Automotive Lead-Acid Battery Market to Reach USD 52.40 billion by 2035, Driven by ICE Vehicle Fleet and Aftermarket Demand

The global automotive lead-acid battery market is projected to grow from USD 31.26 billion in 2025 to USD 52.40 billion by 2035, a compound annual growth rate (CAGR) of 5.3%, according to a new market forecast. The steady demand is primarily fueled by the vast global fleet of internal combustion engine (ICE) vehicles and a robust replacement market.

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Key Market Drivers and Trends

The enduring relevance of lead-acid batteries stems from their proven reliability, affordability, and critical role in modern vehicle functions. They are the go-to power source for starting, lighting, and ignition (SLI) in conventional cars, while also providing essential backup power for low-voltage systems in hybrid and electric vehicles (EVs).

Key drivers of this growth include:

• Growing Global Vehicle Production: The continuous production of ICE vehicles, particularly in emerging markets, ensures a consistent demand for conventional lead-acid batteries.

• Expansion of Start-Stop Systems: The adoption of advanced flooded (EFB) and absorbent glass mat (AGM) batteries in vehicles with start-stop technology is increasing, driven by stricter fuel efficiency and emissions standards.

• Strong Aftermarket Sales: The rising average age of vehicles and the need for regular battery replacements due to wear and tear, especially in older cars and in regions with extreme weather, are boosting the aftermarket segment.

• Advanced Recycling Infrastructure: With over 95% recycling rates in developed nations, lead-acid batteries are a prime example of a circular economy. This environmental advantage makes them a sustainable choice for automakers and consumers alike.

Segmentation and Top Investment Opportunities

The report segments the market by battery type, technology, vehicle type, and sales channel, identifying key growth areas for industry stakeholders.

By Battery Type
The flooded lead-acid battery segment currently holds over 60% of the market share. These batteries remain the top choice for conventional ICE vehicles due to their low cost and reliability. However, AGM batteries are the fastest-growing segment by value, expanding at a CAGR of approximately 14% in 2023. Their superior performance in vehicles with start-stop systems and advanced electronics is driving this surge.

By Technology
While ICE vehicles represent the largest segment, the electric vehicle (EV) segment is the fastest-growing at a CAGR of 6.1%. Although lithium-ion batteries power EV propulsion, lead-acid batteries are indispensable for auxiliary functions like lighting, infotainment, and safety systems.

By Vehicle Type
The light commercial vehicle (LCV) segment is projected to grow the fastest, with a CAGR of 5.8%. The expansion of e-commerce and last-mile delivery services is driving the demand for reliable and cost-effective LCVs, which rely heavily on lead-acid batteries.

By Sales Channel
The aftermarket segment is expected to be the fastest-growing channel at a CAGR of 5.6%. This growth is fueled by the large fleet of aging vehicles worldwide that require frequent battery replacements.

Competitive Landscape and Key Players

The market is highly competitive, with major players focusing on product innovation, expanding distribution networks, and investing in sustainable practices. Clarios (formerly Johnson Controls) maintains its position as a global leader, supplying OEMs with scalable solutions. Exide Technologies dominates the aftermarket, while GS Yuasa and East Penn Manufacturing are known for their technological advancements and strong regional presence.

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