The lead acid battery market reached $16.5 billion in 2020 and is predicted to expand at a CAGR of 4.5% during the forecast period of 2023 to 2030. The market for SLI (start lighting and ignition) batteries is predicted to grow due to rising demand from OEMs, replacement markets, and electric vehicles. These batteries are suggested for use in SLI systems. The rising production of passenger cars and light commercial vehicles, as well as the number of vehicles on the road, will expand the market. More than 400 million lead-based 12V batteries are produced annually to suit OEM and aftermarket demands for light-duty vehicle applications worldwide. Europe struggles to meet the annual demand for 60 million batteries. As a result, the market for lead-acid car batteries should grow during the forecast period.
Globally, hybrid automobile demand is rising rapidly. Automotive manufacturers and the government are encouraging hybrid vehicles in response to strict pollution rules to protect the environment and enhance fuel efficiency. Several automakers are also spending heavily on mild hybrid car research. Automotive manufacturers have started including 48V mild hybrids in new vehicles. Volkswagen's 8th-generation Golf is a 48V mild hybrid. Volkswagen is a leader in mild hybrids. Ford debuted the Focus and Fiesta EcoBoost Hybrids for the European market in the same year. Mild hybrid vehicles are making lead-acid batteries more prevalent in cars.
Browse for report at : https://www.acutemarketreports.com/report/automotive-lead-acid-battery-market
Alternative fuel cars have increased demand for battery-powered and hybrid vehicles. Governments throughout the world have adopted and implemented laws that encourage the use of electric vehicles to reduce crude oil consumption, vehicular emissions, and atmospheric pollution. Mahindra & Mahindra announced in 2021 that they will invest $402 million in electric vehicles over three years. The business plans to put 500,000 electrified cars on Indian roads by 2025. Recent advances in electric cars give a chance to expand the market for lead-acid car batteries.
Due to their use in cars, SLI batteries are frequently lead acid. Growing car production, sales, and parc affect the market. Lead acid batteries are the most cost-effective solution for end customers. Battery advances should benefit the market. Flooded, enhanced flooded, and AGM batteries are available. Increasing vehicle numbers and the requirement to replace their batteries often are driving the rising demand for lead-acid batteries, and this trend is projected to continue.
The automotive lead acid battery business had to deal with lead gassing, safety issues, and electrolyte water loss. Many manufacturers are upgrading or improving their product lines to increase lead acid battery performance. This will reduce consumer anxieties and boost corrosion resistance and battery life. Several major manufacturers have launched corrosion-free lead acid batteries, and more will likely follow suit to keep up with the market. Multiple reports of lead-acid battery explosions have occurred worldwide. Similar explosions have been seen in quarries, mines, mobile and permanent businesses, and cars. The increased requirement for electricity storage is expected to boost the lithium-ion battery market. Due to increased use. Lightweight and tiny, these batteries are the most formidable energy storage competitors. Lead-acid and sodium-sulfur batteries use aqueous electrolytes, but lithium-ion batteries use non-aqueous electrolytes, allowing them to function at greater voltages.
Globally, flooded lead acid batteries are the most popular. The segment is expected to grow by 4.5% CAGR during the forecast period. A flooded lead acid battery contains an electrolyte that freely circulates inside. Lead plates and battery acid store electricity after charging. These batteries have the lowest cost per amp hour compared to others. More product varieties and specifications across the gamut of flooded lead acid batteries give clients more options when choosing a battery for a certain application.
Over 96.7% of 2021 revenue was contributed by ICE batteries. By 2030, this market segment is expected to hold 100% of the market. The technology offers an eco-friendly, reliable, and affordable distributed storage solution. It increases production and reduces environmental waste. Passenger and light commercial vehicle demand for lead acid batteries will rise. Increased output will drive demand. Passenger vehicles use the most lead batteries each year. In the future, new and innovative automotive lead acid batteries are expected to be in high demand. Most current passenger automobiles use six-cell SLI batteries. The worldwide lead acid automotive battery market is divided into SLI and micro-hybrid batteries. SLI led the market in 2020. The rechargeable SLI battery is used in many cars today.
APAC led the lead acid battery market in 2021. Luxury cars, four-door sedans, and SUVs are popular among APAC's population, which contributes to the region's dominant revenue share. General Motors Holden, Toyota Motor Corporation Australia Limited, Ford Motor Company of Australia Limited, Mitsubishi Motors Australia Ltd. (MMAL), Isuzu Australia Limited, Hyundai Commercial Vehicles Australia, and Volkswagen Group Australia Pty Ltd. To meet the growing needs of their customers, these manufacturers are promoting the use of lead-acid car batteries. Increasing automotive manufacturing activities, rising demand for electric vehicles, and automotive lead acid battery manufacturers' focus on low-cost, high-efficiency products will drive the market in the Rest of APAC over the projection period. High replacement demand from clients with discretionary incomes and a large affluent expatriate group drive the Asia-Pacific market.
The US should remain one of the most profitable lead-acid battery markets during the projected period. Rising car production and road traffic add to this trend. Due to these factors, the US will remain a leading market for lead-acid automobile batteries. Trading Economics predicted that overall vehicle sales in the country would reach 16 million in January 2021. Despite the pandemic, auto sales should bounce up. This will raise the country's lead acid battery sales. Germany has the greatest market share in Europe and is projected to grow by 4% CAGR during the forecast period. Local manufacturers have been nurturing a new client base for years. German auto industry growth should boost demand. Electric car demand for high-performance batteries will create growth opportunities in Germany.
Few major, medium and small-scale companies control the global automotive lead acid battery industry. Top players account for 40% of worldwide revenues. Due to regulations in Europe, East Asia, and North America, the most dominant players are in these three regions. These players have large R&D facilities, giving them an advantage over smaller ones. This industry's companies plan to acquire regional distributors and work strategically with them to meet customer demand. Crate engine suppliers use acquisition and regional expansion to enter new markets.
Battery manufacturers are increasing R&D spending to produce high-performance, corrosion-free automobile lead acid batteries. R&D results in competitive pricing, increased consumer pleasure, and sophisticated technology. Companies that have successfully launched new and creative goods have enhanced their R&D efforts through partnerships. Clarios, GS Yuasa, The Panasonic Group, LIT Limited, Exide Industries Ltd., EnerSys Inc., East Penn Manufacturing Company, Exide Technologies Inc., CSB Battery Company Limited, and others are key players in this industry.
