Lead acid batteries are considered to be the oldest type of rechargeable battery with widespread use in industries. Lead acid batteries include battery terminals, separators, cells, plates, and containers. Despite having a very low energy-to-volume ratio and low energy-to-weight ratio, its ability to supply high surge current means that the cells have a relatively large power-to-weight ratio. Low cost and high power-to-weight ratio make lead acid batteries attractive for their use in the automotive industry. In the automotive industry, a lead acid battery is referred to as a starting, lighting, & ignition (SLI) battery used to ignite a vehicle's engine and supply electric current to the vehicle. Moreover, it provides voltage to vehicle accessories such as wipers, radio, and charging plugs, music player, etc.
Increasing demand for lead acid batteries from various industries, such as chemical, mining, oil and gas, manufacturing, telecom, and automotive is expected to boost the lead acid battery market growth. For instance, in 2019, Tesla and Panasonic planned for the Gigafactory (Sparks Facility) to produce 35-gigawatt hours of batteries each year to expand global battery capacity and reduce the cost of electric vehicles. Moreover, CATL planned to invest US$ 2.9 billion to build two battery plants. Furthermore, new developments and innovations in lead acid battery products are further expected to augment the market growth.
Moreover, increasing production and sales of passenger vehicles across the world are expected to increase the demand for lead acid batteries, driving market growth. According to the Society of Indian Automobile Manufacturers, passenger vehicle sales in India increased by 26.45% to 272,027 units in September 2020, compared to 215,124 units in September 2019. Moreover, many automakers are focused on investing in India to launch new models and expand their operations. However, the limited usage capacity of lead acid batteries and the availability of substitutes such as lithium-ion batteries are major factors restraining the lead acid battery market growth.
Furthermore, tolerance to overcharging, durability, high performance, reliability, efficiency, and low cost are key factors that prompt automakers and buyers to opt for lead-acid batteries. In terms of geography, the lead acid battery market is divided into six regions, such as North America, Asia Pacific, South America, Europe, the Middle East, and Africa. Moreover, key players active in the market are focused on adopting various strategies such as product launches, partnerships, and collaborations, etc. to gain a competitive advantage in the market. For instance, in January 2018, Exide launched a new range of automotive batteries, Epiq, in India. According to the company, the new range of batteries come with a six-year warranty, which is the highest in the Indian market.
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