Automotive Lead Acid Battery Market Size & Share, by Product (SLI, Micro-Hybrid Batteries); Battery Type {Flooded, Enhanced Flooded (EFB), Absorbent Glass Mat (AGM), VRLA}; Vehicle Type (Passenger Car, ICE, Hybrid, Electric, LCV) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2031

Global Automotive Lead Acid Battery Market Size, Forecast, and Trend Highlights Over 2022 – 2031

The global automotive lead acid battery market is estimated to generate significant revenue by the end of 2031 by growing at a CAGR of ~5% over the forecast period, i.e., 2022 – 2031.

Further, the market generated modest revenue in the year 2021. The growth of the market can be primarily attributed to the rising sales of electric vehicles (EVs) worldwide. For instance, the sale of electric cars reached 2.5 million in 2020, registering an increase of 35% over 2019. On the other hand, the number of electric cars sold worldwide exceeded 10 million in 2020. Increasing fuel and oil prices, strict emission regulations, along with environmental concerns are all factors that have forced consumers around the world to switch to electric vehicles. To improve charge acceptance and cycling capability, electric vehicles require high-end batteries, which in turn is expected to propel the demand for automotive lead acid battery. Moreover, government initiatives promoting alternative fuel vehicles to reduce dependence on oil imports, as well as interest from the public towards zero-emission vehicles is anticipated to enlarge the automotive lead acid battery market size over the forecast period.  

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Rechargeable lead acid batteries are a popular form of energy storage and are widely used in automobiles for starting, lighting, and ignition (SLI). To convert chemical energy into electrical power, these batteries use sponge lead and lead peroxide plates dissolved in sulfuric acid. The global automotive lead acid battery market trends such as wireless charging technology for electric vehicles and reduction of carbon emissions are projected to dive market growth. Additionally, the adoption of hybrid and battery-operated vehicles is expected to increase the demand for passenger cars. Furthermore, rising personal disposable incomes in developing countries like India and China result in increasing sales of two-wheelers owing to high preference for such vehicles as a mode of transportation. It was observed that the per capita disposable income of China citizens in 2021 stood at USD 5,200, an increase of 9% over 2020.

Global Automotive Lead Acid Battery Market: Growth Drivers and Challenges

Growth Drivers

• Government Initiatives Towards the use of Zero-Emission Automobiles- With new federal legislation focusing on clean and efficient cars and trucks, the US government is aiming to sell 50 percent of zero-emission vehicles by 2030.Vehicles with zero emission include battery electric vehicles, plug-in hybrid electric vehicles, and fuel cell electric vehicles. In addition to decreasing battery prices and rising fossil fuel prices, the growing popularity of emission-free hybrid and all-electric vehicles is expected to spur market growth. 

• Globally Rising Exports of Automotive Lead Acid Batteries - According to the statistics by the International Trade Center, the global exports value of lead acid batteries in the year 2021 was recorded to be USD 12,551,152 thousand, which was an increase from USD 10,568,085 thousand in the previous year 2020.

• Growing Investment and Development in the Electrification of Vehicles - For instance, in 2022, Mahindra & Mahindra announced that they are planning to invest USD 1 billion in electric vehicles with a line-up of five electric vehicles in next five years. Aiming to sell 2 lakh electric vehicles by FY-2027, they are taking a new path towards electric vehicles.
• Rapid Expansion of Automobile Industry- It was observed that over a period of April 2021 to March 2022, the automobile industry produced nearly 22,930,000 vehicles, including passenger cars, commercial vehicles, three and two-wheelers, and quadricycles, an increase from around 22,600,000 units in April 2020 to March 2021.
• Increasing Exports of Passenger Vehicles – For instance, the number of passenger vehicles exported in April 2021 to March 2022 increased from 403,390 to 570,870 units, while commercial vehicle exports increased from 50,330 to 92,290 over the same period last year.

Challenges

·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. 

Major Macro-Economic Indicators Impacting the Market Growth

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.

Global Automotive Lead Acid Battery Market Regional Synopsis

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:

• North America (U.S. & Canada) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
• Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
• Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC (Finland, Sweden, Norway, Denmark), Ireland, Switzerland, Austria, Poland, Turkey, Russia, Rest of Europe), Poland, Turkey, Russia, Rest of Europe) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
• Asia-Pacific (China, India, Japan, South Korea, Singapore, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
• Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook

Market Segmentation

Our in-depth analysis of the global automotive lead acid battery market includes the following segments:

Top Featured Companies Dominating the Global Automotive Lead Acid Battery Market

• General Motors Company
  • Company Overview
  • Business Strategy
  • Key Product Offerings
  • Financial Performance
  • Key Performance Indicators
  • Risk Analysis
  • Recent Development
  • Regional Presence
  • SWOT Analysis

• CLARIOS
• Panasonic Corporation
• GS Yuasa Corporation
• Leoch International Technology Limited Inc 
• EnerSys
• EXIDE INDUSTRIES LTD.
• CSB Energy Technology Co., Ltd.
• East Penn Manufacturing Company
• FIAMM Energy Technology S.p.A.