Lead Acid Battery Market Trends

Growth Drivers

• Growing Network of Off-Grid & Stand-Alone Power Systems -  In off-grid applications, lead-acid batteries have been most frequently employed. Moreover, they are also used for off-grid solar storage. By 2030, it is predicted that stand-alone and mini-grid systems would power over 60% of additional electrical access, and renewable energy sources will power approximately half of that access across the globe.

• Higher Instances of Power Outages - In the event of a power outage, emergency lighting and pumping stations are both powered by lead-acid batteries. On the account of new power supply issues that have emerged on top of existing ones, more than 4% of the global population, or at least 350 million people, endured catastrophic power outages in 2021.

• Expanding Infrastructure of Data Center - In most data centers, the uninterrupted power supply (UPS) or power failure is powered by a VRLA or valve-regulated lead-acid cell battery. As of January 2021, there were over 8,000 data centers located in 110 distinct countries. The United States, which represents 33% of all data centers, the United Kingdom, which accounts for 5.7%, and China, which accounts for 5.2%, comprise these six countries.

• Growing Demand for Electronic Items and Battery - Given that consumer electronics were used widely in 2030, it is predicted that by 2030, the demand for batteries would have increased from 185 GWh to more than 2,000 GWh.

• Rising Production of Lead - Following around 8% decline in CY 2020 owing to the pandemic, the output of lead-mined metal (metal in concentrate) increased by nearly 6% in CY 2021 to reach around 5 Mt. Furthermore, the manufacturing of lead-acid batteries, which are mostly used in motorized vehicles, the storage of energy produced by solar cells and wind turbines, and the creation of backup power supplies account for around 86% of the world's total lead consumption.

Challenges

• Availability of Cheaper Alternative – lead acid batteries are a cost-effective technology, however the presence of lithium-ion batteries and aluminum air batteries, that makes them an even cheaper alternative. Moreover, for hybrid applications, a nickel-metal hydride battery is the most efficient. They are used by major OEMs, such as Honda, Toyota, Lexus, and others. Furthermore, nickel cadmium is also a great alternative to lead-acid batteries.
• Need for Frequent Maintenance to Increase the Life of the Battery
• Strict Rules and Regulations for Manufacturing of Lead Acid Battery