MOTORCYCLE LEAD ACID BATTERY MARKET KEY INSIGHTS:

The Motorcycle Lead Acid Battery Market Size was valued at USD 5.21 Billion in 2023 and is expected to reach USD 8.52 Billion by 2032 with a growing at CAGR of 5.63% over the forecast period of 2024-2032.

The Motorcycle Lead Acid Battery Market is evolving significantly in the wake of diverse factors like government regulations, surging sales of EVs, and technological shifts across key nations such as Japan, China, the USA, France, Germany, and India. During 2023 and 2024, these countries remain significant to market considerations based on their policy-driven commitment to sustainable energy solutions and strong two-wheeler industries.

For example, India's Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) program maintains its grip on electric two-wheeler acceptance and consequently on the demand for high-performance lead acid batteries. Almost 1 million Electric Two Wheelers were sold in India in 2023.

China's similar policy framework that encourages the use of electric motorcycles is in synchronization with the governmental environment-related objectives and continues to support the demand for high-performance lead acid batteries.

Technological developments in the form of improved electrolyte formulation and increased cycle count of batteries can position lead acid batteries as an economical option for motorcycles, especially in developing economies. The recent launches, such as new high-efficiency batteries from leading companies released late in the year 2023, stand testimony to the innovative capacities of the industry.

Future opportunities include hybrid battery systems using lead acid and lithium-ion technologies to meet the requirements of cost-conscious customers in emerging markets. In addition, the development of the aftermarket segment, characterized by the ongoing expansion of motorcycle ownership in developing economies, is likely to influence market trends in 2024.

MARKET DYNAMICS

KEY DRIVERS

• Growing Motorcycle Ownership in Emerging Markets

Increased motorcycle registrations in countries such as India (up 40% in 2023) and Indonesia reflect the increasing affordability and preference for two-wheelers in densely populated regions. The five largest domestic manufacturers have the clear majority in the Indian electric 2W market; Ola Electric, TVS Motor, Ather, Bajaj and Ampere occupied more than 75% of the sales. Strong policy support for EV deployment in India has witnessed rapid growth; the FAME II measure was first introduced in 2019 as a three-year purchase incentive policy. The FAME II scheme will end on 31 March 2024, and will be replaced by a new four-month subsidy extension scheme that has been announced in March 2024 called the Electric Mobility Promotion Scheme (EMPS).

At present, with the region accounting for 75% of the global motorcycle sales, the demand for lead acid batteries as a low-cost energy storage product has been quite strong. This growth represents a corresponding demand for Motorcycle Lead Acid Battery Market, which are widely used due to their economy of scale and recyclability.

• Positive Government Policies Toward Battery Recycling

Over 98% of all lead from batteries is recycled; in comparison, only 55% of aluminum soft drink and beer cans, 45% of newspapers, 26% of glass bottles, and 26% of tires are recycled, which makes it environmentally sustainable. Governments of developed countries, for example the USA, impose strict recycling policies that ensure lead acid batteries still remain a viable option. For example, the Environment Protection Act, USA requires proper disposal and recycling practices, ensuring there is a closed-loop system in producing these batteries. Such policies add to the sustainability features of lead acid batteries, strengthening the adoption in new and aftermarkets.

RESTRAIN:

• Competition From Lithium-Ion Batteries In Electric Motorcycles

Increasing use of lithium-ion batteries in electric motorcycles threatens the Motorcycle Lead Acid Battery Market. Lithium-ion batteries, with high energy density and faster charging, are favoured for electric two-wheelers, especially in premium segments. It is estimated that by 2024, more than 14% of the global electric motorcycles will penetrate, and about 60% of these will be driven by lithium-ion technology. These changes are mainly caused by declining lithium-ion battery prices, improved charging station infrastructure, and government incentives for EVs.

For example, Germany provides the subsidy for the purchase of EVs with advanced batteries, giving them a competitive landscape undesirable for lead acid variants. However, in the case of conventional motorcycles and scooters, the competitiveness lies mainly in the cost-effectiveness of the product, which somewhat reduces the loss.

KEY SEGMENTATION ANALYSIS

BY VEHICLE TYPE

In 2023, Motorcycles segment accounted for the largest market share at 64% due to higher take-up in rural and urban areas in emerging markets such as India and Indonesia. Motorcycles require power-packed, high-capacity batteries, leading to higher adaptation of lead acid batteries given their service life and affordability. In addition, the usage of motorcycles in Africa and Southeast Asia also supports the demand of lead acid batteries.

