Global Lead Acid Battery Separator Market - 2024-2031

Global Lead Acid Battery Separator Market - 2024-2031

Global Lead Acid Battery Separator Market reached US$ 2.9 billion in 2023 and is expected to reach US$ 5.2 billion by 2031, growing with a CAGR of 8.4% during the forecast period 2024-2031.

Lead-acid batteries are extensively used in renewable energy systems, particularly for storing energy from solar and wind installations. They provide a reliable and cost-effective solution for energy storage, crucial for balancing supply and demand in renewable energy applications. Modern vehicles increasingly incorporate stop-start systems to improve fuel efficiency and reduce emissions.

Lead-acid batteries, equipped with enhanced flooded battery (EFB) technology, often use advanced separators to withstand the frequent start-stop cycles. Lead-acid batteries are crucial in industrial energy storage systems, providing backup power for critical systems and supporting material handling equipment. This exploration explores their efficiency, reliability, features, benefits, and best practices in industrial settings, highlighting their importance in powering global operations.

Asia-Pacific is among the growing regions in the global lead acid battery separator market covering more than 1/3rd of the market. Battery technology advancements, such as improvements in battery separator materials and production procedures, increase lead-acid battery performance and safety. The developments are making lead-acid batteries more affordable, especially in applications where safety as well as price are crucial factors.

Dynamics

Rising Circular Economy Initiatives

Circular economy initiatives are increasingly shaping the landscape of the lead acid battery separator market. These initiatives focus on maximizing the value of products and materials by keeping them in use for as long as possible, reducing waste, and promoting recycling and reuse.

For instance, the EU has stringent regulations under the Battery Directive (Directive 2006/66/EC) that mandate the recycling of lead-acid batteries. Companies like Ecobat are leaders in battery recycling, recovering valuable materials that can be reused in new battery manufacturing processes, thereby supporting the market for lead-acid separators.

Additionally, manufacturers are increasingly using recycled materials to produce lead-acid separators. This approach reduces environmental impact and aligns with circular economy practices by minimizing waste and conserving resources. For instance, Eco-bat, one of the world's largest lead producers from recycled materials, supplies reclaimed lead to battery manufacturers who use it to produce new separators and batteries. This closed-loop system supports the market by reducing the need for virgin materials and lowering environmental impact.

Rising Global Renewable Energy Production

Lead-acid batteries are extensively used in renewable energy systems, particularly for storing energy from solar and wind installations. They provide a reliable and cost-effective solution for energy storage, which is crucial for balancing supply and demand in renewable energy applications. For instance, renewable energy is growing mainly because governments are offering more incentives, companies are investing more money, new technology is improving, and prices are dropping as production scales up.

Thus, the rise of renewable energy production helps to boost the market growth. For instance, according to data from the Global Wind Energy Council (GWEC), installed wind power capacity as of 2023 stands at 906 GW, with 77.6 GW of wind capacity added in 2022, and China, U.S. Brazil, Sweden, and Germany accounted for nearly 71% of the total wind installation in 2022. China alone dominated wind turbine assembly, with nearly 82 GW of annual assembly capacity.

Growing Reliance on Backup Power Solutions

Lead-acid batteries are a mainstay in uninterruptible power supply (UPS) systems, critical for ensuring continuous power supply in data centers, hospitals, and other essential services. The demand for high-quality separators that enhance battery reliability and performance is expected to grow with the expansion of digital infrastructure.

For instance, the expansion of data centers, driven by the increasing reliance on digital services and cloud computing, necessitates robust backup power solutions. Lead-acid batteries are widely used for their cost-effectiveness and ability to provide stable power during outages. Separators that enhance battery performance and cycle life are crucial in these high-demand environments.

In 2024, Google committed to investing billions of dollars 2024 in the U.S. and abroad to expand its rapidly growing data center footprint, which powers its cloud computing infrastructure and AI initiatives. In addition, Google shell company Sharpless Enterprises recently unveiled plans to build a new data center campus in Northern Virginia, the region that houses the largest data center hub in the world located near Washington, D.C.

