Lead Acid Battery Market Snapshot
The lead acid battery market valuation is expected to reach US$ 54.3 Bn in 2021. Future Market Insights (FMI) analysis has forecast the lead acid battery sales to increase at 5.2% CAGR between 2021 and 2031. According to the study, the overall market valuation will top US$ 90.5 Bn by 2031.
As per FMI, the demand for AGM battery is expected to increase at a high pace, exhibiting 6.2% CAGR in 2021.
Report Also Addresses:
- Market estimates and forecast 2016-2031
- Key drivers and restraints impacting market growth
- Segment-wise, Country-wise, and Region-wise Analysis
- Competition Mapping and Benchmarking
- Brand share and Market Share Analysis
- Key Product Innovations and Regulatory Climate
- COVID-19 Impact on Lead Acid Battery Market and How to Navigate
- Recommendation on Key Winning Strategies
2016-2020 Lead Acid Battery Market Outlook Compared to 2021-2031 Forecast
Driven by the increasing focus on research and development and investment in automotive industry for electric vehicles, the lead acid battery market will rise at 5.2% CAGR between 2021 and 2031 in comparison above 1.2% CAGR registered during 2016-2020.
Growth can be attributed to the increase in the demand for energy-efficient solutions across the globe. The demand for lead acid battery has increased consistently with the advent of the electric and hybrid vehicles over past few years.
Key factors fueling the demand for lead acid battery include initiatives undertaken to introduce green energy solutions in the automotive industry. Leading lead acid battery manufacturing companies are focusing on expanding their production and distribution capacities in various countries. To improve their industrial research activities, some companies are collaborating directly with regional manufacturers.
The transportation segment is among the leading end users of lead acid battery. Regionally, China has emerged as a highly lucrative market for the production and export of lead acid battery. This can be attributed to increasing demand from the country’s automotive industry, coupled with the adoption of the advanced technology and higher production capacity.
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Will COVID-19 Crisis Hamper Lead Acid Battery Market Growth Outlook?
Lockdown restrictions have negatively impacted the global lead acid battery market. Limited production and transportation delays have created obstacles amid the pandemic. With the consecutive waves of the novel coronavirus tightening its noose on the global economy, production and distribution has been delayed.
Several end-use industries such as automobile, electronic, and construction have been adversely impacted. Additionally, increase in electric vehicles demand has resulted in higher adoption of lead acid battery across the globe.
Despite the constraints, economies are steadily recovering in 2021. Company s have begun operations as they step on path of recovery at a steady pace. Improvement in supply and distribution networks also will push sales in the post-pandemic period. Against this backdrop, the pandemic is unlikely to have a long-term effect on the lead acid battery market.
How is the Lead Acid Battery Market Set to Fare in China?
East Asia is predicted to remain one of the most attractive markets for lead acid battery during the forecast period, according to Future Market Insights. China is expected to account for over 57% of the East Asia market through 2031.
China electric & plug-in-hybrid vehicles sales hold lead in the region with more than 1.33 Mn units sold in 2020. Leading automotive manufacturers are planning to invest in and expand the production capacity across the country over the forecast period.
Furthermore, China remains one of the world's largest markets for the electric industry, making it a lucrative market for lead acid battery manufacturers. Aside from this, rapid modernisation of its economy, and investments into automotive and power utilities industries will drive growth in the market.
Why is Demand for Lead Acid Battery Increasing in the U.S.?
Demand in the U.S. market is expected to rise at above 4% CAGR over the forecast period. The U.S. has emerged as a lucrative market for lead acid battery in terms of both production and consumption.
The U.S. is recognized as a primary market for electronic and automotive industries and it is expected to continue exhibiting high demand for lead acid battery through the forecast period.
Moreover, technological advancements through the 21st century have increased the production capacity of manufacturers located in the U.S. Research and development activities, the presence of several major players, and increasing production capacities are creating attractive opportunities for lead acid battery sales in the country.
What is Driving Sales in Japan?
Japan is one of the key manufacturers of automotive vehicles globally. By 2031, it is expected to account for over 26% of lead acid battery sales within East Asia.
Adoption of novel technologies in the Japan automotive industry is aimed at minimizing maintenance cost, energy consumption, and overall expenditure. This has created attractive opportunities for sales of lead acid battery in the country.
Japan also has numerous small- and large-scale manufacturers, which has been aiding overall growth of the lead acid battery market. Besides this, the presence of several end users are giving tailwinds to the market for lead acid battery.
The rising demand from industries such as power utilities and other sectors will therefore guarantee expansion in Japan through the forecast period.
How are Government Initiatives Boosting Lead Acid Battery Sales in India?
