Lead Acid Battery market size was valued at USD 53 billion in 2023. The lead acid battery industry is projected to grow from USD 56 Billion in 2024 to USD 84.15 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.65% during the forecast period (2024 - 2032). Rising demand for UPS (uninterrupted power supply) in data centers, homes, and offices, and increasing demand for electric vehicles are the key market drivers enhancing the market growth.
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
One of the industries that has seen a massive y-o-y growth is the telecom industry. In the times to come, the industry is expected to witness a boom. The competitive wireless telecom industry is all set to experience new levels of challenges, as a new generation of connectivity comes into existence. The telecommunications sector is one of the very few industries experiencing rapid technological development and improvement even during the tough times of recession.
This sector continues to be an important force for innovation, growth, and disruption across multiple sectors. The major telecom players in the industry continue to invest in the expansion and development of their processes and operations to capitalize on the increasingly apparent opportunity for bolstered revenue generation streams. With several advancements in the communication technology and increasing interconnectivity of devices, the wireless telecom industry is prepared to continue serving as the primary support source for the overarching technology world.
Further, the rising demand for Lithium-ion batteries is restraining the Lead Acid Battery market. The significant development of lead acid battery over the last few years had suppressed the demand for lead acid battery across the globe. The advantages of using lithium-ion batteries are that they can be monitored using Battery Management System (BMS), low energy consumption can be charged in the indoor environment and are environmentally safe. For instance, in February 2021, Tesla Inc., an automotive and clean energy company announced that it will replace the Lead Acid Battery 12V with Lithium-Ion Batteries in its new models (Model S and Model X).
Additionally, as per the IEA, renewables are expected to have the fastest growth in the electricity sector, resulting in catering to about 30% of the power demand in 2023, up from 24% in 2017. During this period, renewables are estimated to contribute to more than 70% of the global electricity generation. This growth would be led by solar (both photovoltaics and ground mount modules) followed by wind, hydropower, and bioenergy.
Hydropower, however, remains the largest renewable source, catering to about 16% of the global electricity demand by 2023, followed by wind catering to a further 6%, solar Photovoltaics (PV) (4%), and bioenergy (3%). In developing regions such as India, the renewable generation target of 175 GW by 2022, declared in 2018 has now been revised to 217 GW. The additional 45 GW is expected to be contributed to by the floating solar technology. Thus, with the increase in the generation, the implementation of these lead acid battery has enhanced the lead acid battery market CAGR across the globe in the recent years.
However, increasing demand for pollution-free electric automobiles coupled with technological advancements driving the growth of the lead acid battery market revenue.
The Lead Acid Battery market segmentation, based on product, includes motive, stationary, and SLI. The SLI segment held the majority share in 2021 contribution to the Lead Acid Battery market revenue. This is primarily due to higher demand for other types of products including stationery and motive. However, motive is the fastest-growing category over the forecast period due to increasing demand in applications requiring high power including automotive.
The Lead Acid Battery market segmentation, based on construction method, includes flooded, and valve-regulated lead-acid or VRLA. The flooded segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. This is owing to high maintenance cost along with complex construction. However, valve-regulated lead-acid or VRLA is the fastest-growing category over the forecast period due to rising demand in automotive applications owing to high output and low maintenance of the product will fuel the growth. Hence, high availability of various sizes positively impacts the market growth.
The Lead Acid Battery market data has been bifurcated by end-user into industrial, commercial, telecommunication, oil and gas, stationary, residential, and automotive. The automotive segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. The extensive usage of lead acid battery in the automotive sector is expected to witness growth as a result of the rising automotive sector. However, industrial is the fastest-growing category over the forecast period due to growing demand of lead acid battery in various industries.
Figure 1: Lead Acid Battery Market, by Surgery, 2024 & 2030 (USD Million)
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. Asia-Pacific lead acid battery market accounted for USD 21.64 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. This is attributed to the growing construction industry in emerging countries, such as China, India, Japan, Malaysia, South Korea, Vietnam, and Indonesia is projected to drive the utilization of lead acid battery. Moreover, China lead acid battery market held the largest market share, and the India lead acid battery market was the fastest growing market in the Asia-Pacific region.
