodity and widely available.
Threat of new substitutes: High. New battery chemistries gaining but lead acid batteries still preferred for vehicle starting, lighting and ignition applications due to cost effectiveness.
Competitive rivalry: High. Intense competition on pricing from global players. Players differentiate through product quality and expansion into new regions.
The Global Lead Acid Battery Market Demand is expected to witness steady growth.
Asia Pacific dominates the market currently owing to large automobile production bases in China and India. Low cost of production and growing vehicle fleet in the regions are driving the Asia Pacific lead acid battery market.
Sun Pharma, UCB Farchim SA, and Yangtze lead the market. Key players operating in the lead acid battery market are Sun Pharma, UCB Farchim SA, and Yangtze. They cater to both automotive and industrial segments with innovations in product design for improved performance and longer life.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it