The global lead acid battery market is predicted to rise at a healthy pace in the years ahead. Despite its advanced use, lead acid battery continues to be widely used among other rechargeable batteries commercially available. Key reasons behind its popularity are reliability and cost-effectiveness for each unit of energy consumed. This makes lead acid battery preferred for golf cars, automobiles, marine and uninterruptible power supplies, and forklifts.
Such applications of lead acid battery hold promise for the growth of lead acid battery market. Serving such applications, lead acid battery market is predicted to rise at a CAGR of 4% between 2018 and 2026, says Transparency Market Research in one of its recent market publications.
Over last several years, expansion of automobile and manufacturing sectors has paved way for expansion of battery technology. Lead acid batteries find wide use for power backup systems in these industrial sectors.
Apart from this, wheeled mobility devices such as golf cars and electric wheelchairs find wide use of lead acid batteries. Lead acid batteries are suitable for such applications due to their deep lifecycle.
On the flip side, production of lead acid battery is hazardous to the environment. Lead mining involves extensive release of toxic smoke, including dioxins, sulfur dioxide, and dibenzofurans. This, indirectly impedes use of lead acid battery. Besides this, improper disposal of lead acid batteries poses risk of pollution on and as well as water. Agricultural land and water bodies are impacted by runoff of chemicals by lead acid batteries. This impedes growth of lead acid battery market.
Market Players face Growth Repercussions due to Environmental Breach
Meanwhile, the lead acid battery market faces volatility on the competitive front. Product innovations, expansion of manufacturing facility, and repercussions due to environmental breach are some factors that impact level of competition in this crowded lead acid battery market.
Introduction of 12V AGM sealed lead acid battery by Duracell at CES Conference, Las Vegas in 2018 is an example. The U.S. based company is widely known for its small alkaline batteries product range.
Environmental repercussions related to battery technology also creates competitive volatility for manufacturers of these products. In early February 2018, Aqua Metals faced three different lawsuits for recycling of used lead acid batteries. To address this, the company undertook a turnkey technical solution associated with “sticky lead” problem of recycling of used lead acid batteries. With the solution, the company’s share rose from US$1.62 to close to US$2.79 within two days.
For environmental conservation objectives, expansion of recycling process capacities is also on the roadmap of success for participants in the lead acid battery market. For example, a leading lead acid battery manufacturer, in association with an environmental agency expanded its recycling capacity by volumes to be 25,000 tons each year.
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Expanding Production of Passenger Vehicles swells demand in Asia Pacific
Asia Pacific has emerged as a key region for lead acid battery in recent years. Increasing production of vehicles has expanded the demand of lead acid battery in the region. Lead acid battery are useful for passenger cars due to its low cost as well as reliable performance. Need for power backup of utility companies, and rapid expansion of the renewable energy sector are some other economic interest area that display demand of lead acid batteries. Serving this, the lead acid battery market in Asia Pacific is predicted to rise at a CAGR of 4.9% from 2018 to 2026.
North America and Europe also account for substantial revenue share in the global lead acid battery market.