Lead-Acid Battery Market Evaluates US Tariff Impacts

Overview

New York, NY – May 08, 2025 – The global Lead-Acid Battery Market is a key player in energy storage, with strong demand driven by its reliability and low cost. In 2024, the market was valued at USD 47.7 billion and is projected to reach USD 74.1 billion by 2034, growing at a steady 4.5% CAGR.

In 2024, stationary batteries commanded a 57.4% share of the global Lead-Acid Battery market by type, driven by robust demand in telecommunications, uninterruptible power supply (UPS), backup systems, and grid energy storage. Flooded batteries held a 68.7% share of the lead-acid battery market by technology in 2024, favored for their cost-effectiveness and reliability in automotive, industrial, and backup applications. 12V batteries captured a 39.8% share of the global lead-acid battery market by voltage rating, valued for their versatility across automotive, solar systems, and small UPS applications. The aftermarket segment dominated with a 78.9% share of the global lead-acid battery market by end-user, driven by the ongoing need for battery replacements in vehicles, industrial machinery, and backup systems.

US Tariff Impact on Lead-Acid Battery Market

• On April 2, 2025, US President Trump announced a 25% tariff hike on imported cars, with subsequent increases to 34%, 50%, 84%, 125%, 145%, and even up to 245%. In response, China imposed a 125% tariff on all US-origin imports. Faced with high tariffs, several major US automakers such as Ford and General Motors announced adjustments to their business strategies in China, suspending exports of certain car models to the Chinese market.

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• This decision will further drag down the lead-acid battery import and export business. China’s lead-acid battery imports from the US in 2024 were 70,900 units, accounting for 1.26% of total imports. Exports of lead-acid batteries to the US were 8.2979 million units, representing 3.3% of total exports, with the top three exporting provinces being Guangdong, Shandong, and Jiangsu.
• Lead-acid battery imports in March 2025 were 475,300 units, down 6.96% MoM and 9.63% YoY. Cumulative lead-acid battery imports from January to March 2025 were 1.3806 million units, up 2.03% YoY. Lead-acid battery exports in March 2025 were 18.894 million units, up 47.65% MoM and 20.08% YoY. Cumulative lead-acid battery exports from January to March 2025 were 53.7468 million units, down 1.45% YoY.

Key Takeaways

• The Lead-Acid Battery Market is projected to grow from USD 47.7 billion in 2024 to USD 74.1 billion by 2034, at a 4.5% CAGR.
• Stationary batteries hold a 57.4% share, driven by demand in telecom, UPS, and grid storage, especially in developing nations.
• Flooded batteries lead with a 68.7% share, favored for cost-effectiveness and durability in automotive and industrial applications.
• 12V Prevalence batteries capture a 39.8% share, valued for versatility in automotive, solar, and small UPS systems.
• Automotive applications dominate with a 59.1% share, fueled by SLI systems in conventional and light EVs.
• The Aftermarket segment commands a 78.9% share, driven by consistent battery replacement needs in vehicles and machinery.
• Asia-Pacific holds a 46.2% share (USD 22.0 billion), propelled by automotive growth, industrialization, and renewable energy initiatives.

Analyst Viewpoint

The Lead-Acid Battery Market offers a compelling investment opportunity due to its cost-effectiveness and reliability in automotive and energy storage applications. The Asia-Pacific region, particularly China and India, drives growth with strong demand for vehicles and renewable energy systems. Investors can capitalize by supporting companies advancing valve-regulated lead-acid (VRLA) batteries or recycling technologies, especially in emerging markets.

However, risks include competition from lithium-ion batteries, which provide higher energy density, and volatile raw material prices that may pressure margins. Environmental concerns around lead disposal persist, though high recycling rates help mitigate risks. Consumers favor lead-acid batteries for their affordability and dependability, particularly in starting, lighting, and ignition (SLI) systems.

Innovations like absorbent glass mat (AGM) batteries and IoT-enabled monitoring enhance performance and longevity, attracting the automotive and telecom industries. Stringent EU regulations on lead disposal push manufacturers toward sustainable practices, which, while costly, open doors for companies investing in green technologies.

