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Rise Of Electric Vehicles Drives Growth Of Automotive Lead-Acid Batteries Market: Core Growth Enabler in the Automotive Lead Acid Batteries Market, 2025
Stay ahead with our updated market reports featuring the latest on tariffs, trade flows, and supply chain transformations.What Will the Automotive Lead Acid Batteries Industry Market Size Be by 2025?
Recent years have seen a consistent increase in the size of the automotive lead acid batteries market. An upward trend is projected, with market value rising from $36.93 billion in 2024 to $38.54 billion in 2025. This represents a compound annual growth rate (CAGR) of 4.4%. Historical growth can be linked with the expansion of the automotive industry, preeminence of traditional vehicles, the reliability and longevity of the batteries, aftermarket demand, superior cold cranking performance, and assistance for start-stop systems.
What's the Long-Term Growth Forecast for the Automotive Lead Acid Batteries Market Size Through 2029?
We anticipate robust expansion in the automotive lead acid batteries market in the upcoming years, with the size projected to reach $47.97 billion in 2029, growing at a compound annual growth rate (CAGR) of 5.6%. The projected growth during the forecast period can be credited to the shift towards mild hybrid systems, the continued supremacy of conventional vehicles, market expansion in emerging regions, the backing for commercial vehicles, hybridization trends, and governmental endorsements for recycling. During the forecast period, key trends include an enhanced focus on start-stop technology, advancements in the sector of battery technologies, the emergence of micro-hybrid vehicles, the integration of intelligent battery technologies, along with evolving consumer tastes and technological advancements.
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What Are the Key Growth Drivers Fueling the Automotive Lead Acid Batteries Market Expansion?
The surge in electric vehicle popularity is anticipated to bolster the automotive lead-acid battery market's expansion. This is catalyzed by global climate change concerns and goals to reach carbon-neutral status. The proliferation of EV charging points, the implementation of stations for hydrogen refueling, and government incentives promoting EV adoption and enforcement all contribute to electric vehicle consumption. Such factors boost the requirement for automotive lead-acid batteries, renowned for their high power, cost-effectiveness, safety, and reliability. For instance, the France-based International Energy Agency (IEA) reported in April 2023 that electric car sales made up 14% of all worldwide new car sales in 2022, a significant leap from 9% in 2021. This sales rise is predicted to persist in 2023, with over 2.3 million electric vehicles sold in just the first quarter, reflecting a 25% uptick compared to the same timeframe the previous year. Furthermore, sales of electric vehicles are expected to reach 14 million by the end of 2023, signifying a 35% year-on-year growth, particularly gathering speed in the year's latter half. Thus, the growing popularity of electric vehicles is set to steer the automotive lead-acid batteries market.
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What Are the Key Trends Driving Automotive Lead Acid Batteries Market Growth?
The rise in technological innovation within the automotive lead-acid battery market emerges as an influential trend, gathering considerable momentum in the industry. The market's leading businesses are allocating significant resources towards devising advanced battery solutions with the intent to fortify their market standing. To illustrate, Schaeffler India-a leading Indian manufacturer of ball and roller bearings-introduced the TruPower 2W batteries in June 2023, catered specifically for two-wheelers and electric two-wheelers. The said batteries, enhanced with cutting-edge features guarded by a 24-month warranty, serve as a reliable and enduring power solution, thereby positing them as an ideal choice for consumers of two-wheelers looking to achieve high-end performance and trustworthiness.
How Is the Automotive Lead Acid Batteries Market Segmented?
The automotive lead acid batteries market covered in this report is segmented -
1) By Type: Flooded Batteries, Enhanced Flooded Batteries, VRLA Batteries
2) By Product: SLI Batteries, Micro Hybrid Batteries
3) By Sales Channel: Automotive Lead Acid Battery Sales via OEMs, Automotive Lead Acid Battery Sales Via Aftermarket
4) By End User: Passenger Car, Light Commercial Vehicles, Heavy Commercial Vehicles, Two-Wheeler, Three-Wheeler
Subsegments:
1) By Flooded Batteries: Conventional Flooded Batteries, Maintenance-Free Flooded Batteries
2) By Enhanced Flooded Batteries (EFB): EFB For Start-Stop Systems, EFB For Conventional Applications
3) By VRLA Batteries (Valve-Regulated Lead-Acid): Absorbent Glass Mat (AGM) Batteries, Gel Batteries
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Which Companies Are Leading the Charge in Automotive Lead Acid Batteries Market Innovation?
Major companies operating in the automotive lead acid batteries market are GS Yuasa International Limited, Johnson Controls Inc., Exide Industries Limited, EnerSys Inc., Panasonic Corporation, CSB Battery Company Limited, East Penn Manufacturing Company, Leoch International Technology Limited, NorthStar Battery Company LLC, Clarios LLC, Koyo Battery Company Limited, FIAMM Energy Technology S.P.A, Reem Batteries & Power Appliances Co. SAOC, Trojan Battery Company LLC, C&D Technologies Inc., Robert Bosch GmbH, Thai Bellco Battery Co.Ltd., Crown Battery Manufacturing Company, Narada Power Source Co. Ltd., Shandong Sacred Sun Power Sources Co.Ltd., Amara Raja Batteries Limited, Banner Batterien GmbH, Camel Group Co.Ltd., Fengfan Co.Ltd., Guangdong Dynavolt Power Technology Co. Ltd., Haze Battery Co. Ltd., Hitachi Chemical Energy Technology Co. Ltd., Zibo Torch Energy Co.Ltd., Coslight Technology International Group Co.Ltd., PT Astra International Tbk
Which Regions Are Leading the Global Automotive Lead Acid Batteries Market in Revenue?
Asia-Pacific was the largest region in the automotive lead acid batteries market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive lead acid batteries market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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