NEW YORK, June 20, 2024 /PRNewswire/ -- The global automotive lead-acid battery market size is estimated to grow by USD 3.64 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of about 2.5%  during the forecast period. Increasing electronic applications in passenger car is driving market growth, with a trend towards legislative support for battery recycling. However, lead pollution and stringent laws poses a challenge. Key market players include Accumulatorenwerke HOPPECKE Carl Zoellner and Sohn GmbH, Amara Raja Group, Banner GmbH, C and D Technologies Inc., Camel Group Co. Ltd., CLARIOS LLC, Crown Battery Manufacturing Co., CSB Energy Technology Co. Ltd., East Penn Manufacturing Co. Inc., EnerSys, EverExceed Corp., Exide Industries Ltd., GS Yuasa International Ltd., HBL Power Systems Ltd., Johnson Controls International Plc., Leoch International Technology Ltd., MIDAC SpA, Panasonic Holdings Corp., Robert Bosch GmbH, and The Furukawa Battery Co. Ltd..

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Market Driver

The automotive lead-acid battery market in North America and Europe is driven by regulatory initiatives to promote battery recycling. In the US and Canada, the Corporation for Battery Recycling (CBR) and Call2Recycle facilitate battery collection for future use. The EU Directive 2006/66/EC mandates a 45% collection rate by 2016, with a 65% target for lead-acid batteries. Canada has over 1,000 collection points. Regulations prohibit disposing of lead-acid batteries with municipal waste and require delivery to recycling facilities. These measures ensure an environmentally friendly and economically sustainable business model, with lead scrap as the end-product. The Australian Battery Recycling Initiative provides guidelines for compliant storage, handling, transport, and recycling. 

The Lead-Acid Battery market is experiencing significant growth, particularly in the automotive sector. Urbanization and increasing demand for electric and hybrid vehicles are key drivers. Advanced technologies like lithium-ion and nickel-metal hydride batteries are gaining popularity, but lead-acid batteries remain a cost-effective solution. Companies are focusing on improving battery life and efficiency. The market is competitive, with players like Exide Technologies, Johnson Controls, and Clarios leading the charge. Regulations and environmental concerns are influencing production methods and materials. The market is expected to continue growing, with a strong focus on innovation and sustainability. 

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Market Challenges

• The lead-acid battery market in the automotive sector experiences growth due to increasing demand in the automotive industry and energy storage applications. However, environmental concerns arise from lead pollution during production and disposal. China enforces regulations to mitigate health risks and contamination. Lead-acid batteries have limitations, including heavy weight, short lifespan under certain conditions, and low energy density, which may hamper market growth. Proper battery management is crucial to ensure safety and sustainability.
• The Lead-Acid Battery market faces several challenges. The cost of production is a significant issue, with declining prices putting pressure on manufacturers. The demand for lighter and more efficient batteries is increasing, making it difficult for Lead-Acid batteries to compete. Regulations regarding the disposal of used batteries also pose a challenge. Additionally, the increasing popularity of alternative battery technologies, such as Lithium-ion batteries, is threatening the market share of Lead-Acid batteries. Despite these challenges, efforts are being made to improve the efficiency and longevity of Lead-Acid batteries, making them a cost-effective solution for certain applications. The market is expected to grow, but it will require innovative solutions to remain competitive.

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Segment Overview 

This automotive lead-acid battery market report extensively covers market segmentation by  

1. Application 
   • 1.1 Aftermarket
   • 1.2 OEM
2. Vehicle Type
   • 2.1 Passenger
   • 2.2 Commercial
3. Geography 
   • 3.1 APAC
   • 3.2 North America
   • 3.3 Europe
   • 3.4 South America
   • 3.5 Middle East and Africa

1.1 Aftermarket-  The automotive lead-acid battery market is experiencing growth due to the rising number of passenger cars, commercial vehicles, and two-wheelers globally. Lead-acid batteries, which offer superior cold-cranking performance, remain the preferred choice for scalable link interface (SLI) applications in the automotive industry. Despite the emergence of new technologies like nickel-metal hydride (Ni-MH) and lithium-ion (Li-ion) batteries, lead-acid batteries will continue to dominate the market during the forecast period, primarily due to their cost-effectiveness. The increasing average age of vehicles on the road and the requirement for batteries to last approximately five years, depending on driving and weather conditions, are key factors driving market growth.

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Research Analysis

The automotive lead-acid battery market encompasses the production and sales of lead-acid batteries for various applications within the transportation sector. These batteries are essential for powering passenger vehicles, particularly in the form of starter batteries and deep-cycle batteries. Urbanization and population growth have driven the demand for electric vehicles (EVs), leading to an increased focus on advanced designs of lead-acid batteries, such as VRLA (Valve Regulated Lead-Acid) and SLI (Starting, Lighting, and Ignition) batteries. Lithium-ion batteries have gained popularity in the EV market, but lead-acid batteries continue to dominate due to their durability, convenience, and lower cost. Maintenance requirements include monitoring electrode materials and electrolyte levels, with distilled water added as necessary. Lead-acid batteries use sulfuric acid as an electrolyte and are widely used in automotive applications for backup power as well.

Market Research Overview

The Automotive Lead-Acid Battery market encompasses the production, supply, and application of lead-acid batteries in the automotive sector. These batteries are widely used due to their affordability, reliability, and long service life. The market is driven by the increasing demand for vehicles, particularly in emerging economies, and the growing trend towards hybrid and electric vehicles. The market is segmented based on battery type, application, and region. Lead-acid batteries are used in various automotive applications, including starting, lighting, ignition, and deep cycle. The market is expected to grow significantly due to the increasing demand for electric and hybrid vehicles, which require large numbers of lead-acid batteries for their energy storage systems. The market also faces challenges such as the increasing use of alternative battery technologies and the environmental concerns associated with lead-acid batteries. The market is expected to continue its growth trajectory in the coming years, driven by technological advancements and increasing demand from the automotive industry.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• • Aftermarket
  • OEM
• Vehicle Type
• • Passenger
  • Commercial
• Geography
• • APAC
  • North America
  • Europe
  • South America
  • Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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SOURCE Technavio