A raft of reports into the lead-acid battery market has floated into the BBB offices. Although they cover different timespans and regions, the conclusions are clear: the lead-acid battery market is heading for a period of sustained growth.
Persistence Market Research (PMR), based in New York, expects the lead-acid battery market to be worth $58.55 (£45) billion by 2020 with an estimated compound annual growth rate (CAGR) of 4.6% between 2014 and 2020.
Grand View Research (GVR), based in San Francisco, has gone for an even longer forecast and predicts the global lead-acid battery market to reach $84.46 (£65) billion by 2025.
Analysts at Technavio, a London-based market research company, looked at the industrial lead-acid battery sector and forecast growth of more than 5% from 2017 to 2021, making this part of the market worth $9.9 (£7.6) billion by 2021.
One of the major factors fuelling the growth is the expansion of the automotive industry, especially rising demand for electric or battery-operated vehicles in China, India, Brazil, Mexico, South Africa, Indonesia, and increased manufacturing of them in Germany, Italy, Sweden, UK, and the Czech Republic.
Electric bikes are expected to see growth at a CAGR of 6% from 2016 to 2025, according to GVR. This growth, the researchers say, is likely to be driven by increasing prices of petrol and diesel fuels, increasing demand for more environment-friendly transport, and rising population and traffic congestion.
Technavio also highlights how rapid industrialisation in countries such as China and India is propelling demand for forklifts and, in particular, electric forklifts. “Electric forklifts are usually powered by lead-acid batteries, as they require less maintenance and have lower replacement costs,” says Thanikachalam Chandrasekaran, an analyst at Technavio.
Another factor fuelling the growth is increased industrialisation and urbanisation in developing countries – boosting demand for clean and sustainable energy sources, and dependable off-grid energy storage batteries.
The third key growth factor is increased investment in green telecommunications. The telecom industry is under immense pressure to lower its carbon footprint, according to Technavio, and this is helping to create high demand for lead-acid batteries in this sector.
GVR says the telecom segment of the lead-acid battery market is projected to grow at a CAGR of 5% from 2016 to 2025.
Asia-Pacific will remain the largest market for lead-acid batteries – a region that could be worth more than $24 billion by 2020, according to PMR, and $39.42 billion by 2025, according to GVR, after expanding at an estimated CAGR of 4.5% from 2014 to 2020, according to Future Market Insights. However, the market in Europe is predicted to expand at a higher CAGR and could have 24% market share in three years’ time.
Potential problems for the world market, highlighted in some of the reports, include highly volatile raw material prices, the introduction of new lead emission standards, and the emergence of lighter, more powerful batteries using new chemistries.
The leading players will continue to be EnerSys, Johnson Controls, GS Yuasa, Exide Technologies, East Penn, and ATLASBX.