Carbon Black in Lead-Acid Battery Market Size, Share, Competitive Landscape and Trend Analysis Report by Battery Type and Grade : Global Opportunity Analysis and Industry Forecast, 2020-2027

Carbon Black in Lead-Acid Battery Market Outlook - 2020-2027

The global carbon black in lead-acid battery market was valued at $417.1 million in 2019, and is projected to reach $591.4 million by 2027, growing at a CAGR of 4.6% from 2020 to 2027.

Lead is the key component in lead-acid batteries, which is soft in nature, therefore, a couple of other additives such as antimony, tin, calcium, selenium, and carbon black are added to it. Carbon black as a conductive additive has been used in negative active mass (NAM) electrodes of automotive batteries and industrial batteries for several decades. In standard lead-acid batteries, carbon black can improve the electrical conductivity of the electrode, increase the formation efficiency, and reduce the residual sulfate level. It also improves the electrical conductivity at the end of discharge, when the content of isolated PbSO4 crystals in NAM increases substantially.

The global carbon black in lead-acid battery market is primarily driven by surge in demand for cost-efficient energy storage solution. Lithium-ion and nickel-based batteries are best suited for portable devices. On the other hand, conventional lead-acid batteries are highly preferable for wheeled mobility and stationary applications and are way economical over lithium-ion and nickel-based batteries. When compared to new batteries, lead-acid batteries are weighted (average car battery weight is 18.6 kg), which provides larger mass to the battery. Therefore, larger mass means low energy-to-weight ratio. However, lead-acid batteries can supply greater surge current, which is highly useful in starting, lighting, and ignition (SLI) applications in the automotive industry. This is a key factor responsible for the high demand for lead-acid batteries in the automotive sector. New age batteries such as lithium-ion and nickel-based cost twice or even more than the lead-acid batteries. This makes the lead-acid battery a cost-competitive source of energy; thereby, fueling its demand across the globe. Automotive and UPS systems mainly generate significant demand for these batteries due to its cost-effective nature. According to the report by the Industrial Technology Research Institute, in the automotive segment alone, in 2019, more than 288.0 million units of lead-acid batteries were consumed, which is 60.0% of the global consumption of lead-acid batteries. On the other hand, UPS systems altogether generated a demand for more than 29 million units of lead-acid batteries in the same year. Hence, flourishing automotive sales and increase in demand for UPS systems in residential and commercial sectors are expected to drive the demand for cost-competitive lead-acid batteries. Therefore, the demand for carbon black will surge significantly from lead-acid battery manufacturers in the near future. 

Furthermore, in the rechargeable battery sector, there are only two battery types that compete against each other. One is conventional and the other is the new age lithium-ion battery. Lithium-ion battery has gained tremendous popularity in recent years and is likely to replace the use of lead-acid battery, as per the opinions of industry leaders. However, growing sustainability goals across the globe are favoring recycling products to create an environmentally friendly eco-system. As per the Battery Power Magazine Industry Organization, lead-acid batteries are recyclable in nature and have a reported recycling rate of more than 90%, which makes it the world’s most recycled product. With such an exceptional recycling rate, lead-acid battery poses a very little environmental hazard and may continue to be the battery of choice for most consumers. High recycling rate along with globally established infrastructure for recycling, lead-acid battery meets regulatory concerns on lead use in batteries; thereby, giving a competitive edge against its alternatives, notably lithium-ion battery. 

The Advanced Lead–acid battery Consortium (ALABC) is an international research and development consortium that strongly advocates that lead-acid battery has superior sustainability against other battery technologies. Its complete recycling is accounted to less energy use and production of CO2. On the other hand, lithium-ion batteries are non-recyclable in nature and its producers have recognized this fact; thus, have started working on a large number of developments to optimize lithium-ion battery recycling. However, there is no such successful development reported as of now. This whole scenario results in the increased popularity, brand loyalty, and demand of lead-acid battery across the globe; thereby, increasing the demand for carbon black additive from battery manufacturers.

