The global stationary market for lead-acid batteries is estimated to reach $11 billion by 2030, according to a new report by industry analysts Frost and Sullivan.
The rise will represent a $2.7 billion uptick at a compound annual growth rate of 4.1% from the start of the decade.
The report ‘Global Stationary Lead Acid Battery Growth Opportunities’ noted the technology’s low price, ease of recyclability, and user-friendliness were expediting their adoption across telecom and data centers, automobiles, oil and gas, and utilities industries.
The analysts also suggest the demand for renewable energy power—mainly solar and wind— will increase the adoption of stationary lead-acid batteries for backup power, and peak-load shifting services.
Manoj Shankar, energy and environment research analyst at Frost & Sullivan, said: “The implementation of stringent norms by governments worldwide to lower their carbon footprint as part of their commitment toward climate change will further accelerate the uptake of backup and storage systems.
"Several countries in Asia and Africa still lack access to the grid. Power demand exceeds supply, leading to power outages.
“This power deficit will trigger the demand for stationary lead-acid batteries to power diesel gensets and UPS systems and store backup power.
“Further, from a regional perspective, Asia-Pacific will be the largest market for stationary lead-acid batteries— due to increased investments in power generation, industrial developments and the growth of microgrid networks— followed by North America and Europe."
According to Frost and Sullivan, countries' commitments toward climate change and the increase in renewable energy penetration worldwide present lucrative growth prospects for stationary lead-acid batteries market participants, including:
- Consolidation and geographic expansion: Market participants should expand their manufacturing footprint in the developed world because establishing local bases is crucial to serving local customers.
- New product development: Companies must invest in developing battery monitoring platforms that can be integrated with UPS systems and diesel monitoring systems to achieve higher battery efficiency.
- Solar photovoltaic (PV) deployment: Manufacturers should shift to utility and grid storage deployment as power demand is expected to peak in these sectors by 2030.