Strong demand from the automotive sector, industrial applications such as forklifts and robotics, and the rapid expansion of data centers for cloud computing and AI are driving market growth. Proven reliability, cost efficiency, and mature recycling infrastructure continue to sustain flooded and VRLA battery adoption, while Europe focuses on premium AGM and Enhanced Flooded Batteries supported by strategic manufacturing and recycling investments.
Chicago, Feb. 03, 2026 (GLOBE NEWSWIRE) — The global lead acid battery market was valued at 51.93 billion in 2024 and is expected to reach US$ 91.76 billion by 2033, growing at a CAGR of 6.53% from 2025 to 2033.
An immense and reliable consumption base for the lead-acid battery market is anchored by the global automotive sector. With global vehicle production hitting 93,546,599 units in 2023, the foundational demand for SLI batteries is firmly established for 2024 and beyond. This is vividly reflected in shipment volumes, with North America receiving 159 million automotive battery units in 2024, and China exporting a massive 143 million units between January and July 2024. Future demand is so robust that China is estimated to export 21.29 million units in July 2025 alone. Manufacturers are scaling up to meet this, with one new Clarios plant set to supply 745,000 advanced starter batteries annually starting in 2026.
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Forklifts and Robotics Fuel Expansion of Lead-Acid Battery Adoption Worldwide
Beyond passenger cars, industrial applications make another powerful demand stream for the lead-acid battery market. The global logistics network, which shipped 1.75 million forklift trucks in 2023, depends heavily on lead-acid power. This industrial-scale need is exemplified by single operators like Amazon, which used 75,000 robotic movers and forklifts as of mid-2024. To fulfill such varied demand, enormous capital is being deployed, including Clarios’s US$ 6 billion investment plan via 2035 and an estimated US$ 17 billion earmarked under India’s Production-Linked Incentive scheme by August 2024. A single Chinese project is expanding lead-carbon battery output to 85 million kWh annually, signaling growth in specialized applications.
Major Investments Highlight Lead-Acid Batteries’ Role in Cloud and AI Infrastructure
The rapid expansion of the digital economy is driving exceptional demand for reliable backup power, creating strong growth opportunities for the lead acid battery market. Data centers, the nerve centers of cloud computing and AI, depend on large-scale uninterruptible power supply (UPS) systems to maintain operational continuity. Lead-acid batteries, especially valve-regulated lead-acid (VRLA) types, continue to dominate due to their proven safety and cost efficiency. The growing number of new data centers and capacity upgrades is translating into massive orders for stationary batteries worldwide.
This surge is highlighted by major investments and power expansions. In Virginia, a 91.5-megawatt data center campus is set to go live in 2025, while a hyperscale facility in Dublin will need a 72-megawatt backup system by early 2025. A Phoenix project launched in 2024 includes 20,000 VRLA battery units in its initial build-out. Likewise, Malaysia, in the lead acid battery market, is developing a data center hub with an US$ 800 million investment and a 64-megawatt phase-one requirement. In 2024 alone, contracts were signed to supply 1.2 million VRLA units for global data center upgrades. Another European technology company pledged to install 300,000 new lead-acid batteries by the end of 2025, while a 2024 Texas-based facility ordered 15,000 high-rate discharge batteries.
In early 2025, India’s government tendered 50,000 battery units for national informatics centers. Meanwhile, a cloud provider’s 2024 sustainability report cited the installation of 80,000 new lead-acid batteries to improve efficiency, and a London financial institution replaced 12,000 UPS batteries in Q1 2025. These developments collectively highlight strong and sustained demand for stationary lead-acid batteries supporting global digital infrastructure.
Proven Reliability and Low Costs Drive Continued Adoption of Flooded Lead-Acid Technology
Holding a dominant market share of more than 65%, flooded lead-acid batteries continue to be a primary choice in energy storage in the lead-acid battery market, boosted by their economic advantages and established reliability. A significant market factor is their extensive service life; industrial-grade batteries can achieve up to 1,500 cycles and last for 10 years or more with correct maintenance. Operational expenditures are predictable, with typical quarterly maintenance for industrial uses costing between US$ 200 and US$ 300. The technology’s long history, which spans more than 160 years, delivers a performance record that newer technologies have yet to match. Consequently, from a capital investment perspective, these batteries give a lower entry barrier, with an approximate capital cost of US$ 260 per kilowatt-hour. The lead-acid battery market is also strongly supported by an exceptionally efficient and mature recycling infrastructure.
This well-established circular economy delivers a notable market advantage, as up to 99% of lead and plastic components are recyclable. In North America, for instance, recycled sources fulfill more than 80% of the total lead demand, promoting raw material security. While maintenance is a requirement, it is generally straightforward; however, improper care can shorten a battery’s operational life by as much as 50%. Specific maintenance services like watering and cleaning carry costs ranging from US$ 50 to US$ 75 and US$ 40 to US$ 60 per battery, respectively. For peak performance, a repeated depth of discharge between 50% and 80% is advised, alongside a cell cut-off voltage of approximately 1.75 volts to extend longevity.
Automotive Demand Drives Growth in AGM and Enhanced Flooded Batteries Across Europe
Europe reinforces its influential role within the market by concentrating on premium product manufacturing and strategic ecosystem investments. The continent’s refined automotive sector generates significant demand for high-value AGM and Enhanced Flooded Battery (EFB) types, which deliver better margins. European producers are actively expanding their capacity to cater to this advanced market segment. Simultaneously, substantial investments are being made in recycling infrastructure to promote a sustainable and circular battery economy.
This strategic direction is backed by significant capital projects and strong national industries. In Poland, a new battery materials plant is being built with a US$ 1.25 billion investment, and a different EUR 240 million grant will establish a major battery metals recovery hub, completed by a planned gigafactory investment of about EUR 600 million. Italy’s mature lead acid battery market included 57 battery manufacturing businesses in 2024, while its recycling sector processed 148,880 metric tons of spent lead batteries.
Italy also has a planned gigafactory capacity of 48 GWh. In Germany, automotive supplier VARTA employed around 4,000 people, and a top carmaker ordered 1.2 million AGM batteries in 2024. A Spanish logistics firm procured 15,000 forklift batteries in 2024, while a leading UK data center operator contracted to replace 20,000 UPS battery units in 2025, illustrating robust industrial demand.
Lead Acid Battery Market Major Players:
- Clarios
- Exide Technologies
- CSB Energy Technology
- Yuasa
- EnerSys
- East Penn Manufacturing
- Fiamm
- Sebang
- Hankook AtlasBX
- Amara Raja
- C&D Technologies
- Midac Batteries
- ACDelco
- Banner Batteries
- First National Battery
- Chilwee
- Tianneng Holding Group
- Shuangdeng Group (Shoto)
- Camel Group
- Fengfan
- Leoch
- Narada Power
- Sacred Sun Power Sources
- Coslight Technology
- Other Prominent Players
Key Market Segmentation:
By Type:
- VRLA Battery
- Flooded Battery
By Application:
- Automotive Starter
- Motorcycles & Electric Bikes
- Forklifts & other Vehicles
- Communication Industry
- UPS
- Others
By Region
- North America
- Europe
- Asia Pacific
- Middle East and Africa
- South America
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