Lead-Acid Battery Statistics

Specifications of Lead Acid Battery Statistics

• They typically have a specific energy range of 35 to 40 Wh/kg and an energy density of 80 to 90 Wh/L. Reflecting their ability to store electrical energy efficiently.
• These batteries provide a specific power of around 180 W/kg, ensuring a steady release of power when needed.
• Charge and discharge efficiency can vary significantly, ranging from 50% to 95%, depending on factors like design and use case.
• Regarding cost-effectiveness, they offer an energy-to-consumer-price ratio of 7 (for sealed lead-acid) to 18 (for flooded lead-acid) Wh/US$.
• However, they exhibit a self-discharge rate ranging from 3% to 20% per month, which may require periodic recharging.
• Their cycle durability is typically limited to fewer than 350 cycles, making them suitable for applications without frequent deep cycling.
• The nominal cell voltage of lead-acid batteries stands at 2.1 V, ensuring compatibility with various systems.
• Moreover, they can be charged within a temperature range of –35°C (minimum) to 45°C (maximum). Making them adaptable to different environmental conditions.

Comparison of Lead-Acid Batteries and Other Batteries

• Lead-acid batteries have a nominal voltage of 2.0V per cell, and when combined in a series of 6 cells, they provide a total voltage of 12.0V.
• With a capacity of 100Ah, they offer an energy capacity of 1,200 Wh, making them suitable for various applications.
• However, lead-acid batteries are relatively heavy, weighing in at 34.3 kilograms, and occupy a significant volume of 13.4 liters.
• In contrast, Ni-MH batteries have a lower nominal voltage of 1.25V per cell. Requiring ten cells in series to reach 12.5V.
• These batteries also offer a capacity of 100Ah and an energy capacity of 1,250 Wh.
• While Ni-MH batteries are more lightweight at 15.6 kilograms, they still have a relatively substantial volume of 5.2 liters.
• Lithium polymer batteries, on the other hand, have a higher nominal voltage of 3.7V per cell, and when combined in a series of 4 cells, they yield a total voltage of 14.8V. With the same 100Ah capacity, they excel in energy capacity, providing 1,480 Wh.
• Lithium polymer batteries are notably lightweight at 8.2 kilograms and occupy a comparatively compact volume of 3.5 liters.

Lead-Acid Battery Demand by Application

• In 2018, the demand for lead-acid batteries in electric mobility was approximately 446 GWh, which increased to 470 GWh by 2020.
• Projections suggest that by 2025, the demand will rise to 476 GWh. Reflecting the growing use of lead-acid batteries in electric vehicles and related applications.
• Similarly, lead-acid batteries were in demand in energy storage, with 393 GWh required in 2018 and 413 GWh in 2020.
• However, it’s worth noting that the demand is expected to plateau and remain relatively stable at 407 GWh in 2025 and 406 GWh in 2030.
• On the other hand, lead-acid batteries used in consumer electronics saw a steady increase in demand from 53 GWh in 2018 to 57 GWh in 2020. With a significant projected jump to 69 GWh by 2025 and a further increase to 85 GWh by 2030.

Lead Acid Battery Statistics by Cost

• In this scenario, the installed capacity for Lead-Acid AGM is 100 KWh, whereas Lithium-Ion has a capacity of 50 KWh. Both types offer a usable capacity of 50 kWh.
• However, the lifespan of Lead-Acid AGM is 500 cycles at a 50% Depth of Discharge (DoD). While Lithium-Ion boasts an impressive 3000 cycles at 100% DoD.
• The battery cost for Lead-Acid AGM totals 60,000€, calculated at 100€ per kWh, multiplied by 100 KWh, and then multiplied by the six installations.
• In contrast, Lithium-Ion costs 20,000€, calculated at 400€ per kWh, multiplied by 50 kWh, for a single installation.
• Additionally, installation costs for Lead-Acid AGM amount to 12,000€, calculated at 2,000€ per installation, multiplied by the six installations.
• Transportation costs for Lead-Acid AGM come to 6,000€, calculated at 1,000€ per transport, multiplied by six installations. On the other hand, Lithium-Ion incurs a one-time installation cost of 2,000€ and a transportation cost of 1,000€.
• In summary, the total cost for Lead-Acid AGM is 78,000€, while Lithium-Ion costs 23,000€.
• When evaluating the cost per usable kWh per cycle, Lead-Acid AGM comes to 0.42€ per usable kWh (calculated as 78,000€ divided by 3000 cycles and 50 kWh).
• In contrast, Lithium-Ion is more cost-efficient at 0.15€ per usable kWh (calculated as 23,000€ divided by 3000 cycles and 50 kWh).

