Power requirement is anticipated to increase especially for micro-hybrid and electric cars globally, with increasing electrification and modification in cars. This had led to increase in demand for start stop systems with high performance in combination, leading to increase in the use of electric and hybrid vehicles. The start stop technology has become more common with stringent government fuel economy and emissions regulations.
Increase in the consumption of electric vehicles and hybrids is aiding enhancements in AGM and EFB battery types, which is primarily anticipated to shape market growth for automotive lead acid battery. The automotive lead acid battery market is estimated to exhibit a CAGR of 5% during the forecast period (2019-2029).
Key Takeaways from Automotive Lead Acid Battery Market Study
- Significant changes in automobile designs have been observed with focus on comfort and safety of both passenger and driver increasing. Few changes comprise of road condition monitoring, adaptive cruise control, electric power steering, and other features. Furthermore, increased demand for more effective and efficient lead acid batteries in LCV (light commercial vehicles) and passenger cars to support their surplus operations, apart from ignition (SLI) and basic starting lighting is driving the demand.
- By battery type, the flooded battery segment is anticipated to remain prominent in the automotive lead acid battery market, followed by enhanced flooded and AGM. Enhanced flooded battery type is anticipated to project relatively high growth in the forecast period.
- Major contributor to the growth of global automotive lead acid battery market is the Asia Pacific region. To fulfill the rising demand from the region, automotive lead acid battery manufacturers are mounting their production capabilities and capacities. Growing adoption of electric and hybrid vehicles is aiding the development of AGM and EFB battery types.
- Due to increasing adoption of start-stop systems and other advanced features, which require advanced battery systems for supporting various functions, the adoption rate of enhanced flooded batteries is increasing globally.
- Manufacturers are concentrating on reducing the weight of vehicle parts and making them compressed so as to increase the performance of vehicles. In line with this, making batteries with new compact designs and advanced functionalities for use in vehicles is also taken into consideration by automotive lead acid battery manufacturers.
“Automotive lead acid battery manufacturers are introducing battery recycling programs so as to improve main raw materials and use them for new batteries. This initiative is considerably decreasing battery costs. In order to safeguard stable source of raw material and not to be adversely affected by price fluctuations, manufactures are entering into long-term contracts with raw material suppliers,” says an FMI analyst.
Automotive Lead Acid Battery Market: Participants Insights
Johnson Controls, accounting for ~35% share, is anticipated to be the biggest player in the automotive lead acid battery market, followed by GS Yuasa with ~8%, being the second biggest market share holder globally. Other regional players in the market are Shin-kobe (Currently Hitachi Chemical), Camel Group, Panasonic Corporation, AC Delco, C&D Technologies Inc., etc.
For More Detailed Insights on Automotive Lead Acid Battery Market
The upsurge in demand for batteries for electric and hybrid vehicles in the APAC region is also anticipated to yield local and regional players such as Exide Industries Ltd., GS Yuasa, ATLASBX Corporation, Sebang Global Battery, Furukawa Battery, and new competitors such as Amara Raja Batteries Limited, are gradually cumulating their existence in Asia, specifically in India.
Automotive Lead Acid Battery Market: Future Outlook
Amplified inclination towards start stop systems along with advanced features for supporting various functions, will continue to be the prime driver for the growth of enhanced flooded batteries. Manufacturers are focusing on making further high-quality automotive lead acid battery types by observing OEM-specific regulations and requirements. Various automotive lead acid battery suppliers are focusing on long-term contracts with OEMs for giving batteries as per the specific requirements.
Automotive Lead Acid Battery Market: Summary
Global players are aiming for expansion of their footprint by establishing distribution channels and manufacturing units in various regions. Improvements in current designs of automotive lead acid batteries are anticipated drive strong growth in both developed and developing countries. ~40% of the entire revenue share is expected to be held by Asia Pacific players by the end of 2029 in the global automotive lead acid battery market.
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