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The Indonesia lead-acid battery market size is forecast to increase by USD 67.6 million, at a CAGR of 3.14% between 2023 and 2028. The market is witnessing significant growth due to the expanding automotive industry and the increasing adoption of lead-acid batteries in microgrids. The automotive sector's growth is primarily driven by the rising demand for electric and hybrid vehicles, which rely heavily on lead-acid batteries for power storage. Additionally, microgrids, which are small-scale power grids that can operate independently from the main power grid, are gaining popularity due to their ability to provide reliable power during grid outages. However, the market faces challenges such as the drawbacks of lead-acid batteries, including their relatively low energy density and limited cycle life, which may hinder their widespread adoption in certain applications. Despite these challenges, the market is expected to continue growing due to the aforementioned trends.
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The automotive segment is estimated to witness significant growth during the forecast period. The automotive segment includes lead-acid batteries (both OEM and replacement lead-acid batteries) that are used in passenger cars, including both ICE vehicles and EVs, commercial vehicles, and two wheelers. The automotive industry requires lead-acid batteries for SLI in ICE vehicles and start/stop applications, EVs require power for functions beyond propulsion power.
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The automotive segment was valued at USD 232.20 million in 2018. With the availability of critical raw materials needed to manufacture lithium-ion batteries used in electric vehicles, Indonesia is becoming an important EV producer. The majority of EVs use lead-acid batteries for SLI applications; some EVs use deep-cycle lead-acid batteries to provide propulsion power. Increasing the spending power of the population and low fuel prices are the key factors that will drive the growth.
The market is driven by the increasing demand for lead-acid batteries in various industries, including telecom and wireless telecom, telecommunications, data centers, and the electricity sector. Lead-acid batteries, which include SLI (starting, lighting, ignition) batteries and gel VRLA (valve-regulated lead-acid) batteries, are widely used due to their reliability, low cost, and long service life. These batteries consist of lead plates immersed in sulfuric acid, with calcium alloy grids and carbon additives used to improve performance. In the telecom sector, lead-acid batteries are essential for powering backup power systems in telecommunications networks. In the wireless telecom industry, they are used to power base stations and cell sites. In the energy storage space, lead-acid batteries are being used for renewable energy generation to store excess energy produced by solar and wind power. Despite the growing popularity of lithium-ion technology, lead-acid batteries continue to dominate the market due to their proven reliability and cost-effectiveness. Other competing technologies, such as nickel-cadmium batteries, also face challenges in terms of environmental concerns and cost. The market is expected to grow steadily in the coming years due to the increasing demand for reliable and cost-effective energy storage solutions.
The change in the energy mix is driving growth in the market. In Indonesia, economic development and the growing population have led to an increase in electricity demand and consumption. This increase in GHG emissions is compelling the government to focus on sustainable and renewable energy resources such as biomass, wind, and solar.
Moreover, the addition of renewable sources into the energy mix has driven the requirement for flexible power systems with renewable energy, such as solar PVs, to manage the unstable nature of power generation. The changing energy mix will drive the demand for lead-acid batteries for energy storage applications in Indonesia during the forecast period.
The upcoming railway projects are a key trend in the market. Due to their higher power yield and low costs, the railway industry is using lead-acid batteries over other types of batteries. These batteries are used as starter batteries in rail engines and as a power source in underground trains and suburban railways.
Additionally, the members of the Indonesian railway industry are partnering and cooperating with global companies for the transfer of technology and to improve the country's role in the global supply chain. Projects and partnerships like these will cause an increase in demand for railway infrastructure, including rolling stocks, rail cars, and other supporting components, and will contribute to the demand for lead-acid batteries during the forecast period.
The decline in lithium-ion battery cost is a major challenge faced by the market. Due to the growing adoption in the automotive industry, as well as for energy storage applications the market for lithium batteries in Indonesia has seen a growth. Lithium-ion batteries offer several advantages over lead-acid, such as higher current density, longer power-holding capacity, and longer shelf life, which make them more preferable among the end-users.
Moreover, as lithium-ion batteries account for a major share of the cost structure of the end products, a decline in their prices will lower the total cost of ownership of the end products. The improved capabilities of lithium-ion batteries have resulted in cost savings, which will boost the sales of these batteries and, subsequently, hamper the growth of the market during the forecast period.
The market 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.
Accumulatorenwerke HOPPECKE Carl Zoellner and Sohn GmbH- The company offers lead acid batteries such as Xtreme VR pure lead battery, suitable for use in harsh environmental conditions.
The research report also includes detailed analyses of the competitive landscape of the market and information about 10 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 Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market is a significant segment of the global energy storage devices industry, with lead-acid batteries being the most widely used type of rechargeable battery. These batteries, which include lead storage battery, gel VRLA batteries, and SLI batteries, are primarily made up of lead and sulfuric acid. Calcium alloy grids and carbon additives are commonly used in their production. The lead acid battery market is evolving with advancements in lithium-ion battery technology, addressing energy waste and efficiency issues, particularly in data centres sub and horizontal well applications, while the basic lead-acid battery remains a key component in recycling efforts. Lead acid battery find extensive applications in various sectors such as commercial vehicles, motorcycles, passenger car manufacturing, oil and gas, telecom, mining, data centers, renewable energy, and power backup systems. In the telecom sector and wireless telecom industry, lead-acid batteries are widely used for power backup in base transceiver stations and other telecommunications equipment.
Furthermore, lead-acid batteries are being increasingly adopted in renewable energy applications, including solar and wind energy systems, due to their reliability and low cost. The electricity sector is another major consumer of lead-acid batteries, particularly in energy storage applications. The market remains a cornerstone in various sectors, notably in the Telecommunications Sector, where reliable power storage is crucial. Within this market, lead storage batteries are traditional workhorses, but advancements have led to the rise of absorbent glass mat (AGM) Batteries and valve regulated lead acid batteries. These AGM batteries are favored for their maintenance-free nature, while VRLA batteries offer enhanced safety features. Flooded lead acid batteries continue to be used for their cost-effectiveness despite the newer absorbed glass mat batteries gaining popularity. Despite their widespread use, lead-acid batteries face challenges such as pollution rates and limited charging cycles. However, the market is expected to grow due to the increasing demand for energy storage devices in various industries, including construction, metals and mining, chemical and pharmaceutical, and horizontal and vertical well drilling. The market is expected to face competition from other battery technologies, such as lithium-ion technology, nickelmetal hydride (NiMH) batteries, and floating solar technology in the energy storage space.
Market Scope |
|
Report Coverage |
Details |
Page number |
124 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.14% |
Market growth 2024-2028 |
USD 67.6 million |
Market structure |
Concentrated |
YoY growth 2023-2024(%) |
3.04 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accumulatorenwerke HOPPECKE Carl Zoellner and Sohn GmbH, C and D Technologies Inc., EnerSys, Furukawa Electric Co. Ltd., GS Yuasa International Ltd., Guangdong Yuasa Battery Co. Ltd., PT Century Batteries Indonesia, PT New Indobatt Energy Nusantara, PT Selatan Jadi Jaya, PT. Tri Mega Baterindo, and PT. Trimitra Baterai Prakasa |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for Market 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. |
We can help! Our analysts can customize this market research report to meet your requirements.
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 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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