by 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 8.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Lead acid batteries are rechargeable batteries that convert chemical energy into electrical energy. They provide the most economical energy storage for vehicle and industrial applications. Lead acid batteries are useful in applications starting from automobiles, wheelchairs, golf carts, utility vehicles to diesel-genset, UPS, etc. They offer advantages such as high reliability, long service life, low self-discharge rate and low investment and maintenance cost. Due to its benefits, lead acid batteries are widely used in automobiles for starting, lighting and ignition functions.
Market key trends:
One of the key trends in the lead acid battery market is rising adoption in the automotive sector. Lead acid batteries are still the dominant type used in automobiles for starting, lighting and ignition due to their high cranking power, tolerance to tough working conditions, affordable cost and availability of associated infrastructure. Increasing automobile production and sales globally is driving the demand for lead acid batteries in vehicles. In addition, growing replacement market for old batteries in existing vehicles is fostering market growth. Further, increasing demand for electric vehicles is expected to continue boosting market share of lead acid battery over the forecast period as they are used as auxiliary power units in hybrid electric vehicles and plug-in hybrid electric vehicles.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the lead acid battery market is moderate as it requires high initial investments for manufacturing, setting up distribution channels and establishing brand equity. However, the lead acid battery technology is proven and widely used which has lowered the entry barriers.
Bargaining power of buyers: The bargaining power of buyers is high in this market as the lead acid battery is a commodity product and there are numerous manufacturers providing it. Buyers can leverage this competition to negotiate on price and demand better quality products and services.
Bargaining power of suppliers: The bargaining power of suppliers is moderate due to availability of multiple raw material suppliers globally. However, lead is a key raw material and suppliers of lead have some control over its price fluctuations.
Threat of new substitutes: The threat of substitutes is moderate as lithium-ion batteries are emerging as alternatives, especially for applications like electric vehicles. However, lead acid batteries still have an edge in terms of cost-effectiveness making them irreplaceable in many applications like automobile starting, lighting and ignition batteries.
Competitive rivalry: The competition among existing players is high given the large number of global and regional players. Players differentiate based on quality, pricing, innovation, distribution reach and brand positioning.
Key Takeaways
The Global Lead Acid Battery Market Size is expected to witness high growth, exhibiting CAGR of 8.2% over the forecast period, due to increasing adoption in data centers, electric vehicles and other industrial applications.By 2023, the market size is estimated to reach US$ 55.61 Bn.
Regional analysis: Asia Pacific dominates the global lead acid battery market and is expected to maintain its lead position over the forecast period. This can be attributed to increasing automobile production and sales mainly in China and India. Presence of key manufacturing bases in the region further supplements market growth.
Key players: Key players operating in the lead acid battery market are Johnson Controls, ATLASBX Co. Ltd., Exide Technologies, East Penn Manufacturing Co, Crown Battery Manufacturing Company, C&D Technologies INC., GS Yuasa Company, Leoch International Technology Ltd, Chaowei Power Holdings Limited, and Camel Group Co. Ltd., Hoppecke Batterien GmbH & Co. KG. Players adopt strategies like capacity expansion, mergers, collaborations and new product launches for sustaining market share and positioning themselves competitively.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
