Press release
Lead Acid Battery Market Determine to Collect US$58,552 Mn by 2020
By application type, the global lead acid battery market is segmented as transportation, stationary industrial, motive industrial, stationary industrial, commercial, residential and grid storage. Transportation and stationary industrial collectively contributed to around 77.9% of market revenue in 2014. Transportation was the largest end-use application in the global lead acid battery market in 2014, and is anticipated to continue its dominance through 2020. Stationary industrial is the second largest contributor to the global lead acid battery market, and is expected to register the fastest CAGR of 8.6% during the forecast period.
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The report finds that grid storage is one of the smallest end-use application segments in the global lead acid battery market, but is anticipated to register a robust CAGR of 7.3% during the forecast period.
Lead acid batteries are predominantly used in passenger cars, commercial vehicles and two wheelers. In addition to that, demand for lead acid battery has also surged due to the increasing adoption of UPS, owing to urbanization and industrialization. Adoption of grid storage technology in developing countries such as India and China is expected to fuel the global lead acid battery market. In addition to that, an increase in the demand for electric vehicles is expected to further accelerate the expansion of the lead acid battery market globally.
Moreover, key challenges in the lead acid battery market are raw material price volatility, and emission standards. Lead is the essential raw material used in the manufacturing of lead acid batteries. Lead prices account for approximately 49% of the overall cost of the lead acid batteries. Any fluctuations in lead prices affect the overall profitability of lead acid battery manufacturers.
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The U.S. Environmental Protection Agency (EPA) has published new lead emissions standards under the National Ambient Air Quality Standards (NAAQS) in November 2008. The new standards curb lead emissions by restricting off-site concentration standards for lead in air from 1.5 mg per cubic meter to 0.15 mg per cubic meter. These factors are inhibiting the growth of the lead acid battery market.
Region-wise, Asia Pacific is the largest contributor in the global market, and is expected to continue its dominance till 2020. Currently, the Asia Pacific lead acid battery market is valued at US$ 15,297 Mn and is expected to reach US$ 19,881 Mn. by 2020. North America and Western Europe are other major markets contributing 21.6% and 18.7% respectively, to the global lead acid battery revenue. Eastern Europe accounted for the lowest contribution in terms of revenue in 2014, but is expected to register the highest growth at a CAGR of 5.5% over the forecast period.
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The degree of competition in the global lead acid battery market has been analyzed in the report, which also presents the comparative view of the key strategies and financial outlook of major companies operating in global lead acid battery market. These include Johnson Controls INC, Exide Technologies, GS Yuasa Corporation and EnerSys.
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