Lead Acid Battery Market Report 2025 (Global Edition)

Market Dynamics of Lead-Acid Battery:

Key Drivers of the Lead Acid Battery-

• Increasing demand for cost-effective power backup systems accelerates Lead Acid Battery market growth-

The lead-acid batteries market is anticipated to develop as a result of the increasing need for power backup systems from a variety of industries, including the oil and gas, automotive, telecom, mining, manufacturing, and chemical industries, among others.  For instance, a report published by the KVIC states that the demand for lead-acid batteries has increased significantly as a result of the recent expansion of the automotive industry. The market is estimated to be worth Rs. 1,300 crores and is expanding at a rate of 18 to 20%.

Source- https://www.kviconline.gov.in/pmegp/pmegpweb/docs/commonprojectprofile/Leadacidbattery.pdf

As a result of their accessibility, low initial cost, and high current carrying capacity, they are utilized more frequently than other batteries. 
Additionally, compared to other acid batteries, lead acid batteries offer higher energy each cycle at a cheaper cost per kilowatt-hour, which eventually translates into reduced operational expenses. These batteries can be recycled, in some nations, the recycling rate exceeds 90 percent, which lowers battery costs, minimizes pollution, and conserves resources. Lead acid batteries are hence the best option for power backup. For instance, according to the Maharashtra Pollution Control Board, Lead recyclers recycled, utilized, and co-processed 53,755 tons of lead in FY 2019–20, according to the returns.

Source- https://mpcb.gov.in/sites/default/files/batteries/BatteriesAnnualreport201920MPCB24052021.pdf

Due to the early rechargeable batteries' lower cost of ownership compared to all current batteries, the lead acid battery market is expected to rise rapidly globally. Lead-acid batteries also work well as surge current carriers, which are the highest input current that an electrical gadget may instantly draw when turned on. Large industrial environments are a perfect fit for lead-acid batteries because very few other batteries can match their surge current capacity.

Lead batteries have established and maintained a position due to their general cost-efficiency, even in situations where surge current is not a major factor. Global market demand may also be fueled by expanding applications in mining activities where they are utilized on headlamps, a necessary piece of gear for miners. 
Thus, the need for affordable power backup solutions is driving the lead acid battery market's expansion.

• Expanding Data Centers and the Telecommunication sector will increase demand for lead acid batteries. 

The telecom sector is one of those that has experienced tremendous year-over-year expansion. The industry is anticipated to experience a boom shortly. With the emergence of a new generation of connectivity, the fiercely competitive wireless communication sector is sure to face unprecedented challenges. Despite the challenging economic times, the telecoms industry is among the select few that are witnessing swift advancements in technology. This industry is still a major driver of growth, innovation, and disruption in several other industries. The industry's leading telecom companies are spending money on growing and improving their operations and procedures to take advantage of the growing possibility for increased revenue streams. 
This rise in the wireless communication market is attributed to several developments in communication technology and growing device interconnectivity, the wireless telecom sector is poised to maintain its role as the main engine of support for the broader technological world. For instance, according to the Telecom Regulatory Authority of India, the total number of Internet users grew by 1.77% on a quarterly basis, from 865.90 million at the end of December 22 to 881.25 million at the end of March 23. There are 881.25 million internet users worldwide, of which 33.94 million use wired internet and 847.31 million use wireless.

The need for lead acid batteries increasing due to the construction of towers and the growing number of data centers. In addition, the expanding population, technological advancements, and the introduction of 5G services are significant contributors to the expanding consumer base. Companies are building more telecom towers to accommodate the growing number of subscribers, which is driving up the demand for lead acid batteries as backup batteries.  
Hence, the need for lead-acid batteries will rise due to the expansion of data centers and the telecommunications industry.

• Increasing demand for EVs has led to a demand for lead acid batteries-

Several factors, including urbanization, the increasing number of charging stations, and advancements in battery technology and range, are contributing to the surge in demand for electric vehicles. For instance, according to the International Energy Agency, the market for electric cars is expanding exponentially, with sales expected to reach over 10 million by 2022. In the first quarter of 2023, over 2.3 million electric automobiles were sold, which is a 25% increase over the same period in the previous year.

Source- https://www.iea.org/energy-system/transport/electric-vehicles

The key technology to decarbonize the road transportation sector, which is responsible for nearly one-sixth of global emissions, is electric automobiles. 
Globally, businesses and governments are establishing and accomplishing a wide range of sustainability targets, many of which are meant to lower CO2 emissions, pollution, and noise levels while boosting productivity. Because of this, some governments are making electric vehicles more accessible to a wider audience by providing tax credits and other incentives to buyers. For instance, India's flagship program for advancing electric mobility is called FAME, or Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles. FAME-II, which is presently in its second phase of implementation, has a budget allocation of 10,000 Cr and will be in effect for three years starting on April 1, 2019.

