Europe Lead-acid Battery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Europe Lead-acid Battery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Europe lead acid battery market is expected to grow at a CAGR of more than 3.5% in the forecast period of 2022-2027. During the COVID-19 outbreak in 2020, the lead acid market was negatively impacted. Lockdown and travel restrictions imposed by governments have lowered the demand for lead acid batteries from end-user industries like automobiles and data centres, adversely affecting the growth. Furthermore, the shutdown of manufacturing factories and supply chain disruptions drastically impacted the lead-acid battery market in Europe. Factor such as the growing automotive sector is expected to drive the lead-acid battery market in Europe during the forecast period. However, rising investment in lithium-ion batteries, price reduction, and increasing electric vehicle sales are likely to restrain the growth of the lead-acid battery market over the coming years.

Key Highlights

• Due to significant growth in the automobile industry, the SLI battery segment is likely to dominate the market during the forecast period.
• Increased off-grid solar installation investment is estimated to provide a significant opportunity for the lead acid market in Europe. The solar-based energy generation eliminates carbon emissions and promotes renewable sources.
• Germany is likely to dominate the lead acid battery market in Europe due to the higher presence of automobile manufacturers in the country.

Key Market TrendsSLI Battery Segment to Dominate the Market

• Starting, lighting, and ignition (SLI) batteries have been in almost every car for the past 100 years. Generally, SLI batteries are used for short power bursts, such as starting a car engine or running light electrical loads.
• SLI batteries are designed for automobiles and, therefore, are always installed with the vehicle’s charging system, which means that there is a continuous cycle of charge and discharge in the battery whenever the vehicle is in use. The 12-volt batteries have been the most commonly used for more than 50 years; however, their average voltage is close to 14-volt.
• In the last couple of years, the SLI batteries witnessed significant demand due to the growing demand from OEMs and aftermarkets from the automotive sector in the European region. These batteries primarily mostly utilized power start motors, lights, ignition systems, or other internal combustion engines while ensuring high performance, long life, and cost-efficiency.
• in 2021, Germany, France and United kingdom are the leading countries in terms of sales of passengers cars. In 2021, the sales of passengers car in Germany was around 2.6 million, in fracne it was around 1.6 million and United kingdom is was around 1.6 million.
• In 2021, the new passengers cars sales in Europe was around 11.75 million which was 2% lower than that of passengers car sale in 2020 (11.92 million). This decrease in sales is due to higher sales of electric vehicles in the region. However, the replacement of the old SLI batteries in old vehicles is anticipated to drive the the market.

Germany to Dominate the Market

• Germany is one of the world's largest manufacturing countries for passenger and commercial vehicles. For several decades the automobile industry has been a key sector in the German economy.
• Moreover, Germany has been recognized worldwide as an Innovation hub for the automotive industry, as all major automobile manufacturers have a presence in the country. In 2021, Germany is Europe's number one automotive market, accounting for around 25% of all passenger cars manufactured and approximately 20% of all new car registrations.
• Furthermore, in Germany, the automotive industry is the largest industry sector. Thus, in 2021, the automotive sector contributed more than EUR 410.9 billion, around 20% of total German industry revenue.
• Germany is considered a highly developed market in the world, and it is the financial powerhouse of the European Union. This, resulting a higher number of data centres, and as of the end of 2021, there were more than 487 active data centres in the country. Furthermore, due to automation and development meant of the 5 G network, the demand for the data centre is in Germany.
• Furthermore, many international giants are also investing in data centres in Germany. For instance, in September 2021, Google announced that it aims to invest more than USD 1 billion in new data centres in Germany. The company would invest this amount by the end of 2030.
• The demand for lead acid batteries is rising in Germany due to increased investment in the automobile, data centre and telecommunication industry. Though there is the presence of substitutes, such as lithium-ion batteries, there is still more demand for lead acid batteries from all these industries. The lead acid battery has a long life, safety and good performance in the long run, which makes them the first choices in the data centre, automobile and telecommunication industry.
• Thus all these development in Germany in the automobile and data centre industry is likely to drive the lead acid market during the forecast period.

Competitive Landscape

The Europe lead-acid battery market is moderately fragmented. Some of the key players in the market include Clarios, Exide Technologies Inc., GS Yuasa Corporation, EnerSys, and East Penn Manufacturing Co.

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