Lead acid battery market to grow annually 4.6% by 2020, grid storage to climb by 7.3% from small base
The global lead acid battery market is projected to reach $58.5 billion by 2020 at an estimated compound annual growth rate of 4.6% during the forecast period, according to a new report by Future Market Insights.
The Global Lead Acid Battery: Market Analysis and Opportunities Assessment, 2014-2020 report suggests that transportation and stationary industrial segments collectively contributed to around 77.9% of market revenues in 2014.
“The stationary industrial application segment is identified as one of the fastest growing markets during the forecast period with a CAGR of 8.6%,” says the report. “Grid storage as of 2013 accounted for a minuscule share, and is projected to grow at a healthy CAGR of 7.3% during the forecast period.”
The report also states that the residential application segment is projected to register a slowest CAGR of 2.7% for forecast period. It says that transportation, commercial and residential applications represent moderate growth and high value markets which are collectively expected to grow at a CAGR of 3.4%.
According to the report, as of 2014, Asia Pacific dominates the market and accounts for around 34.2% of the global market, followed by North America and Europe. The Asia Pacific lead acid battery market was valued at $15.2 billion in 2014, and is projected to reach $19.8 billion by 2020 — a CAGR of 4.5%.
In 2014, North America accounted for 21.6% of sales and Western Europe by 18.7% in the global market. Although Eastern Europe accounted for a small share in the global market, it is expected to register highest CAGR of 5.5% during the forecast period.
The report says that Asia Pacific and Latin America represent high potential opportunities for lead acid battery manufacturers due to increasing investment in power grid infrastructure.
Both the regions collectively are expected to occupy around 41% of incremental absolute dollar opportunity share during the forecast period. Matured economies are projected to exhibit a CAGR of 4.5% during the forecast period.
The rapid urbanization and industrialization trend in various developing countries across the globe is one among the chief drivers of lead acid battery market, states the report.
“Lead acid batteries are one of the predominantly used batteries in automobiles such as passenger cars, commercial vehicles and motorcycles. Increasing requirement of uninterrupted power supply in industries, corporate offices, hospitals, research institutions, educational institutes and houses further enhance the demand for these batteries,” the report said.
It says that implementation of smart grid projects, deployment of vehicle charging infrastructure, increasing usage of hybrid and electric vehicles, installation of renewable energy systems and span of telecom tower networks are some of the underlying demand drivers for lead acid battery market across the globe.
“The global lead acid battery market is fragmented, with the presence of number of local and international players,” it concludes. “In several developing and under developing countries, regional vendors dominate the market, as they provide cost effective lead acid batteries. Currently, international players are posing a challenge to local vendors, as they provide better quality lead acid batteries.”