The global two-wheeler lead acid batteries market revenue was valued at USD 5.1 billion in 2023 and is projected to reach a value of USD 7.6 billion by 2032, registering a CAGR of 4.5% during the forecast period (2024-2032). The growth of the two-wheeler lead acid batteries market is directly impacted by increased automotive production and sales and rising demand for electric vehicles.
Two-wheeler lead-acid batteries are rechargeable batteries developed explicitly for use in two-wheeled vehicles such as motorcycles, scooters, mopeds, and electric bicycles. These batteries belong to the larger category of lead-acid batteries, which have been widely used and established for many decades.
The rapid expansion of the automobile industry and rising sales of mobility vehicles worldwide are predicted to directly impact sales of two-wheeler lead acid batteries. Furthermore, consumers are switching to electric vehicles in reaction to stricter rules on carbon emissions from vehicles. Rising fuel prices in developing economies also push this transition, increasing sales of two-wheeler lead acid batteries. However, there is a high risk of lead acid battery explosions in vehicles, permanent and mobile factories, mines, and quarries. As a result, consumers prefer lithium-ion batteries, which is likely to reduce market sales.
The widespread use of lead-acid batteries in conventional two-wheelers is a significant reason for their sustained market dominance. Conventional bikes and scooters powered by internal combustion engines have traditionally used lead-acid batteries for starting and electrical systems. This long-standing connection has made lead-acid batteries the default choice in this market. Most motorbikes and scooters use lead-acid batteries in nations with a large market share of traditional two-wheelers, such as India. According to Crisil, two-wheeler sales per 1,000 people are predicted to rise from 121 in 2023 to 136-140 in 2028 and 150-154 in 2032. Exide Industries and Amara Raja Batteries, India's leading battery producers, sell lead-acid batteries to significant two-wheeler manufacturers. For example, Hero MotoCorp, one of India's leading two-wheeler manufacturers, frequently employs lead-acid batteries in its traditional models.
Additionally, demand for lead-acid batteries is stable in worldwide markets where traditional two-wheelers dominate. According to market research agencies, lead-acid batteries power the majority of two-wheelers, particularly in developing countries. The historical incorporation of lead-acid batteries in conventional two-wheelers has resulted in a market context in which lead-acid technology is firmly entrenched. As long as internal combustion engine-powered two-wheelers maintain their market dominance, demand for lead-acid batteries is projected to remain strong, indicating the long-term impact of historical usage patterns on current market trends.
The growing popularity and adoption of electric two-wheelers pose a significant challenge to the lead-acid battery market. Electric motorbikes and scooters are becoming increasingly popular due to their environmental benefits, cheaper running costs, and government incentives that promote clean energy solutions. Lithium-ion batteries, which have a better energy density and are lower in weight, have gradually replaced lead-acid batteries in electric two-wheeler applications. For example, two-wheeler electric vehicle (EV) registrations in India rose 34% yearly to 8.49 lakh units in 2023. EV sales will reach 750,000 to 800,000 in 2023, representing an 18-25% increase over 2022. Leading electric two-wheeler manufacturers, including Zero Motorcycles, Energica Motor Company, and NIU Technologies, broadly use lithium-ion batteries in their electric vehicles. For example, NIU Technologies' popular electric scooters use lithium-ion batteries to increase energy efficiency and range.
Furthermore, the International Energy Agency (IEA) announced a substantial increase in global electric two-wheeler stock, reaching tens of millions. The rise of electric two-wheelers is especially noticeable in markets such as China, India, and numerous European countries, where government initiatives and consumer preferences drive the transition to cleaner mobility. Lithium-ion batteries dominate the electric two-wheeler market due to their high energy density, lightweight, and better performance. According to market research agencies, the lithium-ion battery market for electric two-wheelers will increase significantly, indicating that lead-acid batteries will gradually be phased out of this segment.
The aftermarket for two-wheeler battery replacement is a promising market for lead-acid batteries. As the existing fleet of conventional two-wheelers ages, consumers frequently need to replace their batteries to ensure consistent vehicle performance. Targeting the aftermarket segment enables lead-acid battery producers to provide cost-effective and proven alternatives for consumers wishing to replace batteries in their existing motorcycles and scooters. There is an increasing demand for aftermarket battery replacements in mature markets where traditional two-wheelers are common. For example, battery replacement is constantly needed in the United States and Europe, where motorcycles with internal combustion engines are still popular. Battery stores and service centers, including AutoZone and Halfords, claim consistent sales of lead-acid motorcycle batteries in respective aftermarket categories.
