Global Automotive Lead Acid Batteries Market - 2022-2029

Global Automotive Lead Acid Batteries Market - 2022-2029

Market Overview

The global automotive lead acid batteries market reached US$ XX million in 2021 and is expected to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period 2022-2029.

Lead acid batteries are the most popular form of battery, despite their poor energy density, low efficiency, and high maintenance requirements. Further, lead acid batteries have a long lifespan and affordable costs when compared to other battery types and have the distinct benefit of being the most widely utilized type of battery for most rechargeable battery applications such as in automotive engines and hence have a well-established, mature technical basis.

An automotive lead acid battery comprises two electrodes, a spongy or porous lead negative electrode and a lead oxide positive electrode, submerged in an electrolytic solution composed of sulfuric acid and water. An electrically insulating but chemically permeable membrane separates the two electrodes to prevent the electrodes from coming into contact with each other due to the physical movement of the battery or variations in electrode thickness. This membrane also protects the electrolyte from electrical shorting.

Market Dynamics

Growing demand for automotive in the market acts as a significant driver for the automotive lead acid battery market. Nonetheless, the availability and increasing utilization of alternative batteries such as lithium-ion batteries act as a major market restraint.

The growing demand for automotive

The automotive industry's performance is directly associated with the automotive lead-acid battery market; as a result, if the automotive industry is growing, the automotive lead-acid battery market will increase as well, and vice versa.

The automotive sector has seen remarkable growth in recent years. For instance, as per the International Organization of Motor Vehicle Manufacturers, the overall number of vehicles manufactured globally increased from 5,21,46,292 in the third quarter of 2020 to 5,72,62,777 by the same period in 2021. The primary factors driving the market are the strong replacement demand from customers with relatively high disposable incomes and the significantly affluent expatriate population.

However, as the demand for automobiles rises, production also experiences a hike. As a result, the demand for an automotive lead acid battery would rise since the product is an essential component in automobiles. Therefore the respective factor could be recognized as a major market driver.

Availability of alternative battery technologies

Due to the enhanced storage capability and increased demand for electricity storage, the market for lithium-ion batteries is likely to rise significantly in the near future. Because of their lightweight and compact size, these batteries are among the most competitive in the battery energy storage market. In addition, unlike lead-acid and sodium-sulfur batteries, which employ aqueous electrolytes, lithium-ion batteries use non-aqueous electrolytes that provide higher operating voltages.

While most lithium-ion batteries are 95% or more efficient and provide an option to utilize 95% more energy stored in the battery, lead acid batteries, on the other hand, have an efficiency of around 80 to 85%. Higher efficiency batteries charge fast, and improved efficiency equals a larger effective battery capacity, similar to the depth of discharge. Lithium-ion batteries often survive several times as many cycles as lead-acid batteries, giving lithium-ion products a longer effective lifespan.

Due to the aforementioned advantages, a new trend has been witnessed in the automotive market, where lithium-ion batteries largely replace lead-acid batteries. Since such an increased switch would decrease the demand for the respective product, the availability of alternative battery solutions such as lithium-ion batteries could be considered a major market restraint.

COVID-19 Impact Analysis

COVID-19 was disruptive to the global automotive lead acid batteries industry due to three key factors:

The availability of raw materials and final product sales have been hampered by the COVID-19 pandemic's lockdowns and government controls.

Second, the production of lead acid batteries necessitates a number of manufacturing and purification processes, which have been significantly hampered by the COVID-19 pandemic's lockdowns and government controls.

The overall drop in end-user activities lowered demand for automotive lead acid batteries, causing demand-supply dynamics to shift.

However, the growth in the automotive industry and increasing adoption of EVs resurrect the market prospects of the respective market.

Segment Analysis

The global automotive lead acid batteries market is segmented based on product, type, vehicle type, Customer, application and region.

Start-up charging feature created a significant demand for SLI batteries

The SLI sector dominates the market in terms of products. The SLI battery finds application in automobiles and is present in the vehicle's charging system. As a result, the battery undergoes a constant charge and discharge cycle while the vehicle is in use. SLI automobile batteries get completely charged when starting the car. After the ignition, the alternator replaces the lost charge, usually around 2% to 5% of the charge. The batteries should not get discharged below 50% depth of discharge (DOD), and when discharged below these levels, plates present in them will break, thereby reducing battery life.

Geographical Analysis

Easy availability of credits and growing affluent population

Due to increasing demand for passenger cars, commercial vehicles, and motorbikes, the Asia-Pacific region has swift growth in the automotive battery market. The automotive sector in the Asia-Pacific area has seen remarkable growth. Overall passenger automobile sales have increased in the Asia-Pacific area. The strong replacement demand from customers with relatively high disposable incomes and the significantly affluent expatriate population are pivotal factors driving the market in the Asia-Pacific region. Furthermore, the existence of significant automotive lead-acid battery manufacturers such as Johnson Controls, Exide Technologies, EnerSys, and GS Yuasa, among others, is a major component that allows the Asia-Pacific to thrive.

Competitive Landscape

The global automotive lead acid batteries market is less dynamic in terms of the number and strength of global and local producers due to the presence of limited manufacturers such as Johnson Controls, Mebco, Reem Batteries & Power Appliances Co. SAOC, ENERSYS, NorthStar, C&D TECHNOLOGIES, Exide Technologies, GS Yuasa International Ltd., and Robert Bosch GmbH in the market. To achieve competitive advantages and recognition in their particular markets, significant market stakeholders use market techniques such as mergers, acquisitions, product launches, contributions, and collaborations.

Robert Bosch GmbH

Overview: In business categories such as mobility solutions, industrial technology, consumer goods, energy, and building technology, Robert Bosch GmbH manufactures and supplies technology and services. Gerlingen, Germany, is the corporation's headquarters, formed in 1886. The company is active in the Americas, Asia-Pacific, Europe, the Middle East, and Africa. In 2020, the company had 395,000 employees and earned $80.64 billion in revenue.

Product Portfolio: T4 SLI Lead Acid Battery For Commercial Vehicles: The Bosch T4 SLI commercial vehicle starter battery with a unique PowerFrame (grid) is excellent for average energy consumption, improved current flow, and corrosion reduction.

Key Development:

On January 18, 2022, Volkswagen and Robert Bosch announced their intention to form a joint venture to equip battery cell plants and assist Europe in becoming self-sufficient in battery production on January 18, 2022. The new company will provide battery production technologies as well as help battery cell producers scale up and manage their manufacturing facilities.

Why Purchase the Report?

To visualize the global automotive lead acid batteries market segmentation based on product, type, customer, application, and region, as well as understand key commercial assets and players.

Identify commercial opportunities in the global automotive lead acid batteries market by analyzing trends and co-development.

Excel data sheet with numerous data points of automotive lead acid batteries market-level with four segments.

PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.

Product mapping available as excel consists of key products of all the major market players

The global automotive lead acid batteries market report would provide approximately 68 tables, 74 figures and almost 210 pages.

Target Audience 2023

Manufacturers/ Buyers

Industry Investors/Investment Bankers

Research Professionals

Emerging Companies