Automotive Lead Acid Battery Market Research Report and Outlook by 2028

The automotive lead acid battery sector was valued at approximately US$ 16,860.5 million in 2020 and is anticipated to grow to around US$ 23,668.0 million by 2028, reflecting a compound annual growth rate (CAGR) of 3.1% from 2021 through 2028.

The ongoing production and increasing acceptance of mild hybrid vehicles by leading manufacturers like Ford and Volkswagen are driving the demand for lead acid batteries in automotive applications. Additionally, the rising disposable income among consumers is fueling the demand for automobiles, which in turn is enhancing car production. Countries such as India are becoming focal points for major automotive companies looking to set up manufacturing facilities. Recently, Tesla announced plans to establish a manufacturing plant in India, which is expected to further increase the demand for lead acid batteries. Moreover, the utilization of 12-volt lead acid batteries and the regulations for BSVI compliant vehicles are also likely to support the growth of lead acid batteries in the automotive sector.

In terms of product segmentation, the Starting, Lighting, and Ignition (SLI) segment is projected to experience a higher CAGR during the forecast period. SLI batteries are specifically designed for automotive use and are integrated with the vehicle's charging system. This integration allows for a continuous cycle of charging and discharging while the vehicle is operational. SLI batteries are engineered to be fully charged when the vehicle starts, and after ignition, the alternator replenishes the lost charge, which typically ranges from 2% to 5%. These batteries are not intended to be discharged below a depth of discharge (DOD) of 50%, as doing so can damage the plates and shorten the battery's lifespan. The market is categorized by type into flooded, enhanced flooded, and valve-regulated lead-acid (VRLA) batteries. Additionally, the end-user segmentation includes passenger cars, light commercial vehicles (LCVs), medium commercial vehicles (MCVs), and heavy commercial vehicles (HCVs). Geographically, the Asia-Pacific (APAC) region was the fastest-growing market in 2020. The increase in disposable income and economic growth has led to a rise in the sales of both passenger and commercial vehicles in recent years. The region has emerged as a global manufacturing hub, bolstered by a strong automotive industry. Growing awareness regarding vehicle emissions, maintenance costs, and lower operational expenses, along with various government initiatives, are driving the adoption of electric vehicles, which in turn is propelling the automotive lead acid battery market.

The COVID-19 pandemic has significantly disrupted the supply chain and manufacturing processes for electronic equipment, including the hardware components of automotive lead acid batteries. The global outbreak of COVID-19, followed by lockdown measures, has led industry experts to predict that the automotive sector would experience at least a quarter's delay in the supply chain for automotive equipment. This disruption is expected to have lingering effects until mid-2021. However, as governments worldwide gradually lift containment measures to revive their economies, the electronics and automotive industries are likely to regain momentum. Production in these sectors is expected to accelerate from 2022 onwards, which will positively impact the manufacturing of electronic equipment and automotive components, including lead acid batteries.

The overall market size for automotive lead acid batteries has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. This approach also aimed to provide an overview and forecast for the automotive lead acid battery market across all segments and regions. Furthermore, numerous primary interviews were conducted with industry stakeholders and experts to validate the data and gain deeper analytical insights. Participants in this research included industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the automotive lead acid battery market. Key players in this market include Clarios, Exide Industries Limited, GS Yuasa International Ltd, Johnson Controls, Inc., and Panasonic Corporation.