Around the world, the population continues to grow, which is leading to the rising demand for electricity, among almost all other things. More people and houses mean more electrical appliances in use, which is putting immense pressure on national grids. In a large number of countries, especially the developing ones, the energy being produced is still way lesser than required. Thus, the existing grids regularly witness high-load conditions, which lead to power cuts for short and long durations.
As power cuts disrupt the day-to-day life, the demand for equipment that can continue to provide power in case of outages has been steadily increasing. Therefore, uninterruptible power supply (UPS) sales are increasing around the world. Since these devices draw electricity from lead–acid batteries, P&S Intelligence has forecast a 3.7% CAGR for the lead–acid battery market during 2018–2023. At this rate, the revenue generated from the sale of these energy storage systems will likely rise from $56.9 billion in 2017 to $70.7 billion by 2023.
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Similarly, the demand for these batteries is also growing in the renewable energy sector. As air pollution continues to mount and days become hazier every year, countries are setting up wind, solar, and hydroelectricity plants to reduce the consumption of crude oil and coal at thermal power stations. Though renewable energy can potentially make the earth greener, its output isn’t reliable. This is why batteries are required at such establishments to store any extra electricity that is produced, so that it can be discharged to the grid when the power demand surges.
Owing to the combined effect of the growing automotive, renewable, and other sectors, the lead–acid battery market is presently dominated by Asia-Pacific (APAC), a trend unlikely to change in the coming years. APAC is the largest producer of vehicles, both conventional and electric, as well as of renewable energy. Coupled with this, construction activities are rampant in the region, which is another factor propelling the installation of batteries, both during construction and for UPSs, after the properties have been bought or leased.
Therefore, with the rapid urbanization pushing up the demand for continuous electricity supply at houses, hospitals, factories, and public transport establishments, the sales of lead–acid batteries will keep escalating.
