Automotive Lead Acid Battery Market Analysis by Product (SLI, Micro-Hybrid Batteries); by Battery Type {Flooded, Enhanced Flooded (EFB), Absorbent Glass Mat (AGM), VRLA}; by Vehicle Type (Passenger Car, ICE, Hybrid, Electric, Light Commercial Vehicle); and by Sales Channel– Global Supply & Demand Analysis & Opportunity Outlook 2022-2031
Buy Now Report ID: 213 | Published Date: Feb 14, 2023
The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Program), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favorable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labor as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for the investment in businesses in Asia Pacific countries in the upcoming years.
Growth Drivers
·Increasing Demand for Lithium-Ion Batteries in the Automotive Industry
·Battery Explosion Risk Due to Overcharging
·Availability of Low-Cost Alternatives of Automotive Lead Acid Battery
The global automotive lead acid battery market is segmented and analyzed for demand and supply by vehicle type into passenger car, ICE, hybrid vehicle, electric vehicle, and light commercial vehicle. Among these segments, the passenger car segment is anticipated to capture the largest market size in the global automotive lead acid battery market owing to the growing sales of passenger cars worldwide. It was observed that the global sales of passenger cars for the year 2021 were reported at 55 million units, which was a significant increase over the previous year, which were 52 million units in 2020. Furthermore, the adoption of advanced technologies, rising demand for automated vehicles, and an increase in per capita income are expected to fuel segment growth over the forecast period.
Regionally, the global automotive lead acid battery market is studied into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Amongst these markets, the market in Asia Pacific is projected to hold the largest market share by the end of 2031 backed by the expansion of the passenger car and electric vehicles (EV) sector in the region. EV sales in India are expected to reach USD 7 billion by 2025. Moreover, government of India expects the automobile sector to attract USD 8-10 billion foreign investments by 2023. Moreover, the rising middle-class income, large youth population coupled with increasing sales and production of passenger cars & EVs in emerging countries of Asia Pacific, including China, India, Taiwan, and others are expected to fuel regional market growth over the forecast period.
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The global automotive lead acid battery market is further classified on the basis of region as follows:
Our in-depth analysis of the global automotive lead acid battery market includes the following segments:
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July 13, 2022: Panasonic Corporation, world's largest lithium-ion battery manufacturer, collaborated with Kansas for economic development, to advance the EV industry in United States.
March 13, 2021: General Motors Company- Next-generation Ultium chemistry is being developed by General Motors Company in preparation for the new joint development agreement with Solid Energy Systems to accelerate the transition to an electric future
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Smruti Ranjan, Rajrani Baghel
Ans: Rising sales of electric vehicles coupled with government initiatives towards the use of zero-emission automobiles are the major factors driving the growth of the automotive lead acid battery market.
Ans: The market is anticipated to attain a CAGR of ~5% over the forecast period, i.e., 2022 – 2031.
Ans: Battery explosion risk due to overcharging along with availability of low-cost alternatives of automotive lead acid battery is challenges expected to hinder market growth.
Ans: The market in Asia Pacific is projected to hold the largest market share by the end of 2031 and provide more business opportunities in the future.
Ans: The major players in the market are General Motors Company, Clarios, Panasonic Corporation, GS Yuasa Corporation, Leoch International Technology Limited Inc, EnerSys, EXIDE INDUSTRIES LTD., CSB Energy Technology Co., Ltd., and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by product, battery type, vehicle type, sales channel and by region.
Ans: The passenger car segment is anticipated to garner the largest market size by the end of 2031 and display significant growth opportunities
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