In 2021, India will account for over 44% sales in the South Asia and Pacific. Government initiatives undertaken to connect rural and urban areas with electric vehicle transportation network and steps adopted to make accessible quality and affordable mode transportation have been bolstering sales opportunities in India.
Electric vehicles production is expected to rise in India, which also is considered as one of the leading automotive manufacturing countries in the world. Focus on curbing carbon emission from vehicles and consequent implementation of stringent regulations will create conducive environment for sales in India.
Why is the Demand for Flooded Battery getting Stronger?
Based on lead acid battery products, the flooded battery segment holds the lead, accounting for nearly 49% of the market in 2021. Flooded lead acid battery are available in different configurations, and they are less expensive compared to other battery systems. They are also are considered more energy-efficient solution and offer high-performance.
Flooded lead acid batteries are expected to remain the top choice for many end users as cost-effective solutions.
Which is the Primary Application of Lead Acid Battery?
The transportation segment is estimated to hold revenue share of more than 59% in the market in 2021. The rising investment in electric and hybrid vehicles will fuel the demand in the transportation sector.
Installation of high-performance and energy efficient power systems in vehicles will propel the demand for lead acid battery in the transportation sector.
Companies operating in the lead acid battery market are aiming at strategic collaborations and partnerships with other manufacturers to expand their manufacturing capacity. For instance:
- In March 2019, GS Yuasa Corporation has announced that GS Yuasa International Ltd. launched a new automotive lead-acid storage battery plant operated by equity method affiliate inci GS Yuasa Akü Sanayi ve Ticaret Anonim Sirketi (“IGYA”) in Manisa Province, Turkey.
- In February 2020, the company has announced the launch of its SNS-TN series of valve-regulated stationary lead-acid batteries.
- In July 2020, Blink Charging and Enersys collaborate To Develop High Power Inductive/Wireless and enhanced DC Fast Charging Systems with energy storage options for the automotive market.
- In January 2021, EnerSys is teaming up with TravelCenters of America (TA) to offer Odyssey Performance and NorthStar PRO Group 31 batteries for heavy-duty applications in all TA locations throughout the United States.
Scope of Report
Historical Data Available for
USD Million for Value
Key Countries Covered
US, Canada, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, India, ASEAN Countries, Australia & New Zealand, GCC Countries, Turkey, and South Africa
Key Segments Covered
Product Type, Application, Sales Channel and Region
Key Companies Profiled
Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives
Customization & Pricing
Available upon Request
Key Questions Answered in Lead Acid Battery Market Survey
What is the current valuation of lead acid battery market?
The lead acid battery market is expected to surpass a valuation of US$ 54.3 Bn by 2021.
At what rate did the lead acid battery market expand in the last 5 years?
The lead acid battery market exhibited steady growth at 1.5% in the last five years from 2016 to 2020.
What is the lead acid battery market demand outlook?
The lead acid battery market will register a gradual rise in demand after a period of decelerating sales amid COVID-19 in 2020. As per Future Market Insights, the market will register a CAGR of 5.2% between 2021 and 2031.
What are the key trends prevailing in the lead acid battery market?
Leading lead acid battery manufacturers are recycling the batteries. Also, there is increasing focus on cost and energy efficiency solutions with the advent of new production technologies.
What are the key factors driving Lead Acid Battery sales?
Increasing investments on electric vehicles and growing manufacturing activities in emerging economies are boosting lead acid battery sales.
What is the North America Lead Acid Battery market outlook?
North America will remain the fourth-leading market for lead acid battery, accounting for nearly 17% of sales in 2021, globally.
What is the cumulative share of the top companies in lead acid battery market?
The top companies operating in the Lead Acid Battery market are Chaowei Power Holdings Limited, Clarios, East Penn Manufacturing Co., Enersys, GS Yuasa Corporation, Exide Industries Ltd., and Camel Group Co., Ltd. These companies will cover over 30% of the overall market in 2021.
At what rate will the lead acid battery market grow in Europe?
Future Market Insights has forecast the Europe lead acid battery market to exhibit a CAGR of 5.2% between 2021 and 2031.
Which are the top 5 countries exhibiting high demand for lead acid battery?
China, the U.S., India, Germany, Japan, and South Korea are among leading markets for lead acid battery, exhibiting consistently high demand.
At what rate will the Japan lead acid battery market grow?
As per Future Market Insights, the Japan lead acid battery market is expected to rise at 4.8% CAGR between 2021 and 2031 reaching over 29% of the East Asia market.
Lead Acid Battery Market by Category
By Product Type:
- Flooded Battery
- AGM Battery
- Gel Battery
- Passenger Cars
- Two wheelers
- Motive Industrial
- Stationary Industrial
- Grid Storage
By Sales Channel:
- North America
- Latin America
- South Asia & Pacific
- East Asia
- Middle East and Africa (MEA)