Automotive Lead Acid Battery Market size was over USD 28.07 billion in 2023 and is poised to cross USD 51.63 billion by 2036, growing at more than 4.8% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of automotive lead acid battery is evaluated at USD 29.15 billion.
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 market size over the forecast period.
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.
Growth Drivers
Challenges
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2023 |
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Forecast Year |
2024–2036 |
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CAGR |
4.8% |
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Base Year Market Size (2023) |
USD 28.07 billion |
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Forecast Year Market Size (2036) |
USD 51.63 billion |
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Regional Scope |
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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 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.
Our in-depth analysis of the global market includes the following segments:
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By Product |
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By Battery Type |
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By Vehicle Type |
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By Sales Channel |
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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 set to dominate majority revenue share by 2036, backed by 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.
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
Author Credits: Rajrani Baghel
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