Demand for Lead Acid Battery Continues in East Asia as a Cost Effective Alternative in Standby Applications: Fact.MR Research
DUBAI--(Korea Newswire) September 02, 2021 -- As per the latest study by Fact.MR, Asia Pacific is expected to emerge as one of the most lucrative markets for automotive lead acid batteries, accounting for around 45% of global revenue share over the forecast period 2021 to 2031.
Favored by the increasing sales of passenger cars and commercial vehicles in countries such as China, Japan, and South Korea, the market for automotive lead acid batteries in Asia Pacific is likely to hold an absolute dollar opportunity of US$ 9.7 billion over the next ten years.
Sales of automotive lead-acid batteries is directly related to the performance of the automobile industry, which simply translates into the fact that the sales of automotive lead-acid batteries will increase in response to the growth registered by the automotive sector, and it will plummet if vehicle production is hampered.
The automotive industry in Asia-Pacific is registering an impressive growth since the last five years. For instance, in 2018, the sales of passenger cars increased to more than 35 million across India, China, and Japan. Out of this, Japan accounted for sales of more than 4 million passenger cars, according to data published by the International Energy Agency.
Automotive lead acid batteries are crucial to enabling ignition, lighting, and other functions in the vehicle. Thus, increasing sales of passenger cars are anticipated to provide for a plethora of opportunities for the market players in Japan over the coming years.
“Leading companies are focusing on developing high-capacity rechargeable batteries with innovative designs suitable for electric passenger cars and commercial vehicles. Through their innovations, they intend to address the surging demand from the original equipment manufacturers (OEM),” says a Fact.MR analyst.
Electric and Hybrid Vehicle Sales will Push Lead Acid Battery Demand in China
Focus on automating vehicles in China is increasing the requirement for power, especially for hybrid and electric cars. This is consequently driving the sales of automotive lead acid batteries in the county.
Rise in electric and hybrid vehicles production is a primary factor, facilitating growth in China. According to an International Energy Agency report, China is the largest market for electric vehicles (EV) in the world, selling approximately 1.06 million EVs out of 2.1 million overall global sales in 2019.
Thus, with the rise in sales of EVs, the demand for components used in them including lead acid batteries will rise, thereby, creating remunerative sales opportunities for the market in the coming years.
The presence of leading electric vehicle manufacturers such as SAIC Motor, Nissan SAIC-GM-Wuling, Xpeng, Li Auto, and NIO in China coupled with increasing government subsidies on the purchase of electric vehicles will propel the demand for automotive lead acid batteries in the country.
Key Challenges Restraining the Market Growth Automotive Lead Acid Battery
Increasing demand for high storage batteries is shifting the focus of automotive manufacturers towards adoption of lithium-ion batteries, which is hindering the sales of lead acid batteries, thereby affecting the market growth.
The suspension of automotive manufacturing activities due to restrictions and lockdown imposed amid the COVID-19 pandemic is hampering the growth of the automotive industry, consequently, impeding the automotive lead acid battery demand.
The pandemic also has presented various challenges such as lack of availability of raw materials and shortage of workforce, affecting the production of automotive lead acid batteries.
Nevertheless, relaxation in the lockdown, increasing technological advancements, and government initiatives adopted to support manufacturing recovery are estimated to drive the automotive lead acid battery market.
Some of the leading companies operating in the automotive lead acid battery market are:
· GS Yuasa Corporation
· Panasonic Corporation
· Leoch International Technology Limited
· Exide Industries Ltd.
· EnerSys Inc.
· East Penn Manufacturing Company
· Exide Technologies Inc.
· CSB Battery Company Limited
Key Questions Answered by the Report
· What is the Asia automotive lead acid battery market size?
· How will demand for automotive lead acid battery grow in Asia?
· Who are the leading automotive lead acid battery manufactures and what is their strategy?
· Which countries in Asia Pacific are ideal for investment?
· How will COVID-19 affect the automotive lead acid battery market?
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