Competition from Alternative Technologies

The competition from alternative technologies, especially advanced battery technologies, significantly restrains the lead-acid separator market. Lithium-ion batteries have a much higher energy density compared to lead-acid batteries. This means they can store more energy for a given weight and size, making them more suitable for applications where space and weight are critical, such as in electric vehicles (EVs) and portable electronics.

For instance, the automotive industry is rapidly shifting towards lithium-ion batteries for electric vehicles due to their superior performance. Major automotive manufacturers like Tesla, Nissan, and Chevrolet have all embraced lithium-ion technology, significantly reducing the demand for lead-acid batteries in the automotive sector.

Environmental and Safety Concerns

Lead-acid batteries contain toxic lead and sulfuric acid, posing environmental and health risks. Disposal and recycling of these batteries require careful handling to prevent lead contamination, a growing concern in many regions.

For instance, according to an ADB publication, lead pollution is an inherent problem with electric vehicles. As long as lead acid batteries are used, there will always be pollution rates several times as high as their gasoline counterparts. It is estimated that 44%–70% of the lead from lead acid batteries in the PRC is released into the environment as waste. Groundwater and crop contamination from hazardous chemicals and metals has already caused some local health problems throughout the country.

Segment Analysis

The global lead acid battery separator market is segmented based on material, thickness, layer, technology, application, and region.

Increasing Demand for Lead Acid Battery Separators for Automotive Application

The automotive segment is among the growing regions in the global lead acid battery separator market covering more than 1/3rd of the market. Lead acid battery separators also play an important role in the field of automotive. For instance, according to the ACEA, in 2022, 85.4 million motor vehicles were produced around the world, an increase of 5.7% compared to 2021. These further increase the demand for lead acid battery separators for automotive applications.

Moreover, investments in the automotive industry are rising rapidly to meet the growing demand of the rising population and to bring innovation to the automobile industry. For instance, Germany is well known for its production capability of automobiles, and the country is well known for its advancements in the same industry. As per the German Association of the Automotive Industry, the investments have risen by 15% in 2022 and have reached US$ 55.7 billion in 2022. From 2024 to 2028, manufacturers and suppliers to the German automotive industry will invest around US$ 300 billion in research and development worldwide.

As per the India Brand Equity Foundation, India’s annual production of automobiles in FY23 was 25.9 million vehicles. India has a strong market in terms of domestic demand and exports. In January 2024, the total passenger vehicle sales reached 3,93,074. In April-January FY24, the total production of passenger vehicles, commercial vehicles, three-wheelers, two-wheelers, and quadricycles was 23.36 million units. This production capacity is anticipated to rise in the upcoming future, creating a huge demand for lead acid batteries which is the major component of these vehicles.

Geographical Penetration

Increasing Usage of Electric Vehicles is Driving the Demand for Lead-Acid Batteries in Asia-Pacific

Asia-Pacific has been a dominant force in the global lead acid battery separator market. Lead-acid batteries are commonly employed in industrial applications such as uninterruptible power supply (UPS), telecommunications, and energy storage systems. Lead-acid batteries are a popular choice in these industries due to their dependability and cost-effectiveness, leading to increased demand for battery separators.

The rise of the automotive sector, particularly the increasing usage of electric vehicles (EVs), is driving up demand for lead-acid batteries. These batteries are essential for starting, lighting, and ignition (SLI) applications in automobiles. As the number of automobiles on the road grows, so will the demand for dependable and efficient battery separators.

According to the IEA, the People's Republic of China led the increase in EV sales in 2021, accounting for half of the total growth. China sold more vehicles (3.3 million) in 2021 than the rest of the world combined in 2020. Sales in China more than doubled in the first quarter of 2022 compared to the same period in 2021.

Furthermore, the rising electronic sector supports the growth of the battery separators market. South Korea is one of the world's leading producers of electronics. It is estimated that China produces over 65% of global batteries and more than half of lithium. As a result, it is expected to dominate the lead-acid battery separators market.

COVID-19 Impact Analysis

The COVID-19 pandemic significantly disrupted the global economy, and the lead-acid battery separator market was no exception. The impact was multifaceted, affecting supply chains, production capabilities, and market demand, leading to a temporary decline during the pandemic and a subsequent rise as the situation stabilized and recovery efforts took hold.

