The market for lead acid batteries reached US $ 16.5 billion in 2020 and is expected to grow at a CAGR of 4.5% during the forecast period of 2023 to 2030. As a result of an increase in demand for SLI (start lighting and ignition) batteries from both the original equipment manufacturer (OEM) market, demand from the replacement market in the automotive sector and increasing demand for electric vehicles, the market is expected to expand during the forecast period. These batteries are highly recommended for use in an automobile's starting, lighting, and ignition (SLI) systems. It is anticipated that the rising production of passenger cars and light commercial vehicles, as well as the total number of vehicles on the road, will contribute to the expansion of the market.

These batteries are used in cars to start the vehicle, light the interior, and start the engine (SLI). It is anticipated that an increase in the production of passenger cars and light commercial vehicles, in addition to the vehicle parc (the total number of vehicles on the road), will enable market expansion. In addition, the increasing prevalence of high-tech automobiles that are outfitted with cutting-edge navigation and safety systems is having a beneficial effect on the development of sharing concepts. When it comes to the continuously developing automobile sector, key markets include the United States of America and China. At this time, lead-based chemistries are required for any commercially available 12V battery technology. More than 400 million lead-based 12V batteries are produced every year to meet the demands of the original equipment manufacturers (OEMs) as well as the aftermarket in relation to light-duty vehicle applications around the world. Demand for more than 60 million batteries every year is being met with difficulty in Europe. As a consequence of this, it can be anticipated that the market for lead-acid batteries for automobiles would expand during the duration of the forecast period.

Impact of COVID-19: Market is Expected to Bounce almost Completely by 2023

Because to the COVID-19 outbreak, the supply chain and production of electronic equipment, particularly the hardware component of vehicle lead acid batteries, have been seriously impacted. Following the spread of the COVID-19 virus around the world and subsequent lockdown situations, specialists in the automotive industry have come to the conclusion that the industry will experience at least a quarter of a delay in the supply chain for automotive equipment. It is anticipated that this disturbance would generate earthquakes all the way to the middle of 2021. Soon after governments across the world begin to gradually reduce the different containment measures in an effort to resuscitate the economy, it is anticipated that the electronic equipment and automobile industries will begin to step up the pace of their operations. It is projected that the production of electronic equipment and automobiles would pick up speed after 2023, which is further anticipated to have a positive influence on the manufacturing of electronic equipment and automobiles, including the hardware components of vehicle lead acid batteries.

Increasing Demand for Mild Hybrids

The number of people driving hybrid cars is increasing at an alarming rate all around the world. In response to the formulation of stringent emission standards by the government to protect the environment while simultaneously boosting fuel efficiency, automotive manufacturers and the government are making a strategic move toward promoting the use of hybrid vehicles. This move is being driven by the formulation of stringent emission standards by the government. EVI Membership, the EV30@30 campaign, the EVI Global EV Pilot City Programme (EVI-PCP), the FAME-I and II programmes, the National Mission for Transformative Mobility and Battery Manufacturing, the National Electric Mobility Mission Plan, and the Phased Manufacturing Program are examples of government initiatives that promote the utilisation of the next generation of mobility. These activities are helping to stimulate the adoption of hybrid vehicles, which is a positive development.

In addition to this, a large number of automakers are currently investing significant resources into the research and development of mild hybrid vehicles. The adoption of a 48V mild hybrid as a standard feature in brand-new car models has been started by automotive manufacturers. In 2019, Volkswagen introduced a 48V mild hybrid version of the 8th generation Golf. Volkswagen is one of the most important companies in the mild hybrid car market. Ford introduced the Focus EcoBoost Hybrid and the Fiesta EcoBoost Hybrid automobile models in the same year for the purpose of catering to the European market. Lead acid batteries are becoming increasingly popular for use in automobiles as a result of the proliferation of mild hybrid vehicles now available on the market.

Consumer and Government’s Interest in Electric Vehicles to Meet Environmental Goals

The development of vehicles that run on alternative fuels has led to an increase in the demand for vehicles that run on batteries or hybrid powertrains. In addition, in order to lessen the amount of crude oil consumed, the emissions produced by automobiles, and the amount of pollution released into the atmosphere, government authorities all over the world have adopted and put into effect favourable policies that encourage the use of electric vehicles. For example, in 2021, Mahindra & Mahindra made the announcement that they intended to make an investment of $402 million in electric vehicles over the course of the following three years. Additionally, the company has stated that they intend to put 500,000 electric vehicles on Indian roads by the year 2025. Therefore, all of these recent advancements in the field of electric cars present an opportunity for the expansion of the market for lead-acid batteries used in automobiles.

