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The industrial lead-acid battery market is estimated to expand by USD 6.21 billion, at a compound annual growth rate (CAGR) of 6.63% between 2023 and 2028. Among the segments, Stationary Industrial Lead was the largest, valued at 8.85 billion in 2018 and continued to grow. The shift in the global energy landscape and the rise of green telecom towers are driving the increased demand for the lead-acid battery market. The market sees a surge in interest in environmentally friendly telecom towers alongside shifts in the global energy landscape. Increased demand for electric forklift applications propels market expansion, albeit hindered by the economic viability of fuel cell solutions for material handling equipment. Conversely, the decreasing costs of lithium-ion batteries contribute to market growth. However, challenges arise from lead pollution concerns and the imposition of stringent regulations. Despite hurdles, the industry remains committed to sustainable practices, embracing green technologies to meet energy demands while minimizing environmental impact. Balancing economic considerations with environmental responsibility remains paramount, driving innovation in cleaner energy solutions for material handling equipment and telecom infrastructure.
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In the realm of automotive technology, batteries play a crucial role in powering vehicles and providing backup power solutions. Among the prominent players is ARBL, known for its innovative batteries ranging from cranking batteries to EV batteries. With a focus on delivering cost-effective solutions, ARBL leverages the capabilities of lead-acid technology to meet diverse customer needs. As the automotive industry continues to evolve, the demand for reliable and efficient batteries grows, driving companies like ARBL to innovate and push the boundaries of battery technology.
The stationary industrial lead-acid batteries segment segment is estimated to witness significant growth during the forecast period. Stationary power systems are used in many critical operations or applications, such as preventing unscheduled outages, reducing maintenance costs, and extending the life of the equipment. Nowadays, stationary batteries have become an important part of industrial and telecom applications. The market is projected to grow owing to the need for power storage and an uninterrupted electricity supply.
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The stationary industrial lead-acid batteries segment was the largest segment and was valued at USD 8.85 billion in 2018. The weight and size of stationary batteries, which are usually valve-regulated lead-acid (VRLA)batteries, are of less concern. Furthermore, the telecom, UPS, and data communication segments have shown a steady performance while contributing to the growth of stationary batteries. Hence, such factors will drive the growth of the stationary industrial lead-acid batteries segment of the global market during the forecast period.
The market serves as a cornerstone in the manufacturing sector and various industrial applications, providing reliable energy storage and power backup solutions. These batteries are widely used in the automotive industry for vehicles and material handling equipment like forklifts. Additionally, they play a crucial role in renewable energy systems, telecom towers, and emergency lighting applications, ensuring uninterrupted power supply. With the rise of off-grid power systems and the need for backup power solutions, industrial lead-acid batteries continue to be in high demand. Moreover, advancements in battery management systems have enhanced battery maintenance and testing, contributing to battery recycling efforts and overall sustainability in the industry.
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APAC is estimated to contribute 51% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In APAC, the market growth was positively impacted by the rising use of industrial lead-acid batteries in the renewable energy and industrial sectors. Japan, China, Australia, India, South Korea, Taiwan, Singapore, and others contribute significantly to the growth of the market in the region.
Furthermore, in recent years, the market in APAC saw a boom, and China had the largest share of the market in the region. In addition, the market in APAC for telecom applications is expected to grow rapidly during the forecast period. This growth can be attributed to the increasing smartphone penetration and rapid growth in the number of rural subscribers across the region.
In the battery industry, lead-acid batteries have long been a staple for storing and supplying power in various applications. From automotive vehicles to industrial machinery, these play a vital role in powering essential operations. However, advancements in energy storage technology have led to the development of alternative solutions. As the manufacturing sector continues to innovate, newer and more efficient battery technologies are emerging, catering to the evolving needs of the industry. The quest for sustainable and reliable power sources drives ongoing research and development in the battery manufacturing landscape.
The high demand for electric forklift applications is the key factor driving market growth. The retail and wholesale, logistics, mechanical or automotive, food and beverages, chemical, timber or paper, and print industries are the end-users for battery-powered forklifts. Most of the end-users prefer electric forklifts, owing to their low emissions and noise hazards. Furthermore, lead-acid battery products are cost-effective and offer high resilience even in difficult environmental conditions involving dirt, chemicals, and vibration in the motive power industry. Advanced lead-acid batteries require less maintenance.
Additionally, the advanced charging technologies secure 90% efficiency, with additional to 99% power factors approaching. This, in turn, reduces the utility costs. Technical innovations like opportunity charging and fast charging during operator downtime expand the cost efficiency. Hence, these factors will drive the growth of the global market during the forecast period.
