Automotive Lead Acid Batteries Market

Updated on : June 27, 2024

Automotive Lead Acid Batteries Market

The global automotive lead acid batteries market was valued at USD 27.8 billion in 2023 and is projected to reach USD 34.0 billion by 2028, growing at 4.2% cagr from 2023 to 2028. The automotive lead acid batteries market has observed stable growth throughout the study period and is anticipated to continue with the same trend during the forecast period. Increase in vehicle ownerships with exponentially rising population and rapid urbanization are expected to drive the growth of the market in the upcoming years.

Attractive Opportunities in the Automotive Lead Acid Batteries Market

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Automotive Lead Acid Batteries Market Dynamics

Driver: Well established technology and cost-effective energy solution

Lead acid batteries are considered an established and mature technology that has been in use for over 150 years. They are the dominant battery technology for various applications, such as automotive starting batteries, backup power systems, uninterruptible power supplies (UPS), and industrial applications. Besides, lead acid batteries are relatively low-cost compared to other battery technologies like lithium-ion. They are relatively easy to maintain and charge, which contributes to their continued popularity. Hence, the well established infrastructure and cost effectiveness is anticipated to promote the growth of the automotive lead acid  batteries.

Restraint: Increasing adoption of lithium-ion batteries

Lithium-ion batteries have gained significant popularity over lead acid batteries in the automotive sector. They offer higher energy density, better power-to-weight ratio, and longer cycle life compared to lead acid batteries. These characteristics make lithium-ion batteries more suitable for the high-performance requirements of electric vehicles, allowing for longer driving ranges and faster acceleration. Thus, increasing adoption of lithium-ion batteries is expected to hamper the growth of automotive lead acid batteries market.

Opportunity: Technological advancements to enhance durability and reduce maintenance requirements.

One focus of research and development is to improve the cycling life of lead acid batteries. This involves optimizing the battery's electrode materials, such as lead alloys, and modifying the battery's design and construction. By enhancing the battery's ability to withstand repeated charge and discharge cycles, the cycling life can be extended, making the battery more durable and long-lasting.

Challenge: Limited usage capacity of lead acid batteries

Lead acid batteries have a limited number of charge-discharge cycles they can endure before experiencing significant degradation in capacity and performance. The cycle life of lead acid batteries is generally lower compared to lithium-ion batteries. This limitation affects the overall usage capacity of lead acid batteries, especially in applications where frequent cycling is required, such as in electric vehicles.

Automotive Lead Acid Batteries Market Ecosystem

Prominent companies in this market include well-established, and financially stable manufacturers of lead acid batteries. These companies have been operating in the market for several years and possess a diversified product portfolio and strong global sales and marketing networks. Prominent companies in this market include Clarios (US), EnerSys (US), East Penn Manufacturing Company (US), GS Yuasa Corporation (Japan), and Exide Industries Ltd. (India).

Based on product, the SLI batteries segment is projected to account for the largest share in 2023.

The SLI batteries segment is estimated to have the largest share of the global automotive lead acid batteries market in 2023. They are widely used in passenger vehicles, commercial vehicles, motorcycles, and other automotive applications. The key drivers for the SLI batteries include the increasing global vehicle production, rising demand for advanced automotive technologies, stricter emission regulations, and the growth of electric and hybrid vehicles.

Based on type, the VRLA batteries segment is projected to account for the largest share in 2023.

The VRLA batteries segment is estimated to have the largest share of the global automotive lead acid batteries market in 2023. VRLA batteries are used in micro-hybrid vehicles, also known as mild hybrids, which incorporate features like start-stop systems, regenerative braking, and energy recuperation. These systems provide some level of hybrid functionality by assisting the internal combustion engine and reducing fuel consumption. Thus, VRLA batteries support the energy storage requirements of these systems which can be boost the automotive lead acid batteries market.

Based on customer segment, the aftermarket segment is projected to account for the largest share in 2023.

The aftermarket segment is estimated to have the largest share of the global automotive lead acid batteries market in 2023. The segment is primarily driven by the need for battery replacements in vehicles that have exhausted the lifespan of their original batteries. As lead-acid batteries have a limited service life, typically ranging from 3 to 5 years, the aftermarket demand for replacement batteries remains steady. Thus, aftermarket segment promotes the growth of the automotive lead acid batteries market.

Based on end use, the passenger cars segment is projected to account for the largest share in 2023.

The passenger cars segment is estimated to have the largest share of the global automotive lead acid batteries market in 2023. Economic growth in many regions has resulted in increased disposable income and improved affordability of passenger cars. This has made car ownership more accessible to a larger population, leading to an increase in the number of cars on the road. Thus, the use of passenger cars has been increasing globally promoting the growth of automotive lead acid batteries market.

Based on region, Asia Pacific region is projected to account for the largest share in 2023.

Due to the expanding population, industrialization, urbanization, and rising demand for premium cars, automotive lead acid battery consumption is on the rise in the Asia Pacific region. Also, there is a noticeable shift towards maintenance-free lead acid batteries in the Asian market. These batteries feature advanced designs and technologies that minimize the need for regular maintenance, such as checking electrolyte levels and adding distilled water. Maintenance-free batteries offer convenience to consumers and find increasing acceptance in various applications, including automotive, uninterruptible power supply (UPS) systems, and backup power applications.

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Automotive Lead Acid Batteries Market Players

Camel Group Co., Ltd. (China), C&D Technologies, Inc. (US), Clarios (US), CSB Energy Technology Co., Ltd. (Taiwan), East Penn Manufacturing Company (US), EnerSys (US), Exide Industries Ltd. (India), Exide Technologies (France), GS Yuasa Corporation (Japan), Koyo Battery Co., Ltd. (Taiwan), Leoch International Technology Limited (China), Mebco (Saudi Arabia), PT. Century Batteries Indonesia (Indonesia), Reem Batteries (Oman), Ritar International Group (China), Robert Bosch GmbH (Germany), Stryten Energy (US), Tai Mao Battery Co., Ltd. (Taiwan), Tianneng (China), and others are among the major players leading the market through their innovative offerings, enhanced production capacities, and efficient distribution channels.

Automotive Lead Acid Batteries Market Report Scope

This research report categorizes the automotive lead acid batteries market based on product, type, customer segment, end use, and region.

Based on product, the automotive lead acid batteries market has been segmented as follows:

• SLI batteries
• Micro hybrid batteries

Based on type, the automotive lead acid batteries market has been segmented as follows:

• Flooded batteries
• VRLA batteries

Based on customer segment, the automotive lead acid batteries market has been segmented as follows:

• OEM
• Aftermarket

Based on end use, the automotive lead acid batteries market has been segmented as follows:

• Passenger cars
• Light & heavy commercial vehicles
• Two wheelers
• Three wheelers

Based on the region, the automotive lead acid batteries market has been segmented as follows:

• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Europe
  • Germany
  • Italy
  • France
  • UK
  • Rest of Europe
• North America
  • US
  • Canada
  • Mexico
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of Middle East & Africa
• South America
  • Brazil
  • Chile
  • Rest of South America

Recent Developments

• In January 2022, Clarios introduced the Smart AGM batteries for application in advanced driver assistance systems of electric vehicles.
• In December 2021, GS Yuasa Corporation signed an agreement with Tata Autocomp GY Batteries Private Limited to double their production of lead acid batteries to more than 8 million units.

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