Report Scope

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Key Market Segments

By Type

Stationary Batteries Lead Due to Power Backup Demand

• In 2024, stationary batteries commanded a 57.4% share of the global lead-acid battery market by type, driven by robust demand in telecommunications, uninterruptible power supply (UPS), backup systems, and grid energy storage. The need for reliable power backup in data centers and industrial facilities significantly bolstered this segment. Developing nations, expanding their infrastructure, faced frequent power outages, further boosting stationary battery installations. The outlook remains strong, with growing investments in renewable energy storage, where stationary batteries are increasingly paired with solar panels for hybrid solutions.

By Technology

Flooded Batteries Dominate for Cost and Performance

• Flooded batteries held a 68.7% share of the lead-acid battery market by technology in 2024, favored for their cost-effectiveness and reliability in automotive, industrial, and backup applications. Their affordability and strong performance in high-discharge settings made them a top choice, particularly in developing regions. Despite higher maintenance needs compared to sealed alternatives, flooded batteries’ long lifespan and low upfront cost sustained their dominance. They excelled in agricultural equipment, forklifts, and telecom towers, thriving in harsh conditions. While facing some competition from advanced battery types, flooded batteries are expected to maintain their lead in traditional sectors.

By Voltage Rating

12V Batteries Remain the Market Standard for Versatility

• In 2024, 12V batteries captured a 39.8% share of the global lead-acid battery market by voltage rating, valued for their versatility across automotive, solar systems, and small UPS applications. Offering a balance of power and compactness, 12V batteries were standard in passenger vehicles, emergency lighting, and small industrial backup units. Steady demand persisted in the automotive aftermarket and off-grid solar installations, particularly in rural areas. Their ease of installation, replacement, and maintenance made them a preferred choice for both consumers and technicians, ensuring their continued dominance.

By Application

Automotive Sector Drives Strong Lead-Acid Battery Demand

• The automotive sector led the lead-acid battery market in 2024 with a 59.1% share by application, fueled by consistent vehicle production and the widespread use of lead-acid batteries in starting, lighting, and ignition (SLI) systems. Their reliability and affordability made them essential for conventional and light electric vehicles. High demand for passenger and commercial vehicles, especially in Asia-Pacific and parts of Europe, reinforced this segment’s dominance. Lead-acid batteries’ recyclability and established supply chains maintained their edge in the auto industry, even as lithium-ion gained traction in electric vehicles. They also supported auxiliary functions in hybrid models, solidifying their role.

By End-User

Aftermarket Sales Surge Due to Replacement Demand

• In 2024, the aftermarket segment dominated with a 78.9% share of the global lead-acid battery market by end-user, driven by the ongoing need for battery replacements in vehicles, industrial machinery, and backup systems. Battery degradation over time ensured steady demand through aftermarket channels. Rising vehicle ownership and aging fleets in both developed and developing regions amplified this trend. Consumers favored lead-acid batteries for their affordability, availability, and reliable performance, with retailers, service centers, and e-commerce platforms facilitating strong aftermarket sales, particularly in regions with older vehicle fleets.

