The global automotive lead-acid battery market is projected to reach USD 35.291 billion by 2032, growing at a CAGR of 6.5% from 2026 to 2032. Demand is driven by the rise of new energy vehicles (NEVs), expanding vehicle fleets, and applications in energy storage. Lead-acid batteries remain essential for start-stop systems, auxiliary power, and low-voltage functions, offering cost-effective, reliable solutions despite the rise of lithium alternatives.
How Is the Growth of New Energy Vehicles Affecting Lead-Acid Battery Demand?
New energy vehicle adoption, particularly in China, is rapidly increasing, with production and sales exceeding 12.8 million units in 2025. While lithium batteries are the main power source, lead-acid batteries continue to support start-stop functions, auxiliary power, and low-voltage systems. Their integration into hybrid powertrains and energy recovery systems sustains market relevance, ensuring steady demand even in highly electrified vehicles.
What Role Does Vehicle Fleet Expansion Play in Market Demand?
China’s vehicle fleet reached 419 million units by the end of 2024. Lead-acid batteries, with an average replacement cycle of three years, generate substantial aftermarket demand. In 2024, over 80 million vehicles required replacement batteries, resulting in total demand of 112 million units and a domestic market value of RMB 17.655 billion. This growing vehicle base ensures long-term stability for the lead-acid battery market.
Wholesale lithium golf cart batteries with 10-year life? Check here.
How Are Policy and Environmental Standards Supporting Market Growth?
Government policies, including China’s New Energy Vehicle Industry Development Plan (2021–2035), promote high-performance, long-life batteries and stricter environmental compliance. Regulations on low-lead content, improved electrolytes, and higher recycling rates drive technological upgrades. Subsidies and tax incentives reduce costs for manufacturers and buyers, stimulating further growth in both automotive and energy storage applications.
Where Are Lead-Acid Batteries Expanding Beyond Vehicles?
Energy storage applications are increasingly important due to renewable integration and grid balancing needs. Lead-acid batteries offer low cost, high safety, and mature technology. In 2024, they accounted for 75% of global starting batteries, and China’s backup power segment reached RMB 10.494 billion with 13.76 million kVAh production. They are widely applied in charging infrastructure, industrial energy storage, and distributed power systems.
Want OEM lithium forklift batteries at wholesale prices? Check here.
What Technological Advancements Are Strengthening Lead-Acid Batteries?
Advances such as lead-carbon, AGM, and EFB batteries enhance energy density, cycle life, and safety. Their cost competitiveness remains high, with raw materials comprising over 80% of total costs, supporting exports (USD 3.903 billion from China in 2024). Continued R&D and adoption of innovative battery chemistries improve market positioning in price-sensitive and specific-use segments.
What Challenges Does the Market Face?
-
Substitution by Advanced Batteries: Lithium and sodium-ion technologies offer higher energy density and longer lifespans, reducing lead-acid market share in NEVs and premium applications.
-
Environmental Regulations: Stricter waste treatment and recycling standards raise production costs and operational complexity.
-
Overcapacity & Price Competition: Excess production capacity reduces utilization rates to 53% in some regions, pushing gross margins down from 18% in 2023 to 6.7% in early 2025.
-
Technological Lag: Lead-acid batteries deliver 300–500 cycles, far below lithium alternatives (>2,000 cycles), limiting appeal in long-life applications.
-
Automotive Transition: The electrification of vehicles and adoption of 12V lithium solutions gradually decrease traditional demand for lead-acid starting batteries.
Redway Expert Views
“Lead-acid batteries continue to play a vital role in both automotive and stationary energy storage markets. While lithium technologies dominate high-energy applications, lead-acid solutions remain indispensable for start-stop systems, auxiliary power, and low-voltage circuits. Manufacturers focusing on technological upgrades, recycling, and cost efficiency can maintain strong market relevance and capitalize on expanding NEV fleets and energy storage deployments globally.”
Conclusion
The automotive lead-acid battery market remains robust, supported by NEV growth, rising vehicle ownership, and energy storage demand. Technological advancements, policy support, and cost advantages provide opportunities, while substitution by lithium and regulatory pressures are key challenges. Strategic investments in recycling, performance improvements, and niche applications will sustain the market’s long-term growth.
FAQs
Q1: Why are lead-acid batteries still used in electric vehicles?
A1: They provide reliable start-stop, auxiliary, and low-voltage functions, complementing lithium main batteries.
Q2: How does policy support influence lead-acid battery growth?
A2: Policies encourage cleaner production, recycling, and performance standards, boosting adoption and technological upgrades.
Q3: What are the main challenges facing lead-acid batteries?
A3: Competition from lithium, environmental regulations, overcapacity, price pressures, and slower technological progress.
Q4: Can lead-acid batteries remain relevant in energy storage applications?
A4: Yes, due to cost-effectiveness, safety, and reliability for grid balancing, backup power, and distributed storage.
Q5: How does vehicle fleet expansion affect replacement demand?
A5: Growing fleets increase battery replacement cycles, ensuring stable aftermarket demand for lead-acid batteries.
