Automotive Lead Acid Battery Market
Automotive Lead Acid Battery Market Size, Trend, Analysis & Competition Tracking By Battery Type (Flooded, Enhanced Flooded, Absorbent Glass Mat (AGM)), By Technology (Internal Combustion Engine (ICE), Hybrid, Electric), By Vehicle Type (Passenger Cars, Light Commercial Vehicles) - Global Review 2021 to 2031
Global sales of automotive lead acid batteries are expected to reach US$ 25.6 Bn in 2021. Fact.MR expects the automotive lead-acid battery industry to grow steadily, registering a CAGR exceeding 5% from 2021-2031. Expected valuation by the end of the forecast period is US$ 41.8 Bn. As per the report, the market is likely to generate an absolute $ opportunity worth US$ 14.5 Bn.
Key Points Addressed in Automotive Lead Acid Battery Industry Analysis
- Market Estimates and Forecasts (2016-2031)
- Key Drivers and Restraints Shaping Market Growth
- Segment-wise, Country-wise, and Region-wise Analysis
- Competition Mapping and Benchmarking
- Brand Share and Market Share Analysis
- Key Product Innovations and Regulatory Climate
- COVID-19 Impact on automotive lead acid battery and How to Navigate
- Recommendation on Key Winning Strategies
Automotive Lead Acid Battery Revenue Analysis 2016-2020 Vs Outlook for 2021-2031
According to Fact.MR, a market research and competitive intelligence provider, from 2016 to 2020, the global market for automotive lead acid batteries has grown at a CAGR of 4%. Growth is largely attributed to rising demand for enhanced flood batteries (EFB) amid rising electrification of vehicles.
The International Energy Agency (IEA) estimates that worldwide EV sales surpassed the 10 million mark in 2020. These vehicles require high-end batteries to offer enhanced cycling capability and improved charge acceptance. Sales temporarily contracted in the first half of 2020, as the COVID-19 pandemic impacted production of conventional vehicles. However, rising EV popularity sustained demand throughout the tumultuous year.
Based on the aforementioned trends, Fact.MR expects the global market for automotive lead acid batteries to expand at a CAGR of 5.03% from 2021 to 2031, representing a 1.6x increase.
How are Depleting Fossil Fuel Reserves Spurring Demand for Lead Acid Batteries?
A growing market for low emission or zero-emission batteries is driven by the use of hybrids and electric vehicles to increase air quality as well as tackling environmental issues such as carbon emissions is expanding demand for lead-acid batteries.
Due to the rapid depletion of fossil fuels, lead acid batteries are becoming more widely used. Government regulations imposed on greenhouse gas emissions from cars have prohibited the sale of vehicles that emit more pollutants. This is the primary factor driving the market for automotive lead acid batteries.
Avail customized purchase options for your needs
How are Structural and Functional Advantages Widening Sales?
Compared to other types of batteries, lead-acid batteries are more commonly used in automotive applications due to their considerable advantages, such as their availability in different sizes, shapes, zero maintenance, increased reliability, low cost, and longest life cycle. Advances in technology have enabled lead acid batteries to be installed with features like automatic water refilling or centrally-located plugs that have slowly decreased their maintenance needs.
They are easy to recycle and therefore possess increased demand on the market. The eco-friendly batteries extended their application to stationary areas such as Smart Grid frequency regulation types of setups and UPS systems (uninterruptible power systems). As energy storage requirements continue to rise, automotive lead acid batteries are meeting those demands in the market.
What Future Developments are anticipated for Automotive Lead Acid Batteries?
Researchers at chemical industries are working ceaselessly to design lead acid batteries with reduced weights, thereby accelerating vehicle speeds. As a result of its capability to discharge electricity even at low weight, lead acid batteries have emerged as the top choice for automotive batteries.
Researchers are exploring various aspects of the batteries, such as their impact on the environment during production and usage, their improved efficiency with less weight, and their reusability in nature. Additionally, the materials used in lead acid batteries and the cycling time were investigated globally. Researchers are researching how features such as automatic water refills and centrally located plugs can decrease their maintenance needs, which will lead to fewer battery checks.
An Adaptive Approach to Modern-day Research Needs
What Growth Prospects abound across the U.S Market?
According to Fact.MR, automotive lead acid battery sales are expected to surge at a CAGR of 6% from 2021 to 2031. Increasing vehicle sales in spite of the recessionary effects of the pandemic is expected to sustain market demand in forthcoming years.
As of 2020, overall automotive sales across the U.S reached 32 million units, including passenger, commercial and light duty vehicles. Furthermore, increasing sales of battery electric and plug-in hybrid electric vehicles is also spurring demand, with cumulative sales reaching 1.6 million units as of August 2020.
How is Europe Generating Demand for Automotive Lead Acid Batteries?
Europe has seen a huge growth in the production of cars, trucks, and vans in recent years. On average, about 15 million new cars and 20 million new trucks are produced annually. Technological advancements and sophisticated engineering in the automotive sector have made Europe the leader in the automobile industry.