Increase In the Need for Lithium-Ion Batteries

Due to the increasing demand for the storage of electricity in electric vehicles, lithium-ion batteries are anticipated to experience a significant increase in the next years. This demand is projected to be the primary factor driving this rise. The fact that these batteries are both lightweight and compact contributes to the fact that they are the most formidable competitors in the market for battery energy storage. In addition, lithium-ion batteries make use of non-aqueous electrolytes, which allow for higher operating voltages as compared to lead-acid batteries and sodium-sulfur batteries, all of which make use of aqueous electrolytes. As a result, it is anticipated that it would slow the expansion of the lead-acid battery market for automobiles.

Increased Innovation in Battery Related Technologies

SLI batteries often consist of lead-acid batteries because of their widespread use in autos. The expanding production and sales of automobiles as well as the growing vehicle parc are directly impacting the market. When compared to other types of batteries, lead acid batteries are more cost-effective and offer the best possible option to end customers. The market should benefit from the advancements in battery technology that have been made. Customers have a selection of options to choose from, including flooded, improved flooded, and AGM batteries. The expanding number of vehicles on the road, along with the requirement that they have their batteries replaced at regular intervals, is driving up demand for lead-acid batteries, and this upward trend is expected to continue.

Technical and Safety Issues Continue to Challenge the Market Growth Until Innovations Eliminate Such Drawbacks

Concerns regarding gassing of the battery leads, problems with safety, and water loss from electrolyte were just some of the challenges that the lead acid battery industry for automobiles had to address. In order to improve the performance of lead acid batteries, many manufacturers have already upgraded or are in the process of improving their product lines. This will not only assist in alleviating important worries held by customers, but it will also offer increased corrosion resistance as well as extended battery life. Several of the main manufacturers have already introduced corrosion-free lead acid batteries, and it is probable that a number of more manufacturers will follow suit in order to stay up with the rapidly changing climate of the market. There have been multiple reports of explosions caused by lead-acid batteries occurring in different parts of the world. Explosions like these have been observed happening in quarries and mines, as well as in mobile and fixed industries, and even in automobiles.

Flooded Lead Acid Batteries to Grow the Fastest During the Forecast Period

The most sought-after batteries on a global scale are flooded lead acid batteries. It is anticipated that the segment would grow at a compound annual growth rate (CAGR) of more than 4.5% between 2023 and 2030. A flooded lead acid battery has an electrolyte that is not contained within the casing of the battery and is instead allowed to freely circulate around the inside. Following the process of charging, the lead plates and battery acid combine to provide a storage medium for electricity. When compared to other types of lead acid batteries, these particular batteries have the lowest cost per amp hour. The availability of a greater variety of product variations and specifications throughout the spectrum of flooded lead acid batteries provides customers with increased leeway in selecting the most suitable engine for a given set of applications

ICE battery Technology to Dominate the Market Revenues

The ICE technology batteries accounted for over 96.7% of the total revenue share in 2021. It is anticipated that by the end of the year 2030, the category will hold approximately 100% of the market. The technology provides a distributed storage solution that is environmentally friendly, dependable, and inexpensive. It also boosts productivity and lowers the amount of waste that is released into the environment.

Passenger Vehicles Dominate the Market Revenue

The demand for automotive lead acid batteries in the passenger and light commercial vehicle markets will continue to increase during the forecast period. This demand will be driven mostly by increased production. Out of all of these, passenger vehicles are responsible for the largest portion of the lead batteries sold for automobiles in a given year. In addition, it is anticipated that there will be an increase in demand for automotive lead acid batteries that make use of new and innovative technology in the years to come.  The majority of today's passenger vehicles are powered by modern SLI batteries, which consist of six interconnected cells.

SLI Batteries Dominated the Revenue Share

The global market for lead-acid automotive batteries is segmented into two categories, SLI batteries and micro-hybrid batteries, according to the product. In the year 2020, the SLI sector contributed the largest share of the market. The SLI battery is a type of lead acid battery that can be recharged and is utilised in a broad variety of autos nowadays.

