Automotive Lead Acid Battery Sector: Growth Drivers and Challenges
Growth Drivers
- Government Initiatives Towards the use of Zero-Emission Automobiles- With new federal legislation focusing on clean and efficient cars and trucks, the US government is aiming to sell 50 percent of zero-emission vehicles by 2030.Vehicles with zero emission include battery electric vehicles, plug-in hybrid electric vehicles, and fuel cell electric vehicles. In addition to decreasing battery prices and rising fossil fuel prices, the growing popularity of emission-free hybrid and all-electric vehicles is expected to spur market growth.
- Globally Rising Exports of Automotive Lead Acid Batteries - According to the statistics by the International Trade Center, the global exports value of lead acid batteries in the year 2021 was recorded to be USD 12,551,152 thousand, which was an increase from USD 10,568,085 thousand in the previous year 2020.
- Growing Investment and Development in the Electrification of Vehicles - For instance, in 2022, Mahindra & Mahindra announced that they are planning to invest USD 1 billion in electric vehicles with a line-up of five electric vehicles in next five years. Aiming to sell 2 lakh electric vehicles by FY-2027, they are taking a new path towards electric vehicles.
- Rapid Expansion of Automobile Industry- It was observed that over a period of April 2021 to March 2022, the automobile industry produced nearly 22,930,000 vehicles, including passenger cars, commercial vehicles, three and two-wheelers, and quadricycles, an increase from around 22,600,000 units in April 2020 to March 2021.
- Increasing Exports of Passenger Vehicles – For instance, the number of passenger vehicles exported in April 2021 to March 2022 increased from 403,390 to 570,870 units, while commercial vehicle exports increased from 50,330 to 92,290 over the same period last year.
Challenges
- ·Increasing Demand for Lithium-Ion Batteries in the Automotive Industry
- ·Battery Explosion Risk Due to Overcharging
- ·Availability of Low-Cost Alternatives of Automotive Lead Acid Battery
Automotive Lead Acid Battery Market: Key Insights
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
4.8% |
|
Base Year Market Size (2024) |
USD 29.42 billion |
|
Forecast Year Market Size (2037) |
USD 54.12 billion |
|
Regional Scope |
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Browse key industry insights with market data tables & charts from the report:
Frequently Asked Questions (FAQ)
In the year 2025, the industry size of automotive lead acid battery is estimated at USD 30.62 billion.
Automotive Lead Acid Battery Market size was over USD 29.42 billion in 2024 and is anticipated to cross USD 54.12 billion by 2037, growing at more than 4.8% CAGR during the forecast period i.e., between 2025-2037.
Asia Pacific industry is expected to account for largest revenue share by 2037, backed by expansion of the passenger car and electric vehicles (EV) sector in the region.
The major players in the market are General Motors Company, Clarios, Panasonic Corporation, GS Yuasa Corporation, Leoch International Technology Limited Inc, EnerSys, EXIDE INDUSTRIES LTD., CSB Energy Technology Co., Ltd., and others.
