Augmenting Vehicle Electrification to Boost Demand for Automotive Lead Acid Battery
Owing to the growing demand for electric and hybrid vehicles, especially in Western Europe and North America, alternate batteries such as AGM and EFB are favored due to their better functionality and performance. Rising electrification and modification, particularly for micro-hybrid and electric vehicles, are leading to growing inclination towards AGM and EFB batteries. High cold cranking ampere (CCA) benefits of AGM batteries higher starting power.
Pricing Volatility Affecting Profit Margins of Automotive Lead Acid Battery Manufacturers
According to FMI analysis, variations in the cost of raw materials, specifically of lead, have affected the pricing of the product. This has affected the revenue, as the margins decrease with increasing prices of the raw material. Owing to these variations in cost of lead, lead acid battery prices are estimated to fluctuate during the forecast period. The variation in price is due to lack of adequate mine production.
Competition from substitute products, which are used for batteries such as (Ni-MH) nickel metal hydride, lithium-ion (Li-ion), and zinc-air. Li-ion batteries are suitable for applications in electric and hybrid vehicles, hindering the demand for lead acid batteries. Moreover, lead acid batteries have relatively limited application, bigger battery size, and lower energy density in motive powered vehicles.
Automotive Lead Acid Battery Market Structure Analysis
- The presence of major players such as Johnson Controls, GS Yuasa, along with AC Delco, Camel Group, Panasonic, Shin-kobe (Now Hitachi Chemical), and C&D Technologies Inc., makes the automotive lead acid battery market consolidated.
- APAC region is estimated to subsidy regional players such as Exide industries Ltd., ATLASBX Corporation, GS Yuasa, and Sebang Global Battery, which are gradually growing their presence in Asia, particularly in India.
FREQUENTLY ASKED QUESTIONS ABOUT AUTOMOTIVE LEAD ACID BATTERY MARKET
How will the automotive lead acid battery market be critical in the future?
Global automotive lead acid battery is anticipated to witness high growth, primarily driven by electrification and modification in vehicles. Rise in start stop systems is anticipated to propel the sales of automotive lead acid batteries. Automotive lead acid battery continues to dominate the market as preferred storage device of automotive starting and power supply systems. However, with increased warranty time of new high-tech vehicles, lead acid batteries are facing high competition from alterative storage technologies.
Will declining price of li-ion batteries affect the future trajectory of the automotive lead acid battery market?
The price of li-ion batteries has risen dramatically over the past couple of years, which has hindered the demand for lead acid battery. The price of lead acid battery has remained relatively stagnant as compared to new-age batteries such as li-ion batteries. However, the sales will remain significantly influenced by the ‘high recyclability’ quotient.
Which application area holds potential growth opportunities for automotive lead acid battery market players?
While automotive & transportation sector continues to influence growth strategies, growing demand for stationary batteries as power backup systems in industrial sector will result in increased market share.
What is the degree of competition in the automotive lead acid battery market?
Automotive lead acid battery market shows a perfect competition structure, along with large number of regional and local market players. In the current scenario, industry leaders such as Johnson Controls International Plc., GS Yuasa Corporation, Hitachi Chemical Company Ltd., and EnerSys collectively hold around one-fourth of the total revenue share.
Which region will lead the global sales of automotive lead acid batteries?
Asia Pacific Excluding Japan (APEJ) remains in the vanguard of the automotive lead acid battery market, with emergence of China and India as the world’s largest automotive markets. While recent decline in auto sales in these countries are expected to affect the market growth, manufacturers are focusing on capitalizing on grid storage and stationary industrial application areas.
Automotive Lead Acid Battery Market: Segmentation
The global automotive lead acid battery market is segmented to cover every aspect of the market in detail and present complete market intelligence to the reader.
Battery Type
- Flooded
- Enhanced Flooded
- AGM
Sales Channel
- OEMs
- Aftermarket
Vehicle Type
- Passenger Cars
- Light Commercial Vehicles
Region
- Asia Pacific
- North America
- Latin America
- Europe
- MEA
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by - Sudip Saha, Managing Director and Co-Founder of Future Market Insights
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