APAC Remains as the Global Leader

In the year 2021, APAC was the market leader for automotive lead-acid batteries. A substantial portion of the region's dominant revenue share can be attributed to the widespread consumption of luxury automobiles, four-door sedans, and sport utility vehicles (SUVs) among APAC's population. In addition, well-known commercial vehicle manufacturers in the country include 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. In order to fulfil the ever-expanding demands of their clients, all of these manufacturers are pushing for the installation of lead-acid batteries specifically designed for use in automobiles. In addition, escalating automotive manufacturing operations, increasing demand for electric vehicles, and a growing focus on the part of automotive lead acid battery manufacturers toward offering low-cost and high-efficiency products are expected to drive the market for automotive lead acid batteries in the Rest of APAC countries during the forecast period. The high replacement demand from customers who have significantly high earnings that are disposable as well as the huge affluent expatriate community is the primary reason that are driving the market in the Asia-Pacific region.

When it comes to automotive lead acid batteries, India is the most important market in South Asia and the Pacific. The rise in the production of both passenger and commercial automobiles in India will continue to lend support to the country's economic growth. The Society of Indian Automobile Manufacturers (SIAM) said that there was an increase of more than 11% in the sales of passenger automobiles in the month of January 2020. Since it is anticipated that the number of vehicles produced and sold would increase, India will continue to be a key market for the sales of automotive lead acid batteries.

The U.S. and Germany to Remain as Key Countries Evidencing Notable Growth

The United States is expected to continue to be one of the most profitable markets for lead-acid batteries for the duration of the forecast period. The rising number of cars being manufactured and the total number of vehicles on the road both contribute significantly to this phenomenon. As a result of these several circumstances, the United States will continue to be one of the top markets for lead-acid car batteries. According to Trading Economic, total vehicle sales in the country topped 16 million units in January of 2021, which was the year 2021 forecast for the country. It is anticipated that sales of motor vehicles would pick up again, despite the difficulties brought on by the pandemic breakout. The country's prospects for increased sales of lead-acid automotive batteries will improve as a result of this.

In addition to having the largest market share in Europe, projections indicate that the market in Germany will rise by around 4% between the years 2023 and 2030. Over the course of the last few years, local manufacturers have been methodically cultivating a new client base in the country. It is anticipated that demand will increase significantly due to the robust growth of the automotive sector in Germany. Growth prospects will present themselves in Germany as a result of the increased demand for high-performance batteries brought about by the introduction of electric vehicles.

As a result of China's position as the largest stakeholder in East Asia, it is anticipated that the country's economy will expand at a rate of approximately 5% between the years 2023 and 2030. Over the past few years, domestic manufacturers have been gradually expanding their pool of loyal customers across the country. As a result of rising automobile production in China, the lead acid battery market for automobiles is anticipated to be among the most lucrative in the world, ranking third behind the markets in the United States and Germany. The increase in the number of passenger vehicles and commercial vehicles across China has contributed to the expansion of the battery industry, which has occurred simultaneously with the expansion of the number of automobile manufacturers in China.

Focus on R&D to Offer Competitive Advantage

The global market for automotive lead acid batteries is controlled by a few major, medium, and small-scale enterprises that are active in multiple regions across the globe. The top players hold a combined share of the global market that is equivalent to approximately 40% of the total revenues. Due to the fact that regional regulations in Europe, East Asia, and North America all promote private sector involvement in the development of automobile battery technology, the most prominent players are primarily located in these three regions. Additionally, these players have expansive research and development facilities, which gives them an advantage over smaller players and start-ups. Companies currently functioning in this industry have the intention of acquiring regional distributors and working strategically with them in order to meet the demands of an expanding customer base. In order to develop a presence in new and rapidly expanding markets, suppliers of crate engines implement growth tactics such as acquisition and regional expansion.

The production of sophisticated, high-performance and corrosion-free automotive lead acid batteries is prompting battery manufacturers to increase their investments in research and development (R&D) efforts. The ultimate outcome of R&D activities is the offering of competitive pricing points, a rise in the level of user satisfaction regarding performance, and the use of sophisticated technology. Companies that have been successful in launching new and innovative products on the market are the ones that have increased their research and development efforts through partnerships or collaborations. Key companies operating in this market include Clarios, GS Yuasa Corporation, The Panasonic Group of Companies, LIT Limited, Exide Industries Ltd., EnerSys Inc., East Penn Manufacturing Company, Exide Technologies Inc., CSB Battery Company Limited and others.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Automotive Lead Acid Batteries market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Automotive Lead Acid Batteries market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Automotive Lead Acid Batteries market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Automotive Lead Acid Batteries market?
• Which is the largest regional market for Automotive Lead Acid Batteries market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Automotive Lead Acid Batteries market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Automotive Lead Acid Batteries market worldwide?