Market Trends of North America Lead Acid Battery Industry
This section covers the major market trends shaping the North America Lead acid battery Market according to our research experts:
Automotive Batteries (SLI Batteries) Segment to Dominate the Market
- Starting, lighting, and ignition (SLI) batteries have been in almost every car for the past several years. Generally, SLI batteries are used for short power bursts, such as running light electrical loads or starting a car engine. Moreover, these batteries supply extra power when the vehicle's electrical load exceeds the supply from the charging system & act as a voltage stabilizer in the electrical even out voltage spikes, thereby preventing them from damaging other components in the electrical system.
- The primary factor attributing to the growth of the SLI battery market is the increasing demand for these batteries to power motors, lights, or other internal combustion engines with high performance, long life, and cost-efficient lead-acid.
- The lead-acid battery is the technology of choice for all SLI battery applications in conventional combustion engine vehicles, such as cars and trucks across the globe, including North America. Lead-acid batteries are the most economically viable mass-market technology for SLI applications in classic cars, including those with start-stop and basic micro-hybrid systems, owing to their excellent cold cranking performance, reliability, and low cost. More than 90% of automotive SLI batteries are lead-acid based, and over 90% (by storage capacity) of industrial stationary and motive applications.
- North America is one of the biggest markets for automobiles globally. Due to this, the region is also a global leader in the production of automobiles, making it one of the largest markets for SLI batteries globally.
- As of 2021, the United States is the 2nd-largest producer of motor vehicles globally, accounting for approximately 69% of the region's total automobiles 2021. The country is also home to some of the world's largest automobile manufacturers, such as Ford, General Motors and Tesla, which are the primary consumers of SLI batteries.
- Hence, owing to the above points, the Automotive Batteries (SLI Batteries) segment will likely see significant market growth during the forecast period.
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United States Expected to see Significant the Market Growth
- The United States is one of the largest automobile markets in the world. The country is also one of the major manufacturers of automobiles, including light and commercial vehicles. In recent years the automobile sector in the country has witnessed significant growth, only showing signs of decline in 2020 due to the outbreak of COVID-19.
- Due to the large size of the country's automobile market, the country holds a major share in the region's lead-acid battery market. Lead-acid battery still holds the major share in the automobile sector due to their SLI applications.
- Additionally, lead-acid batteries might also provide a significant opportunity in the electric vehicle market, where currently lithium-ion batteries hold the major share. Lead-acid batteries have a very high rate of recyclability of around 96%, which has been possible due to decades of research and development; this provides them an upper hand against lithium-ion batteries, which have a very complex and expensive process of recyclability with very low success rate.
- The United States is one of the major hotspots for industrial batteries across the world on account of robust industrial infrastructure, surging deployment of battery-based energy storage projects, and expansion in renewable power infrastructure. Moreover, the favorable policy toward the deployment of renewable energy and residential distributed energy systems in the United States is likely to drive the battery market in the coming years.
- Additionally, the United States government announced a substantial increase in military spending in its 2021 Budget. According to the budget, the US government allocated USD 770 billion in FY 2022 to the military and the US Senate voted to give the military USD 705 billion for FY 2021.
- The increasing investment in the country's military is expected to support the growing usage of battery-powered communication and other electronic equipment used in the army, in turn, driving the demand for lead-acid batteries during the forecast period.
- Hence, owing to the above points, the United States is expected to see significant market growth in Battery market during the forecast period.
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