Moreover, focusing on the aftermarket segment is consistent with current market trends and consumer demands. Lead-acid battery manufacturers can capitalize on this opportunity by ensuring the availability of high-quality replacement batteries, forming partnerships with aftermarket retailers, and implementing marketing campaigns to educate consumers about the advantages of using lead-acid batteries for aftermarket replacements.
| Study Period | 2020-2032 | CAGR | 4.5% |
| Historical Period | 2020-2022 | Forecast Period | 2024-2032 |
| Base Year | 2023 | Base Year Market Size | USD 5.1 billion |
| Forecast Year | 2032 | Forecast Year Market Size | USD 7.6 billion |
| Largest Market | Asia-Pacific | Fastest Growing Market | North America |
Asia-Pacific's two-wheeler lead acid batteries market share is estimated to grow at a CAGR of 4.8% over the forecast period. Compared to other parts of the world, China and India have the highest sales of electric and internal combustion engine two-wheelers, followed by Southeast Asian countries. Two-wheeler scooters and motorbikes are the most popular modes of transportation in Asia-Pacific due to their excellent fuel efficiency and ease of use in congested traffic. As a result, traditional two-wheel cars are widely used by clients in the Asia-Pacific region.
Additionally, much of the surge in scooter and motorcycle use in Asia-Pacific can be attributed to growing urbanization in developing countries and rising middle-class family incomes. These behaviors have caused people to spend more money on transportation, as they need it to get to work. Furthermore, increasing demand for electric scooters will likely propel the Chinese market. The country's need for efficient public transportation forces customers to rely on scooters and motorcycles for daily travel. Demand for two-wheeler lead acid batteries in China will increase over the forecast period.
North America is anticipated to exhibit a CAGR of 5.0% over the forecast period. North America is expected to grow due to the greater acceptance of electric vehicles, the implementation of government tax breaks for makers and customers, and the rising rate of pollution caused by higher GHG emissions. Domestic two-wheeler sales climbed by 15.9% in December 2023 compared to the previous year. Automakers sold 12,11,966 vehicles in December 2023, compared to 10,45,052 in December 2022.
Furthermore, in 2023, the United States sold a record 1.2 million EVs, including 1,189,051 new EVs. This is a 58% increase in sales from the first three quarters of 2022. In 2023, hybrid, plug-in hybrid, and battery electric vehicles (BEV) will account for 16.3% of new light-duty vehicle sales, up from 12.9% in 2022. Increased electric vehicle sales will likely benefit the United States market in the coming years. Consumers choose two-wheelers such as scooters, mopeds, and three-wheeled scooters for commuting on university, school, and hospital campuses, boosting lead-acid battery sales. The eCommerce business is growing in the United States, and firms are adopting two-wheelers to distribute products to shorter distances. This will continue to fuel market growth during the assessment period.
The European two-wheeler lead acid batteries market is essential to the European electric vehicle industry. With a long history of two-wheeler culture and an increasing emphasis on sustainable mobility, the demand for lead-acid batteries in electric scooters and motorcycles is critical. Several factors influence the behavior of this sector. Countries such as Germany, France, Italy, and the Netherlands are seeing an increase in the adoption of electric two-wheelers, pushing up demand for lead-acid batteries. For example, Germany, emphasizing sustainable urban mobility, has witnessed a significant surge in electric scooter usage, influencing demand for batteries.
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The market is further segmented by capacity into Less than 5 AH, 5 AH to 10 AH, 10 AH to 20 AH, and Above 20 AH.
Entry-level electric scooters and low-powered motorbikes often use batteries with a capacity ranging from 5 to 10 ampere-hours (AH). This segment strikes a mix between portability and range, providing enough capacity to sustain moderate-distance commuting while being lightweight and small. These batteries are ideal for urban commuting and short-to-medium-distance trips, meeting the needs of cost-conscious consumers and city dwellers. They provide enough power to meet daily transportation needs without becoming too large or heavy.
