PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1511276
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1511276
According to Stratistics MRC, the Global Lead Acid Industrial Traction Battery Market is accounted for $1.1 billion in 2024 and is expected to reach $2.4 billion by 2030 growing at a CAGR of 12.9% during the forecast period. A Lead acid industrial traction battery is a robust, rechargeable power source commonly used in heavy-duty applications such as forklifts and electric vehicles. It employs lead and lead oxide plates submerged in an electrolyte solution of sulfuric acid to produce electrical energy through a chemical reaction. These batteries are designed to withstand deep discharges and frequent recharging cycles, making them ideal for demanding industrial environments where reliable and durable energy storage is required.
Growing emphasis on electrifying industrial vehicles
The market is witnessing a significant shift towards electrifying industrial vehicles. This trend reflects a growing awareness of environmental sustainability and the need to reduce carbon emissions in industrial operations. With advancements in battery technology and increased adoption of electric vehicles across various sectors, including manufacturing, logistics, and construction, the demand for lead-acid traction batteries is experiencing a notable surge, driving innovation and investment in this market segment.
Limited driving range and charging infrastructure
The market faces challenges due to limited driving range and inadequate charging infrastructure. These factors hinder the widespread adoption of lead-acid batteries in electric vehicles and industrial machinery. Users are constrained by range anxiety and the inconvenience of finding compatible charging stations. Addressing these issues through technological advancements and expanding the charging network is crucial for the market's growth and competitiveness against alternative battery technologies.
Advancements in battery technologies
Innovations such as enhanced electrode designs, advanced additives for electrolytes, and improved manufacturing processes have boosted energy density, cycle life, and overall reliability. These developments are particularly crucial in industries relying on electric vehicles and heavy machinery, where efficient and durable batteries are essential for operations and productivity. Thus, advancements in battery technologies have led to notable improvements in performance and longevity is driving the growth of the market.
Environmental concerns
Lead acid batteries contain toxic materials that can leach into soil and water, posing risks to ecosystems and human health. Recycling efforts often fall short, leading to improper disposal methods. Additionally, the manufacturing process emits greenhouse gases. Addressing these challenges requires improved recycling technologies, stricter disposal regulations, and a shift towards more sustainable battery chemistries. Therefore, the market faces significant environmental challenges due to the disposal of used batteries.
The COVID-19 pandemic significantly impacted the Lead Acid Industrial Traction Battery Market. Due to lockdowns and disruptions in industrial operations, there was a temporary decline in demand for these batteries in sectors like manufacturing, logistics, and warehousing. However, with the gradual reopening of economies and the growing emphasis on electric vehicles and renewable energy storage solutions, the market is expected to recover steadily, presenting opportunities for growth and innovation in the coming years.
The tubular plate batteries segment is expected to be the largest during the forecast period
The tubular plate batteries is expected to be the largest during the forecast period due to their robust construction and enhanced performance. These batteries feature a series of tubular positive plates that offer higher energy efficiency, longer cycle life, and better resistance to deep discharges compared to traditional flat plate designs. This makes them ideal for demanding applications in industries such as material handling, mining, and renewable energy, driving their adoption and growth in the market.
The manufacturing segment is expected to have the highest CAGR during the forecast period
The manufacturing segment is expected to have the highest CAGR during the forecast period. This includes sourcing quality lead, alloying it with specific materials like antimony and calcium, casting grids, pasting plates with lead oxide, assembling cells, filling them with electrolyte, and finally charging and testing for optimal performance and durability. Advanced manufacturing techniques ensure efficiency, safety, and environmental sustainability in this crucial sector.
North America is projected to hold the largest market share during the forecast period. With the expansion of industries such as e-commerce, logistics, and manufacturing, the demand for material handling equipment powered by traction batteries has increased. Environmental regulations and a push for cleaner technologies have led to advancements in lead-acid battery technology, making them more efficient and eco-friendly.
Asia Pacific is projected to hold the highest CAGR over the forecast period. The growth of e-commerce has led to increased warehouse operations and logistics activities, which require efficient material handling equipment powered by traction batteries. The presence of both local and international battery manufacturers has intensified competition, leading to technological advancements, competitive pricing, and improved product offerings.
Key players in the market
Some of the key players in Lead Acid Industrial Traction Battery market include HOPPECKE Batteries GmbH & Co. KG, LG Energy Solution, MIDAC S.p.A., ENERSYS, EXIDE INDUSTRIES LTD, Hitachi Energy Ltd., Mutlu Corporation, Panasonic Corporation, Samsung SDI Co., Ltd., Toshiba Corporation, Sunlight Group, Amara Raja Batteries Ltd., Camel Group Co., Ltd., Ecovolta, Crown Battery, NorthStar Battry and Triathlon Batterien GmbH.
In February 2024, Sunlight Group has recently concluded a deal to purchase the remaining 50% ownership in Ubatt GmbH, which is its German subsidiary,. This strategic move highlights Sunlight's unwavering commitment to driving progress in the renewable energy sector by prioritizing sustainably sourced materials.
In October 2023, HOPPECKE was tasked with providing support to a beverage industry client during the launch of a new logistics center, which included the introduction of electrically powered industrial trucks for the first time.