Lead Acid Battery Market Size in US is set to grow by USD 1.25 billion from 2024-2028, Rising focus on green telecom towers to boost the market growth, Technavio

NEW YORK, July 5, 2024 /PRNewswire/ -- The lead acid battery market size in US is estimated to grow by USD 1.25 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  3.14%  during the forecast period.  Rising focus on green telecom towers is driving market growth, with a trend towards rising vendor collaborations. However, declining costs of lithium-ion batteries  poses a challenge. Key market players include C and D Technologies Inc., Camel Group Co. Ltd., CLARIOS LLC, Concorde Battery Corp., Crown Equipment Corp., East Penn Manufacturing Co. Inc., Energizer Holdings Inc., EnerSys, Exponential Power Inc., HBL Power Systems Ltd., Johnson Controls International Plc., Panasonic Holdings Corp., Power Sonic Corp., Robert Bosch GmbH, Surrette Battery Co. Ltd., Teledyne Technologies Inc., Trojan Battery Co. LLC, U.S. Battery Manufacturing Co., UPS Battery Center Ltd., and Wirtz Mfg Co. Inc..

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Key Market Trends Fueling Growth

The lead acid battery market in the US is experiencing enhanced cooperation among market participants and research organizations. Collaborations focus on advancing lead acid battery technology to surpass lithium-ion batteries' performance. Pre-competitive research organizations, such as the Consortium for Battery Innovation (CBI), facilitate these collaborations. Members include major lead acid battery manufacturers like C and D Technologies Inc., Crown Equipment, EnerSys, and Energizer Holdings Inc., as well as suppliers such as Cabot Corp., Daramic LLC, and Microporous LLC. Through pre-competitive R&D, these companies leverage advanced techniques, tools, and capabilities to enhance lead acid battery longevity, driving growth in demand and the US market during the forecast period. 

The Lead Acid Battery market in the US is experiencing significant growth, particularly in the renewable energy sector. Solar, wind, hydropower, and bioenergy are driving this trend, as these industries require reliable energy storage solutions. The generation grid, substations, data centers, and telecom sectors are key consumers of lead acid batteries. The IT sector's demand for uninterrupted power is increasing the use of VRLA batteries, specifically flooded, horizontal well, and vertical well lead storage batteries. Rechargeable batteries, made of lead and sulfuric acid, are in high demand due to their long life and low maintenance. New technologies like Absorbent Glass Mat and Gel VRLA batteries, as well as new electrode designs, are improving battery performance. Automation, pulse charging, and multi-stage charging methods are also gaining popularity. Lead acid batteries are used for cranking power, cold-start capabilities, backup power, UPS systems, and stationary batteries. The telecom industry's expansion, digitalization, and 5G services are increasing the demand for lead acid batteries in telecom towers. Despite the benefits, lead acid batteries contain toxic materials and require careful handling. Lithium-ion batteries are gaining popularity but lead acid batteries remain a cost-effective and reliable option for many applications. 

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Market Challenges

• Lead acid batteries have long been the go-to choice for applications requiring a high burst of instantaneous power, such as automotive cranking. However, lithium-ion batteries are gaining popularity due to their superior performance, including higher current density, longer power-holding capacity, and longer shelf life. The cost gap between these battery chemistries has narrowed significantly due to increased production scale and manufacturing efficiency. This trend, coupled with the adoption of battery technology in the automotive industry and cost-effective production methods, is driving the growth of lithium-ion batteries at the expense of lead acid batteries. Furthermore, ongoing research and development projects aim to enhance the performance of lithium-ion batteries, making them an increasingly competitive alternative to lead acid batteries. Consequently, the lead acid battery market in the US is expected to face challenges from the growing adoption and improved performance of lithium-ion batteries during the forecast period.
• The Lead Acid Battery market in the US faces challenges in battery disposal and recycling. Old batteries contain hazardous materials like lead oxide, lead electrodes, and sulfuric acid solution. Rechargeable batteries, such as lead alloy plates and water, require proper disposal to prevent environmental harm. The rise of lithium-ion technology, nickel-based batteries, and zinc-based batteries poses competition. The automotive sector, uninterruptible power supply (UPS), servers, and telecom sector heavily rely on brand-new batteries. Valve-regulated lead-acid batteries are popular in forklift trucks, nuclear submarines, diesel-electric submarines, electric motors, marine commerce activities, ICE vehicles, e-bikes, and sealed lead-acid batteries in passenger cars. The energy storage sector, wireless telecom industry, connectivity, and military also use lead-acid batteries. The IEA and renewables sector are shifting towards lithium-ion technology, challenging the lead acid battery market. Original Equipment Manufacturers (OEMs) use nickel-cadmium batteries and nickel-metal hydride batteries, but lead acid batteries remain a cost-effective solution for many applications.

