U.S. Lead Acid Battery Market Size, Share & Trends Report

U.S. Lead Acid Battery Market Size, Share & Trends Analysis Report By Product (SLI, Stationary, Motive), By Construction (Flooded, VRLA), By Application (Automotive, UPS, Telecom, Electric Bikes, Transport Vehicles), And Segment Forecasts, 2019 - 2025

  • Published Date: Nov, 2019
  • Base Year for Estimate: 2018
  • Report ID: GVR-4-68038-114-6
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2017
  • Number of Pages: 115

Industry Insights

The U.S. lead acid battery market size was valued at USD 9.98 billion in 2018 and is expected to register a CAGR of 5.3% over the forecast period. Automobile and motorcycle industry development, energy storage applications, and increasing demand for UPS systems in industrial sectors such as oil and gas, chemical, and healthcare are some of the major factors expected to propel market demand.

Furthermore, low cost and reliability in terms of performance is expected to drive the market. Increasing application scope ranging from electric vehicles and energy storage has driven the need for innovation in this industry, which has led to the development of advanced lead acid batteries.

U.S. lead acid battery market

Growing demand from the original equipment (OE) market, along with the aftermarket, will aid market sales over the forecast period. In addition, growing automotive sector in the country will fuel demand. Rising demand for vehicle charging infrastructure and installation of renewable energy systems will stimulate U.S. lead acid battery market growth. In addition, high demand from telecom towers, coupled with ongoing innovations, is expected to spur demand growth. Subsidies and favorable regulatory framework are anticipated to provide players several opportunities. Furthermore, sharp decline in equipment cost owing to rise in installations, particularly in California, is expected to continue over the forecast period.

Recycling of lead acid batteries has a positive environmental impact. It reduces carbon emissions, saves energy, and is far more energy-efficient than producing lead from processing ores and mining. These factors are expected to increase recycling of lead acid batteries over the forecast period.

Lead acid batteries are the most commonly used batteries in the world on account of their cost efficiency, reliability, high capacity, safety, and wide application. They are highly recyclable, with over 95.0% of all lead recycled, which is used in battery and reuse in the production of new batteries. These advantageous properties are anticipated to drive demand over the coming years.

Product Insights

Starting, Lighting and Ignition (SLI) was the largest product segment in 2018 and accounted over 50.0% of the market revenue. Growing demand for SLI batteries in passenger cars and commercial vehicles is expected to augment growth over the forecast period.

The stationary segment accounted for the second largest share in 2018 and is also the fastest growing product segment. Increasing demand in UPS systems, as well as in the oil and gas, energy, and railway sectors, will fuel segment growth in the U.S. Moreover, increasing investments in infrastructure development and capital equipment is expected to increase the demand for power reliability and backup power, which in turn is anticipated to augment market growth over the coming years.

Rising demand for UPS systems is anticipated to drive the segment. This demand is attributable to the effective performance and efficiency of UPS systems as they act as an essential power back-up devices. Furthermore, technological advancements and availability of data center rack solutions are anticipated to boost the market through 2025.

Motive product is an emerging segment in the U.S. market. In 2018, the segment was valued at USD 2.1 billion and is anticipated to witness significant growth over the forecast period. Segment growth can be attributed to rising demand for golf carts and electric vehicles in the country. Motive batteries are also known as traction batteries. These are used in motive industrial applications like forklifts, golf carts, railroads, and mining. They are built for maximum capacity and reasonably high cycle count. Transport vehicles are expected to witness immense growth in light of increasing requirement of forklifts.

Construction Insights

Flooded lead acid batteries are used in applications in which there is a need for large backup power supplies. Applications of these batteries include telephone and computer centers, golf carts, off-grid electric power systems, hybrid and electric vehicles, and grid energy storage systems. They are also used in diesel electric submarines to power electric motors when submerged, and in nuclear submarines as emergency power.

Increasing demand for flooded battery in marine applications on account of its high effective power output will augment its demand in the near future. With increasing marine ventures and its application in trading, coast guard securities, and other leisure activities, the marine industry is growing in the U.S. Transport through marine has been the cheapest mode since many years, especially transportation of heavy goods. This will also drive the segment.

