Automotive Lead Acid Battery Market Size

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.