Lead-Acid Battery Market In Indonesia To Grow By USD 67.6 Million From 2024-2028, Driven By Automotive Market Growth, With AI Driving Market Transformation - Technavio

AI-Powered Market Evolution Insights. Our comprehensive market report ready with the latest trends, growth opportunities, and strategic analysis- View your snapshot now

Key Market Trends Fueling Growth

Indonesia faces numerous challenges in its electrical grid infrastructure, including aging infrastructure, a shifting power generation landscape, and disparities in power demand and supply. These issues put strain on the existing grid infrastructure and limit its stability for seamless operations. The high cost of establishing grid infrastructure in rural and remote regions further hinders grid expansion. Microgrids , small-scale power generation systems that include storage components, offer a solution to these inconsistencies. They can operate in both grid-connected and island modes and are increasingly popular due to their use of renewable energy sources, such as solar and wind. Indonesia's unfavorable terrain and the need to electrify a significant portion of the population make microgrids an attractive option for local power generation and energy access. For instance, the microgrid project on Morotai Island utilizes solar PV for power generation and a 2,700-kWh lead-acid battery for energy storage. The Indonesian government aims to reach 100% electrification by the mid-2020s, and microgrids are expected to play a crucial role in achieving this goal. Additionally, microgrids enable large-scale industrial and commercial buildings to become self-sufficient in electricity supply. In provinces with the lowest electrification rates, such as Papua, microgrids offer a reliable and continuous power solution. The increasing adoption of microgrids is projected to lead to a corresponding increase in demand for lead-acid batteries in Indonesia, fueling the growth of the market during the forecast period.

The Lead-Acid battery market in Indonesia is witnessing significant growth due to increasing demand for energy storage devices in various sectors. Renewable energy and power backup systems are key drivers, as Indonesia focuses on reducing pollution rates and expanding renewable energy generation. Lead-Acid batteries, including SLI, Gel VRLA, and Calcium alloy grids, remain popular choices due to their affordability and reliability. The telecom sector, particularly wireless telecom industry and telecommunications sector, is a major consumer of Lead-Acid batteries for power backup. In the energy storage space, Lead-Acid batteries are used in data centers and construction projects. The mining, metals and pharmaceutical industries also rely on Lead-Acid batteries for various applications. Lithium-Ion technology and Nickel-Cadmium batteries are gaining traction, but Lead-Acid batteries continue to dominate the market due to their long charging cycles and recycling capabilities. The market is further boosted by the use of Lead-Acid batteries in commercial vehicles, motorcycles, passenger car manufacturing, oil and gas, and horizontal/vertical well applications. Indonesia's Lead-Acid battery market is expected to grow further as the country focuses on modernizing its electricity sector and expanding renewable energy generation.

Insights on how AI is driving innovation, efficiency, and market growth- Request Sample!

Market
Challenges

• Lead-acid batteries remain the dominant choice in Indonesia's battery market due to their cost-effectiveness and mature technology. However, their use comes with environmental and health concerns as they contain toxic lead oxide. The growth of industries, particularly automotive, has driven up demand for lead-acid batteries. Yet, the improper disposal of lead components and the presence of polluting smelters have led to increased lead pollution and health risks. Lead-acid batteries have disadvantages, such as lower energy density, weight, and durability compared to substitutes like lithium-ion or nickel batteries . They also experience permanent capacity loss with each full discharge and have a shorter lifespan under continuous charge. Moreover, they cannot be stored in a discharged state due to sulfation, a phenomenon that forms lead sulfate crystals. These disadvantages may limit the demand for lead-acid batteries and negatively impact their market growth in Indonesia during the forecast period. The health and environmental risks associated with lead pollution necessitate the exploration of safer, more sustainable battery alternatives. The Indonesian government and industry must work together to address these challenges and promote the adoption of greener, more efficient battery technologies.
• The Lead-Acid battery market in Indonesia is experiencing significant growth due to increasing demand for energy storage devices in various sectors. Renewable energy and power backup systems are key drivers, with the electricity sector and telecom industry leading the way. However, challenges persist, including high pollution rates from lead and sulfuric acid emissions, limited charging cycles, and recycling issues. Lithium-ion technology and Nickel-Cadmium batteries present competition, but Lead-Acid batteries remain popular for their affordability and reliability. Floating solar technology and data centers are also growing markets for Lead-Acid batteries. The construction, metals and mining, chemical and pharmaceutical, oil and gas, and commercial vehicle industries also utilize Lead-Acid batteries, particularly in applications like SLI batteries, Gel VRLA batteries, and Calcium alloy grids with carbon additives. Despite challenges, the Lead-Acid battery market in Indonesia continues to expand, driven by the need for energy storage solutions in diverse industries.

Insights into how AI is reshaping industries and driving growth-
Download a Sample Report

Segment Overview

This lead-acid battery market in Indonesia report extensively covers market segmentation by