The Bangladesh lead-acid battery market is expected to grow at a CAGR of more than 3 % throughout 2020-2025. Factors such as the growing automotive sector in the country and the low cost of lead, are likely to drive the lead-acid battery market during the forecast period. Over the past few years, Bangladesh witnessed tremendous growth in per capita income. This, in turn, improved the level of disposable income. As a result, there has been a sharp increase in the sales of automobiles, particularly of the two- and four-wheeler varieties. This surged the demand for SLI batteries and is expected to propel the Bangladesh lead-acid battery market. However, declining lithium-ion battery prices and increasing adoption of electric vehicles are likely to restrain the growth of the lead-acid battery market in the coming years.
- SLI (Starting, Lighting, and Ignition) batteries are expected to dominate the Bangladesh lead-acid battery market during the forecast period due to the booming automotive sector.
- With the decreasing cost of solar PV equipment and supportive global initiatives to eliminate the carbon emission and promote renewables, the utilization of off-grid renewable projects is expected to increase significantly in the country during the forecast period. This, in turn, is expected to provide an excellent opportunity for the lead-acid battery market during the forecast period.
- The automobile sector is expected to drive the Bangladesh lead-acid battery market during the forecast period.
Key Market Trends
SLI (Starting, Lighting, and Ignition) batteries expected to Dominate the Market
- SLI batteries are designed for automobiles, and therefore, it is always installed with the vehicle's charging system, which means that there is a continuous cycle of charge and discharge in the battery whenever the car is in use. The 12-volt batteries have been the most commonly used batteries for more than 50 years; however, its standard voltage (while in use in the car and being charged by the alternator) is close to 14-volt.
- The major factors attributing to the growth of the SLI battery market in Bangladesh is the increasing demand for these batteries to power start the motor, lights, and ignition system or other internal combustion engines with high performance, long life, and cost-efficiency. Besides, the market is witnessing significant growth due to an increase in the number of mobile towers. The telecommunication sector drives the lead-acid battery market in the country.
- Moreover, lead-acid battery is the technology of choice for all SLI battery applications in conventional combustion engine vehicles, such as cars and trucks worldwide. Furthermore, growth in the three-wheel vehicle in the country has contributed to the lead-acid battery market.
- Although the conventional combustion engine is expected to decline in Bangladesh over the next 30-40 years because of growth in electric vehicles, however, replacement car technologies are expected to continue to use SLI type lead-acid batteries to provide power for a range of electronics and safety features within the vehicle.
Telecom sector is Expected to Drive the Market
- The information and communication technology (ICT) industry in Bangladesh is witnessing robust growth, on account of deployment of the latest technologies, and the industry is supported by the government policies to connect the entire population of the country with the internet under the "vision-2021".
- In Bangladesh, about one-third of the total population is comprised of youth and young people. In 2018, as per the national youth policy of Bangladesh, 61% population of the country fell in the range of 15-64 years. The country is poised to witness a surge in the expansion of the ICT industry, as the young minds of the country engage themselves more with information technology-enabled services (ITES).
- Lead-acid batteries are widely used as the source of power in the mobile towers and back-up systems, which are likely to witness increased usage due to the growth in the information and communications technology (ICT) industry.
- In December 2018, the state-owned mobile operator Teletalklaunched 4G (fourth generation) mobile data services commercially in Dhaka. For the implementation of the 4G network, the company has taken up projects worth BDT 9.87 billion. Under the fund, 550 towers were already established, as of 2018, mostly in big cities, and the process to set up another 550 in district headquarters were under implementation.
- The growth in the ICT industry is leading to augmentation in communication infrastructure. Which, in turn, is anticipated to drive the Bangladesh lead-acid battery market during the forecast period.
The Bangladesh lead-acid battery market is moderately fragmented. Some of the key players in this market include BASE Technologies Ltd., Panna Group, Rahimafrooz Ltd, Saif Powertec Limited, Okaya Power Pvt Ltd, Exide Industries Limited, and others.
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