In a new report, Grand View Research, Inc. forecasts that the global lead acid battery market will reach US$76.44 billion by 2022. Growth of the automotive industry in Indonesia, Mexico, India, Vietnam and Thailand is expected to propel the industry. Growing preference for pollution free hybrid & electric vehicles along with technological development is expected to drive lead acid battery demand over the forecast period.
VRLA (valve-regulated lead-acid) batteries are forecast to grow at a CAGR of 6.4% from 2015 to 2022 due to their increasing application in UPS systems, engines, security systems, backup power, emergency lighting systems, cell phone towers and radio communication systems. In addition, its low maintenance cost along with easy installation will fuel growth over the forecast period.
Further key findings from the report suggest:
SLI (starting, lighting, ignition) was the largest product segment and accounted for 60.3% of market share in 2014. The segment is likely to witness lucrative growth over the next seven years in light of its high rate cranking current delivery in automotive applications. Moreover, growing demand for passenger cars as a result of higher living standards and improving infrastructure facilities will promote growth over the forecast period.
Materials handling vehicles were valued at $4.43 billion in 2014 and are expected to witness strong growth in light of increasing requirements for forklifts, mainly in China and India, due to their increasing prevalence as trading and transit hubs for logistic transport. High investment by players including Toyota and Konecranes will augment demand.
Europe was the second-largest market and accounted for more than 24.8% of the global share in 2014. Increasing investment in eco-innovations including electric bikes, cranes and forklift will aid industry expansion. Growing demand for e-bikes along with solar power systems in UK, Germany, and Netherlands will stimulate industry growth.
Asia Pacific will witness significant gains due to growing demand for UPS solutions owing to the rapid development of data centers and the IT sector. China is expected to witness high gains in light of energy storage technologies and favorable government support to promote investments in manufacturing sectors.
The global lead acid battery industry is dominated by Johnson Controls, Exide Technologies, GS YUASA, EnerSys, East Penn Manufacturing Co., and ATLASBX Co., Ltd.