Surge in Automobile Production To Drive Lead–Acid Battery Demand

The global automobile production surged from 52,146,292 units between January 2020 and September 2020 to 57,262,777 units between January 2021 and September 2021, as per the OICA. Furthermore, the IEA estimates that global PHEV car and BEV car stock will grow from 3,346,713 units in 2020 to 16,335,941 units by 2025 and 6,850,327 units in 2020 to 29,626,576 units by 2025, respectively. The increasing adoption of EVs and the burgeoning vehicle demand will, therefore, encourage the use of lead–acid batteries in the upcoming years.

Additionally, the accelerating urbanization rate and the ongoing industrial revolution will propel the lead–acid battery market growth in the foreseeable future. The rapid urbanization and industrialization creates will create a huge requirement for power, owing to which households and manufacturing units deploy such energy storage devices in abundance. According to the World Urbanization Prospects: 2018 Revision by the Population Division of the UN, the global urban population surged from 4.280 billion in 2019 to 4.358 billion in 2020.

In the preceding years, flooded lead–acid batteries were sold in higher quantities than valve-regulated lead–acid batteries because the former offers a cost-effective solution for entry-level start-stop systems. In addition, flooded batteries are also used in marine applications, due to the exceptionally high-power output of these energy storage devices. Apart from the automotive and marine sectors, the consumer electronics industry will also deploy an enormous volume of such batteries, owing to which battery manufacturers are developing high-performance batteries to overcome the technological limitations of traditional variants.

Within the application segment, the oil and gas category will register the fastest growth in the lead–acid battery market in the foreseeable future. This will be on account of the surging demand for energy storage devices and UPS systems in the oil and gas sector, owing to a surge in E&P activities worldwide. For instance, the Ministry of Petroleum and Natural Gas, Government of India, aims to appraise 100% of the sedimentary area in India, as per India Hydrocarbon Vision 2025.

At present, the lead–acid battery market is consolidated with the presence of a few established companies, such as EnergySys Limited, Exide Technologies, GS Yuasa Corporation, and Johnson Controls International plc. The established players are constantly focusing on product launches and geographical expansions to consolidate their position. For example, in April 2018, AC Delco Corporation expanded its service center network in Dubai to offer its services and increase its customer base in the MEA region.According to P&S Intelligence, the APAC region was the dominant user of lead–acid batteries in the recent past, and it will also retain the lead in the forthcoming years. The dominance of this region is credited to the booming automotive industry in India and China, owing to the mounting income of people in these countries. In the coming years, oil and gas, manufacturing, healthcare, and chemical companies are also expected to deploy a significant volume of such energy storage systems to meet their power needs.

Therefore, the booming EV and motor vehicle sales and the surging requirement for power will facilitate the use of lead–acid batteries, globally.

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