Lead-acid Battery Market by Application and Geography - Forecast and Analysis 2021-2025

The lead-acid battery market share is expected to increase by USD 6.33 billion from 2020 to 2025, and the market's growth momentum will accelerate at a CAGR of 3%.

This market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers market segmentation by application (automotive, stationary, and motive) and geography (APAC, Europe, North America, MEA, and South America). The market report also offers information on several market vendors, including Accumulatorenwerke HOPPECKE Carl Zoellner & Sohn GmbH, C&D Technologies Inc., Clarios, East Penn Manufacturing Co. Inc., EnerSys, Exide Industries Ltd., Exide Technologies, GS Yuasa Corp., Leoch International Technology Ltd., and Narada Power Source Co. Ltd. among others.

What will the Lead-acid Battery Market Size be During the Forecast Period?

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Lead-acid Battery Market: Key Drivers, Trends, and Challenges

Based on our research output, there has been a negative impact on the market growth during and post COVID-19 era. The growth in demand for industrial applications is notably driving the market growth, although factors such as declining costs of lithium-ion batteries may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the lead-acid battery industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Market Driver

One of the key factors driving the market growth is the growth in demand for industrial applications. The industrial sector uses lead-acid batteries on a very large scale. Lead-acid batteries are used in numerous applications, including telecom towers and material handling equipment such as forklifts, excavators, and AGVs. End-users of material handling equipment include mechanical, automotive, food and beverage, logistics, chemical, timber and paper printing, and retail and wholesale companies. Material handling equipment can be divided into two types, electricity-powered material handling equipment, which runs on batteries, and ICE-based material handling equipment, which employ lead-acid batteries for SLI applications. As both types of material handling equipment use lead-acid batteries, the growing demand for material handling equipment will drive the demand for lead-acid batteries. Moreover, the demand for material handling equipment is growing globally, especially owing to the booming manufacturing and e-commerce markets. The telecom sector is growing across the globe owing to the increase in consumer base with the expansion of network operators coverage and the declining cost of smartphones, which makes them available for all income groups.

Key Market Trend

Another key factor driving the market growth is the growing need for eco-friendly vehicles. The rise in environmental concerns and the increase in GHG emissions globally have compelled nations to rethink the use of fossil fuels in the transportation sector. EVs have been identified as a possible replacement for fossil fuel-powered vehicles. Numerous countries are introducing targets and directives to moderate the shift from diesel and petrol vehicles to EVs in the automotive industry. Moreover, the criteria for the existing automobile manufacturers to expand their production capacity have been made stringent, which is eventually expected to channel investments to EV production in the country. Governments of several countries, such as China and the US, are framing objectives and offering monetary and non-monetary benefits to promote the sales of EVs. Lead-acid batteries are used in EVs for traction and start/stop applications. The high power output advantage, which is required for start/stop applications, and low cost compared with lithium-ion batteries, have rendered lead-acid batteries suitable for use in EVs. Therefore, the increasing government support for EVs will drive the demand for lead-acid batteries during the forecast period.

Key Market Challenge

The declining costs of lithium-ion batteries is one of the key challenges hindering the market growth. Lead-acid batteries are preferred to lithium-ion batteries mainly because of their low cost. In addition, lead-acid batteries can provide a high burst of instantaneous power required for cranking applications in automobiles. However, lithium-ion batteries offer several advantages over lead-acid batteries. Lithium-ion batteries are capable of offering superior performance owing to their advantages such as higher current density, longer power-holding capacity, and longer shelf life when compared with lead-acid batteries. Thus, they witness a high preference among end-users. The cost gap between the battery chemistries has declined rapidly during the past decade owing to the improved production scale and manufacturing efficiency. Owing to the decline in the manufacturing costs of lithium-ion batteries, the adoption of these batteries is increasing in all battery applications, which is affecting the demand for lead-acid batteries. As a result, the product offerings of vendors manufacturing lithium-ion batteries are becoming more competitive than substitute technologies such as lead-acid batteries. Therefore, cost reductions, coupled with the enhanced performance of lithium-ion batteries, will boost the sales of these batteries and, subsequently, hamper the growth of the global market during the forecast period.

This market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.

Parent Market Analysis

Technavio categorizes the global lead-acid battery market as a part of the global renewable electricity market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the market during the forecast period.

Who are the Major Lead-acid Battery Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

• Accumulatorenwerke HOPPECKE Carl Zoellner & Sohn GmbH
• C&D Technologies Inc.
• Clarios
• East Penn Manufacturing Co. Inc.
• EnerSys
• Exide Industries Ltd.
• Exide Technologies
• GS Yuasa Corp.
• Leoch International Technology Ltd.
• Narada Power Source Co. Ltd.

