GVR Report cover 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, 2020 - 2025

  • Report ID: GVR-4-68038-114-6
  • Number of Pages: 115
  • Format: Electronic (PDF)

Industry Insights

The U.S. lead-acid battery market size was valued at USD 9.98 billion in 2019 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 are 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. Also, the growing automotive sector in the country will fuel demand. Rising demand for vehicle charging infrastructure and the installation of renewable energy systems will stimulate U.S. lead-acid battery market growth. Besides, high demand from telecom towers, coupled with ongoing innovations, is expected to spur demand growth. Subsidies and favorable regulatory frameworks are anticipated to provide players several opportunities. Furthermore, a sharp decline in equipment cost owing to a 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 the 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.

U.S. Lead Acid Battery Market Trends

Lead acid batteries have a major application uninterruptible power supply (UPS) systems as they are cheaper and have a higher power density. A UPS system acts as a backup in case of power failure and supplies the system with electricity for uninterrupted operation. UPS systems are extensively used in building such as hospitals, banks, offices, data centers, and educational institutions. These factors are expected to fuel market growth over the forecast period. Moreover, the increasing demand for UPS systems in industries, corporate offices, research institutions, educational institutes, hospitals, and houses is anticipated to drive the market growth over the coming years.

The UPS market is expected to witness a significant growth over the forecast period, owing to the increased demand for devices with high power consumption. UPS systems being adopted as power backup systems and no cost effective alternative being available as a substitute is expected to increase the demand for lead acid batteries in the forecast period.

Lead acid battery finds wide usage in motive industry applications including forklifts, golf cart, and industrial cleaner. High usage of lead acid battery in small range transportation vehicles such as forklifts and golf carts on account of their low cost, reliability, and well-established supply chain will fuel demand. Heavy weight of lead acid battery will drive its demand in the near future. Moreover, lead acid finds applications in golf carts owing to its economical nature.

Growing demand for golf carts in country club resorts, hotels, and golf courses will augment industry expansion. In addition, rising requirements of lead acid batteries in airports and shopping malls as they do not pollute environment will drive industry expansion over the forecast period. Moreover, increasing sports events including Olympics, and Commonwealth games is likely to augment product demand in the near future. Increasing demand for forklifts and golf carts is expected to augment lead acid battery market growth.

Lead oxide, sulfuric acid, and polypropylene are the key raw materials that are used in the manufacturing of lead acid batteries. Polypropylene, which is used to make cases for batteries is derived from carbon compound and petroleum. Crude oil and natural gas derivatives are the primary feedstock that are used to produce polypropylene, therefore, fluctuation in the prices of crude oil & natural gas plays a key role in the cost dynamics of plastics used for battery manufacturing.

Lithium-ion batteries are costlier than lead acid batteries but have more lifespan when compared to lead acid batteries. The cost per cycle for lithium ion battery is less than lead acid battery on account of more lifespan and is expected to restrain the market demand for lead acid batteries in the future. Moreover, lithium ion batteries are more efficient than lead acid batteries in higher temperatures which will further boost the demand for lithium ion batteries.

Product Insights

Starting, Lighting and Ignition (SLI) was the largest product segment in 2018 and accounted for 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 the 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 the 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 batteries in marine applications on account of its highly effective power output will augment its demand soon. 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 for 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 the 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

Country Insights

Growing automotive industry coupled with the increasing manufacturing base in the country is expected to fuel the demand for vehicle production this in turn is projected to drive the demand for lead acid battery over the upcoming years. Growing demand for passenger cars in the U.S. will augment the demand for fasteners in manufacturing sector.

Capacity addition and plant expansion by automotive companies in the U.S. will augment the demand for batteries. In June 2019, Automotive manufacturer BMW doubled its battery production capacity with an investment of USD 10 million in Spartanburg, U.S.

Rising demand for hybrid & electric vehicles is anticipated to boost the need for lead acid batteries because of substitution from fuel to electric batteries. In the U.S. stringent regulations on fuel emissions in order to protect the environment is expected to promote the use of electric vehicles, which in turn is expected to augment the market growth over the coming years.

Increasing demand in UPS, oil & gas, energy and railway sector will fuel the stationary lead acid battery market 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 the market growth over the coming years.

Rising demand for UPS systems is anticipated to augment the market growth over the forecast period. The demand is attributable to the effective performance and efficiency of UPS systems as they act as an essential power-back up devices. Furthermore, technological advancement and the availability of data center rack solutions are also anticipated to boost the market growth over the coming years.

Key Companies & 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 the 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 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.

U.S. Lead-Acid Battery Market Report Scope

Report Attribute

Details

Market size value in 2020

-

Revenue forecast in 2025

-

Growth rate

CAGR of %from 2020 to 2025

Base year for estimation

2019

Historical data

2014 - 2018

Forecast period

2020 - 2025

Quantitative units

Revenue in USD Million, Volume in Units & CAGR from 2020 to 2025

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product, construction, and application

Key companies profiled

EnerSys; C&D Technologies Inc.; East Penn Manufacturing; Crown Battery; NorthStar; Johnson Controls; Hitachi Chemical Co., Ltd.; B.B. Battery Co., Ltd.; Panasonic Corporation; Exide Technologies

Customization scope

Free report customization (equivalent to up to 8 analyst working days) with purchase. Addition or alteration to country, regional, and segment scope.

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Segments Covered in the Report

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