Lead Acid Battery Is Estimated To Witness Growth Owing To Wide Applications In Automotive Industry
Lead acid batteries are electrochemical energy storage devices that store and produce electrical energy through a reversible chemical reaction within its compartments consisting of a lithium metal oxide cathode, graphite anode, and electrolyte. Some key advantages of lead acid batteries include reliability, high surge power capacity, and the ability to work under extreme temperatures. They are widely used in automotive applications such as starting lighting and ignition systems as well as other industrial applications like motive power and energy storage.
The global Lead Acid Battery Market is estimated to be valued at US$ 55.61 Billion in 2024 and is expected to exhibit a CAGR Of 3.0% over the forecast period 2024 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The growing demand for electric vehicles owing to stringent emission norms will drive the growth of the lead acid battery market. Lead acid batteries are widely used in electric cars and hybrid electric vehicles for energy storage. Electric vehicles require large battery systems to power their electric motors. As the production and sales of electric vehicles ramp up in the coming years to meet emission reduction targets, the demand for lead acid batteries used in these vehicles will also increase substantially. This presents a major market opportunity for manufacturers to cater to the battery needs of automotive OEMs and leverage the growing electric vehicle industry.
Porter's Analysis
Threat of new entrants: The threat of new entrants is moderate as large capital investments are required for battery manufacturing equipment and machinery. However, lead is abundantly available and manufacturing technology is standardized lowering entry barriers.
Bargaining power of buyers: The bargaining power of buyers is high due to the large number of existing global players. Buyers can negotiate on price and demand better product offerings.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as lead is globally traded commodity and large players have established supplier networks. However, fluctuations in lead prices affect production costs.
Threat of new substitutes: The threat of new substitutes is high from lithium-ion and other sustainable battery technologies. Stringent emission norms are driving innovation in advanced battery chemistries.
Competitive rivalry: Competitive rivalry is high among the large global lead acid battery manufacturers. Players differentiate through innovation, quality, and service support.
SWOT Analysis
Strengths: Established manufacturing infrastructure, low-cost production, and deep market reach are the key strengths. Lead is low-cost and abundantly available raw material.
Weaknesses: Heavy weight and low energy density limit applications. Lead pollution from improper recycling is an environmental concern.
Opportunities: Growing demand for stationary batteries from telecom towers and data centers provides new opportunities. Emerging economies offer scope to expand market share.
Threats: Stringent emission norms give competitive edge to alternative technologies. Depleting lead reserves in future threaten raw material security.
Key Takeaways
The Global Lead Acid Battery Market Demand is expected to witness high growth supported by stable demand from automotive and industrial sectors.
The Asia Pacific region dominates the market currently accounting for over 50% of global demand led by China. Key regional markets include India, Southeast Asia, and Mexico registering growth rates above the global average.
Key players operating in the lead acid battery market are Sun Pharma, UCB Farchim SA, Yangtze Holdings Ltd, and other smaller regional manufacturers. The automotive sector is the largest end-use industry for lead acid batteries used in starting, lighting and ignition applications. Traction batteries for electric vehicles, forklifts, and material handling equipment are other applications. Stationary batteries are also gaining prominence for power backup in telecom towers, data centers and renewable energy integration. While lead acid batteries face competition, established infrastructure and cost benefits will continue to support stable demand in the foreseeable future.
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