The Total Addressable Market (TAM) for Carbon Black Lead Acid Battery was valued at USD 445.38 million in 2021. It is projected to reach USD 644.97 million by 2030, growing at a CAGR of 4.20% during the forecast period (2022-2030).
Rechargeable batteries that use lead-acid technology are the most common and powerful option. Due to their low cost per watt, they are a practical energy source for many different types of vehicles, including cars, electric vehicles, forklifts, boats, and UPS systems. Multiple cells, each with its layer of lead alloy plates, make up these batteries. About 35% sulphuric acid and 65% water comprise the typical lead-acid battery's chemical makeup. Carbon black and other additives are also used to increase the battery's strength. Carbon black can enhance the electrode's electrical conductivity in conventional lead-acid batteries, boost formation efficiency, and lower residual sulfate levels. Electrical conductivity is also enhanced when there is a significant increase in the number of isolated PbSO4 crystals in NAM after discharge.
Inexpensive Energy Storage Technique
For portable devices, lithium-ion and nickel-based batteries work best. On the other hand, traditional lead-acid batteries are far more cost-effective than lithium-ion and nickel-based batteries and are far more suited for stationary applications and wheeled mobility. Lead-acid batteries are heavier than new batteries (the typical automobile battery weighs 18.6 kg), giving them a greater bulk. Enormous bulk translates with a low energy-to-weight ratio. Lead-acid batteries have a higher surge current capacity, which is advantageous for starting, lighting, and ignition (SLI) applications in the automobile sector. This is primarily responsible for the automotive industry's high demand for lead-acid batteries.
Batteries from the modern era, such as lithium-ion and nickel-based models, are twice as expensive as lead-acid batteries. Due to their low cost of production, lead-acid batteries are in high demand all over the world. Due to their affordability, these batteries are primarily in high demand for UPS and automotive applications. According to a survey by the Industrial Technology Research Institute, the automobile industry alone consumed more than 288.0 million lead-acid batteries in 2019, accounting for 60.0% of all lead-acid battery consumption worldwide.
Drawbacks of using Lead Acid Batteries
Although ordinary lead-acid batteries are a cheap energy source, new battery technologies are anticipated by the worldwide market to unlock the long-term energy potential of batteries. There are a few drawbacks of lead-acid batteries that can be the cause of this. A few of them include the lengthy charging process, weight, flammable gas hazards during charging, and risk of chemical burns. Manufacturers are creating lithium-ion, nickel, and zinc-based batteries to replace lead-acid batteries. Where lead-acid batteries fall short of expectations, the market for these batteries is rising. Lithium-ion batteries have been shown to outperform lead-acid batteries in terms of charging, capacity, and efficiency, except for cost and recycling considerations.
The demand for and production of lead-acid batteries are anticipated to be constrained globally due to the rapid uptake of lithium-ion batteries and the slower adoption of nickel- and zinc-based batteries. This will eventually limit the consumption of carbon black by lead-acid battery manufacturers worldwide. This element will have an even more significant impact during the projected period.
Expanding Data Centres Worldwide
Information from the internet is stored on a network of servers collectively referred to as data centers and is accessible from anywhere. Due to their high power-to-weight ratio and solid current surge, lead-acid batteries are frequently used in such data centers since they can handle the significant energy output brought on by high internet traffic. Lead-acid batteries with valve regulation are commonly chosen in data centers since they are recognized for their unregulated power supply. For instance, seven of the 18 data centers Facebook owns and Google's 21 are in the United States. Companies worldwide are growing their data centers to handle varied data complications as the need to extend the edge of the internet becomes more apparent. There are increasingly more hyper-scale data centers, particularly in China and the US.
The largest retailer, Amazon, intends to expand the amount of its data centers in the country. Therefore, it is projected that as more data centers are constructed in the coming years, there will be a higher demand for lead-acid batteries to supply electricity. It is also predicted that the expansion of data centers will contribute to an increase in the lead-acid batteries market, which will probably lead to an increase in black carbon usage from battery manufacturers throughout the projection period.
| Study Period | 2020-2032 | CAGR | 4.2% |
| Historical Period | 2020-2022 | Forecast Period | 2024-2032 |
| Base Year | 2023 | Base Year Market Size | USD XX Billion |
| Forecast Year | 2032 | Forecast Year Market Size | USD XX Billion |
| Largest Market | Asia Pacific | Fastest Growing Market | Europe |
he global carbon black in lead acid battery market is divided into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
Asia-Pacific Dominates the Global Market
Asia-Pacific is the most significant shareholder in the global carbon black in lead acid battery market and is expected to grow at a CAGR of 5.30% over the projected period. The most prominent geographical market for carbon black in lead-acid batteries globally is in the Asia-Pacific region, which held around 40.0% of the market in 2021. China, Japan, South Korea, India, and Australia are among the nations that significantly contribute to the Asia-Pacific region. High levels of automobile manufacturing and sales, rising industrialization, and a rise in the need for UPS systems are some elements promoting this region's growth. Due to the region's high demand for passenger cars and the rising popularity and uptake of electric vehicles, the automotive industry in Asia-Pacific generates the majority of its revenue from lead-acid batteries. In order to lower carbon footprints, the automobile industry's electric vehicle market is proliferating.
