Lead Acid Battery Market Size By Application (Stationary {Telecommunications, UPS, Control & Switchgear}, Motive, SLI {Automobiles, Motorcycles}), By Construction (Flooded, VRLA {AGM, GEL}), By Sales Channel (OEM, Aftermarket), COVID-19 Impact Analysis, R

Lead Acid Battery Market Size By Application (Stationary {Telecommunications, UPS, Control & Switchgear}, Motive, SLI {Automobiles, Motorcycles}), By Construction (Flooded, VRLA {AGM, GEL}), By Sales Channel (OEM, Aftermarket), COVID-19 Impact Analysis, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2022 - 2030

The global lead acid battery market is expected to witness commendable growth over 2022-2030, owing to its rising application scope in the thriving automobile sector.

Rechargeable lead acid batteries are essential for automobiles in applications such as SLI (starting, lighting, and ignition). This application fits well with the ability of the battery to produce the high current required to turn over a cold ICE (internal combustion engine). With the expansion of automotive production bases and the escalating vehicle sales, lead acid battery demand is expected to witness a substantial rise.

Over the years, battery costs have been declining due to ongoing cost-related implementations. There has also been a reduced need for the prevention of over-capacity in these systems, thereby ensuring cost savings. These factors, along with the increasing disposable income, are likely to assert a positive influence on the lead acid battery industry outlook over the forecast period.

The lead acid battery market is bifurcated in terms of application, construction, sales channel, and region.

Based on application, the industry is divided into SLI, stationary, and motive categories. The SLI segment is poised to depict a high growth rate through 2030, driven by the mounting sales of passenger vehicles, especially in developing economies.

According to a report from the Society of Indian Automobile Manufacturers, the sales of passenger vehicles rose by 11% to 293,865 units in July 2022, a hike from 264,442 units recorded a year earlier. Since SLI lead acid batteries are mainly used for auto applications, this rise in PV production will contribute to higher product consumption.

As per the construction, the market is categorized into flooded and VRLA segments. Of these, the flooded segment is set to account for a considerable industry share over the estimated timeline.

This can be credited to the rising adoption of these batteries in stationary power supplies and standalone energy systems, among other applications. The flooded lead acid battery is also considered an ideal and cost-effective choice for backup power applications and grid energy storage.

In terms of the sales channel, the industry is bifurcated into aftermarket and OEM. The OEM segment is slated to register considerable revenue by 2030, owing to the increasing number of suppliers of lead acid batteries automotive applications. Based on data from Tudor Batteries, 70% of car brands work with OEM batteries in Europe, which will add further impetus to industry development from the segment.

Regionally, the Latin American lead acid battery industry is anticipated to be worth over USD 11 billion by 2030, due to the burgeoning production and sales of electric vehicles. As per data from the ABVE (Brazilian Association of Electric Vehicles), the sales of battery-run EVs, hybrid, and plug-in hybrid vehicles surged by 47% in the first half of 2022. This EV revolution is likely to accelerate the deployment of battery technology and amplify the consumption of advanced lead acid batteries.