How is Rising Adoption of Electric Vehicles Driving Lead-Acid Battery Market?
The regulatory government norms are
increasingly focusing on reducing the greenhouse gas emissions and global
temperature. Attributing to this, the need for electric vehicles (EVs), such as
plug-in hybrid electric vehicles, hybrid electric vehicles, and pre battery
electric vehicles, is on the rise as they enable efficient and clean
transportation. In order to increase the adoption of EVs across the world, a France-based
organization, Clean Energy Ministerial, established a multi-government policy
forum - ‘Electric Vehicles Initiative (EVI)’ in 2010. Since, due to their high
energy density and specific energy, lead-acid batteries are used widely as a
power generating source in EVs, their demand is predicted to increase with the
rising adoption of EVs.
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Lead-acid battery, a type of rechargeable
cell, makes use of sponge lead and lead peroxide in order to convert chemical
energy into electrical power. The battery comprises lead and lead oxide plates,
which are immersed in sulfuric acid solution. Electric current is generated due
to the oxidization of the lead plate by the oxide component of the battery. Due
to their low cost and high cell voltage, lead-acid batteries are commonly used
in power stations and substations. According to a research conducted by P&S
Intelligence, in 2017, the global lead-acid battery market attained a
value of $56.9 billion and is further predicted to generate $70.7 billion,
advancing at a 3.7% CAGR, in the coming years. The application of lead-acid
batteries is extensive in various sectors — utilities, oil & gas,
automotive, leisure, marine, telecommunication, uninterrupted power supply
(UPS), construction, mining, and military. The largest demand for lead-acid
batteries was created by the automotive sector during the time period 2013–2017
because of the increased requirement for automobiles.
The rising demand for UPS is also
contributing to the growing need for lead-acid batteries. The requirement for
electricity across the world is surging due to industrialization and
urbanization, which, in turn, is driving the demand for UPSs, as they protect devices
from load surges and data loss, along with providing uninterrupted supply of
electricity. Moreover, industries such as healthcare, educational institutions,
oil & gas, chemicals, research institutions, and manufacturing require
uninterrupted electricity supply so that their machineries can function
properly. The need for UPSs is also expected to increase because of the
emerging data centers and IT industries in the European and APAC regions, as they
protect equipment from any damages due to electricity fluctuations. Lead acid batteries
are used in these systems for power supply backup, which is why their
requirement is growing because of the rising demand for UPS.
Three types of lead-acid batteries are
standby, starting, lighting, & ignition (SLI), and motive. Standby battery,
also known as float-use battery, has large number of thin cell plates and is
used as an alternate source of electricity in case of any emergencies. It has a
life span of around five years. SLI battery is used for powering lights, motor,
and ignition system of a vehicle’s engine and is installed with the vehicle’s
charging system. Motive battery provides a steady current for a longer duration
and is utilized to provide power to EVs such as golf carts and forklift truck. Among
all these, the largest demand during 2013–2017 was created for SLI lead-acid
batteries.