Source- https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1942506

The range of electric vehicles expands as battery technology advances. For people who have longer commutes, EVs with longer range between charges—which can be made possible by lead acid batteries—are more practical. Thus, the increasing adoption of electric vehicles has resulted in a need for lead-acid batteries.

Restraints of the Lead Acid Battery-

• Reduced battery life due to low capacity suppresses market growth. 

Compared to other batteries lead batteries discharge more frequently, necessitating more frequent charging. They will have shorter lives as a result. Furthermore, even with cautious treatment and extreme caution not to over-discharge these cells, lead acid batteries have 500-1000 charging cycles. 
Furthermore, these batteries have significant efficiency issues and waste energy. Their intrinsic charging causes them to squander up to 15 percent of the energy that is provided to them which is insufficient. It would only store 85Ah of electricity if 100ah of it was provided. Trying to squeeze as much efficiency out of each amp before nightfall or being blocked by clouds can be challenging while using solar charge nodes. 

Lead acid batteries have been the most economical technology up until recently. Lead acid batteries are losing out in cost-effectiveness, though, as alternative battery storage technologies—particularly lithium-ion technology—proliferate. Prices for lead-acid batteries are declining in almost every industry. The Nickel-Metal Hydride (NiMH) battery is a tried-and-true technology for hybrid applications at the same time. Original Equipment Manufacturers (OEMs) such as Toyota, Honda, and Lexus employ it. Because of these batteries' superior performance, safety, and extended lifespan in hybrid applications, OEMs choose them. In addition to NiMH batteries, nickel-cadmium batteries also seem to be an affordable option for battery storage consumers. Compared to lead-acid batteries, they are more affordable and efficient. 
Hence, low battery life may hinder the market growth for Lead Acid Batteries.  

• Increased need for lithium-ion batteries to serve as a growth inhibitor

Lithium-ion batteries, or Li-ion batteries, are currently the most popular option for most of the participants in the end-user segments, according to market analysts. Li-ion battery market penetration has expanded dramatically over the past few years, mostly because these batteries require shorter charging time than lead-acid batteries and the former type of battery accepts current at a faster rate. This may result in growth limitations for the lead acid battery sector.

• Use of Lead Acid batteries poses a safety hazard-

An explosion can occur from gases generated during battery charging, specifically hydrogen, which is highly flammable and easily ignited, and oxygen, which promotes burning. Furthermore, highly corrosive and capable of injuring workers if it comes into contact with them is the acid used as an electrolyte in batteries. The spilled electrolyte has the potential to seriously harm both the environment and property. Lead acid batteries contain sulfuric acid in their electrolyte solution, which is extremely corrosive and can burn skin and eyes severely. If swallowed, the solution is likewise toxic. Furthermore, hydrogen sulfide gas can be produced by overcharging a lead acid battery.

Due to their capacity to produce a high charge at a quick rate, lead-acid batteries have a great risk of catastrophic damage if handled improperly. While the batteries are charging, oxygen and hydrogen are discharged into the atmosphere. While the former is combustion-supportive and the latter is highly flammable and quickly lit, this could result in an explosion. Flooded lead-acid batteries should be stored in an enclosure with enough ventilation or in a battery box; indoor units are not supposed to utilize them, according to government recommendations. Thus, safety hazard concerns may suppress market growth. 

Impact of COVID-19 on the Lead Acid Battery Market

The COVID-19 pandemic’s persistent breakout has hindered the lead acid battery market expansion. The pandemic has had an impact on the world market since it forced firms to halt operations and had an impact on supply and procurement. The supply chain items for automotive equipment were lagging behind many industries. It was anticipated that starting in 2022, the output of automobiles and electronic equipment would increase. Additionally, it is anticipated that this will have a positive impact on the manufacturing of automobiles and electronics equipment, particularly the lead-acid battery hardware components. 
 

Our study will explain complete manufacturing process along with major raw materials required to manufacture end-product. This report helps to make effective decisions determining product position and will assist you to understand opportunities and threats around the globe.

The Global Lead Acid Battery Market is witnessing significant growth in the near future.

In 2023, the Flooded segment accounted for noticeable share of global Lead Acid Battery Market and is projected to experience significant growth in the near future.

The Stationary segment is expected to expand at the significant CAGR retaining position throughout the forecast period.

Some of the key companies Leoch International Technology , Chloride Batteries and others are focusing on its strategy building model to strengthen its product portfolio and expand its business in the global market.

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