Lead Acid Battery Market Expected to Exceed USD 104.13 Billion by 2034, with a 5.20% CAGR

The global lead-acid battery market is projected to grow from USD 62.72 billion in 2024 to USD 104.13 billion by 2034, driven by a steady compound annual growth rate (CAGR) of 5.20% over the next decade.

This growth is expected to be fueled by increasing demand across various industries such as telecommunications, manufacturing, automotive, mining, oil and gas, and chemicals. Lead-acid batteries are favored by end users for their cost-effectiveness, ability to withstand overcharging, availability in a wide range of sizes and specifications, and capacity to handle large current volumes.

Manufacturers are also emphasizing the recyclability of lead-acid batteries to boost adoption. In some countries, the recyclability rate exceeds 90%, which contributes to lower battery costs, resource conservation, and reduced environmental impact, making these batteries even more appealing to consumers. Additionally, the rising trend of electric vehicle (EV) adoption is expected to further drive lead-acid battery sales in the coming years.

Key Takeaways from the Lead Acid Battery Market Report

The lead acid battery market attained USD 54,636.50 million in 2019. By 2023, the market generated a revenue worth USD 59,658.30 million. From 2019 to 2023, the market registered a CAGR of 4%.
By product type, the flooded battery is expected to procure a market share of 48.30% in 2024.
Based on application, transportation is projected to capture a value share of 58.10% in 2024.
The market in the United States is projected to expand at a 5% CAGR over the forecast period.
In Europe, France and the United Kingdom are anticipated to observe significant growth of 5.90% and 5.80% CAGR, separately, through 2034.
The India lead acid battery market is estimated to expand at a CAGR of 6.10% over the forecast period.
The motorcycle Lead Acid Battery Market is expected to hit USD 9.1 Billion at CAGR of 5.2% from forecast period 2023 to 2033
Automotive Lead Acid Battery Market is expected to hit USD 47 Billion at a CAGR of 5.2% from forecast period 2023 to 2033
Advanced Lead Acid Battery Market set to hit worth USD 62 billion at CAGR 6.9% during forecast period 2024 to 2034

“Key players are expected to integrate advanced technologies in their production process to ensure efficiencies in their offering of lead acid batteries,” – Says FMI Analyst.

The factors driving the Global Lead Acid Battery Market

Growing Application in Automotive to Boost the Lead Acid Battery Market Growth

Key factors fueling the demand for lead-acid batteries include initiatives undertaken to introduce green energy solutions in the automotive industry. Leading lead acid battery manufacturing companies are focusing on expanding their production and distribution capacities in various countries. To improve their industrial research activities, some companies are collaborating directly with regional manufacturers.

Also, the technological advancements in vehicle technology, such as the hybrid vehicle, battery-operated vehicle, or electric vehicle, will be some more strong factors bolstering the market growth.

The lead acid battery has applications in various end-use industries such as automotive, uninterruptible power supply (UPS), and telecommunication. The demand for lead acid batteries in the transportation industry is growing at a rapid pace, as emerging economies’ governments support clean energy and environmentally friendly modes of transport.

The transportation segment is among the leading end users of lead-acid batteries. Regionally, China has emerged as a highly lucrative market for the production and export of lead-acid batteries. This can be attributed to increasing demand from the country’s automotive industry, coupled with the adoption of advanced technology and higher production capacity.

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The higher adoption of EVs and expansion of the Transportation Sector

The rising demand for electric bikes in the transportation industry in both established and developing nations is anticipated to offer numerous growth opportunities for the players in the lead acid battery market.

The increasing consumption of lead acid batteries by manufacturers of two-wheelers, passenger cars, heavy vehicles, and commercial carriers is anticipated to sustain the demand for lead acid batteries globally.

The increasing demand for e-bikes for lower maintenance and replacement costs, and reducing reliance on conventional fuel technologies are the main driver of the lead acid battery market

Competitive Landscape

Manufacturers of lead acid batteries are constantly innovating and releasing new products in the market to capture customers. Additionally, they are expanding their market reach by entering into underpenetrated markets. Companies are also coming into strategic partnerships and collaborations with other players to increase their manufacturing capacity. Another go-to strategy of players in the lead acid battery industry includes mergers and acquisitions.

Leading players are further seen integrating the latest technologies like advanced grid designs, separators, etc. to enhance battery characteristics and reliability. Industry participants are also focusing on cost optimization and efficiency. This is achieved by economies of scale, process optimization, and focus on recyclability.

Market contenders are concentrating on building strong distribution networks and investments in marketing the product to build brand recognition and customer loyalty. Players are also offering excellent after-sales support.

Top 10 Key Players in the Lead Acid Battery Market

Furukawa Electric Co., Ltd.
Hitachi Chemical Company, Ltd.
Narada Power Source Co. Ltd.
SiteTel Sweden AB (NorthStar)
Clarios
Leoch International Technology Ltd.
Yokohama Batteries Sdn. Bhd.
Enersys
Exide Industries Ltd.
GS Yuasa Corporation

Recent Developments Taking Place in the Lead Acid Battery Market

In January 2024, Tesla Power India reportedly released ReStore, the first and foremost refurbished battery brand in India. The firm is planning to introduce 5000 refurbishing stores in India by 2025.
In May 2023, France opened its first electric car battery factory in its endeavor to take a big step in its race to compete with China.

Lead Acid Battery Industry by Category

By Product Type: