Global lead acid battery market is estimated to grow with approx. 4.8% CAGR during the forecast period 2016 – 2023.Increasing demand of lead acid batteries in the automotive industry is boosting the growth in lead acid battery market. Moreover, the rapid urbanization and industrialization trend in various developing countries is also fueling growth in lead acid battery market. The market is witnessing a high rate of adoption of a renewable based energy battery storage system in various countries to overcome cost issues from diesel generator sets in rural telecom installations. The advantages of lead acid batteries include more resistivity to corrosion, overcharging, gassing, water usage and self-discharge. However, high lead content in the product and its low energy density restricts the growth of lead acid battery market.
Asia Pacific region is expected to be the highest revenue gaining region for lead acid battery market during the forecast year. This is estimated to be the largest lead acid battery market because of the increasing population in India and China. Asia Pacific was the leading market with very high (approximately 43.6%) global share in 2015. The growing construction industry in emerging countries including China, India, Japan, South Korea, Malaysia, Indonesia and Vietnam is expected to increase the utilization of lead acid battery. Moreover, favorable government rules and regulations aimed at generating investments from public private partnership and foreign direct investments is expected to fuel lead acid battery demand over the forecast period.
The growth in global lead acid battery market is also influenced by the presence of major market players such asCrown battery (U.S.), Northstar (Sweden), Zibo torch energy co. ltd. (China), Saft group (France), Narada power source co. ltd. (China) CSB battery co. ltd. (Taiwan), Enersys (U.S.), Exide technologies (U.S.) etc. Product launches, Mergers & acquisitions etc. are some crucial strategies adopted by the major players to gain competitive advantage.
The lead acid battery is segmented on the basis of product, type, end user and customer segment. Product is further segmented into SLI batteries and micro hybrid batteries. Type is further segmented into flooded batteries, enhanced flooded batteries and VRLA batteries. End user is further segmented into passenger cars, LCV and HCV, two wheelers and three wheelers. Flooded lead acid batteries accounted for the majority market share in the year 2015 and will continue to dominate the market during the forecast period. Factors such as compatibility and ability to supply high currents comparison to other rechargeable batterieswill boost the popularity of flooded batteries in future.