However, rise in adoption of lithium-ion batteries at rapid pace and nickel and zinc-based batteries at moderate, the demand and production of lead-acid battery market is expected to be hampered all across the globe, which eventually will restrain the consumption of carbon black from lead-acid battery manufacturers globally. The impact of this factor is expected to be even higher during the forecast period. In addition, conventional lead-acid battery is a low-cost energy source, the global market is looking forward to new battery technologies to tap energy potential in the long run. This can be attributed to a couple of disadvantages associated  with  lead-acid  battery.  Long  charging  time,  heavyweight,  flammable  gases  while  charging,  and danger from chemicalburns are few of them. Therefore, manufacturers are producing lithium-ion, nickel, and zinc-based batteries as a substitute for lead-acid batteries. The demand for these batteries is also increasing, where lead-acid battery fails to deliver optimum performance. Except for cost and recyclability factors, lithium-ion  is  proven  to  be  better  in  terms  of  charging,  capacity,  and  efficiency  over  lead-acid  battery.  Lithium-ion batteries  have  been  well  proven  to  have  high  energy  density,  which  means  greater  energy can  be  stored  in them. As a result, they provide more energy with efficiency over its alternatives, notably lead-acid battery.With the rise in adoption of lithium-ion batteries at rapid pace and nickel and zinc-based batteries at moderate, the demand and production of lead-acid battery market is expected to be hampered all across the globe, which eventually  will  restrain  the  consumption  of  carbon  black  from  lead-acid  battery  manufacturers  globally.  The impact of this factor is expected to be even higher during the forecast period.

On the contrary, expansion of data centers across the globe is expected to surge the demand for lead-acid batteries, which is likely to surge the consumption of carbon black from battery manufacturers and is expected to provide new growth opportunities for the growth of the global carbon black in lead-acid battery market during the forecast period. Data centers altogether are a collection of servers that host online information so that it can be accessed from anywhere. Such data centers mostly use lead-acid batteries on account of its large power-to-weight ratio and high current surge, which are effective in handling huge energy output generated by heavy internet of traffic. Valve  regulated  lead-acid  batteries  are  mostly  preferred  in  data  centers  that  are  known  for  providing uninstructed power supply.Major data corporations like Google have 21 data centers and Facebook has 18; seven of which are in the U.S. itself. Extending the edge of the internet is becoming more apparent and, therefore, companies across the globe are expanding their data centers to manage various data complexities. Hyperscale data centers are expanding, especially in countries such as China and the U.S. Amazon, the largest retail giant, is also planning to expand its data centers in the U.S. Hence, with a large number of new data centers in the coming years, the need for lead-acid batteries to provide power supply is expected to increase. Therefore, expansion of data centers across the globe  is  expected  to  surge  the  demand  for  lead-acid  batteries,  which  is  likely  to  surge  the  consumption  of carbon black from battery manufacturers during the forecast period.

However, rise in adoption of lithium-ion batteries at rapid pace and nickel and zinc-based batteries at moderate, the demand and production of lead-acid battery market is expected to be hampered all across the globe, which eventually will restrain the consumption of carbon black from lead-acid battery manufacturers globally. The impact of this factor is expected to be even higher during the forecast period. Furthermore, expansion of data centers across the globe is expected to surge the demand for lead-acid batteries, which is likely to surge the consumption of carbon black from battery manufacturers and is expected to provide new growth opportunities for the growth of the global carbon black in lead-acid battery market during the forecast period.

The global carbon black in lead-acid battery market size is segmented on the basis of battery type, grade, and region. By the battery type, it is segmented into flooded lead-acid battery and valve regulated lead-acid (VRLA) battery. By grade, it is divided into specialty and conductive. Region wise, it is studied across North America, Europe, Asia-Pacific, and LAMEA.

The major key players operating in the global carbon black in lead-acid battery market include Imerys, Orion Engineered Carbons S.A., Cabot Corporation, SGL Carbon SE, Aditya Birla Group, Denka Company Limited, Superior Graphite, Shandong Jinkeli Power Sources Technology Co., Ltd, Continental Carbon Company, and Israzion Ltd. These major key players adopted strategies such as product launch and acquisition to stay competitive in the global carbon black in lead-acid battery market.

Key strategic moves & developments

In Aril 2020, Cabot China Limited, a wholly owned subsidiary of Cabot Corporation, acquired Shenzhen Sanshun Nano New Materials Co., Ltd (SUSN). Shenzhen Sanshun Nano New Materials Co., Ltd (SUSN) was the second largest producer of carbon nano tubes (CNT) globally and its acquisition will enhance Cabot’s suite of conductive carbon product offerings, which includes the VULCAN XC-series carbon blacks, PBX carbon performance additives for advanced lead-acid batteries, LITX conductive additives for lithium-ion batteries, and the ATHLOS carbon nanostructures.

In May 2019, Orion Engineered Carbons S.A. launched a new range of high-quality carbon blacks that act as conductive additives and increases the dynamic charge acceptance of batteries by up to 60% while maintaining acceptable water loss.

Global carbon black in lead-acid battery market, by region

Asia-Pacific accounted for the major share in 2019. The demand for carbon black in lead-acid battery market across Asia-Pacific is driven by rise in consumer preference for personal mobility coupled with soaring demand for high energy density battery units propels the deployment of these units across Asia-Pacific. Moreover, growth in demand for efficient and economical power storage units across various industries & applications, including telecommunication, residential sector, automobiles, and backup energy systems, boosts the demand for lead-acid batteries across the region. In addition, positive outlook toward the growth of the automotive sector along with ongoing industrialization fuels the lead-acid battery market trends across Asia-Pacific.

