Lead Acid batteries, which traditionally have found most of their applications in the starting, lighting and ignition (SLI) segments, are now finding new growth opportunities in stationary applications. The capabilities of SLI batter-ies can be utilized quite easily for certain standby / backup power functions, such as starting engine generators.

In standby power applications, the batteries are subject to surge loads, such as emergency lighting equipment functions, when a power outage occurs. This function is similar to starting an automotive engine. Lead Acid batteries also handle high continuous loads for short periods of time. These factors, combined with their lower cost, make the SLI Lead Acid batteries a viable option for consumers wanting a reliable source for stationary battery applications. This report from Frost & Sullivan provides a detailed analysis of the Lead Acid battery markets, by evaluating the industry by battery capacity and by construction type for SLI, motive, and stationary applications.

Increased Telecom and Datacom Applications Drive Market Forward

As Lead Acid batteries become more widely accepted for stationary applications, demand should increase significantly because of the rise of the telecom and datacom industries. Expanded usage of microprocessor-based technology increases the likelihood of power outages. At the same time, however, it has become necessary for companies to maintain continuous power even during power failures. Together, these factors have led to the rise in demand for backup and standby power sources.

The telecommunications and data communications equipment is a major mar-ket for stationary Lead Acid batteries," states the author of the report. "The demand for standby power sources is essential for a society dependent upon electricity to power microprocessors and other equipment."

High Lead Prices and Competition Shrink Profit Margins

In an industry with low profitability, many companies may need to reevaluate their marketing strategies in order to remain competitive. The cost of Lead is increasing, which places an upward pressure on overall prices. But at the same time, the entrance of new players from Asia who can produce cells at lower cost puts an extreme downward pressure on pricing. In addition, these entrants are causing intensified competition for existing domestic players. This Frost & Sullivan report can be what your company needs to stay abreast - or even ahead - of changing trends and will give you an edge over uninformed competitors.

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