With rising disposable income and stable economic conditions, governments have provided incentives for individuals to purchase vehicles, which has led to an escalation in vehicle production. Battery demand will increase rapidly in the future, particularly for electric vehicles. According to Fact.MR, Europe is expected to generate 17% of the demand for lead acid batteries in the automotive sector by 2031.
Why is Asia an Opportunistic Lead Acid Battery Market?
Asia is expected to emerge as one of the most lucrative markets for automotive lead acid batteries, accounting for 45% of total revenue. Emerging automotive sectors in key countries such as India, China and Japan are primarily sustaining market demand for automotive lead acid batteries.
Growing demand for 12-volt lead-acid batteries as well as new regulations pertaining to carbon dioxide emissions are driving advances in the field of lead acid batteries. Out of all countries, China is expected to account for more than half of all automotive lead acid battery sales, followed by India.
Why are Electric Lead Acid Batteries Gaining Traction?
Automobile manufacturers have continued to develop various alternative fuel vehicles amid growing environmental concerns and increasingly limited oil resources. One of the most prevalent and popular alternatives to petroleum is battery electric vehicles (BEVs).
Because of their zero emissions, they have been widely adopted throughout various regions. There was an increase in the production of electric cars and bikes in the automotive industry as the trend for using electric vehicles expanded. Due to their cost-effective nature and wide use in commercial applications, electric vehicles are increasingly being used in different regions. A CAGR of 5% is anticipated for this segment.
Why are Passenger Cars Generating Maximum Demand?
The growing population, higher incomes, rising standards of living, and growing economy have been boosting the sales of passenger cars recently. Growing countries are striving to become industrial hubs by welcoming new companies. By 2040, electric vehicles will account for 40% of all passenger vehicles, according to the International Energy Agency.
Hence, attributed to the aforementioned factors, sales of lead acid batteries for passenger vehicles for passenger vehicles are expected to surge, capturing 3/5th of the global market.
Interested to Procure The Data
Strategic collaborations enable manufacturers to increase production and meet consumer demand which will increase revenue and market share. Despite its highly competitive nature, the market for hybrid electric vehicles is growing rapidly. As the global hybrid electric vehicle market finds itself in a state of increasing competition, companies are working to strengthen their market position and gain traction.
- In June 2019, EnerSys Inc. announced its plans for the expansion of TPPL (Thin Plate Pure Lead) capacity over the period of three years to commercialize its Greenseal Bi-Polar Battery Technology
- In 2018, GS Yuasa Corporation opened its biggest production plant in China for the production of lead acid batteries
- In February 2017, Johnson Controls and Aqua Metals signed the battery recycling technology partnership.
Market size value in 2020
|USD 25.6 Billion|
Market forecast value in 2031
|USD 41.8 Billion|
|CAGR of 5.03% from 2021 to 2031|
Historical Data Available for
|US$ Mn for Value & ‘000 Units for Volume|
Key Regions Covered
Key Countries Covered
Key Market Segments Covered
Key Companies Profiled
Available upon Request
Key Segments Covered
- Flooded Automotive Lead Acid Battery
- Enhanced Flooded Automotive Lead Acid Battery
- Absorbent Glass Mat (AGM) Automotive Lead Acid Battery
- Internal Combustion Engine (ICE) Lead Acid Battery
- Hybrid Lead Acid Battery
- Electric Lead Acid Battery
- Automotive Lead Acid Battery for Passenger Cars
- Automotive Lead Acid Battery for Light Commercial Vehicles
- Automotive Lead Acid Battery Sales via OEMs
- Automotive Lead Acid Battery Sales via Aftermarket
- FAQs -
As of 2021, automotive lead acid battery sales will reach US$ 25.6 Bn
By 2031, the automotive lead acid battery market will touch US$ 41.8 Bn as per Fact.MR
A CAGR of 5.03% is expected for the market until 2031
Between 2016 and 2020, automotive lead acid battery sales surged at around 4% CAGR
Rising popularity of electric and hybrid vehicles will likely shape future automotive lead acid battery expansion trajectory
EnerSys Inc., Johnson Controls Inc., GS Yuasa Corporation, Panasonic Corporation and Leoch International Technology Limited are some prominent lead acid battery manufacturers
According to Fact.MR, automotive lead acid battery sales in the U.S will surge at a CAGR of 6%
Europe is poised to yield 17% revenue for automotive lead acid batteries
Electric lead acid batteries will garner high traction, expanding at 5% CAGR
Asia is the key market for automotive lead acid batteries, generating 45% revenue.
Need an Exclusive Report for your Unique Requirement?
- Related Reports -
- Our Clients -
- Evaluate How Fact.MR's Report Can Help. -
Is the market research conducted by Fact.MR?
Yes, the report has been compiled by expert analysts of Fact.MR, through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to a research analyst.
What research methodology is followed by Fact.MR?
Fact.MR follows a methodology that encompasses the demand-side assessment of the market, and triangulates the same through a supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions.
What are the sources of secondary research?
Fact.MR conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.
Who are the respondents for primary research?
Fact.MR speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, and industry experts. For a full list of primary respondents, please reach out to us.
Is a sample of this report available for evaluation?
Yes, you can request a sample, and it will be sent to you through an email.