Burgeoning demand for batteries across the automotive sector in tandem with the rising requirement of power backup systems in communication centers will stimulate lead market growth. Escalating efforts towards enhancing the efficiency of grids and the subsequent expansion of microgrid networks will also boost the industry landscape.
Additionally, the rising prevalence of blackouts across several regions with limited electricity availability alongside peak load demand compensation will foster elevated demand for the product.
The lead market in Europe is expected to witness appreciable gains during the forecast period as a result of abundant growth in the automotive industry in addition to the increasing number of data centers. Regulatory authorities as well as industry players including Ericsson, Deutsche Telekom and Telia Sonera among others are providing considerable investments towards internet connectivity improvement in Western Europe and the Nordic region.
In motor vehicles, lead is the primary component of a starter batter while in electric vehicles traction batteries provide efficient emergency power backup in telecom and computer systems. Growing demand for electric vehicles due to strict legislative regulations and favorable policies pertaining to emissions and environmental impact will add impetus to the lead market growth. These shifting preferences towards environment-friendly vehicles and booming investments towards mining activities are key factors fueling industry expansion.
However, escalating incidents of lead poisoning due to consumption across numerous applications are likely to impede industry expansion. For example, the Consumer Products Containing Lead Regulations (CPCLCMR), has restricted lead usage in several consumer products in Canada, with the intention of curtailing direct lead exposure. Additionally, lead use has been cut down in the production of solders, pigments & compounds, electrical equipment and cable sheathing, which may hamper the lead market share.
The steady paradigm shift towards lead recycling and flourishing secondary production in the region will significantly bolster the Western Europe lead industry landscape. Likewise, the EU has several mandates in place for the production, utilization and reuse of batteries, in line with the EU Circular Economy, supported by a well-performing and reputable closed loop recycling system. This system includes the production of automotive batteries, 99% of which are collected at the end of their lifespan and recycled for further purposes.
Increased funding for metal and mining activities in the Middle East & Africa regions, in conjunction with higher emphasis on obtaining private investments will impel the lead market outlook. As a matter of fact, the MEA lead market size is expected to register gains of over 5% through 2025.
Unstable electricity access across many African nations has led to a considerable surge in demand for efficient power backup systems, which will in turn drive the demand for lead acid batteries. As of 2019, according to World Bank reports, more than 573 million people living in the sub-Saharan African region are facing a shortage of electricity.