Further, the major countries studied in the market report are The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: Lead Acid Battery Market Share By Region 2021 (%)
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe lead acid battery market accounts for the second-largest market share due to the favorable government regulations designed to generate investments from public-private partnerships and Foreign Direct Investments (FDI) are estimated to fuel regional product demand. Further, the Germany lead acid battery market held the largest market share, and the UK lead acid battery market was the fastest growing market in the European region
The North America lead acid battery market is expected to grow at the fastest CAGR from 2022 to 2030. There is a robust demand for high-capacity lead acid battery on account of the proliferation of devices including inverters, UPS, and switchgear will also accelerate the regional market development. Moreover, Canada lead acid battery market held the largest market share, and the US lead acid battery market was the fastest growing market in the North America region.
Major market players are spending a lot of money on R&D to increase their product lines, which will help the lead acid battery market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the lead acid battery industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies adopted by manufacturers in the Lead Acid Battery industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. The lead acid battery market major player such as ATLASBX Co. Ltd. (South Korea), East Penn Manufacturing Co. (U.S.), and others are working to expand the market demand by investing in research and development activities.
EnerSys manufactures, markets, and distributes industrial lead acid battery. The Company also manufactures, markets, and distributes related products such as chargers, power equipment, and battery accessories. EnerSys provides related after-market and customer-support services for lead acid battery for industries. In April 2022, EnerSys entered a strategic partnership deal with Orogenic ApS to distribute and sell motive power products in Denmark, Greenland, Iceland, and the Faroe Islands. This alliance was aimed at enabling the company to enhance its presence in the global market.
Also, Recyclus Group General Information is the provider of battery recycling services catering to automotive, aviation and heavy vehicle markets. The company specializes in the recycling of lithium-ion and lead acid battery to drive the move towards electrification and more environmentally friendly consumption. In January 2022, Recyclus Group Ltd., a technology minerals-owned company has opened a new plant at Tipton, England for recycling the lead acid battery.
December 2021:GS Yuasa Corporation stated that Tata AutoComp GY Batteries Limited, an equity-method affiliate of subsidiary GS Yuasa International Ltd. plans to increase its annual production capacity for motorcycle lead acid battery to 8.4 million units. The aim is to increase its market share in India.
January 2021:EnerSys is teaming up with TravelCenters of America (TA) to offer Odyssey Performance and NorthStar PRO Group 31 lead acid battery for heavy-duty applications in all TA locations throughout the United States.
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.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 53 billion |
| Market Size 2024 | USD 56 billion |
| Market Size 2032 | USD 84.15 billion |
| Compound Annual Growth Rate (CAGR) | 4.65% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018 & 2020 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Product, Construction Method, End-User and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | East Penn Manufacturing Co., Exide Technologies, Johnson Controls, ATLASBX Co. Ltd., NorthStar, C&D Technologies, Inc., Narada Power Source Co., Ltd., Amara Raja Corporation GS Yuasa Corp, Crown Battery Manufacturing, and Leoch International Technology Ltd. |
| Key Market Opportunities | Increasing demand for uninterrupted power supply |
| Key Market Dynamics | Burgeoning expansion in the automotive industry Rapid technological advancement in the telecom sector |
Lead Acid Battery Market Highlights:
Frequently Asked Questions (FAQ) :
The Lead Acid Battery market size was valued at USD 53 Billion in 2023.
The global market is projected to grow at a CAGR of 4.65% during the forecast period, 2024-2032.
North America had the largest share in the global market
The key players in the market are ATLASBX Co. Ltd. (South Korea), East Penn Manufacturing Co. (U.S.), Exide Technologies (U.S.), NorthStar (Sweden).
The SLI category dominated the market in 2021.
The flooded had the largest share in the global market.
The automotive had the largest share in the global market.
Senior Research Analyst With an experience of over five years in market research industry (chemicals & materials domain), i gather and analyze market data from diverse sources to produce results, which are then presented back to a client. also, provide recommendations based on the findings. as a senior research analyst, i perform quality checks (qc) for market estimations, qc for reports, and handle queries and work extensively on client customizations. also, handle the responsibilities of client proposals, report planning, report finalization, and execution
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