Automotive Lead Acid Battery Market

The global Automotive Lead Acid Battery Market is valued at USD 28.88 Billion in 2024 and is projected to reach a value of USD40.55 Billion by 2035 at a CAGR (Compound Annual Growth Rate) of 3.15% between 2025 and 2035.

Premium Insights

The automotive lead-acid battery industry is crucial in the broader automotive and battery manufacturing sectors. Lead-acid batteries have been widely used in the automotive industry for several decades, primarily in conventional internal combustion engine (ICE) vehicles. Understanding the dynamics of the automotive lead-acid battery industry involves considering various factors that influence its growth, including market trends, competitive landscape, technological advancements, regulations, and sustainability concerns.

The automotive industry is experiencing a transition towards electric mobility, driven by factors such as government regulations, environmental concerns, and advancements in battery technology. This shift presents a long-term challenge to the lead-acid battery industry as lithium-ion batteries dominate the EV market. In addition, the replacement and maintenance of automotive batteries create a significant market segment for lead-acid batteries. As vehicles age and require battery replacements, the aftermarket demand for lead-acid batteries remains strong, particularly for conventional ICE vehicles.

Furthermore, the advancement of alternative fuel vehicles has increased the demand for battery-operated and hybrid cars. In addition, to minimize crude oil consumption, vehicular emissions, and air pollution, governments worldwide have established and implemented favorable laws that encourage the usage of electric vehicles. For instance, Mahindra & Mahindra announced in 2021 that they plan to invest $ 402 million in electric cars in the next three years and have set a goal to put 500,000 electric vehicles on Indian roads by 2025. Thus, all these new development in the electric vehicles sector act as an opportunity to grow the automotive lead-acid battery market.

Economic Insights

Russia and Ukraine are significant players in the global lead-acid battery supply chain, with both countries involved in producing raw materials, such as lead and lead oxide. The conflict could disrupt the supply of these materials, leading to potential shortages and increased prices of lead-acid batteries worldwide. The battle may disrupt the manufacturing operations of lead-acid battery manufacturers in Russia and Ukraine. Factory closures, transportation disruptions, and infrastructure damage can impact production capacity, leading to supply shortages and delays in fulfilling orders.

Top Market Trends

1. Growing Demand for Start-Stop Systems: Start-stop systems automatically shut off the engine when the vehicle is idle and restart when needed are increasingly being integrated into vehicles to improve fuel efficiency. Lead-acid batteries are commonly used in these systems due to their affordability and ability to handle frequent charge and discharge cycles. The rising adoption of start-stop vehicle systems drives the demand for automotive lead-acid batteries. In addition, the aftermarket segment plays a crucial role in the automotive lead-acid battery industry. As vehicles age and their batteries require replacement, there is a consistent demand for automotive batteries. Lead-acid batteries, known for their cost-effectiveness and widespread availability, continue to dominate aftermarket sales due to their compatibility with various vehicles.
2. Technological Advancements: The automotive lead-acid battery industry is witnessing continuous technological advancements to improve battery performance, durability, and safety. Manufacturers invest in research and development to enhance battery designs, materials, and manufacturing processes. Enhanced flooded batteries (EFBs) and absorbent glass mat (AGM) batteries offer better performance characteristics, including increased cycling ability, improved charge acceptance, and reduced maintenance requirements.

Market Segmentation

The global Automotive Lead Acid Battery market can be categorized on the following: Product, Type, Customer, End User, Application, and Region. Based on Product, the market can be categorized into SLI and Micro Hybrid Batteries. Furthermore, based on Type, the market is sub-segmented into Flooded, Enhanced Flooded, and VRLA. By Customer, the market is further divided into OEM and Aftermarket. In addition, based on End Users, the market is classified into Passenger Car, Light Commercial Vehicle, Heavy Commercial Vehicle, Two-Wheeler, and Three-wheeler. Additionally, based on Application, the market can be split between Hybrid, Electric, Light, and Heavy vehicles. Likewise, based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Product

SLI to Lead Maximum Market Share Due to Its Codt Effectiveness

In 2022, SLI dominated the market. SLA batteries are relatively inexpensive compared to other types of batteries, such as lithium-ion batteries. This cost advantage makes them attractive for various automotive applications, particularly vehicles with lower power requirements. SLA batteries excel in providing high current bursts required for starting and ignition systems in vehicles. They have good cold-cranking performance, making them suitable for cold weather conditions.

Based on Customer

OEM (Original Equipment Manufacturer) customer to Mention Dominion owing to Increasing Automotive Production

Between 2023 and 2030, the OEM (Original Equipment Manufacturer) Customer is anticipated to grow fastest. The global automotive industry has been experiencing steady growth, with increasing vehicle production year after year. As a result, there is a rising demand for lead-acid batteries from OEMs, who require reliable and cost-effective battery solutions for their vehicles.

Based on End User

Passenger Car to Express Dominion Owing to Increasing Demand for Automotive Lead Batteries

In 2022, the passenger car segment dominated the market. The passenger car category is a primary driver of demand for automotive lead batteries. While alternative battery technologies such as lithium-ion are gaining traction in some parts of the automobile industry, the passenger car segment continues to rely on the benefits provided by lead batteries. The dependability, cost-effectiveness, compatibility, reliability, and aftermarket demand of lead batteries in passenger cars contribute to their growth and importance, cementing their place as the key driver in the automotive lead battery business.

Based on Region

Asia Pacific to Dominate Global Sales Owing to the Presence of Major Automotive Manufacturers

The Asia Pacific region is home to major automotive manufacturing countries such as China, Japan, South Korea, and India. Because of their enormous domestic automobile markets and massive car production, these countries have a high need for lead-acid batteries. The automobile sector in APAC has increased due to rising disposable income, urbanization, and infrastructure development. This expansion has increased demand for lead-acid batteries in passenger and commercial vehicles. Electric two-wheelers, such as electric scooters and motorbikes, have a sizable market in APAC. Because of their low cost and suitability with the power requirements of two-wheelers, lead-acid batteries are often employed in these vehicles. This contributes to the Regions overall demand for lead-acid batteries.

Europes automotive lead-acid battery industry has been experiencing moderate growth in recent years. Europe has many conventional vehicles that rely on lead-acid batteries for their starting, lighting, and ignition systems. As long as internal combustion engine vehicles remain prevalent in the Region, lead-acid batteries will be consistently demanded. Lead-acid batteries have a relatively short lifespan and require periodic replacement. The aftermarket sales of automotive batteries contribute to the growth of the lead-acid battery industry in Europe.

Competitive Landscape

Numerous international and regional actors compete fiercely on the global market. Major corporations engage in strategic alliances, mergers & acquisitions, and joint ventures to acquire a market advantage. By creating demand, investing in infrastructure and technology, developing innovative practices, and implementing supportive policies, these players contribute to the industrys expansion and transition towards more sustainable and efficient methods.

The key players in the global Automotive Lead Acid Battery market include - Johnson Controls (U.S.) among others.

Recent Market Developments

• June 2021: Extensive collaboration with GS Yuasa International Ltd. to establish regional energy hubs in the UK. They were starting a project with Albion Community Power to combine Yuasas hybrid lead/lithium battery system with clean wind and solar energy.

• February 2019: The National Alliance for Advanced Transportation Batteries named hydrolysate one of the top 10 developing battery technologies.

Segmentation of the Global Automotive Lead Acid Battery Market