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The automotive lead-acid battery market size of the market is forecast to increase by USD 4.08 billion, at a CAGR of 2.84% between 2022 and 2027. Market growth hinges on various factors, including the expanding electronic applications within passenger vehicles and the surge in electric vehicle (EV) sales, which fuels the demand for automotive batteries. Moreover, the convenience of online purchasing for automotive products, like lead-acid batteries, further contributes to market expansion. As consumer preferences evolve towards electric mobility and digital shopping experiences, the automotive battery market stands poised for substantial growth driven by these emerging trends. Furthermore, the report includes historic market data from 2017 to 2021.
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This report extensively covers market segmentation by application (aftermarket and OEM), vehicle type (passenger and commercial), and geography (APAC, North America, Europe, South America, and Middle East and Africa).
The market share by the aftermarket segment will be significant during the forecast period. The adoption of aftermarket services is increasing due to the increase in passenger cars, commercial vehicles, and two-wheelers worldwide. Lead-acid batteries provide a quick power boost in a short time by using cold-cranking amps, which are required for SLI applications. Lead-acid batteries have been dominating the automotive aftermarket.
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The aftermarket segment was valued at USD 16.55 billion in 2017 and continue to grow by 2021. One of the factors positively influencing the aftermarket sales of batteries is the increase in the number of miles covered by a vehicle. The normal time frame for batteries used in vehicles is approximately five years, depending on driving conditions, weather conditions, and other factors. The average age of a vehicle on the road has been increasing. For instance, the average age of passenger cars on the road in the US had increased from about 100 months in 1995 to 140 months in 2020. These factors are driving the growth of this segment during the forecast period.
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APAC is estimated to contribute 61% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. China, India, and Japan are the major markets in APAC that account for most of the sales of vehicles. Increasing disposable income and launches of new car models by OEMs are the main drivers for market growth. Moreover, the perception of achieving higher social status by owning a car is driving the market for passenger cars in China and India, despite the increasing rates of traffic congestion, government regulations for owning passenger cars, and rising levels of vehicular pollution. APAC has the maximum number of potential first-time buyers of passenger cars, which is also leading to growth in the sales of passenger cars. Such factors will drive the market for automotive lead-acid batteries during the forecast period.
The market thrives on factors like increasing vehicle ownerships and rapid urbanization, especially in the Asia Pacific region. While electric vehicles continue to drive research and development, traditional SLI batteries and VRLA batteries remain essential for automotive applications. Manufacturers focus on enhancing durability and reducing maintenance requirements with innovations like maintenance-free lead acid batteries and advanced designs. These batteries find applications beyond vehicles, including uninterruptible power supply (UPS) systems and backup power applications. Key considerations include the optimization of electrode materials and electrolyte levels, such as distilled water and sulfuric acid, to prolong end of service life for both starter batteries and deep-cycle batteries. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing number of electronic applications in passenger cars is the key factor driving market growth. In the passenger car segment, thanks to the development of technology and applications, electronic equipment has become more and more common in the last decade. Further, batteries, such as SLI and VRLA produced by companies like Clarios and EnerSys, provide durability and reliability for passenger vehicles, requiring minimal maintenance, and are often chosen due to their cost-effectiveness, especially considering end-of-service life considerations and consumer disposable income. Furthermore, the concept of crossover technology has brought immense benefits to the passenger car segment, and a similar trend is expected to continue in commercial vehicles during the forecast period.
Further, these batteries play a critical role in vehicle starting applications, utilizing sulfuric acid as an electrolyte to maintain optimal electrolyte levels, with electrode materials and distilled water ensuring efficient performance and longevity in automotive applications. The rising application of electronics is also evident from the cost percentage. Therefore, increasing electronic applications in passenger cars will boost the adoption of efficient automotive lead-acid batteries. Such factors are expected to fuel the growth of the market during the forecast period.
Advances in automotive battery technology are the primary trend in the market growth. Lead-acid batteries are the most common type of battery in the automotive industry, which also have a low energy density compared to lithium-ion batteries. The high electronic content of vehicles places a heavy burden on lead-acid batteries, which significantly shortens battery life and leads to frequent battery replacement and maintenance. This has increased the need for regular testing of vehicle batteries, which increases the demand for advanced car batteries and lead acids.
Consequently, this has compelled automotive manufacturers to improve their battery performance by adding various technological advances, such as increasing battery density and adding efficient battery management systems. This is expected to increase the adoption of AGM batteries and enhanced flooded batteries (EFBs). The penetration of AGM batteries and EFBs is expected to increase by more than 45% during the forecast period.
Lead pollution and stringent laws are major challenges to market growth. The demand for lead-acid batteries has increased with the growth of the automotive and other industries, as well as the growth of hybrid electric vehicle (HEV) batteries and battery energy storage applications for renewable electricity generation. However, the increase in the production of lead-acid batteries causes many environmental problems due to lead pollution. Due to the lack of safer substitutes, toxic materials are used in the production of batteries. It requires large quantities of lead, some of which is often mixed with exhaust gases. This leads to health problems caused by air pollution.
Additionally, to curb lead poisoning, the Government of China has shut down the majority of its lead-acid battery manufacturing plants and has also enforced stringent regulations and standards for battery disposal and production. Improper battery dumping in landfills can result in the seeping of sulfuric and lead content into the groundwater and consequent contamination of the drinking water supply, finally leading to lead poisoning. This increase in lead pollution owing to improper disposal of lead components is becoming a barrier for the lead metal as a component, which is directly affecting the growth of the market.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Accumulatorenwerke HOPPECKE Carl Zoellner and Sohn GmbH - The company offers automotive lead-acid batteries such as grid extreme VR batteries. Also, under this segment, the company offers a comprehensive product range of batteries and cells to complete energy systems with the most modern charging technology, monitoring units, and engineering to consumption-dependent energy billing.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market plays a pivotal role in powering various vehicles amidst the growing population and the rise of electric and hybrid vehicles. These batteries are integral to motorcycles, micro-hybrid vehicles, and vehicles equipped with start-stop systems and regenerative braking, providing energy recuperation. Despite advancements in energy storage solutions, lead alloys remain essential for their cost-efficient energy solutions and fuel efficiency. However, challenges such as strict regulations related to lead emissions persist, impacting methodology like cash flow analysis, PESTEL analysis, and SWOT analysis for manufacturers.
Further, the market is influenced by factors like industrialization and technological advancements, driving market trends and the rising demand for automobiles. With the adoption of electric and hybrid vehicles, lead-acid batteries play a crucial role due to their compatibility with electric & hybrid vehicles. While emission laws push for cleaner alternatives, lead-acid batteries offer operational benefits but face challenges such as product costs and maintenance. Despite a rise in vehicle production, concerns about performance decline persist. These batteries remain vital for powering rechargeable battery systems in motor vehicles and supplying electric current for various accessories of the vehicle like air conditioner charging plugs and wipers.
Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 2.84% |
Market growth 2023-2027 |
USD 4.08 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
2.41 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 61% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accumulatorenwerke HOPPECKE Carl Zoellner and Sohn GmbH, Amara Raja Group, Banner GmbH, C and D Technologies Inc., Camel Group Co. Ltd., Clarios, Crown Battery Manufacturing Co., CSB Energy Technology Co. Ltd., East Penn Manufacturing Co. Inc., EnerSys, EverExceed Industrial Co. Ltd., Exide Industries Ltd., GS Yuasa Corp., 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. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Vehicle Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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