Automotive Lead Acid Batteries Market Report 2025

The automotive lead acid batteries market size has grown steadily in recent years. It will grow from $36.93 billion in 2024 to $38.54 billion in 2025 at a compound annual growth rate (CAGR) of 4.4%. The growth in the historic period can be attributed to automotive industry growth, conventional vehicle dominance, reliability and durability, aftermarket demand, cold cranking performance, support for start-stop systems.

The automotive lead acid batteries market size is expected to see strong growth in the next few years. It will grow to $47.97 billion in 2029 at a compound annual growth rate (CAGR) of 5.6%. The growth in the forecast period can be attributed to transition to mild hybrid systems, continued dominance in conventional vehicles, market penetration in developing regions, support for commercial vehicles, hybridization trends, government support for recycling. Major trends in the forecast period include increased focus on start-stop technology, advancements in battery technologies, rise of micro-hybrid vehicles, integration of smart battery technologies, evolving consumer preferences and technologies.

The growing demand for electric vehicles is anticipated to drive the expansion of the automotive lead-acid batteries market in the future. Climate change concerns and goals for achieving net-zero emissions are propelling the global transition toward emissions-free driving. The establishment of EV charging stations, hydrogen fueling stations, and governmental initiatives supporting the adoption and implementation of electric vehicles are encouraging their use. These developments are increasing the demand for automotive lead-acid batteries, which provide high power, affordability, safety, and reliability. For example, in April 2023, the International Energy Agency (IEA), a France-based intergovernmental organization, reported that electric vehicle sales constituted 14% of all new cars sold worldwide in 2022, a significant increase from 9% in 2021. This upward trend is expected to persist in 2023, with over 2.3 million electric vehicles sold in the first quarter alone, reflecting a 25% rise from the same period the previous year. Moreover, projections indicate that 14 million electric vehicles will be sold by the end of 2023, marking a 35% year-on-year increase, with new purchases expected to accelerate in the latter half of the year. Therefore, the increasing demand for electric vehicles will stimulate the automotive lead-acid batteries market.

Rising disposable income is expected to drive the growth of the automotive lead-acid batteries market moving forward. Disposable income refers to the income available after taxes and social security deductions. It significantly influences consumer spending on electric vehicles, thereby affecting the demand for automotive lead-acid batteries as a cost-effective power solution, particularly in regions where disposable income levels are rising. For instance, in July 2022, the U.S. Bureau of Economic Analysis (BEA), the official site of the United States government, reported a 0.4% increase in the personal disposable income of American citizens, along with a 0.9% rise in monthly spending. Therefore, the increasing disposable income is driving the growth of the automotive lead-acid batteries market.

Technological advancements represent a key trend gaining traction in the automotive lead-acid battery market. Noteworthy companies in this sector prioritize offering advanced battery solutions to fortify their market standing. For example, in June 2023, Schaeffler India, an India-based ball and roller bearing manufacturing company, unveiled the TruPower 2W batteries engineered explicitly for two-wheelers, including electric variants. These batteries, backed by a 24-month warranty and integrated with advanced features, deliver dependable and enduring power solutions, appealing to two-wheeler owners seeking superior performance and reliability, thereby amplifying the technological advancements in the automotive lead-acid battery market.

Prominent companies in the automotive lead acid battery market are intensifying their efforts to introduce innovative and tailored formulations to attain a competitive advantage. Customized formulations involve modifying a substance's composition to meet specific requirements or unique specifications. In a noteworthy development in September 2023, Birla Carbon, an India-based carbon black manufacturer, unveiled a new line of conductive carbons meticulously crafted for the lithium-ion and lead-acid battery markets. These offerings empower customization in formulation and performance across diverse segments such as automotive, telecommunications, motive power, energy storage systems, and e-bikes. Leveraging Birla Carbon’s distinctive Ultra process, these products ensure exceptional levels of purity and conductivity. This specialized formulation enhances charge acceptance, particularly beneficial during partial state-of-charge operation, addressing distinct needs within the automotive battery sector.

In March 2022, Clarios, a US-based company specializing in the development of advanced battery technologies for nearly all types of vehicles, acquired Metalurgica de Medina SA for an undisclosed amount. This acquisition allows Clarios to secure high-quality input materials and tolling services in key operational regions, while also enabling further vertical integration and centralization of its operations to reduce costs and mitigate supplier risks. Metalurgica de Medina SA, based in Spain, is an automotive battery manufacturer that produces lead-acid batteries.

Major companies operating in the automotive lead acid batteries market are GS Yuasa International Limited, Johnson Controls Inc., Exide Industries Limited, EnerSys Inc., Panasonic Corporation, CSB Battery Company Limited, East Penn Manufacturing Company, Leoch International Technology Limited, NorthStar Battery Company LLC, Clarios LLC, Koyo Battery Company Limited, FIAMM Energy Technology S.P.A, Reem Batteries & Power Appliances Co. SAOC, Trojan Battery Company LLC, C&D Technologies Inc., Robert Bosch GmbH, Thai Bellco Battery Co.Ltd., Crown Battery Manufacturing Company, Narada Power Source Co. Ltd., Shandong Sacred Sun Power Sources Co.Ltd., Amara Raja Batteries Limited, Banner Batterien GmbH, Camel Group Co.Ltd., Fengfan Co.Ltd., Guangdong Dynavolt Power Technology Co. Ltd., Haze Battery Co. Ltd., Hitachi Chemical Energy Technology Co. Ltd., Zibo Torch Energy Co.Ltd., Coslight Technology International Group Co.Ltd., PT Astra International Tbk.

Asia-Pacific was the largest region in the automotive lead acid batteries market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive lead acid batteries market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive lead acid batteries market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Automotive lead-acid batteries are rechargeable batteries that supply electric energy to vehicles, particularly for starting internal combustion engines. These batteries are known for their high current and surge capability, making them well-suited for the demanding task of starting engines. They contribute to enhanced vehicle performance by providing increased longevity, dependability, efficiency, and tolerance. Additionally, due to their relatively high cell voltage levels and cost-effective production, lead-acid batteries are commonly used in substations and power systems.

The main types of automotive lead-acid batteries include flooded batteries, enhanced flooded batteries, and Valve Regulated Lead Acid (VRLA) batteries. Flooded batteries, widely used in cars, large uninterrupted power supplies, and standalone energy systems, contain liquid electrolytes. Enhanced flooded batteries are an improved version of flooded batteries, offering enhanced performance and durability. VRLA batteries are designed to be maintenance-free and are commonly used in automotive applications. The various products associated with automotive lead-acid batteries include Starting, Lighting, and Ignition (SLI) batteries and micro-hybrid batteries. These products are distributed through Original Equipment Manufacturers (OEMs) and the aftermarket. End-users of automotive lead-acid batteries span various vehicle categories, including passenger cars, light commercial vehicles, heavy commercial vehicles, two-wheelers, and three-wheelers.

The automotive lead acid batteries market research report is one of a series of new reports that provides automotive lead acid batteries market statistics, including automotive lead acid batteries industry global market size, regional shares, competitors with an automotive lead acid batteries market share, detailed automotive lead acid batteries market segments, market trends and opportunities, and any further data you may need to thrive in the automotive lead acid batteries industry. This automotive lead acid batteries market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The automotive lead-acid batteries market consists of sales of internal combustion engine (ICE) lead-acid batteries, hybrid lead-acid batteries, and electric lead-acid batteries. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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