PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1569756
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1569756
According to Stratistics MRC, the Global Advanced Lead Acid Battery Market is accounted for $26.62 billion in 2024 and is expected to reach $42.96 billion by 2030 growing at a CAGR of 8.3% during the forecast period. The performance and longevity of advanced lead-acid batteries are increased by combining advanced materials and improved design over traditional lead-acid batteries. Innovations that enable higher energy density, better cycle life, and better charge acceptance are commonly found in these batteries. Moreover, newer lead-acid batteries are a popular option for both stationary and mobile applications because of their consistent power delivery in multiple applications, including backup power, automotive systems, and renewable energy storage.
According to Battery Council International (January 2023), the annual manufacturing capacity of lead batteries in North America is over 206 GWh.
Increasing requirement for storage of renewable energy
Energy storage systems that can efficiently store and manage intermittent power produced by solar and wind sources are critically needed as the world's push toward clean and renewable energy grows. Because they are scalable, affordable, and capable of storing energy for both short and long periods of time, advanced lead-acid batteries are being utilized more and more in grid-scale energy storage projects. Advanced lead-acid batteries are becoming more and more in demand as off-grid renewable energy installations and micro grids expand in remote or underserved areas. Additionally, these installations offer a dependable and cost-effective way to store excess power and guarantee a steady supply of energy.
Low energy density in relation to alternatives
The lower energy density of modern lead-acid batteries in comparison to more recent battery technologies, like lithium-ion and solid-state batteries is one of their main drawbacks. This constraint limits their use in industries where weight and space are essential, like in contemporary electric cars and portable electronics. Furthermore, more sophisticated lead-acid batteries are needed to store the same amount of energy as their higher-density counterparts due to the lower energy density, which may reduce their appeal in applications that call for lightweight and compact solutions.
Advancement of advanced battery technologies
There are plenty of chances for market expansion in the ongoing research and development of advanced lead-acid battery technologies. The performance and lifespan of lead-acid batteries are constantly being improved by innovations like better grid materials, improved electrolyte formulations, and improved battery management systems. Manufacturers can address some of the present drawbacks of lead-acid technology by investing in R&D to create new products with improved energy density, extended cycle life, and increased efficiency. Moreover, investigating hybrid battery options that integrate lithium-ion or super capacitors with lead-acid could lead to new applications and market opportunities.
Vigorous rivalry from alternative technologies
The market for advanced lead-acid batteries is highly competitive, with new battery technologies like flow, solid-state, and lithium-ion batteries. Better safety features, longer cycle times, and higher energy densities are frequently provided by these substitutes. In applications like electric vehicles and portable electronics that demand a high energy density and long-term dependability, lithium-ion batteries, for example, have emerged as the industry standard. Additionally, the market share and growth potential of advanced lead-acid batteries are directly threatened by these technologies as they develop further and become more affordable.
The COVID-19 pandemic had a major effect on the market for advanced lead-acid batteries by delaying production, upsetting international supply chains, and altering the cost of raw materials. The pandemic caused a decrease in industrial activity and the temporary closure of production facilities, which prolonged lead times and slowed down the supply of parts for battery manufacturing. Furthermore, the demand for advanced lead-acid batteries declined as a result of reduced consumer spending and economic uncertainty affecting investments in energy and infrastructure projects. To partially offset the negative effects and boost demand in some industries, the pandemic also accelerated the adoption of digital solutions and remote work, which in turn increased the need for dependable backup power systems.
The VRLA (Valve Regulated Lead Acid Battery) segment is expected to be the largest during the forecast period
The VRLA (Valve Regulated Lead Acid) Batteries market segment has the largest share in the advanced lead acid battery market. VRLA batteries are widely used in many different applications because of their reputation for dependable performance and minimal maintenance needs. They are perfect for use in backup power applications and critical systems because of their sealed construction, which minimizes spills and lessens the need for frequent water refilling. Moreover, the efficiency, safety, and versatility of VRLA batteries, which make them a top option for both industrial and consumer applications, are what propel this segment's dominance.
The Automotive and Transportation segment is expected to have the highest CAGR during the forecast period
The Automotive and Transportation segment of the Advanced Lead Acid Battery Market has the highest CAGR. The increasing use of advanced lead-acid batteries in electric and hybrid vehicles, which provide dependable and affordable energy storage options, is fueling the growth of this industry. Because advanced lead-acid batteries are more durable and have a higher energy density than traditional lead-acid batteries, they present a compelling alternative for automakers looking to reduce costs and increase vehicle performance and battery life. Additionally, the growth of this segment is indicative of a larger trend in transportation technologies toward electrification.
North America has a dominant market share in the advanced lead-acid battery market. This dominance is attributable to the advanced automotive industry in the region, which fuels a significant demand for high-performance batteries in hybrid and electric cars. Furthermore, advanced lead-acid batteries are widely used in many different applications, such as backup power systems and renewable energy storage, owing to North America's strong infrastructure and technological advancements. Significant R&D expenditures made by the area support its dominant position in the market even more.
The market for advanced lead-acid batteries is growing at the highest CAGR in the Asia-Pacific region. The region's fast industrialization, rising need for energy storage technologies, and thriving automotive industry-particularly in nations like China and India-are the main drivers of this boom. The Asia-Pacific region's increasing focus on electric vehicles and renewable energy sources is propelling the use of advanced lead-acid batteries. Moreover, the region's dynamic growth trajectory is further bolstered by substantial investments in infrastructure development and supportive policies from the government.
Key players in the market
Some of the key players in Advanced Lead Acid Battery market include Exide Technologies, Crown Battery Manufacturing Co., Gs Yuasa International Ltd, Enersys, Hitachi, Amara Raja Batteries Ltd, Narada Power Source Co. Ltd., Leoch International Technology Ltd., Midac Batteries S.P.A, Panasonic Holdings Corporation, Trojan Battery Company, Clarios, Furukawa Battery Co., Ltd, East Penn Manufacturing Co. Inc. and Chaowei Power Holdings Limited.
In June 2024, Amara Raja Advanced Cell Technologies Pvt Ltd on said it has signed a licensing agreement with GIB EnergyX Slovakia s.r.o., for lithium-ion cells technology. As part of the agreement, GIB EnergyX, a subsidiary of Gotion High-Tech Co Ltd, will license Gotion's 'LFP technology' for lithium-ion cells to Amara Raja Advanced Cell Technologies (ARACT), a wholly-owned arm of Amara Raja Energy & Mobility Ltd (ARE&M), the company said in a statement.
In May 2024, Stored energy technologies provider EnerSys has entered into a definitive agreement to acquire for $208 million Bren-Tronics, a manufacturer of portable power products for defense customers. EnerSys said it expects to close the all-cash transaction by the second quarter of 2024.
In May 2023, GS Yuasa International Ltd. (GS Yuasa) and Honda Motor Co., Ltd. (Honda) announced that they have signed a joint venture agreement toward the establishment of a new company. Honda and GS Yuasa Reach Basic Agreement Toward Collaboration for a High-capacity, High-output Lithium-ion Battery, the two companies have been discussing specifics for collaboration on high-capacity, high-output lithium-ion batteries, mainly for EVs.