Many manufacturing facilities for lead-acid separators experienced shutdowns or operated with reduced workforces to comply with health regulations. This resulted in a significant drop in production volumes during the peak of the pandemic. The automotive industry, a major consumer of lead-acid batteries, saw a sharp decline in sales as consumers postponed purchases and manufacturers reduced output due to plant closures. This, in turn, reduced the demand for battery separators used in automotive applications.

The COVID-19 pandemic has caused major disruptions to daily life globally, with more than 209 million infections (August 2021) and a steady rise in new cases. Wearing masks (including respirators) indoors and outdoors is recommended as a personal preventive measure against COVID-19. The use of masks has increased rapidly, with more than 130 billion masks being discarded every month.

Recycling and separating the various components of masks is difficult; as a result, masks end up being incinerated or disposed of in landfills, which leads to ecosystem disruption and environmental pollution. Therefore, the disposal of masks and residual materials is a major recent environmental issue. The recycled mask is applied as a separator for aqueous rechargeable batteries and shows outstanding safety and electrochemical performance than the existing separator. This approach will lead to an advanced energy technology considering nature after overcoming COVID-19.

Russia-Ukraine War Impact Analysis

The protracted conflict between Russia and Ukraine war has created major volatility in the global energy markets. Given Russia’s status as a major energy exporter, the severe economic sanctions imposed on all major sectors of the Russian economy, led to fears of supply shortfalls, thus pushing the price of precious and rare earth metals to new highs.

The war in Ukraine has created major strategic opportunities for battery separator manufacturers. the EU and the U.S. formulated policies to diversify their energy mix and sever dependence on Russian energy imports. EU countries are going all-in towards carbon-free, renewable energy, therefore, demand for energy storage solutions and automotive batteries will increase exponentially over the long term.

However, the war has created short-term challenges for European manufacturers, since elevated energy costs are reducing their competitiveness. Many battery separator material manufacturers are entering into partnerships with Chinese and U.S.-based companies to move their production capacity overseas and preserve their competitiveness.

By Material
• Polyethylene (PE)
• Polypropylene (PP)
• Absorber Glass Mat (AGM)
• Others

By Thickness
• Below 20 micrometers (µm)
• 20 µm to 50 µm
• 50 µm to 100 µm
• Above 100 µm

By Layer
• Single-Layer
• Multilayer
• Microporous
• Others

By Technology
• Dry
• Wet

By Application
• Industrial
• Electronics
• Automotive
• Others

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Russia
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• On October 31, 2023, Asahi Kasei invested in new equipment to coat Hipore lithium-ion battery (LIB) separators. New coating lines will be erected at Asahi Kasei LIB separator plants in the U.S., Japan, and South Korea, with operations set to begin in the first part of fiscal year 2026.
• On October 27, 2021, Toray Industries, Inc. announced a joint venture agreement with LG Chem, Ltd. In this collaboration, LG Chem will make a significant investment of US$ 375 million in Toray Industries Hungary Kft. (THU), a wholly-owned subsidiary of Toray dedicated to the production and sales of battery separator film. Subsequently, a new entity named LG Toray Hungary Battery Separator Kft. (LTHS) will be established, with Toray and LG Chem both holding a 50% stake in the venture.
• On September 12, 2023, KORE Power, Inc. will incorporate ENTEK lithium separators from Terra Haute, Indiana, into its Arizona KOREPlex battery cells. The agreement involves KORE purchasing separators for NMC and LFP battery cells from ENTEK, starting when the Indiana facility begins operations in 2025. ENTEK is set to supply separators for KOREPlex's initial 7 GWh capacity, with provisions for a potential second phase that could more than double the supply.

Competitive Landscape

The major global players in the market include Asahi Kasei Corporation, Entek International LLC, Bernard Dumas, Daramic (Part of Asahi Kasei Corporation), USEON Technology Limited, MICROPOROUS, LLC, Hollingsworth ＆ Vose, AMER-SIL, Sebang Industrial Co., LTD, Qidong Hengyi Power Supply Co., Ltd.

Why Purchase the Report?
• To visualize the global lead acid battery separator market segmentation based on material, thickness, layer, technology, application, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of lead acid battery separator market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global lead acid battery separator market report would provide approximately 78 tables, 75 figures, and 255 Pages.

Target Audience 2024
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies