A recent market intelligence study on the lead-acid batteries market opines that the market is pegged to surpass a value pool of $116 billion by the end of 2030.
In the report, 2020 Analysis and Review: Lead Acid Battery Market by Product – Flooded, AGM, Gel for 2020-2030, Future Market Insights predicts applications in grid energy storage systems and AGM batteries will drive the growth.
Being the primal energy source in motive, stationary, automotive, industrial and grid energy storage systems, sales of lead-acid batteries are set to soar in passenger vehicles, electric vehicles and two-wheelers.
Despite a modest outlook for the market in 2020, leading players are aggressively focusing on product positioning across end-use verticals such as manufacturing of lead-acid batteries with higher power densities to fuel e-bikes, which are mushrooming in developing regions. With very high cranking characteristics, AGM batteries are witnessing high demand growth in off-grid applications where charge rates are relatively lower and high autonomy is preferred.
Key Takeaways of the lead-acid battery market report:
- Demand for lead-acid batteries will be upheld by a transportation sector that is slated to grow 1.4x through 2029.
- APEJ will maintain its regional hegemony accounting for a one-third share in the overall market.
- Stationary lead-acid batteries will witness high adoption and will grow three fold over their commercial variants through 2030.
- While AGM batteries are set to capture significant share, flooded lead-acid batteries are poised to gain more traction on the back of their cost to performance ratio.
“Stationary energy storage has enormous near-term potential. Businesses such as battery manufacturers, grid operators are set to establish collaborative relationships with solar power developers and energy service companies,” says an analyst with Future Market Insights.
COVID-19 impact on lead-acid batteries – Battery demand to stay deferred for near term
The end of the first quarter of 2020 saw lead-acid battery demand slowly climbing up as containment strategies in China started to take effect and lockdown restrictions were lifted.
At this time however, lock downs started to be announced in other regions as the virus epicenter began to change. Manufacturers had to appeal to governments to revoke shut-downs which allowed them to work at 50% capacity. Demand continued to witness declines as major automotive and industrial facilities began to halt operations.
Largely though, Future Market Insights estimates that the overall GDP growth and industrial production index will falter in the coming months and witness a contraction akin to the 2008 subprime crisis. The long term picture however looks solid with reasonably strong growth predicted in the years ahead. Buyer sentiment will show reluctance towards new cars, however, replacement batteries will keep up demand.
Lead-acid battery market – Competition Analysis
The competition in the market comprises of many players thus beholding a moderately fragmented market structure. Players are exhaustively innovating on new and improved battery solutions for wind power generation projects, for instance, Furakawa Battery Co Ltd signed an agreement with I-WIND for the supply of batteries to be used in a wind power generation project.
Read more about the report.