This statistical study of the market encompasses successful business strategies deployed by the key vendors. The market is fragmented and the vendors are deploying growth strategies such as organic and inorganic strategies to compete in the market.

Product Insights and News

• Accumulatorenwerke HOPPECKE Carl Zoellner & Sohn GmbH- This company offers lead-acid batteries named trak, uplift quadro.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the leading companies' production, sustainability, and prospects.

Lead-acid Battery Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.

Which are the Key Regions for the Lead-acid Battery Market?

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50% of the market's growth will originate from APAC during the forecast period. China and India are the key markets for lead-acid batteries in APAC. Market growth in this region will be faster than the growth of the market in Europe and North America regions.

The market in APAC will witness rapid growth during the forecast period, owing to the increased adoption of automobiles and an increase in the demand for ESSs for utility and motive applications, led by the growth of the regional material handling equipment market. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

In 2020, the regional market witnessed a significant decline in revenue, owing to the outbreak of the COVID-19 pandemic. In addition, automotive sales dropped, which led to a decline in the demand for lead-acid batteries. However, in the last quarter of 2020, many countries in APAC lifted restrictions on various businesses. The vendors were then able to resume their routine operations by adhering to the COVID-19 guidelines. Vendors mandated social distancing and restricted the entry of non-essential visitors to their facilities. In-person interactions in workplaces were limited, and daily temperature monitoring was mandated at the entry points. Such initiatives are expected to help vendors remain operational and allow the market to recover slowly during the forecast period. The easing of lockdown restrictions and the proliferation of vaccines are expected to promote the sales of automotive in APAC, which will drive the market in focus in the region during the forecast period.

What are the Revenue-generating Application Segments in the Lead-acid Battery Market?

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The market share growth by the automotive will be significant during the forecast period. The automotive segment includes lead-acid batteries (both OEM and replacement lead-acid batteries) that are used in passenger cars (both ICE vehicles and EVs), commercial vehicles, and two-wheelers. The automotive segment is expected to witness stable growth during the forecast period owing to the growing demand for automobiles, especially in emerging economies.

This report provides an accurate prediction of the contribution of all the segments to the growth of the market size and actionable market insights on post COVID-19 impact on each segment.

You may be interested in:

Industrial Lead-acid Battery market - The market share is expected to surge by USD 3.95 billion by 2026, at a progressive CAGR of 4.8%.

Motive Lead-acid Battery market - The market size has the potential to grow by USD 2.21 billion during 2020-2024, and the market's growth momentum will accelerate during the forecast period.

Automotive Lead-acid Battery market - The market share is expected to increase by USD 12.26 billion from 2019 to 2024, and the market's growth momentum will accelerate at a CAGR of 5.18%.

Advanced Lead-acid Battery market - The market share is expected to increase by USD 3.08 billion from 2020 to 2025, and the market's growth momentum will accelerate at a CAGR of 8.7%.

Carbon Black in Lead-acid Battery market - The market share is expected to increase by USD 116.06 million from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 4.45%.

Stationary Lead-acid (SLA) Battery market - The growth momentum will accelerate at a CAGR of 8.88% and the market share will increase by USD 4.46 billion from 2021 to 2026.

US Lead Acid Battery Market for Energy Storage Systems (ESS)- The market is estimated to grow at a CAGR of 5.22% between 2022 and 2027. The market size is forecast to increase by 26.29 MW.

Lead-acid Battery Market Scope
Report Coverage	Details
Page number	120
Base year	2020
Forecast period	2021-2025
Growth momentum & CAGR	Accelerate at a CAGR of 3%
Market growth 2021-2025	$ 6.33 billion
Market structure	Fragmented
YoY growth (%)	2.19
Regional analysis	APAC, Europe, North America, MEA, and South America
Performing market contribution	APAC at 50%
Key consumer countries	China, US, India, Japan, Germany, and UK
Competitive landscape	Leading companies, Competitive strategies, Consumer engagement scope
Key companies profiled	Accumulatorenwerke HOPPECKE Carl Zoellner & Sohn GmbH, C&D Technologies Inc., Clarios, East Penn Manufacturing Co. Inc., EnerSys, Exide Industries Ltd., Exide Technologies, GS Yuasa Corp., Leoch International Technology Ltd., and Narada Power Source 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, Market condition analysis for forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Lead-acid Battery Market Report?

• CAGR of the market during the forecast period 2021-2025
• Detailed information on factors that will drive market growth during the next five years
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behaviour
• The growth of the lead-acid battery industry across APAC, Europe, North America, MEA, and South America
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of market vendors

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