The global lead acid battery market was estimated at USD 46.6 billion in 2015 and as per a research study by Grand View Research, Inc.; the market is anticipated to reach a valuation of USD 84.46 billion by 2025. This growth is attributed to the increased use of lead acid batteries in UPS and vehicles. Developments in the production processes are also expected to augment the demand over the coming years. In addition, growing automobile industry in various regions including India, Brazil, Indonesia, Germany, Mexico, is also projected to propel the market over the forecast period (from 2016 to 2025).
Increasing demand for UPS in a variety of sectors like oil and gas, manufacturing, and healthcare along with a major scope in energy storage applications may spur the market in near future. A rise in the demand for lead acid batteries in the generation of off-grid renewable energy is also likely to stimulate the overall market growth during the forecast years. Furthermore, high preference for pollution-free electric vehicles (EVs) along with rapid technological advancements is predicted to spur the product demand.
The global lead acid battery market is categorized as per product, construction method, application or end user, and region. On the basis of product, the market is categorized as stationary, motive, and SLI. On the basis of construction method, the market is segmented as flooded and VRLA. Flooded batteries were the largest consumed batteries in 2015. On the basis of applications, the market is segregated as transport vehicles, telecom, automotive, electric bikes, UPS, and others. On the basis of geographies, the market is divided into Europe, North America, Asia Pacific, Middle East and Africa, and Central and South America.
Asia Pacific led the global market in 2015 accounting for 43.6% of the overall share. The region is projected to be the highest revenue generating market during the forecast years reaching at USD 39.42 billion by 2025. Growing construction sector in the emerging region such as China, India, and Japan is expected to boost the regional market over the forecast period. In addition, favorable regulations by various government bodies for generating foreign direct investments (FDIs) and private-public partnerships are also projected to boost the region’s expansion over the next nine years.
The Europe region occupied 24.7% of the total market share and is estimated to witness substantial growth in the coming years. This is mainly due to the rising number of onshore and offshore renewable energy installations in Italy, Germany, United Kingdom, and Sweden. In addition, factors such as increasing population, high disposable income of consumers, and presence of top automobile manufacturing companies such as Mercedes-Benz and Audi are set to boost the demand for passenger vehicles in the region. This factor is also anticipated to contribute toward the growth of this region over the next few years.
Major companies operating in the worldwide lead acid battery market are Zhejiang Narada Power Source Co., Ltd.; Leoch International Technology Ltd.; Crown Battery Manufacturing Co.; East Penn Manufacturing Co.; and Johnson Controls International PLC. Johnson Controls was among the topmost companies in 2015 and accounted for 25% of the overall market share. These players focus on product innovations to gain the maximum market share and number of customers.
For example, Log 9 Materials, founded by an IIT graduate, has come up with a technological innovation that can increase the capacity of lead acid batteries. The company uses graphene, a single, thin layer of atoms placed together, to enhance the longevity of the batteries used in UPS, solar energy storage systems, and vehicles. According to the founder of the company, they have achieved a 30% improvement in the amount of charge a lead acid battery can store. So, initially if the storage capacity of a battery was for five hours, it can now be extended up to 6.5 to 7 hours.