Report

UAE automotive lead acid battery market is projected to observe a CAGR of 4.19% during the forecast period 2024-2031, rising from USD 0.25 billion in 2023 to USD 0.34 billion in 2031. The market has witnessed significant growth in recent years and is projected to expand in the coming years, owing to a growing requirement for lead acid batteries for energy storage solutions, stringent government regulations to mitigate its carbon emissions, significant growth in the automotive industry, and growing awareness concerning sustainable transportation. The demand for UAE automotive lead acid battery market is projected to rise owing to easy affordability, cost-effectiveness, reliability, and adaptability across a variety of automotive applications. UAE government is framing different policies to integrate light-weight components to reduce carbon emissions and compel companies to enhance the performance and efficiency of automotive lead acid batteries. In addition, the strong demand for automotive lead-acid batteries is largely due to their simple recycling process, which makes them an eco-friendlier choice. It is primarily used in automotive applications, but these batteries have now found new roles in stationary applications, including smart grid frequency regulation and uninterruptible power systems (UPS). As the growing need for energy storage grows, lead-acid batteries are proving to be a feasible solution to address increasing demands.
Companies in UAE automotive lead acid battery market are investing in research and development activities to enable automotive lead acid batteries to maintain high performance for longer period. Moreover, companies are integrating advanced systems, including intelligent battery management systems in batteries to optimize the discharging and charging process, extend battery life, and advance energy effectiveness. Furthermore, companies in the market are planning to establish manufacturing plants in UAE to address the rising demand for automotive lead acid batteries from automakers.
For instance, in March 2022, SERI INDUSTRIAL S.p.A. announced the establishment of a combined lead acid battery manufacturing plant and recycling facility in UAE to produce and recycle advanced batteries and expand their market presence.
Advanced Battery Technologies to Drive UAE Automotive Lead Acid Battery Market Growth
UAE automotive lead-acid battery market is witnessing considerable growth driven by advancements in battery technology. Companies are modernizing to improve battery performance, aiming for longer life spans, faster charging times, and improved energy efficiency. Developments, including advanced plate designs and better electrolyte formulations, make lead-acid batteries more competitive than alternatives. These advancements cater to the growing requirements of modern vehicles, which demand more reliable and efficient power sources.
Businesses are investing in research and development to stay ahead of technological trends and address consumer expectations for high-performance batteries, thus propelling market growth and positioning themselves as leaders in a rapidly evolving industry. Companies in the market are offering advanced automotive lead acid batteries and investing in battery recycling plants to expand their market presence and address the growing requirement for reliable power sources.
For instance, in February 2024, Ubatt Battery Recycling announced the launch of its fully integrated battery recycling facility in UAE, located in Dubai Industrial City, which is part of the TECOM Group PJSC. The facility covers an area of 65,000 square feet and employs advanced techniques including battery breaking, separating, smelting, and refining. This process enables the safe removal of hazardous waste from used lead-acid batteries, allowing the recycling of up to 80% of battery waste across UAE for the production of lead ingots.
Technological Advancements in Batteries to Propel Market Demand
The technological advancements in automotive lead-acid battery manufacturing and design have improved its reliability and performance, coupled with improving the charging performance of lead-acid batteries, propelling the growth of UAE automotive lead-acid battery market in the forecast period. As technology advances, lead-acid batteries are projected to remain a significant choice for the years ahead. Continuous development will allow manufacturers to offer dependable and cost-effective power solutions across a range of applications. Key participants in the market are introducing advanced automotive lead acid battery solutions and establishing recycling centers to reduce their environmental impact and improve the charging performance of lead-acid batteries.
For instance, in August 2022, Royal Gulf International General Trading LLC announced an investment of over USD 17 million to build a lead batteries recycling center in UAE to recycle up to 35,000 tonnes of used lead acid batteries annually.
Regulatory Push for Environmental Sustainability to Accelerate Market Growth
Stringent environmental regulations and government initiatives across UAE are encouraging sustainability in the automotive sector, comprising enhanced recycling procedures and sustainable practices for automotive lead-acid batteries. Businesses are shifting to these regulations by accepting greener technologies and funding sustainable solutions to encounter government regulations and contribute to net zero carbon emissions. The UAE government encourages sustainability and energy efficiency coupled with promoting the adoption of automotive lead acid batteries, making them a foremost component of the region's energy landscape. The government is framing different regulations concerning decreasing carbon emissions and developing the legislative and technical framework for recycling EV batteries as UAE high-power cars prefer big lead acid batteries. In addition, the UAE government is planning to bring a large number of electric vehicles on the road to address net zero carbon emissions goals, which further drives the demand for automotive lead acid batteries in UAE.
For instance, in July 2023, UAE's National Electric Vehicles Policy aims to fast-track the nation's adoption of electric mobility and establish the demanded supporting ecosystem for the aspired EV transition, driving the UAE automotive lead acid battery market demand in the forecast period.
Up to 20Ah Battery Segment Dominates UAE Automotive Lead Acid Battery Market Share
Up to 20Ah dominates the share of UAE automotive lead acid battery market owing to a significant increase in production of vehicles, rapid urbanization, and technological advancement in batteries. This expansion has driven an increase in the requirement for up to 20Ah battery range to power a wide variety of vehicles, including buses, commercial vehicles, passenger vehicles, cars, and trucks. In addition, due to the easy availability and reduced maintenance requirements, the demand for up to 20Ah segment is growing significantly. In addition, this battery range provides durability and improved resistance to extreme weather conditions, propelling the segmental growth in the forecast period. Furthermore, companies in the market are designing up to 20Ah segments to offer superior charge acceptance, improved cycling capability, and reduced maintenance demands, making them perfect for modern vehicles integrated with other advanced features.
Passenger Cars to Hold the Largest Market Share of UAE Automotive Lead Acid Battery Market
Passenger cars are projected to hold the largest market share owing to the increase in the production of passenger vehicles, growing demand for electric vehicles, and rising requirements for backup power supplies in vehicles. The automotive lead acid batteries in passenger cars have a higher energy density per unit volume and weight, as they can store more energy in a relatively small space, delivering passenger vehicles with longer driving ranges. Therefore, many passenger car manufacturers have integrated charging and maintenance equipment specifically designed for lead-acid batteries, driving the demand for the automotive lead acid batteries in UAE passenger car market.
Future Market Scenario (2024 � 2031F)
� UAE government's dedication to reduce the carbon footprint and encourage sustainable transportation, coupled with incentives for EVs drive the demand for UAE automotive lead acid batteries.
� The rising production and sales of automobiles and advancements in battery technology are anticipated to foster the growth of the automotive lead acid battery market in the forecast period.
� A significant rise in different research and development activities through partnerships and collaborations has been supporting companies to launch innovative products, surging the UAE's market growth.
� The automotive industry's ongoing advancement and development of new vehicle models support the automotive lead acid battery market demand in UAE.
Key Players Landscape and Outlook
Companies in UAE automotive lead acid battery market are committed to deliver reliable and high-performance lead-acid batteries that cater to the diverse needs of the automotive sector. Companies focus on innovation, quality, and customer satisfaction, aiming to be the preferred choice for automotive batteries in UAE. Companies specialize in the design, manufacturing, and distribution of lead-acid batteries for various types of vehicles, including cars, trucks, and motorcycles. In addition, key participants in the market are adopting different growth strategies, including joint ventures, mergers and acquisitions, partnerships, collaborations, and others to address the rising demand for automotive lead acid batteries and expand their market presence.