The lead acid battery market size in US is estimated to grow by USD 1.25 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 3.14% during the forecast period. Rising focus on green telecom towers is driving market growth, with a trend towards rising vendor collaborations. However, declining costs of lithium-ion batteries poses a challenge. Key market players include C and D Technologies Inc., Camel Group Co. Ltd., CLARIOS LLC, Concorde Battery Corp., Crown Equipment Corp., East Penn Manufacturing Co. Inc., Energizer Holdings Inc., EnerSys, Exponential Power Inc., HBL Power Systems Ltd., Johnson Controls International Plc., Panasonic Holdings Corp., Power Sonic Corp., Robert Bosch GmbH, Surrette Battery Co. Ltd., Teledyne Technologies Inc., Trojan Battery Co. LLC, U.S. Battery Manufacturing Co., UPS Battery Center Ltd., and Wirtz Mfg Co. Inc..
Key Market Trends Fueling Growth
The lead acid battery market in the US is experiencing enhanced cooperation among market participants and research organizations. Collaborations focus on advancing lead acid battery technology to surpass lithium-ion batteries’ performance. Pre-competitive research organizations, such as the Consortium for Battery Innovation (CBI), facilitate these collaborations. Members include major lead acid battery manufacturers like C and D Technologies Inc., Crown Equipment, EnerSys, and Energizer Holdings Inc., as well as suppliers such as Cabot Corp., Daramic LLC, and Microporous LLC. Through pre-competitive R&D, these companies leverage advanced techniques, tools, and capabilities to enhance lead acid battery longevity, driving growth in demand and the US market during the forecast period.
The Lead Acid Battery market in the US is experiencing significant growth, particularly in the renewable energy sector. Solar, wind, hydropower, and bioenergy are driving this trend, as these industries require reliable energy storage solutions. The generation grid, substations, data centers, and telecom sectors are key consumers of lead acid batteries. The IT sector’s demand for uninterrupted power is increasing the use of VRLA batteries, specifically flooded, horizontal well, and vertical well lead storage batteries. Rechargeable batteries, made of lead and sulfuric acid, are in high demand due to their long life and low maintenance. New technologies like Absorbent Glass Mat and Gel VRLA batteries, as well as new electrode designs, are improving battery performance. Automation, pulse charging, and multi-stage charging methods are also gaining popularity. Lead acid batteries are used for cranking power, cold-start capabilities, backup power, UPS systems, and stationary batteries. The telecom industry’s expansion, digitalization, and 5G services are increasing the demand for lead acid batteries in telecom towers. Despite the benefits, lead acid batteries contain toxic materials and require careful handling. Lithium-ion batteries are gaining popularity but lead acid batteries remain a cost-effective and reliable option for many applications.
Market Challenges
Lead acid batteries have long been the go-to choice for applications requiring a high burst of instantaneous power, such as automotive cranking. However, lithium-ion batteries are gaining popularity due to their superior performance, including higher current density, longer power-holding capacity, and longer shelf life. The cost gap between these battery chemistries has narrowed significantly due to increased production scale and manufacturing efficiency. This trend, coupled with the adoption of battery technology in the automotive industry and cost-effective production methods, is driving the growth of lithium-ion batteries at the expense of lead acid batteries. Furthermore, ongoing research and development projects aim to enhance the performance of lithium-ion batteries, making them an increasingly competitive alternative to lead acid batteries. Consequently, the lead acid battery market in the US is expected to face challenges from the growing adoption and improved performance of lithium-ion batteries during the forecast period.
The Lead Acid Battery market in the US faces challenges in battery disposal and recycling. Old batteries contain hazardous materials like lead oxide, lead electrodes, and sulfuric acid solution. Rechargeable batteries, such as lead alloy plates and water, require proper disposal to prevent environmental harm. The rise of lithium-ion technology, nickel-based batteries, and zinc-based batteries poses competition. The automotive sector, uninterruptible power supply (UPS), servers, and telecom sector heavily rely on brand-new batteries. Valve-regulated lead-acid batteries are popular in forklift trucks, nuclear submarines, diesel-electric submarines, electric motors, marine commerce activities, ICE vehicles, e-bikes, and sealed lead-acid batteries in passenger cars. The energy storage sector, wireless telecom industry, connectivity, and military also use lead-acid batteries. The IEA and renewables sector are shifting towards lithium-ion technology, challenging the lead acid battery market. Original Equipment Manufacturers (OEMs) use nickel-cadmium batteries and nickel-metal hydride batteries, but lead acid batteries remain a cost-effective solution for many applications.
The Lead Acid Battery Market in the US is primarily driven by the mobile segment, which includes batteries used in cars, commercial vehicles, two-wheelers, and Electric Vehicles (EVs). In the automotive industry, lead acid batteries are essential for Starting, Lighting, Ignition (SLI) in Internal Combustion Engine (ICE) vehicles and start/stop applications in conventional vehicles and EVs. The automotive sector has seen significant growth over the last decade, with the sale of passenger cars in the US increasing by over 25% from 2010 to 2022. This growth is expected to continue, with Kia Motors Corp.’s launch of new hybrid models and off-road modes in the US. However, the demand for ICE vehicles is projected to decline in the latter stage of the forecast period due to the increasing adoption of EVs and mild/micro hybrids. This shift is expected to offset the decline in demand for lead acid batteries for ICE vehicles. In the mobile segment, EVs and micro/mild hybrids use lead acid batteries as auxiliary power sources and for start/stop applications. The growing demand for these vehicles, driven by favorable government policies and the need to reduce transportation emissions, will drive growth in the mobile segment during the forecast period. Additionally, the stable demand for replacement batteries in existing ICE vehicles will continue to boost sales of lead acid batteries in the US market.
