Lead-Acid Battery Market In Southeast Asia To Grow By $1.97 Billion During 2020-2024: Technavio

• The imposition of lockdowns in Southeast Asia resulted in a steep decline in electricity demand and oversupply of domestic power
• The increasing deployment of microgrids is one of the major factors boosting the market growth

The lead-acid battery market in Southeast Asia is expected to grow by $1.97 billion during 2020-2024 growing at a CAGR of almost six per cent during the forecast period as per a report by Technavio. The imposition of lockdowns in Southeast Asia resulted in a steep decline in electricity demand and oversupply of domestic power.The report said that this significantly affected the sales of lead-aacid batteries. The market is expected to recover and post healthy growth after the control of the COVID-19 pandemic..

The increasing deployment of microgrids is one of the major factors boosting the market growth. Microgrids are more resilient to natural calamities compared to traditional grids. They are capable of providing power to limited geography when the main grid fails. The report stated that a major portion of rural and remote areas in Southeast Asia is still deprived of access to electricity. Through microgrids, utility companies able to provide electricity to these areas. The ongoing deployment of microgrids is increasing the demand for lead-acid batteries in Southeast Asia. Increasing demand for li-ion batteries will hamper the market growth.

Automotive segment led the market in 2019

Based on the application, the Valve-Regulated Lead-Acid (VRLA) segment is going to have good growth during the forecast period. It added that about 25 per cent of the market’s overall growth is expected to originate from this segment. This is due to factors like increasing demand for sealed maintenance batteries in the developing countries, the rising usage of UPS, and the increasing sales of golf carts are leading to the growth of the segment.

Based on the application, the automotive segment led the market in 2019. The increase in domestic automotive production in Southeast Asian economies is crucial in driving the growth of the segment.