The region is highly characterized by the presence of restricted access to electricity, an established service sector, and rise in urbanization. Increase in investment across commercial infrastructure development drives the requirement for efficient energy storage devices, including UPS and inverters, which in turn boosts the product adoption growth across the region. In addition, growth in investment toward improving the manufacturing capabilities across the automotive industries to fulfil the rise in demand for vehicles will positively proliferate the demand for lead-acid batteries, which is expected to surge the demand for carbon black additives from battery manufacturers across the region during the forecast period.

Global carbon black in lead-acid battery market, by battery type

The flooded lead-acid battery segment accounted for the major share in carbon black in lead-acid battery market in 2019. Flooded lead-acid batteries are widely used in diesel-electric submarines to power electric motors and in nuclear submarines as an emergency power backup. The growing military tension between various countries such as China-Taiwan, China-U.S., India-China, and India-Pakistan has led to surge in demand and production of submarines. Therefore, the demand for flooded lead-acid battery is likely to surge from submarine vessel manufacturers across the globe, which eventually will drive the demand for carbon black from flooded lead-acid battery manufacturers during the forecast period. In addition, the use of these batteries in forklift trucks is also rising significantly in response to their cost-effective nature, as forklift trucks are mainly used in the material handling industry, where productivity and low cost are of immense importance. Therefore, the consumption of carbon black additive in flooded lead-acid battery is anticipated to grow in the coming years.

Global carbon black in lead-acid battery market, by grade

The specialty grade segment accounted for the major carbon black in lead-acid battery market share in 2019. Telecommunication is the transmission of voice and information over long distances. Lead-acid batteries are used as backups along with power supply systems in high-speed data transmission, wireless communication, data networks, cable TV, and data centers. Specialty carbon additive is widely used in lead-acid batteries such as valve-regulated lead-acid (VRLA) and flooded batteries for the telecommunication industry. Key features of these batteries include better performance, high energy density, ease of installation, and long life. VRLA batteries are mostly preferred in case of backup power in small to medium size telecom sites. Growth in the telecom sector in developing economies such as Brazil and India due to rise in foreign direct investment in this sector and the installation of numerous communication and data center of various foreign telecom players is expected to drive the demand for lead-acid battery from telecom companies, which eventually will increase the demand for specialty carbon additive from battery manufacturers during the forecast period.

COVID-19 analysis:

• According to the International Monetary Fund (IMF), due to the outbreak of novel coronavirus (COVID-19) pandemic, the global economy is expected to shrink by 3.0% in 2020. Many countries are under strict lockdown, which has forced several sectors to shut down their operations. This has halted manufacturing activities and reduced the demand and production of lead-acid batteries. Due to this, the demand for carbon black additive from lead-acid manufacturers is anticipate to decline during the forecast period.
• According to the United Nations Industrial Development Organization (UNIDO), the Micro, Small & Medium Enterprises (MSME) sector across the developing economies, such as India, has been worst affected due to COVID-19 outbreak and the lockdown imposed thereafter. This is expected to decline the demand for lead-acid batteries and the carbon black additives used within. In addition, in the second half of 2020, some countries have started to lift restrictions and gradually start business operations in various sectors. Even with the gradual lifting of the lockdown, it is expected to be challenging for the manufacturing sector to get back to normal working conditions. This is expected to subsequently affect the carbon black in lead-acid battery market growth in coming years.
• The production of lead-acid batteries and carbon black additive is also likely to hamper during and after the lockdown due to non-availability of workers. According to the UNIDO, 30.0%–70.0% of pre-COVID-19 workforce of lead-acid battery and carbon black manufacturing companies has migrated back to their hometowns due to uncertainties and loss of income during the lockdown. This non-availability or less availability of workforce is expected to directly affect the annual production of lead-acid battery and carbon black.
• Automotive industry accounts for 60.0% share in terms of consumption of lead-acid battery globally. The automotive industry has been affected badly amid the lockdown imposed due to the COVID-19 outbreak and has recorded decline in production of vehicles (passenger & commercial) by 20.0% in 2020. Automotive manufacturers have halted their production activities due to disrupted supply chains of automotive components and decline in demand for passenger vehicles across the globe. The decline in production of passenger and commercial vehicles and downfall in numbers of newly registered vehicles are likely to decrease the demand and production for lead-acid battery which eventually will decline the demand of carbon black additive from battery manufacturers during the forecast period.
• E-bike industry accounts for 7.0% share in terms of consumption of lead-acid battery globally. Due to the COVID-19 pandemic, commuters are mostly avoiding public transportation. E-bikes are considered a safe, convenient, and affordable alternative to public transportation. Also, compared to other transportation systems, e-bikes are cheaper, easier to charge, and do not require huge investments in supportive infrastructure. This is estimated to boost the sales of e-bikes in 2020 and 2021. However, post-2021, the market is expected to return to normalcy. The sale of e-bikes was dampened in the first quarter of 2020, as e-bike stores were closed due to lockdowns. However, now that the lockdown has been lifted in most countries, including China, India, Japan, the U.S., Italy, and France, the sale of e-bikes has increased. This is likely to surge the demand of lead-acid battery from e-bike manufacturers which eventually will rise the production of battery and will surge the demand of carbon black additives from battery manufacturers.
• UPS system manufacturing industry accounts for 21.0% share in terms of consumption of lead-acid battery globally. The COVID-19 pandemic has posed business continuity challenges among various verticals, including construction and real estate, IT, healthcare, and manufacturing, owing to global lockdowns. It has impacted supply chains such as import and export control as per regional government policy and future influence on the industries. It has impacted the demand of UPS system in a negative way. The demand for UPS systems from enterprises is expected to be negative throughout 2020, particularly in retail, energy, transportation, IT, and government sectors. Due to this the demand for lead-acid battery is anticipate to decline from UPS system manufacturers resulting in decrease in production of lead-acid battery and the demand of carbon black additives from battery manufacturers.