Europe is anticipated to grow at a CAGR of 5.30%, generating USD 191.96 million over the forecast period. Germany, France, Italy, Spain, the U.K., and the rest of Europe are analyzed in the Europe market. In 2021, Europe held a total market share of about 26.0% for lead-acid batteries worldwide. Europe has actively participated in the government's mandated renewable targets as part of its legislative strategy. The European Union member states are required by law to produce renewable energy. Due to the rising demand for lead-acid batteries as a more environmentally friendly energy storage option, the region has grown. Leading economies with the most significant industrial products include Germany, the U.K., Italy, and France. Lead-acid batteries are widely used for material handling applications in forklift trucks as a cheap energy source.
North America is expected to grow significantly over the forecast period. In 2021, North America accounted for over 19.0% of the market for carbon black in lead-acid batteries worldwide, with the United States, Canada, and Mexico being the main contributors. EnerSys, C&D Technologies, East Penn Manufacturing, Crown Battery, and NorthStar are a few of the significant lead-acid battery producers contributing significantly to the market growth for carbon black in lead-acid batteries in North America. These businesses concentrate on product development, which results in the release of cutting-edge lead-acid batteries on the market and increases the need for black carbon additives from battery manufacturers in the area. Other reasons that support the market's regional expansion include rising auto sales, the U.S.'s particular need for UPS systems, and the rise of its data centers.
In terms of growth, LAMEA is a relatively more minor region. In 2021, it held around 15.0% of the global market share, with South Africa, Saudi Arabia, and Brazil emerging as the primary drivers of regional expansion. Although LAMEA had the smallest market share as of 2021, the region has enormous growth potential in the future. Due to their price sensitivity and some nations' poor economic performance, residential sector consumers tend to favor cost-competitive energy sources. Due to this, lead-acid batteries are preferred over alternatives like lithium-ion batteries. The telecommunications sector has significantly influenced the adoption of lead-acid batteries in Latin America. The fifth-largest telecom market in the world, Brazil telecom market, is growing due to investments by Spanish telecom manufacturers, which is expected to boost market growth over the forecast period.
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The global carbon black in lead acid battery market is segmented by battery type and grade
Based on battery type, the global carbon black in lead acid battery market into flooded lead-acid and valve-regulated lead-acid (VRLA) batteries.
The flooded lead-acid batteries segment is the highest contributor to the market and is anticipated to grow at a CAGR of 4.65% over the projected period. The electrolyte inside flooded lead-acid batteries can move around in the battery casing. Lead plates and the battery react swiftly to store electricity when charged. The prices of these batteries and the lengths of their lifespans are both reasonably favorable. In order to guarantee that the battery is maintained correctly and lives as long as possible, it is necessary to check the level of distilled water every month. The battery's life will be shortened if the water level is not maintained. Golf carts, off-grid electric power systems, hybrid and electric vehicles, grid energy storage systems, and computer centers effectively use flooded lead-acid batteries.
The term "sealed battery" refers to valve-regulated lead-acid batteries (VRLA batteries). These batteries contain a safety vent in case of an internal pressure buildup and are maintenance-free, leak-proof, and position insensitive. The most common power design is VRLA batteries because spillage is prevented even when the battery casing is punctured due to the captive electrolytes inside them. This battery's primary function is to generate electricity in an emergency; as a result, it is frequently used in security systems, UPS systems, emergency lighting systems, and engine starting.
Based on grade, the global carbon black in lead acid battery market is bifurcated into specialty and conductive.
The specialty segment owns the highest market share and is anticipated to grow at a CAGR of 5.20% during the projected period. High-end, refined carbon black, known as specialty grade, is produced using the furnace, channel, acetylene, and lamp black processes. In lead-acid batteries, specialty carbon blacks are used as an addition. In high-speed data transmission, wireless communication, data networks, cable TV, and data centers, lead-acid batteries are utilized as backups in addition to power supply systems. Lead-acid batteries, including flooded and valve-regulated lead-acid (VRLA) batteries for the telecommunications sector, are frequently used with specialty carbon addition. When backup power is required at small to medium-sized telecom locations, VRLA batteries are typically preferred.
Negative active mass (NAM) electrodes of automobile and industrial batteries have employed carbon black as a conductive addition for many years. Carbon black can enhance the electrode's electrical conductivity in conventional lead-acid batteries, boost formation efficiency, and lower residual sulfate levels. A sharp increase in the amount of isolated PbSO4 crystals in NAM at the conclusion of discharge also improves electrical conductivity. The main driver of the consumption of conductive carbon black is the need for lead-acid batteries to run high-performance, long-lasting and cost-effective ignition systems, lighting, start motors, and other internal combustion engines.