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Segment Overview 

This lead acid battery market in US report extensively covers market segmentation by

1. Application 
• 1.1 Mobile
• 1.2 Stationary
2. Type 
• 2.1 Flooded
• 2.2 Sealed
3. Geography 
• 3.1 North America

1.1 Mobile-  The Lead Acid Battery Market in the US is primarily driven by the mobile segment, which includes batteries used in cars, commercial vehicles, two-wheelers, and Electric Vehicles (EVs). In the automotive industry, lead acid batteries are essential for Starting, Lighting, Ignition (SLI) in Internal Combustion Engine (ICE) vehicles and start/stop applications in conventional vehicles and EVs. The automotive sector has seen significant growth over the last decade, with the sale of passenger cars in the US increasing by over 25% from 2010 to 2022. This growth is expected to continue, with Kia Motors Corp.'s launch of new hybrid models and off-road modes in the US. However, the demand for ICE vehicles is projected to decline in the latter stage of the forecast period due to the increasing adoption of EVs and mild/micro hybrids. This shift is expected to offset the decline in demand for lead acid batteries for ICE vehicles. In the mobile segment, EVs and micro/mild hybrids use lead acid batteries as auxiliary power sources and for start/stop applications. The growing demand for these vehicles, driven by favorable government policies and the need to reduce transportation emissions, will drive growth in the mobile segment during the forecast period. Additionally, the stable demand for replacement batteries in existing ICE vehicles will continue to boost sales of lead acid batteries in the US market.

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Research Analysis

The Lead Acid Battery market in the US is witnessing significant growth in various sectors, including the telecom industry and energy storage space. These batteries are widely used in wireless telecom networks for providing backup power and maintaining connectivity during power outages. In the military sector, lead acid batteries are utilized for powering communication equipment and vehicles. Data centers and Uninterruptible Power Supply (UPS) systems also rely on these batteries for ensuring uninterrupted power supply. Lead acid batteries consist of lead plates submerged in a sulfuric acid solution. They are rechargeable batteries, available in different types such as Absorbent Glass Mat (AGM) and Gel VRLA (Valve Regulated Lead Acid) batteries. Despite the emergence of lithium-ion technology, lead acid batteries continue to dominate the market due to their low cost, reliability, and long service life. However, the use of toxic materials like lead and sulfuric acid poses environmental concerns, leading to the development of alternative technologies. Lead acid batteries consist of lead oxide and lead electrodes, which undergo chemical reactions during charging and discharging. Water is added to the battery to maintain the electrolyte level. The market for lead acid batteries includes brand-new batteries for various applications, such as telecommunications equipment, electronic equipment, and energy storage devices. Other rechargeable batteries, including nickel-based batteries and zinc-based batteries, also compete in the market.

Market Research Overview

The Lead Acid Battery Market in the US is witnessing significant growth in various sectors, including telecom, energy storage, wireless telecom industry, military, data centers, and UPS systems. In the telecom sector, lead-acid batteries are widely used for connectivity and powering telecommunications equipment. The energy storage space is another major area of application, with lead-acid batteries providing backup power for renewable energy sources such as solar, wind, hydropower, and bioenergy. Lead-acid batteries are also essential in the IT sector for powering servers and data centers, as well as in the automotive industry for cranking power and backup systems in vehicles. The market includes various types of lead-acid batteries, such as VRLA (Valve-Regulated Lead-Acid) segment, which includes flooded batteries, Absorbent Glass Mat (AGM), and Gel VRLA batteries. New technologies like new electrode designs, Calcium-alloy grids, carbon additives, pulse charging, and multi-stage charging methods are being developed to enhance the performance and efficiency of lead-acid batteries. The market is also witnessing the emergence of lithium-ion batteries, nickel-based batteries, and zinc-based batteries as alternatives, but lead-acid batteries continue to dominate due to their cost-effectiveness, reliability, and wide availability. The market is also witnessing the impact of digitalization and the rollout of 5G services, with an increasing number of telecom towers being installed to support the growing subscriber base. The market is expected to continue growing, driven by the increasing demand for stationary batteries, SLI (Starting, Lighting, and Ignition) batteries, and UPS systems in various applications. Despite their advantages, lead-acid batteries contain toxic materials such as lead and sulfuric acid, which require careful handling and disposal. Recycling centers play a crucial role in the market, with lead oxide, lead electrodes, sulfuric acid solution, and water being the primary materials recovered from used batteries. The market is expected to continue evolving, with new technologies and applications emerging to meet the changing needs of various industries.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• Mobile
• Stationary
• Type
• Flooded
• Sealed
• Geography
• North America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio