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The global automotive lead acid batteries market is anticipated to attain a valuation of US$ 28.24 billion in 2023 and is expected to reach US$ 47 billion by 2033, expanding at a CAGR of 5.2% from 2023 to 2033.
The surging popularity of electric vehicles and the growing utilization of uninterrupted power supply for critical power applications are anticipated to drive market growth. The reliability and affordability of lead-acid batteries make them well-suited for a wide range of consumer and industrial applications. In terms of processing and recycling, lead-acid batteries hold a larger percentage compared to lithium-ion batteries.
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The increasing use of electrical devices like mobile phones, power banks, and electronic gadgets, coupled with advancements in marine propulsion technology and the growing demand for elevators worldwide, necessitates energy storage systems, thereby driving the market growth.
The market is projected to witness an upsurge in demand for lead acid batteries due to strict government regulations focused on carbon emissions and energy solutions. Additionally, the growing global population, accompanied by an increase in per capita income, further contributes to this demand. The industry presents growth opportunities driven by the rising adoption of electric vehicles, whereas challenges such as the risks of battery explosion resulting from overcharging and the growing demand for lithium-ion batteries may hinder its overall growth.
Key Takeaways
United States automotive lead acid battery market is expected to grow with a CAGR of 5.1% during the forecast period.
The market in China is expected to grow with a CAGR of 5.5% during the forecast period.
By vehicle type, passenger vehicle segment is projected to dominate the automotive lead acid battery market. It is expected to grow with a significant CAGR of 5.4% during the forecast period.
By technology, ICE battery segment is expected to grow with an impressive CAGR of 10% throughout the forecast period.
“The reliability and affordability of lead batteries an rising sales of electric vehicles are expected to drive market growth during the forecast period,” comments an FMI Analyst
Competitive Landscape
The automotive lead acid battery market is extremely competitive, with various key industry players investing heavily in manufacturing these batteries.
The key industry players are Clarios, GS Yuasa Corporation, Panasonic Corporation, Leoch International Technology Limited, Exide Industries Ltd., EnerSys Inc., East Penn Manufacturing Company, Exide Technologies Inc., CSB Battery Company Limited.
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Some recent developments in the market are:
Key market players are leveraging organic growth strategies like acquisition, mergers, tie-ups, and collaboration to bolster their product portfolio. This is expected to propel the global automotive lead acid battery market.
In January 2021, EnerSys announced a collaboration with TravelCenters of America (TA) to provide Odyssey Performance and NorthStar PRO Group 31 lead-acid batteries specifically designed for heavy-duty applications.
In December 2021, GS Yuasa Corporation announced its plans for expansion in the motorcycle lead-acid battery market.
On July 13, 2022, Panasonic Corporation, the largest manufacturer of lithium-ion batteries in the world, joined forces with Kansas for economic development with the aim of driving forward the electric vehicle (EV) industry in the United States.
On March 13, 2021, General Motors Company made significant progress in its development of the next-generation Ultium chemistry. This advancement was made in anticipation of a new joint development agreement with Solid Energy Systems, aimed at expediting the transition towards an electric future.
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