Batteries with fewer than five ampere-hours (AH) capacity are mainly intended for small, lightweight two-wheelers like electric bicycles and mopeds. These tiny portable batteries make them ideal for short-distance commutes and recreational rides. They are distinguished by their small weight and ease of use, making them excellent for situations where space and weight are essential considerations. However, because of their smaller capacity, they may have a shorter range and need to be recharged more frequently than higher-capacity batteries.
The market can be further bifurcated by battery type into VRLA Batteries and Flooded.
Valve-regulated lead-acid (VRLA) batteries are sealed lead-acid batteries that require no maintenance. They include a pressure-relief valve that adjusts internal pressure, keeping gasses from escaping and reducing electrolyte evaporation. VRLA batteries are divided into absorbent glass mats (AGM) and gel batteries. Absorbent Glass Mat batteries employ a specific glass mat separator to keep the electrolyte in place. This design improves the battery's efficiency and enables faster charge and discharge rates. AGM batteries are noted for their durability, deep cycling capacity, and vibration tolerance, making them appropriate for various applications, including motorcycles and scooters.
In contrast, gel batteries use a silica-based gel as the electrolyte, resulting in a more stable and maintenance-free construction. Gel batteries are highly resistant to deep discharges and are frequently employed in applications where vibration resistance and long service life are critical. They find use in electric two-wheelers, where sealed and spill-proof batteries are preferred. VRLA batteries are regarded for their ease because they do not require routine maintenance, are spill-proof, and can be put in various orientations. They are appropriate for electric two-wheelers where ease of usage and low maintenance are essential concerns.
Flooded lead-acid batteries, commonly known as wet-cell batteries, are the older and more common type of lead-acid battery. They include removable lids that let you check and replace the electrolyte levels. These batteries require regular maintenance, such as checking and topping water levels with distilled water. Flooded batteries are noted for their durability and cost-effectiveness. They are frequently chosen for applications where regular maintenance is not a significant concern and cost is an important consideration. While flooded batteries may require more attention and care than VRLA batteries, they are employed in various electric two-wheelers, particularly in regions where battery cost is a significant factor, and riders are familiar with routine maintenance activities.
Based on sales channels, the market is fragmented into OEM and Aftermarket.
The OEM sales channel involves directly supplying batteries to electric two-wheeler manufacturers for inclusion into new cars throughout the manufacturing process. Lead-acid battery manufacturers work with original equipment manufacturers to deliver batteries that fulfill specified size, capacity, and performance specifications. This sales channel is critical for ensuring electric two-wheelers are built with dependable and compatible batteries. The OEM sales channel is vital for building collaborations with electric car manufacturers. Lead-acid battery manufacturers collaborate closely with OEMs to smoothly incorporate batteries into modern electric two-wheelers. This channel improves electric vehicles' quality and performance, influencing consumer views and brand loyalty.
However, the OEM sales channel must work closely with electric car manufacturers to meet manufacturing deadlines and design criteria. Any concerns with quality, compatibility, or timely delivery might harm the reputation of the battery maker and the electric two-wheeler brand.
After purchasing and using the vehicles, the aftermarket sales channel distributes lead-acid batteries for electric two-wheelers to consumers, service centers, retailers, and repair shops. Consumers can purchase aftermarket batteries to replace aged or broken batteries in their existing electric two-wheelers. However, competition in the aftermarket is typically fierce, and buyers may have differing preferences for battery brands. Effective marketing, quality assurance, and customer service are critical for lead-acid battery manufacturers to succeed in the aftermarket. Furthermore, compatibility with a wide range of electric two-wheeler models is essential for meeting consumers' needs.
The pandemic led to a temporary lockdown of countries that hindered the utilization, manufacturing, and sale of the vehicles. The automobile industry, which primarily consists of outdoor jobs, was poorly exposed to the uncertainty that contributed to a dramatic decline in automotive sales. Furthermore, the instability of the supply chain industry, mostly due to the closing of national and foreign borders and the changes brought on by the decision not to use Chinese products, may impede the operation. However, the partial stoppage of public transport and the need to maintain social distancing is likely to bolster the use of two-wheelers.
February 2024- BYD battery unit FinDreams will develop batteries for two-wheelers.
September 2023- Amara Raja Electronics will acquire shares in Design Alpha.
October 2023- Samsung SDI stated that it had signed a supply agreement for electric car batteries with Hyundai Motor Company for the first time.
