Automotive Lead Acid Battery Market Report

Attractive Opportunities

Global Demand Analysis & Sales Opportunities in Automotive Lead-Acid Battery Market 

• The annual demand for automotive lead-acid battery market was USD 29.64 billion in 2024 and is expected to reach USD 30.77 billion in 2025, up 3.8% than the value in 2024.
• During the next 8 years (forecast period of 2025-2032), the automotive lead-acid battery market is expected to grow at a CAGR of 3.4%. The annual demand will reach of USD 38.88 billion in 2032, which is almost 1.26 times (~26% up) of the demand in 2025.
• During 2025-2032, the automotive lead-acid battery industry is expected to generate a cumulative sales opportunity of USD 278.44 billion which is almost 1.8 times the opportunities during 2019-2024.

High-Growth Market Segments: 

• Asia Pacific generated the highest demand in 2024, with growing automotive industry as the key growth drivers in the region.
• By product type, SLI batteries segment is projected to be the dominant segment during the forecast period.
• By end-use type, passenger cars segment is projected to be the dominant segment during the forecast period.

Market Statistics 

Have a look at the sales opportunities presented by the automotive lead-acid battery market in terms of growth and market forecast.

Automotive Lead-Acid Battery Market Data & Statistics

Market Dynamics

Introduction

What is automotive lead-acid battery?

An automotive lead-acid battery is a rechargeable battery applied in automobiles to supply the large current needed to start the engine. These batteries are used for starting, lighting, and ignition (SLI) in a vehicle. Lead-acid batteries are usually preferred over other battery types in the automotive sector because they offer significant benefits like higher reliability, lower maintenance requirements, lower costs, and longer lifespan. The automotive lead acid battery market demand has been increasing consistently in the past few years, driven by the rising passenger cars, light commercial vehicle manufacturing, and global automotive industry growth. Moreover, the vehicle fleet and the high demand for lead-acid batteries are also expected to support the market's growth over the coming years.

Market Drivers:

Increasing Vehicle Production:

• According to Stratview’s research, it is projected that globally 100.87 million vehicles will be produced by the year 2030, driving the growth of the automotive industry, which in turn will give rise to the high demand for automotive lead-acid batteries due to their reliability and cost-effectiveness.
• Lead-acid batteries are a suitable option for the majority of automobiles because they are inexpensive and function well with standard internal combustion engine (ICE) vehicles. These all encompass passenger vehicles, trucks, and motorcycles, which need lead-acid batteries for starting, lighting, and ignition. As a result of increased urbanization and rising disposable incomes in developing regions, more individuals possess vehicles, hence the demand is higher.

Market Challenges:

Growing Demand for Lithium-Ion Battery:

• The growing demand for lithium-ion batteries is significantly challenging the lead-acid batteries market due to the superior characteristics of lithium-ion batteries in terms of increased energy storage capacity, weight reduction, faster charging, and longer lifecycles. EVs' and HEVS' success grants Li-ion superiority since it is significantly and rapidly expanding in quantity as a clean source of transportation across the world.
• While auto-makers keep innovating maximum vehicle performance and efficiency, lithium-ion batteries gradually replace lead-acid batteries, particularly in sophisticated automotive applications. As electric vehicle (EV) adoption increases, lithium-ion is becoming the preferred choice, gradually replacing lead-acid in many applications.

Market Opportunities:

Growing Aftermarket Demand for Lead-Acid Batteries:

• Increasing aftermarket demand for lead-acid batteries creates a huge opportunity for the market because they have widespread applications, are inexpensive, and have developed infrastructure. Unlike other vehicle parts, lead-acid batteries have a defined lifetime where they will be replaced after some time.
• The replacement will provide steady demand for lead-acid batteries in the aftermarket regardless of new car manufacturing. They are comparatively economical, easily accessible, and generally applicable to vehicles. Therefore, it is commonly used in replacement, and the system for recycling is also planned; the cost of production is maintained low; hence, a higher demand is there for these batteries.

Segment Analysis

By Product Type 

“SLI Batteries segment is projected to grow at the highest rate during the forecast period.”

• The automotive lead-acid battery market is segmented by product type into SLI batteries, micro hybrid batteries, and auxiliary batteries.
• SLI batteries segment is projected to grow at the highest rate during the forecast period. The SLI (start, lighting, and ignition) batteries segment dominates the automotive lead-acid battery market because they are the primary source of power for starting the internal combustion engines of conventional vehicles.
• SLI batteries are also more affordable than their substitutes, thereby emerging as the preferred choice in markets where price remains the primary driver of purchase decisions for consumers.   

By End-use Type

“Passenger Cars segment is expected to grow at a significant rate during the forecast period.”

• The automotive lead-acid battery market is segmented by end-use type into passenger cars, light & heavy commercial vehicles, two-wheelers, and three-wheelers.
• Passenger cars segment is expected to grow at a significant rate during the forecast period, driven by the growing production and sales of passenger vehicles worldwide. The growing global vehicle ownership is due to the rapid urbanization and rising disposable incomes in the developing economies.
• From small compact cars to ultra-luxury models, lead-acid batteries are the most cost-effective and reliable solution compared to others in the great majority of passenger cars.

Regional Analysis 

“Asia Pacific is expected to be the dominant and fastest-growing region over the forecasted period.”

• Based on region, the automotive lead-acid battery market has been segmented into North America, Europe, Asia Pacific, and the Rest of the world.
• Asia Pacific is expected to be the dominant and fastest-growing region over the forecasted period, due to the growing automotive industry, driven by rising disposable incomes, rapid urbanization, industrialization, and strong economic growth.
• Leading nations in the production and sale of automobiles are China, Japan, India, and South Korea. This strong automotive production network generates a huge need for lead-acid batteries to energize the large array of traditional vehicles.

Competitive Landscape

Top Players 

Most of the major players compete in some of the factors, including price, service offerings, regional presence, etc. The following are the key players in the automotive lead-acid battery market -  

• Enersys
• Clarios
• Exide Industries Ltd.
• GS Yuasa International Ltd.
• C&D Technologies Inc.
• East Penn Manufacturing Company
• Camel Group Co. Ltd.
• Amara Raja Energy & Mobility Ltd.
• Robert Bosch LLC
• Century Battery Indonesia

Note: The above list does not necessarily include all the top players in the market.

Are you a leading player in this market? We would love to include your name. Please write to us at [email protected]

Recent Developments/Mergers & Acquisitions: 

• In July 2024, Exide Industries Ltd. launched a new advanced Absorbent Glass Mat (AGM) battery for starting, light, and ignition (SLI) applications, which is designed to give better starting power, improved durability, and potentially longer life compared to standard lead-acid batteries. Exide SLI-AGM battery has become a preferred choice for the latest-generation vehicles that feature energy-saving technologies such as regenerative braking, which stores energy within the battery instead of dissipating it.

Report Features

This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market.

The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve.
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation 

This report studies the market, covering a period of 15 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The automotive lead-acid battery market is segmented into the following categories:

By Product Type

• SLI Batteries 
• Micro Hybrid Batteries 
• Auxiliary Batteries 

By Type

• Flooded Batteries 
• VRLA Batteries 

By Customer Type

• OEM 
• Aftermarket 

By End-Use Type

• Passenger Cars 
• Light & Heavy Commercial Vehicles 
• Two Wheelers 
• Three Wheelers 

By Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, The UK, Russia, and the Rest of Europe)
• Asia-Pacific (Country Analysis: China, Japan, India, and Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)

Research Methodology

• This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s automotive lead-acid battery market realities and future market possibilities for the forecast period. 
• The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruits available in the market and formulating growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances

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