Key benefits for stakeholders

• The global carbon black in lead-acid battery market analysis covers in-depth information of major industry participants.
• Porter’s five forces analysis helps analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
• Major countries have been mapped according to their individual revenue contribution to the regional market.
• The report provides in-depth analysis of the global carbon black in lead-acid battery market forecast for the period 2020–2027.
• The report outlines the current global carbon black in lead-acid battery market trends and future scenario of the global carbon black in lead-acid battery market from 2019 to 2027 to understand the prevailing opportunities and potential investment pockets. 
• Key drivers, restraints, & opportunities and their detailed impact analysis are explained in the global carbon black in lead-acid battery market study.

Key market segments

By Battery Type

• Flooded Lead-Acid Battery
• Valve Regulated Lead-Acid (VRLA) Battery

By Grade

• Specialty
• Conductive

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • France
  • Italy
  • Spain
  • UK
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of Asia-Pacific
• LAMEA
  • Brazil
  • Saudi Arabia
  • South Africa
  • Rest of LAMEA

  Carbon Black in Lead-Acid Battery Market Report Highlights

Aspects	Details
By BATTERY TYPE	Flooded lead-acid battery Valve regulated lead-acid (VRLA) battery
By GRADE	Specialty Conductive
By Region	North America  (U.S., Canada, Mexico) Europe  (France, Germany, Italy, Spain, UK, Russia, Rest of Europe) Asia-Pacific  (China, Japan, India, South Korea, Australia, Thailand, Malaysia, Indonesia, Rest of Asia-Pacific) LAMEA  (Brazil, South Africa, Saudi Arabia, UAE, Argentina, Rest of LAMEA)
Key Market Players	SUPERIOR GRAPHITE, SGL CARBON SE, ISRAZION LTD., SHANDONG JINKELI POWER SOURCES TECHNOLOGY CO., LTD, CONTINENTAL CARBON COMPANY, ADITYA BIRLA GROUP, CABOT CORPORATION, ORION ENGINEERED CARBONS S.A., IMERYS, DENKA COMPANY LIMITED

Analyst Review

The global carbon black in lead-acid battery market is expected to witness a significant growth during the forecast period. In the rechargeable battery sector, major competition is seen in two prominent battery types, namely, traditional lead-acid battery and a lithium-ion battery. After comparison between these batteries, it is analyzed that lead-acid battery is the finest one and is still the battery of choice among most consumers. Some factors such as cost-competitive energy source, increasing renewable energy production, long-lasting nature, and recyclability associated with lead-acid batteries make them highly preferable for all applications. Therefore, the demand for lead-acid battery is anticipated to surge considerably, which eventually will surge the demand for carbon black from lead-acid battery manufacturers. 

Lithium-ion battery is considered to be a suitable alternative to a heavyweight lead-acid battery; which is better in terms of efficiency, capacity, and charging time. But it is anticipated to take another decade for lithium-ion batteries to replace the lead-acid battery as it is still in the developing phase in terms of recyclability. Therefore, the demand of lead-acid battery and the demand for carbon black from lead-acid battery manufacturers is expected to witness promising growth opportunities for the next ten years.

Author Name(s) : Anil Chaudhary | Eswara Prasad

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