Regional Analysis

• The Asia-Pacific (APAC) region solidified its position as the global leader in the lead-acid battery market, securing a 46.2% share valued at USD 22.0 billion. This dominance is driven by the region’s thriving automotive industry, rapid industrialization, and growing renewable energy initiatives.
• China leads the charge, propelled by booming automobile production and increasing demand for high-capacity batteries in telecommunications and uninterruptible power supply (UPS) systems. India closely follows, with steady growth driven by its expanding automotive sector and rising use of lead-acid batteries in two-wheelers and passenger vehicles.
• The region’s leadership is further supported by robust manufacturing hubs in Japan and South Korea, renowned for technological innovation and extensive automotive supply chains. Widespread adoption of lead-acid batteries in backup power for telecom towers, data centers, and renewable energy storage systems fuels market growth.
• Government policies across APAC significantly contribute to this trend, with initiatives promoting rural electrification and renewable energy integration driving lead-acid battery deployment in off-grid and remote areas, enhancing energy access and reliability.

Top Use Cases

• Automotive Starting, Lighting, and Ignition (SLI): Lead-acid batteries power vehicle engines, lights, and electronics, valued for affordability and reliability. They dominate in passenger cars, trucks, and two-wheelers, especially in developing markets. Their recyclability and established supply chains make them a go-to choice for traditional and hybrid vehicles, despite competition from lithium-ion.
• Uninterruptible Power Supply (UPS) Systems: Lead-acid batteries provide backup power for data centers, hospitals, and offices during outages. Their cost-effectiveness and proven performance ensure uninterrupted operations. Widely used in developing regions with unstable grids, they support critical systems, though maintenance needs can be a drawback compared to newer technologies.
• Telecom Tower Backup Power: Lead-acid batteries supply reliable backup power for telecom towers, ensuring network connectivity in remote or unstable grid areas. Their durability in harsh conditions and low cost make them ideal for developing markets. They support continuous communication, though advancements in lithium-ion pose future competition.
• Renewable Energy Storage: Lead-acid batteries store energy from solar and wind systems, especially in off-grid and rural setups. Their affordability and ability to handle deep discharges suit small-scale renewable projects. They’re often paired with solar panels in developing regions, though lifespan limitations may require frequent replacements.
• Forklift and Motive Power Applications: Lead-acid batteries power forklifts and warehouse equipment, offering robust performance and long life cycles. Their cost-efficiency and ability to handle heavy-duty tasks make them a staple in logistics and manufacturing. Valve-regulated types reduce maintenance, enhancing their appeal in industrial settings.

Recent Developments

EnerSys

• EnerSys is a global leader in stored energy solutions, focusing on industrial lead-acid batteries for forklifts, telecommunications, and renewable energy storage. Their ODYSSEY and NexSys battery lines deliver high performance and extended life cycles. Committed to sustainability, EnerSys operates a robust recycling program. The company drives innovation in motive power and backup power solutions, catering to industries such as healthcare and data centers.

Exide Industries Limited

• Exide Industries Limited is India’s leading lead-acid battery manufacturer, producing automotive, industrial, and inverter batteries. Dominating the Indian market with brands like Exide and SF Sonic, Exide combines advanced battery technologies with cost efficiency. Its extensive distribution network and partnerships with automakers like Maruti Suzuki and Tata Motors solidify its strong market presence.

GS Yuasa

• Japan-based GS Yuasa is a prominent player in automotive and industrial lead-acid batteries, recognized for reliability and innovation. Their products power vehicles, motorcycles, and energy storage systems. GS Yuasa prioritizes eco-friendly manufacturing and recycling while collaborating with global automakers and investing in next-generation battery research.

Clarios

• Clarios, previously Johnson Controls Power Solutions, is a global leader in automotive batteries, supplying one in three vehicles worldwide. Their brands, including VARTA and OPTIMA, serve both OEMs and aftermarket segments. Clarios emphasizes sustainability through a closed-loop recycling system and focuses on smart battery technologies for start-stop vehicles and future mobility applications.

Conclusion

The Lead-Acid Battery Market remains a strong investment opportunity, driven by its affordability, reliability, and widespread use in automotive, telecom, and renewable energy applications. Despite competition from lithium-ion batteries, innovations like AGM and robust recycling programs sustain its relevance. With dominant demand in Asia-Pacific and growing infrastructure needs in developing regions, lead-acid batteries are poised for steady growth, particularly in cost-sensitive markets.

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