New York, Aug. 15, 2023 (GLOBE NEWSWIRE) -- The global lead acid battery market size is slated to expand at ~6% CAGR between 2023 and 2035. The market is poised to garner a revenue of USD 90 billion by the end of 2035, up from a revenue of ~USD 54 billion in the year 2022. The growth of the market is attributed to the increasing demand for batteries for various applications including telecom, automotive, construction, and others.
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Moreover, they are mainly used for backup power systems and the growth of the market is expected to increase. India's battery consumption for electric vehicles is expected to reach around 15 GWh by 2025 and almost 60 GWh by 2030. By 2030, investments in the cell manufacturing industry are expected to exceed $9 billion. Other factors that are believed to drive the growth of the lead-acid battery market include the increasing demand for lead-acid batteries for backup power during power outages. Undoubtedly, the need for backup power will increase as the power grids age and are no longer able to meet the world's electricity needs. In the United States, nearly 70% of transmission and distribution lines have already exceeded their expected service lives by more than 50 years. Both the residential and industrial sectors are affected by power shortages around the world.
Lead Acid Battery Market: Key Takeaways
- Market in Asia Pacific to propel highest growth
- The telecommunications segment to garner the highest growth
- Market in North America to grow at a highest rate
Increasing Network of Off-Grid & Stand-Alone Power Systems across the Globe to Boost Market Growth
Lead-acid batteries are increasingly being used in off-grid applications. They are also used for off-grid solar storage. It is projected that by 2030, off-grid and mini-grid systems will provide more than 60% of additional electricity access, with renewable energy sources accounting for about half of this access globally.
In the event of a power failure, emergency lighting and pumping stations are powered by lead-acid batteries. As a result of new power problems adding to existing ones, more than 4% of the world's population, or at least 350 million people, experienced catastrophic power outages in 2021. In most data centers, the uninterruptible power supply (UPS) or power outage is powered by a valve-regulated lead-acid battery (VRLA). As of January 2021, there were more than 8,000 data centers in 110 different countries. These six countries include the United States, which accounts for 33% of all data centers, the United Kingdom, which accounts for 5.7%, and China, which accounts for 5.2%. With consumer electronics becoming widespread in 2030, demand for batteries is projected to increase from 185 GWh to over 2,000 GWh by 2030.
Lead Acid Battery Market: Regional Overview
The global lead acid battery market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa region.
Rising scarcity of electricity to Drive the Market Growth in Asia Pacific Region
The Asia Pacific lead acid battery market is estimated to garner the largest revenue by the end of 2035. The market growth is mainly due to the increasing scarcity of electricity and the increasing capacity of off-grid power systems. The intense heatwave of 2023 coincided with the worst power outage in more than six years. Indians across the country, from Jammu and Kashmir to Andhra Pradesh, are experiencing power outages lasting two to eight hours or more. In addition, China's off-grid renewable energy capacity increased by almost 5% to 906.23 gigawatts in 2021.
Moreover, the growth of the market in the region is also attributed to the increasing number of lead-acid battery importers. The Department for Environment, Forestry and Climate Change (MoEFCC)/Central Pollution Control Board has registered 82 importers of lead-acid batteries under Regulation 5 of the Batteries (Management and Handling) Regulations 2001.
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Growing use of lead-acid batteries to Propel the Growth in the North America Region
The North America lead acid battery market is estimated to garner the highest CAGR by the end of 2035. The growth of the market in this region can primarily be attributed to the increasing use of lead-acid batteries for battery backup during power outages. Several catastrophic weather events in 2021 put pressure on power grids across the United States. On average, homes were without power for seven hours and twenty minutes, and severe weather events such as hurricanes, wildfires and snowstorms accounted for more than five of those hours, or about 72 percent. Lead-acid batteries have been widely used in the automotive sector, powering vehicles' starting, lighting, and ignition systems. Lead-acid batteries serve as a reliable and cost-effective solution for uninterruptible power supply (UPS) systems, providing backup power during outages.
The demand for UPS systems, driven by factors like increasing data centers, reliance on electronic devices, and the need for continuous power supply, contributes to the growth of the lead-acid battery market. As the adoption of renewable energy sources like solar and wind power increases, lead-acid batteries are used for energy storage to balance power supply and demand. Lead-acid batteries are suitable for applications that require deep cycling and can be utilized in off-grid and hybrid renewable energy systems.
Lead Acid Battery, Segmentation by End User
- Automotive
- Oil & Gas
- Utilities
- Telecommunications
- Construction
- Marine
- Others
Amongst these segments, the telecommunications segment is anticipated to hold the largest share over the forecast period. The segment's growth is attributed to the increasing penetration of mobile phones, followed by the rapid spread of the Internet around the world. Today, there are more than six billion smartphone subscriptions worldwide, and that number is expected to increase by hundreds of millions in the coming years. The countries with the most smartphone users are China, India and the United States. In addition, around 5 billion people used the Internet in January 2023, that is, or around 64% of the world's population. Of these, more than 4 billion people, or almost 60% of the world's population, use social media.
The exponential growth in data consumption, fueled by the widespread adoption of smartphones, IoT devices, and streaming services, has driven the demand for telecommunications infrastructure. The deployment of 5G networks has been a significant driver for the telecommunications industry, offering faster speeds, lower latency, and increased capacity. The proliferation of IoT devices, ranging from smart home appliances to industrial sensors, has created a need for robust and reliable telecommunications networks. The growth of cloud computing and data centers has increased the demand for high-speed and reliable telecommunications networks to facilitate data transfer and connectivity.
Lead Acid Battery, Segmentation by Application
- Portable
- Stationary
Amongst these segments, the portable segment is anticipated to hold a significant share over the forecast period. Smartphones and tablets have become ubiquitous devices for communication, entertainment, and productivity, driving the demand for portable devices. According to a report, global smartphone shipments reached approximately 1.4 billion units in 2020, and the number of tablet users worldwide is projected to surpass 1 billion by 2022. Technological advancements, such as improved processors, enhanced battery life, and higher storage capacities, have made portable devices more powerful and capable. The continuous innovation and evolution of mobile computing technologies have contributed to the growth of the portable segment.
The growing reliance on mobile internet for various activities, including web browsing, social media, and e-commerce, has driven the demand for portable devices. The popularity of mobile gaming has soared in recent years, driven by the availability of high-performance portable devices and a wide range of mobile games. The shift toward digitalization and the rise of remote work have fueled the demand for portable devices that enable productivity and connectivity on the go. Wearable devices, including smartwatches, fitness trackers, and wireless earbuds, have gained traction and contributed to the growth of the portable segment.
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Lead Acid Battery, Segmentation by Type
- Flooded Lead Acid Battery
- Sealed Lead Acid Battery
Few of the well-known market leaders in the global lead acid battery market that are profiled by Research Nester are Leoch International Technology Ltd., Yokohama Group of Companies, Enersys, Exide Industries Ltd., GS Yuasa Corporation, Hoppecke Batterien GmbH & Co. KG., Crown Battery, C&D Technologies, Inc., NorthStar, East Penn Manufacturing Company, and other key market players.
Recent Development in the Market
- GS Yuasa Corporation's subsidiary, TataAutoComp GY Batteries Private Ltd. in India, announces its plan to double its annual production capacity for motorcycle lead-acid batteries to 8.4 million units.
- Enersys, the manufacturer of ODYSSEY batteries, and TravelCenters of America (TA) are working together to provide NorthStar PRO Group 31 and ODYSSEY Performance batteries for high power applications at all TA locations nationwide.
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