Press release
Automotive Lead Acid Battery Market to expand at a CAGR of 4.2% through 2016-2026
In this report, Future Market Insights (FMI) examines the factors impacting market growth and offers detailed insights for informed decision making.
Key market drivers and trends
The growth of the global automotive lead acid battery market is influenced by a number of factors including increasing vehicle production resulting from a promising vehicle sales outlook in developing economies, increasing production of hybrid and electric vehicles, rising vehicle electrification, research and development collaborations, and stable automobile production. Low maintenance and replacement costs and growing adoption of advanced automotive technologies such as start-stop further contribute to the growth of the market. Key trends observed in the global automotive lead acid battery market include advancements in lead acid battery technology, reduction in battery size, and long-term supply contracts between battery suppliers and automotive OEMs.
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The overall market approach adopted by manufacturers of automotive lead acid batteries includes strengthening of the supply chain particularly in regions such as Asia Pacific and
Latin America. Manufacturers are also focused on developing high-quality automotive lead acid batteries adhering to regulations and OEM specific requirements. Suppliers of automotive lead acid batteries cater to the specific requirements of automakers, while adhering to high quality standards of production. A number of automotive lead acid battery suppliers have long-term suppliers’ contracts with OEMs for providing automotive lead acid batteries as per the specific requirements.
Market projections based on region
The global automotive lead acid battery market covers five major regions -- Asia Pacific, North America, Latin America, Europe, and Middle East & Africa (MEA). In terms of value, Asia Pacific has been estimated to account for the largest share in the global automotive lead acid battery market – with over 33% market share in 2015 – followed by Europe and North America. Among all the regions, the Asia Pacific market is anticipated to register the highest CAGR over 2016 - 2026, followed by Middle East & Africa (MEA). The market in MEA is in the nascent stage, primarily due to low automotive production and vehicle parc.
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The Asia Pacific region is expected to emerge as the fastest growing market in the global automotive lead acid battery market over the forecast period. The market in the region in terms of value is expected to expand at a CAGR of 6.4% over the forecast period. The Middle East & Africa automotive lead acid battery market is expected to expand significantly in terms of revenue after Asia Pacific. The market in the region is slated to grow at a CAGR of 5.5% during the forecast period. The markets in Latin America and North America are expected to expand at moderate CAGRs of 3.07% and 3.05% over the forecast period. The North America automotive lead acid battery market is expected to reach a value of US$ 6,720.4 Mn by 2026. In Europe, the automotive lead acid battery market is expected to be the slowest growing in the global automotive lead acid battery market. The market in the region in terms of value is expected to expand at a CAGR of 2.0% between 2016 and 2026.
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