The evolution of advanced lead-acid batteries represents a significant market trend driving the market. These advanced batteries offer enhanced performance characteristics and address limitations associated with traditional lead-acid batteries, such as sulfation-related performance degradation. Notably, advanced lead-acid batteries encompass various technologies, including Enhanced Flooded-Batteries (EFBs), Absorbent Glass Mat (AGM)batteries, and lead-carbon batteries, which are gaining prominence in the market.
Furthermore, industry stakeholders are actively engaging in collaborative initiatives and investing in research and development (R&D) endeavors focused on advancing lead-acid battery technology. Organizations like the Consortium of Battery Innovation serve as pivotal platforms for fostering innovation and knowledge exchange within the lead-acid battery industry. Through collaborative efforts and sustained R&D investments, the industry aims to propel market growth and accelerate the adoption of advanced lead-acid batteries across diverse industrial applications.
In conclusion, the development and adoption of advanced lead-acid batteries underscore a transformative market trend that promises to reshape the industrial battery landscape. By leveraging collaborative partnerships, innovative research initiatives, and proactive market forecasting, industry players can unlock new opportunities and drive market growth in the evolving landscape of industrial battery solutions.
The reduction in costs associated with lithium-ion batteries presents a significant challenge to market growth within the industrial battery sector. While they excel in providing rapid bursts of power essential for automotive cranking applications, the narrowing cost differential between various battery chemistries poses a formidable obstacle to the market. This trend is driven by factors such as increased adoption of battery technology in automotive applications and advancements in manufacturing efficiency, leading to a more cost-effective production landscape.
Moreover, ongoing research and development endeavors aimed at enhancing the performance of lithium-ion batteries further compound the challenge. As these efforts yield improvements in both performance and cost-effectiveness, the competitive advantage of lithium-ion batteries is poised to strengthen, potentially inhibiting the market growth of these in the foreseeable future.
The market analysis research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2023 for the following segments.
The market thrives amidst diverse applications, from SLI battery powering car engines to ensuring uninterrupted energy supply in UPS systems. These batteries, known for their reliability, utilize sulfuric acid, metallic lead oxide, and metallic lead in their construction. They serve critical functions in starting, lighting, and ignition systems, providing power bursts to meet electrical loads and counteract voltage spikes. With the rise of electric vehicles and solar power projects, demand surges for AGM batteries and lithium-ion battery technology as alternatives. Additionally, they support telecommunications infrastructure, facilitating the expansion of 4G and 5G services through tower installations. As the industry evolves, innovations like electric rickshaws and off-grid energy labs underscore the market's adaptability to emerging trends and technological advancements.
Moreover, the market remains pivotal in various sectors, powering essential systems like starting, lighting, and ignition (SLI) batteries in car engines. Original Equipment Manufacturers (OEMs) rely on lead-acid batteries for their 12-volt batteries requirements, ensuring efficient charging systems and reliable starter motors. From lights in internal combustion engines to powering two and four-wheeler varieties, lead-acid batteries play a crucial role. With the surge in passenger vehicle and electric vehicle (EV) sales, demand for these batteries continues to rise. Additionally, they support vital functions in the telecom sector and emerging technologies like E-bikes and Mini hybrid systems, highlighting their versatility and enduring relevance in various industries. The market is essential for numerous applications, notably in SLI applications powering the ignition systems of car engines. These batteries rely on electrolyte to function efficiently, ensuring a stable voltage output and supporting the charging system of vehicles. With a standard voltage of 12 volts, they are integral to the automotive sector, contributing to the robust passenger vehicle sales worldwide. Moreover, lead-acid batteries play vital roles in telecommunications infrastructure, supporting wireless and wired internet subscriptions and influencing tele-density and broadband subscriptions and wireless subscriptions. They find extensive usage in power supply system and emerging technologies like the EV battery switching industry and innovative solutions like ZincGel Battery. Despite advancements, challenges remain, including competition from alternatives like Nickel-cadmium batteries.
Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.63% |
Market Growth 2024-2028 |
USD 6.21 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.59 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 51% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accumulatorenwerke HOPPECKE Carl Zoellner and Sohn GmbH, Amara Raja Batteries Ltd., C and D Technologies Inc., Coslight International Group, Crown Battery Manufacturing Co., East Penn Manufacturing Co. Inc., EnerSys, EverExceed Corp., Exide Industries Ltd., Exponential Power Inc., Furukawa Electric Co. Ltd., GS Yuasa International Ltd., Hankook Tire and Technology Co. Ltd., HBL Power Systems Ltd., Korea Battery Co. Ltd., Leoch International Technology Ltd., Microtex Energy Pvt. Ltd., MIDAC SpA, Panasonic Holdings Corp., and Surrette Battery Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the market forecast period. |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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