Lead Acid Battery Market to Reach USD 106.3 Billion by 2035 Amid Surging Demand in Automotive and Renewable Sectors

Lead acid battery market to grow from USD 63.4 billion in 2025 to USD 106.3 billion by 2035, driven by automotive, industrial, and renewable energy demand.

ROCKVILLE, MD , MD, UNITED STATES, July 31, 2025 /EINPresswire.com/ -- The global lead acid battery market is poised for significant growth, projected to increase from USD 63.4 billion in 2025 to USD 106.3 billion by 2035. This robust expansion, at a steady CAGR of 5.3%, is largely attributed to increasing demand across multiple sectors including automotive, telecom, industrial backup systems, and renewable energy storage, according to a recent market study by Fact.MR.

Lead acid batteries remain one of the most widely adopted energy storage solutions, owing to their cost-effectiveness, reliability, and extensive range of applications. As economies continue to digitize and electrify, the need for reliable energy storage systems is becoming more pronounced—particularly in regions with expanding industrial bases and a push toward energy sustainability.

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Key Takeaways from Market Study:

1. The global lead acid battery market is projected to grow from USD 63.4 billion in 2025 to USD 106.3 billion by 2035.
2. The market is expected to register a CAGR of 5.3% during the forecast period.
3. Growth is primarily driven by increasing demand in the automotive, telecom, industrial backup, and renewable energy storage sectors.
4. Flooded batteries dominate the market owing to their cost-effectiveness and widespread usage.
5. Valve-regulated lead-acid (VRLA) batteries are gaining traction due to their low maintenance and suitability for backup power.

Leading Players Driving Innovation in the Lead Acid Battery Market:

Prominent players in the lead acid battery market include Furukawa Electric Co. Ltd., Hoppecke Batterien GmbH & Co. KG, Exide Industries Ltd., Yokohama Batteries Sdn. Bhd, Camel Group Co. Ltd., and others.

Expanding Demand Across Diverse Applications:

Transportation continues to be the leading application segment, driven by rising vehicle production, especially in developing nations. Both OEM and aftermarket segments for passenger cars (PCs), light commercial vehicles (LCVs), heavy commercial vehicles (HCVs), and two-wheelers are expected to contribute significantly to market revenues. The aftermarket demand is especially noteworthy due to the frequent need for battery replacements in conventional internal combustion engine vehicles.

Industrial sectors are also leveraging lead acid batteries for motive and stationary purposes. These include applications in forklifts, material handling equipment, uninterruptible power supplies (UPS), and backup systems for data centers and telecom infrastructure. The motive industrial segment is gaining traction with the rise of warehouse automation and electrified logistics, while the stationary segment benefits from the growing reliance on uninterrupted power in critical infrastructure.

Renewable Energy Integration Accelerates Market Growth:

The integration of renewable energy sources such as solar and wind into power grids has added momentum to the lead acid battery market. These batteries are being used for grid storage applications, offering a reliable and tested energy storage solution that supports the intermittency of renewables. Both OEM and aftermarket segments for grid storage are projected to witness steady demand as countries enhance their renewable energy capacities and move toward net-zero carbon goals.

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Product Segmentation Insights

Among the product types, flooded lead acid batteries continue to dominate the market due to their affordability and widespread availability. However, AGM (Absorbent Glass Mat) and gel batteries are gaining traction for applications requiring low maintenance and better performance in deep-cycle operations. AGM batteries, in particular, are becoming a preferred choice in UPS systems, renewable installations, and automotive start-stop systems.

Regional Outlook: Asia Pacific at the Forefront

Geographically, Asia Pacific leads the global market, driven by rapid industrialization, a booming automotive industry, and growing investments in renewable energy projects. Countries like China, India, and South Korea are spearheading this growth due to favorable government policies, local manufacturing capabilities, and strong export dynamics. North America and Europe also hold substantial market shares, supported by ongoing infrastructure development, power grid upgrades, and a focus on sustainability

More Valuable Insights on Offer:

Fact.MR, in its new offering, presents an unbiased analysis of the Lead Acid Battery Market, presenting historical data for 2020 to 2024 and forecast statistics for 2025 to 2035.

The lead acid battery market is segmented based on product type, application, and region. By product type, the market is categorized into flooded, AGM (Absorbent Glass Mat), and gel batteries. In terms of application, the market is extensively diversified into transportation, motive industrial, stationary industrial, commercial, residential, grid storage, and others.

The transportation segment is further divided into OEM and aftermarket, each covering passenger cars (PCs), light commercial vehicles (LCVs), heavy commercial vehicles (HCVs), two wheelers, and other vehicle types. Similarly, the motive industrial, stationary industrial, commercial, residential, and grid storage segments are each segmented into OEM and aftermarket categories. Additionally, the market analysis includes regional segmentation, encompassing North America, Latin America, Europe, Asia Pacific (APAC), and the Middle East & Africa (MEA), highlighting the global scope and varied demand across geographies.

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