Automotive Lead-Acid Battery Market

The SLI batteries segment is projected to grow at a significant CAGR during the forecast period based on product.

The SLI batteries are expected to grow a lot, with strong annual growth rates (CAGR) predicted throughout the forecast period in the automotive lead-acid battery market. SLI batteries play an important role in how vehicles work because they provide the power for starting, lights, and other electrical parts. This segment is on the rise because more people around the globe want cars, especially in developing countries. People continue to rely on internal combustion engine (ICE) vehicles as they gradually shift to electric vehicles (EVs). More people are also able to use SLI batteries, given better battery technology in such areas as longer life batteries, good performance under hostile conditions, and long-lasting ones. This is because these batteries are designed to eventually run out of life and need to be replaced. These are not too expensive and can be used in all types of vehicles, from cars to trucks. This keeps the demand relatively stable. Efforts to popularize recycling of eco-friendly batteries and new ways of manufacturing them contribute to this part of the market. The growth of the market for electric vehicles is a challenge, yet hybrid cars and plug-in hybrids, using lead acid for extra power, provide the other way to grow. Broadly speaking, the core SLI battery part remained the mainstay of automotive lead-acid battery market, supported by solid demand from both technology advancements.

Based on type, the VRLA batteries segment is expected to grow significantly during the forecast period.

This specific segment of the overall automotive lead-acid battery market, namely the valve-regulated lead-acid battery segment, is going to grow vigorously and account for one of the significant CAGRs during this forecast period. VRLA batteries are coming into automotive applications because they require no maintenance, are sealed, making them safer, more reliable, and user-friendly. Back growth has been attributed to wide usability in advanced automobile technology, be it advanced start-stop systems or hybridization, where VRLA batteries-find employment in their outstanding efficiency and quite long performance. Coupled with the modern-day automobiles fully loaded with extensive electronics and heavy auxiliary demands, having the capacity to give high energy density and endure deep discharge cycles, VRLA batteries fit best. Green- and recyclable battery technologies awareness is spreading further to encourage the use of VRLA batteries. The batteries, when fully sealed, are designed such that spillage of the acid electrolyte is almost minimized and helps to make the environment. On top of everything else, increased penetration of electric vehicles and hybrids leads to enormously expanded auxiliary markets for lead-acid batteries and thus further propagates this segment. This takes any young, highly developing economies that are burgeoning in their automotive sector or aftermarket replacement needs in VRLA batteries and makes the market scenario strong. Continued advancements in battery technology with better grids and high-tech sealing technology will only augment the performance and reliability of VRLA batteries into a much broader application domain. Clearly, with the ongoing advancements in the automotive industry, the VRLA battery segment is bound to evolve as well, catering to both contemporary and cutting-edge vehicles.

Based on End-Use, the passenger cars segment is projected to grow at a significant CAGR during the forecast period.

Particularly for the growing segment of passenger cars in increasing automotive lead - acid battery market via different end-use applications. This is mainly because of increasing production and sales of passenger vehicles globally, especially with respect to the developing economies which witness raised levels of income and rapid urbanization stimulating car ownership. From small compact cars to ultra-luxury models, lead-acid batteries are the most cost-effective and reliable solution compared to others in the great majority of passenger cars. They are used in the critical operations of a car ignition, lighting, and on-board electronics. Thus, they are relevant in the multiplying alternatives of solutions. Other advances in cold cranking performance measures and lifecycles extension in the lead-acid battery technology helped integrate more modern-passenger vehicles that adopted the start-stop drive and fuel conserving technologies. Not to mention that the application for replacement batteries under this segment would continue to post steady growth, as lead-space batteries usually have determined time frames of use after which they will need to replace them due to wear. Though the shift into electric vehicles (EVs) will present hurdles for the long run, the current number of EVs and hybrids that utilize secondary lead-acid batteries for certain power requirements still continues to keep demand alive. This, therefore, is shoring up demand for vehicle batteries. In addition, government promotion towards battery recycling and environmental sustainability has further done well to entice such consumers in the passenger car segment. Growing needs for better reliability added again, however, to increased vehicle electrification.

Based on Customer Segment, the aftermarket segment is projected to grow at a significant CAGR during the forecast period.

The aftermarket segment will have a substantial CAGR during forecast period and will become a major factor in the automotive lead-acid battery market by customer segment dominating the aftermarket segment. This mainly escalates the need for replacement batteries because of the possible lifespan limitations of lead-acid batteries and continual replacement because of wear and tear. This further increases the need for aftermarket batteries in relation to the increasing global vehicle fleet, particularly from developing economies. Added to this are the advanced automotive technologies, such as improved start-stop systems and various enhanced electronic features, which have raised even further the performance requirements for replacement batteries and high-quality aftermarket solutions. The segment has even more power by consumers' preference for cheap and easily accessible batteries.

This aftermarket segment takes up the trend of DIY battery replacement and is thus supported by a sound network of distribution-installed retail stores and online platforms along which replacement batteries are easily available. Technological advancements such as better performance and durability lead to wider adoption in the aftermarket segment. In addition, electrification of vehicles leads to an increased need for extra lead-acid batteries that need replacement regularly, even in hybrid and electric vehicles. Environmental regulations promoting battery recycling also increase the attractiveness of aftermarket options. Overall, this aftermarket segment will be one of the greatest determinants in automating growth in the automotive lead-acid battery market-increased replacements.