India Lead-Acid Battery Market is expected to reach US$ 7,465.53 Million by 2031


PRESS RELEASE BY The Insight Partners 26 Sep 2024

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Increasing Demand in Telecom, Data Center, Medical Devices, and Automotive Industries Bolsters India Lead-Acid Battery Market Growth

According to our latest study on "India Lead-Acid Battery Market Analysis to 2031 – Country Analysis – by Technology, Application, Construction, and End User," the market was valued at US$ 5,156.50 million in 2023 and is projected to reach US$ 7,465.53 million by 2031; it is anticipated to record a CAGR of 4.7% from 2023 to 2031. The report includes growth prospects owing to the current India lead-acid battery market trends and their foreseeable impact during the forecast period.

High-end mobile communications networks play an instrumental role in the digitization efforts of India. In addition to consistent and powerful networking of devices, robust networks power many new-age applications. Advanced communication capabilities support the autonomous driving of vehicles and drive the communication of industrial machines to enhance production processes. An area-wide network of base stations is vital to integrate the terminals into the radio network. These stations are frequently supplied with electrical energy from the public power grid or independent power supply systems such as fuel cells, diesel generators, or solar systems. In case of a short-term failure of these power supply systems, batteries are used to ensure the continuity of IT operations. Thus, the burgeoning demand for battery energy storage systems in networking applications propels the India lead-acid battery market.

India Lead-Acid Battery Market — by Country, 2023

India Lead-Acid Battery Market — by Country, 2023


India Lead-Acid Battery Market Size, Share, and Scope by 2031

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India Lead-Acid Battery Market Size and Forecast (2021 - 2031), Country Share, Trend, and Growth Opportunity Analysis Report Coverage: By Technology (Basic Lead-Acid Battery and Advanced Lead-Acid Battery), Application (Stationary and Motive), Construction [Flooded and Valve-Regulated Lead-Acid (VRLA)], and End User (Transportation, Industrial, and Others), and Country

Source: The Insight Partners Analysis

Choosing a backup power and UPS system to safeguard data is a key technical and financial investment decision for data center operators. Lead batteries provide one of the leasing options for the data center industry in India. UPS systems play a crucial role in ensuring continued power stability in any data storage application. A battery system provides immediate power continuity to support power drawn down from the grid. Batteries are generally designed to fulfill short-term requirements and store power for a brief period.

Lead-acid batteries also demonstrate a substantial role in powering medical devices, presenting cost-effectiveness and consistency. Nonetheless, the efficient functioning of medical equipment without mishaps depends on selecting an apt battery and laying down safety measures. Moreover, these devices can attain their highest potential while prioritizing patient safety and care when their power needs are met, along with proper handling, ventilation, charging, and maintenance measures.

Since the past few years, consumer behavior toward intercity and intracity transit has transformed to a newer level. With the increasing disposable income of individuals and the stable economic structure of countries, the production of vehicles has surged exponentially. The rising demand for cars has propelled production activities in India, which is creating demand for various types of batteries, including lead-acid batteries. The following table depicts data from OICA about car production in India for the last 3 consecutive years.

Vehicle Production (2021–2023)

Year

Cars (Units)

Commercial Vehicles (Units)

2023

4,783,628

1,067,879

2022

4,439,039

1,017,818

2021

3,631,095

768,017

Source: The Insight Partners

The massive production of automobiles would continue to impact the demand for car batteries, including lead-acid batteries. Furthermore, factors such as on-demand mobility, the arrival of ultra-batteries in energy storage space, and the evolution of advanced energy storage modules for the automobile sector are also fueling the production of automotive vehicles, thereby driving the growth of the India lead-acid battery market size.

Based on technology, the India lead-acid battery market is divided into basic batteries and advanced batteries. In terms of application, the market is divided into stationary and motive. The India lead-acid battery market, by construction, is bifurcated into flooded and valve-regulated lead-acid (VRLA). Further, in terms of end user, the market is segmented into transportation, industrial, and others. The India lead-acid battery market, by technology, is bifurcated into basic and advanced lead-acid. The basic lead-acid battery segment held a larger India lead-acid battery market share in 2023. The growing trend of adopting clean energy solutions in the residential and industrial sectors, and the proliferation of electric vehicles are the major factors propelling the growth of the India lead-acid battery market size.

Lead acid batteries are among the oldest types of rechargeable batteries that store electrical energy through chemical reactions between lead, water, and sulfuric acid. The lead-acid-based battery storage is widely adopted by many energy storage system users owing to the less upfront costs, including the cost of installation. The cost advantages also augment the usage of these batteries in residential and commercial energy storage applications. However, the lower cost for lead-acid systems is often counter-balanced by more extensive maintenance needs and a shorter lifecycle. Two or more lead-acid batteries are needed for every lithium-ion battery in a residential or commercial storage system. Basic lead-acid batteries are available in a wide range of voltage and capacity options for use across various applications; they are also fabricated in 2-volt cell configurations. Lead acid battery banks can meet small to large-capacity storage needs. These batteries are capable of lead-acid coping with the sudden thrust for power. Further, the rising number of rooftop solar installations has propelled the need for batteries to cater to ensure power backup in residential units.

The India lead-acid battery market report emphasizes the key factors driving the market and showcases the developments of prominent players. A rise of smart cities and modern infrastructure to meet the needs of the urban population results in the requirement for power backup infrastructure for uninterrupted power supply. Cities such as Bangalore, Hyderabad, and Mumbai are focusing on developing information technology (IT) and data center facilities, which are driving the demand for lead-acid batteries in these cities. In March, India's cumulative installed energy storage capacity touched ~219.1 MWh (~117 MW), with 120 MWh (40 MW) added in the first quarter of 2024 alone. Solar photovoltaic and battery energy storage systems comprised almost 90.6% of the overall installed capacity. Chhattisgarh has one of the highest battery energy storage capacities, with approximately 54.8% of cumulative installed capacity in the first quarter of 2024. Thus, the surging government focus on boosting the adoption of renewable energy to endorse environmental sustainability is anticipated to drive the India lead-acid battery market growth in the coming years.

Key stakeholders in the India lead-acid battery market ecosystem include raw material suppliers, lead-acid battery manufacturers, distribution and sales, and end users. The growing number of trusted suppliers is one of the key factors for increasing the production of lead-acid batteries. At present, the India lead-acid battery market expansion is highly dependent on the supply chain. As a result, lead-acid battery utilization is anticipated to experience growth in utilities, automotive, telecom, commercial, and residential sector independent power producers (IPPs), and storage project developers. Lead mining plays a crucial role in the overall ecosystem of lead-acid battery manufacturing. The Sindesar Khurd Mine, Zawar Mine, Rampura Agucha Mine, Rajpura Dariba Mine, and Kayad Mine are among the noteworthy lead mining sites in India. Lead-acid batteries consist of metallic lead, lead sulfate, lead dioxide, and sulfuric acid. The battery industry utilizes ~80% of lead, and the remaining 20% is consumed in rolled and extruded products, pigments and compounds, alloys, cables, heating, and other industries.

 

Exide Industries Ltd, Amara Raja Energy & Mobility Ltd, Luminous Power Technologies Pvt Ltd, Leoch International Technology Limited Inc, Microtex Energy Private Limited, HBL Power Systems Ltd, Tata AutoComp Systems Ltd, Okaya Power Pvt. Ltd, Jayachandran Industries (P) Ltd, and Livguard Energy Technologies Private Limited are among the key players profiled in the India lead-acid battery market report. Companies operating in the India lead-acid battery market mainly focus on product and service enhancements by integrating advanced features and technologies into their offerings.

 

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