Valve Regulated (VRLA) batteries are temperature resistant and can be easily installed at different orientations, unlike flooded batteries. They are designed in such a way that they prevent leakage of dangerous electrolyte. They also allow oxygen and hydrogen to recombine, thus resulting in less maintenance, no need for water addition, and easy transportation. However, overcharging the battery creates a risk of gas pressure within the battery.

VRLA batteries are widely used in security systems, UPS systems, emergency lighting systems, and engine starting. They are also used as backup power in cellphone towers and radio communication systems. The growing demand for UPS systems is anticipated to propel market growth over the coming years.

Application Insights

Automotive was the largest segment in the U.S. lead acid battery market in 2018 and accounted for 56.7% of the market revenue. The extensive usage of lead acid batteries in the automotive sector is expected to grow as a result of a thriving automotive sector in the country. Telecom was the second largest segment in 2018 and is expected to register a CAGR of 4.6% over the forecast period.

The UPS segment in the country is expected to witness a growing demand from various industries such as healthcare, plant automation, telecom, financial services, hospitality, and insurance. In buildings such as hospitals, banks, data centers, and large public buildings, lead acid batteries have been used extensively for uninterruptible power supply systems. The increasing number of hospitals will drive the demand for power backup devices, which in turn, will fuel the demand for stationary lead acid battery.

U.S. lead acid battery market

Industries such as manufacturing, chemical, metal, mining, cement, and shipyard require massive capital investments. Therefore, lead acid batteries are widely used in UPS systems for backup power owing to the economical nature of these batteries. the telecommunication sector utilizes lead acid batteries on account of properties such as remarkable performance, long life, high energy density, and ease of installation. High demand for telecom towers, coupled with ongoing innovations, is expected to spur demand growth. Moreover, in California, declining equipment cost owing to rise in tower installations is anticipated to foster market growth over the forecast period

U.S. Lead Acid Battery Market Share Insights

Some of the major market participants are EnerSys, C&D Technologies, East Penn Manufacturing, Crown Battery, NorthStar, Johnson Controls, B.B. Battery, Panasonic Corporation, Exide Technologies, and CSB Battery Co., Ltd. (acquired by Hitachi Chemical Co., Ltd.).

Various companies undergo product innovation/new product development to improve their market share. GS Yuasa Corporation is one such company that has been focusing on product development within the market over the past few years. Exide has a stronger foothold on account of its mega manufacturing capacities as well as establishment of a large distribution network. In September 2019, East Penn Manufacturing introduced Fahrenheit Group 31 AGM battery design using Thermal Shielding technology. The technology extends battery life and withstands large electrical loads in high temperature environments.

Most lead acid battery manufacturers are focused mainly on mergers and acquisitions in order to strengthen their market presence and expand their product portfolio. For instance, EnerSys is one of the major market players in the U.S. The company acquired Alpha Technologies Group of Companies, a power solution providing company, to accelerate and advance its market position and expand its product portfolio.

Report Scope

Attribute

Details

Base year for estimation

2018

Actual estimates/Historical data

2014 - 2017

Forecast period

2019 - 2025

Market representation

Volume in MW, Revenue in USD Million, & CAGR from 2019 to 2025

Report coverage              

Capacity forecast, company share, competitive landscape, growth factors and trends

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Segments Covered in the Report

This report forecasts revenue growth at a country level and provides an analysis on the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this report, Grand View Research has segmented the U.S. lead acid battery market on the basis of product, construction, and application:

  • Product Outlook (Revenue, USD Million, 2014 - 2025)

    • Stationary

    • Motive/Traction

    • Starting, Lighting and Ignition (SLI)

  • Construction Outlook (Revenue, USD Million, 2014 - 2025)

    • Flooded

    • Valve Regulated (VRLA)

  • Application Outlook (Revenue, USD Million, 2014 - 2025)

    • Automotive

    • Telecom

    • UPS

    • Electric Bikes

    • Transport Vehicles

    • Others

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