Automotive Lead Acid Battery Market Challenges & Strategic Recommendations

Automotive Lead Acid Battery Market Growth, Innovation & Investment Trends

The automotive lead acid battery market is forecast to grow at a CAGR of 8.43%, from USD 25.1 billion in 2025 to USD 52 billion by 2034, over the forecast period from 2025 to 2034.

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Introduction

The automotive lead acid battery market is a prominent sector of the automotive industry. This industry deals in manufacturing and distribution of lead acid batteries for automotives. There are several types of batteries developed in this industry consisting of flooded batteries, SLI batteries, absorbent glass mat batteries, enhanced flooded batteries and others. These batteries are designed for different vehicles consisting of passenger cars and commercial vehicles. The rising sales of commercial vehicles in different parts of the world has contributed to the industrial expansion. This market is expected to grow drastically with the rise of the battery industry around the globe.

• According to the OICA, around 285501 commercial vehicles were sold in Africa during 2022 that increased to 302106 in 2023.

Highlights of the Automotive Lead Acid Battery Market

• Asia Pacific held the dominant share of the automotive lead acid battery market due to the rising development in the battery manufacturing sector in this region.
• Latin America is expected to grow with a significant CAGR due to the growing demand for automotives in this region.
• The SLI segment dominated the market due to its rapid adoption in ICE vehicles.
• The passenger cars segment led the market due to the increasing trend of SUVs around the world.

Automotive Lead Acid Battery: Trends, Investment and Stats

• The battery manufacturing brands have started investing heavily for developing advanced lead acid batteries for numerous automotive applications. For instance, in June 2024, Amara Raja announced to invest around Rs 3000 crores. This investment is done for manufacturing lead acid batteries in India.
• According to the International Organization of Motor Vehicle Manufacturers, around 92724668 vehicles were sold globally in 2023.
• According to the Our world in Data, around 22% vehicles sold in Europe during 2023 were EVs.
• Some battery companies are collaborating among themselves to developed advanced SLI-AGM batteries to maintain their dominance in the industry. For instance, in July 2024, Exide collaborated with East Penn Manufacturing, USA. This collaboration is done for developing advanced SLI-AGM batteries for the automotive industry.

Industry Leader Announcement

In January 2024, Vikas Aggarwal, the founder of Ipower Batteries announced that, “This is more than just a milestone for us; it's a game-changer for the Indian EV industry. As we are all aware, the EV sector has been heavily reliant on costly lithium batteries, with a significant dependency on imports for cells. Our achievement heralds a new era where we can offer a more economical alternative with our 32Ah/C20 lead-acid batteries, weighing just 7.2 Kg." The implications of this achievement are substantial. It will enable Ipower to reduce costs and enhance accessibility of such batteries and use.

Additionally, it will not only contribute to the growth of the EV industry in India but also support the nation's vision for self-reliance in alternate energy sources. These batteries are for EV 2-wheeler Ipower Batteries, which has time again come up with innovative solutions to not only drive the EV industry but also has dedicatedly worked on manufacturing world- class battery packs. The company's stealth in the space has been driven by its team of engineers whose pursuit of innovation and excellence has made it possible. This achievement is a testament to the talent and determination of our team."

Competitive Landscape

The automotive lead acid battery market is a fragmented industry with the presence of several dominating players. Some of the prominent market players in this industry comprises of Clarios; CSB Energy Technology Co. Ltd.; East Penn Manufacturing Company, Camel Group Co., Ltd.; C&D Technologies Inc.; EnerSys; Exide Technologies and some others. These market players are constantly engaged in developing lead acid batteries for the automotive sector and adopting several strategies to sustain their dominant position in this industry.

• According to the annual report of Clarios, the company generated a revenue of US$ 8.5 billion in 2019 that increased to US$ 10.6 billion in 2024.

Market Segmentations

By Battery Type

• Flooded
• SLI
• Absorbent Glass Mat (AGM)
• Enhanced Flooded Battery (EFB)

By Vehicle Type

• Passenger cars
• Light and heavy commercial vehicles

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa