Latest market reports predict expansion in lead battery industry to 2026
Reports coming out in the last couple of weeks have predicted a robust Asia Pacific automotive sector will drive demand for lead acid batteries for the next 10 years, with market demand increasing at 4.6% compound annual growth rate (CAGR) to 2020.
In its report Global Lead Acid Battery Market Analysis and Opportunities Assessment, 2014-2020, released mid-November, Future Market Insights says the global lead acid battery market was expected to reach $59 billion by 2020.
The research firm had already predicted a two-fold increase in demand for AGM and enhanced flooded batteries over the same period.
By application, the transport and stationary industrial sectors made up 77.9% of lead acid battery market revenue in 2014, the report said, and while grid storage was one of the smallest segments, that was forecast to grow at a CAGR of 7.3% in the same period.
“Adoption of grid storage technology in developing countries such as India and China is expected to fuel the global lead acid battery market,” the report says.
“In addition to that, an increase in the demand for electric vehicles is expected to further accelerate the expansion of the lead acid battery market globally.”
Separately, in its market research report, Technavio analysts estimated the Asia Pacific region would dominate the global market for lead acid batteries during the forecast period.
China lead acid battery giant Leoch added its weight to these claims, forecasting massive growth in global automotive sales, which it said would rise from 146 million units in 2015 to 407 million units by 2025.
The prime driver in the automotive sector will be in stop-start batteries, the battery maker predicts, which will increase in sales from 20.4 million units in 2015 to three times the figure, 61.8 million, by 2025.
While transport applications far outstrip others at the moment, the Future Market Insights report says the adoption of grid storage technology in developing countries like China India is expected to accelerate an already expanding lead battery market globally.
The firm did sound a note of caution, however.
“The lead acid battery market is going through a period of transition, as demand for advanced lead acid batteries is growing,” it said. “Environmental concerns are one of the biggest reasons why lead acid batteries are being slowly phased out in many industries. Lead and sulfuric acid can pose serious health risks in cases of continued exposure.
“Owing to these factors, it is expected that the lead acid battery manufacturers will have to innovate to stay relevant in the near future.”
Alistair Davidson, ILA director of products and sustainability, told BESB: “With more than 99% of lead batteries collected and recycled in Europe and North America, lead batteries provide a unique combination of performance, reliability, safety and low cost. As a result, we believe the future is bright for lead batteries, with significant opportunities in both automotive and industrial/energy storage applications.
“In particular, recent reports have predicted a significant rise in start-stop applications in the both the US and Asia Pacific region, which is expected to result in increased demand for advanced lead batteries.”