PUBLISHER: TechSci Research | PRODUCT CODE: 1719177
PUBLISHER: TechSci Research | PRODUCT CODE: 1719177
We offer 8 hour analyst time for an additional research. Please contact us for the details.
The Global Automotive Lead-Acid Battery Market was valued at USD 14.9 billion in 2024 and is projected to reach USD 17.4 billion by 2030, growing at a CAGR of 2.5%. Lead-acid batteries continue to be a preferred choice for starting, lighting, and ignition (SLI) applications in passenger vehicles, commercial vehicles, and two-wheelers due to their reliability and cost-efficiency. Technological advancements, such as Absorbent Glass Mat (AGM) and Enhanced Flooded Batteries (EFB), have significantly improved battery performance, making them suitable for vehicles with start-stop systems. The global demand is further supported by a large and aging vehicle fleet, particularly in the aftermarket segment. In emerging markets like Asia-Pacific, rising urbanization and increasing disposable incomes are contributing to higher vehicle ownership, reinforcing battery demand. Additionally, lead-acid batteries' high recyclability supports sustainability efforts, making them an environmentally viable option. These factors-technological upgrades, affordability, growing aftermarket, urbanization, and eco-friendliness-collectively fuel the ongoing expansion of the automotive lead-acid battery market.
Market Overview | |
---|---|
Forecast Period | 2026-2030 |
Market Size 2024 | USD 14.9 Billion |
Market Size 2030 | USD 17.4 Billion |
CAGR 2025-2030 | 2.5% |
Fastest Growing Segment | Flooded Batteries |
Largest Market | North America |
Key Market Drivers
Technological Advancements and Evolving Automotive Requirements
Innovations in lead-acid battery technology are a major factor propelling market growth. Advances in battery design and chemistry have significantly improved their performance, efficiency, and lifespan, maintaining their relevance in modern vehicles. The development of Absorbent Glass Mat (AGM) and Enhanced Flooded Batteries (EFB) has particularly enhanced their utility in start-stop systems by enabling rapid charging and increased cycle durability. As more vehicles adopt start-stop features to conserve fuel and reduce emissions, the demand for robust, high-efficiency batteries like AGM and EFB rises accordingly. These batteries are specifically built to endure frequent charging and discharging. In December 2024, Assurance Intl announced a major investment of INR 300 crore (USD 35.76 million) in a new battery manufacturing facility in Haryana, aiming to produce SLA, VRLA, lithium-ion, tubular, and solar batteries. The plant targets a production capacity of one million two-wheeler batteries, demonstrating the growing market emphasis on versatile battery technologies.
Key Market Challenges
Competition from Alternative Battery Technologies
The automotive lead-acid battery market faces significant pressure from the rising adoption of lithium-ion (Li-ion) batteries. With superior energy density, lower weight, and longer service life, Li-ion batteries are becoming the favored solution for hybrid and electric vehicles. These performance advantages make them ideal for advanced applications, prompting a shift in preference away from traditional lead-acid technologies. Li-ion batteries are also expanding their presence in diverse energy storage systems, enhancing their appeal and limiting the growth of lead-acid batteries beyond SLI uses. The global transition toward electric and hybrid mobility, supported by strict emissions regulations and environmental mandates, is accelerating this shift. As government policies increasingly promote EV adoption, the automotive industry is gradually reducing reliance on lead-acid batteries, particularly in vehicle powertrains.
Key Market Trends
Increasing Adoption of Start-Stop Systems in Vehicles
The rising integration of start-stop systems in modern vehicles is a pivotal trend boosting the demand for lead-acid batteries. These systems improve fuel economy and lower emissions by automatically turning off the engine when idle and restarting it upon acceleration. Lead-acid batteries, especially AGM and EFB variants, are well-suited to meet the performance demands of this technology due to their resilience under frequent charge-discharge cycles. Their advantages include faster recharge times, longer operational life, and better deep discharge resistance, making them ideal for supporting the functionality of start-stop systems. As fuel efficiency becomes a higher priority for consumers and regulators alike, start-stop systems are being deployed more widely, including in entry-level models across key markets. In Europe and North America, stricter emissions norms are driving this trend, while developing markets in Asia-Pacific are also rapidly adopting such technologies. This increasing demand for high-performance lead-acid batteries ensures their continued relevance despite the emergence of newer battery solutions.
In this report, the Global Automotive Lead-Acid Battery Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:
Company Profiles: Detailed analysis of the major companies present in the Global Automotive Lead-Acid Battery Market.
Global Automotive Lead-Acid Battery Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report: