The battery industry is undergoing a period of turbulent change, driven by demand for electric vehicles, energy storage systems, and backup power. Within this market, the lead-acid battery market, while growing at a slower pace than lithium batteries, continues to experience steady growth.
Market Size and Growth Forecast
In the United States, the lead-acid battery market was valued at approximately $7.1 billion in 2022, with a projected compound annual growth rate (CAGR) of approximately 5.33% from 2023 to 2030.
The global advanced lead-acid battery market is expected to grow at a CAGR of approximately 6.2% over the next few years.
Industry Operations and Challenges
Chinese lead-acid battery companies will enter the traditional off-season and peak season transition period in 2025. The weekly operating rate of tracked companies in five provinces is approximately 71.83%.
Although demand is stable, lead-acid batteries face growth bottlenecks due to low energy density, intensified competition, and pressure from alternative technologies.
Shifting Application Areas
Automotive start-stop systems, low-speed electric vehicles, forklifts, communications, and UPS/backup power supplies are key growth areas.
While lead-acid batteries lack the capacity density advantage of lithium-ion batteries in energy storage systems, their cost and recycling rate advantages remain recognized.
Lead-acid batteries are expected to continue to dominate cost-sensitive applications with relatively low cycle requirements and simplified maintenance.
However, to maintain growth, technological upgrades, the development of new applications, and a strengthened recycling industry chain are essential.
For investors, manufacturers, and system integrators, the lead-acid battery market may not be a rocket ship, but its stability, mature supply chain, and continuous technological advancements make it a crucial component of the energy storage sector.