In contrast, Scooter segment is anticipated to advance with the fastest CAGR of 6.07% during the forecast period 2024-2032. This growth is due to rising urbanization and popularity for lighter, compact two-wheelers in the developed economies of Japan and France. Increasing electric scooter sales also positively affect Motorcycle Lead Acid Battery Market, particularly in the aftermarket. Manufacturers are emphasizing the development of compact, lightweight, and recyclable battery solutions to cater to emerging requirements in this segment.

BY SALES CHANNEL

OEMs dominated the Motorcycle Lead Acid Battery Market in 2023 with 53% market share due to the extensive integration of battery manufacturers with motorcycle producers. Elongated chains of lead acid batteries are utilized by leading OEMs such as Honda and Yamaha for traditional motorcycle models, thereby significantly increasing this dominance. Additionally, incentives offered by governments to localized manufacturing of batteries keep ensuring OEMs remain ahead in the competition.

OEM's projected to grow at the highest CAGR of 5.80% during the forecast period 2024-2032. Here, increased adoption of high-efficiency batteries in electric and hybrid motorcycles gets a boost with government policies favouring domestic battery production. In contrast, the aftermarket would be an important segment that caters to the massive population of old motorcycles and scooters majorly in two-wheeler dependency regions.

REGIONAL ANALYSIS

Asia-Pacific region was the leading regional segment in 2023, accounting for 24.67% of market share, mainly due to the high motorcycle sales volume in the region, such as in countries like China, India, and Indonesia. For instance nearly 6 million electric two wheelers were sold in China alone, accounting 78% of global market share. The region enjoys encouraging policies by governments towards two-wheeler adoption along with energy-efficient solutions. Due to subsidies programs offered for electric two-wheelers in China, the lead acid battery demand increased.

North America region is expected to grow at the fastest CAGR of 5.88% during the forecast period 2024-2032. This growth is due to increasing demand for recreational motorcycles, along with supportive recycling policies regarding lead acid batteries in the USA and Canada. Furthermore, high levels of consumer awareness about sustainability are also boosting the steady use of lead acid batteries across this region.

KEY PLAYERS 

Some of the major players in the Motorcycle Lead Acid Battery Market are  

• Exide Technologies (Motorcycle Batteries, Recycling Services)

• GS Yuasa Corporation (High-Performance Batteries, Advanced VRLA Batteries)

• Clarios (AGM Batteries, Flooded Lead Acid Batteries)

• Amara Raja Batteries Ltd. (Two-Wheeler Batteries, Industrial Batteries)

• Camel Group Co., Ltd. (Automotive Batteries, Motorcycle Batteries)

• Hitachi Chemical Energy Technology (Advanced Battery Systems, Motorcycle Batteries)

• Banner Batteries (Two-Wheeler Batteries, Stationary Batteries)

• Furukawa Battery Co., Ltd. (Eco-Friendly Batteries, VRLA Batteries)

• HBL Power Systems (VRLA Batteries, Industrial Lead Acid Batteries)

• Luminous Power Technologies (Inverter Batteries, Automotive Batteries)

• East Penn Manufacturing (Deka Batteries, Lead Acid Batteries)

• Leoch International Technology (Motorcycle Batteries, AGM Batteries)

• Zhejiang Haijiu Battery Co., Ltd. (Two-Wheeler Batteries, VRLA Batteries)

• BS-Battery (Powersport Batteries, Motorcycle Batteries)

• OKAYA Power Pvt Ltd. (Motorcycle Batteries, Industrial Batteries)

• Yuasa Battery, Inc. (AGM Batteries, High-Performance Motorcycle Batteries)

• TAB Batteries (Flooded Lead Acid Batteries, AGM Batteries)

• Trojan Battery Company (VRLA Batteries, High-Capacity Batteries)

• EnerSys (Specialty Batteries, AGM Batteries)

• Dynavolt Tech (Motorcycle Batteries, Energy Storage Solutions)

MAJOR CLIENTS

• Yamaha Motor Company

• Honda Motor Co., Ltd.

• Hero MotoCorp

• TVS Motor Company

• Bajaj Auto Ltd.

• Suzuki Motor Corporation

• Harley-Davidson

• Kawasaki Heavy Industries

• Piaggio & C. SpA

• BMW Motorrad

RECENT TRENDS

• July 2024: Amidst growing demand from the automobile sector for next-generation battery technology, Exide Industries Ltd is all set to launch a new advanced Absorbent Glass Mat (AGM) battery primarily for starting, light, and ignition (SLI) applications. Lead-acid battery class based on AGM technology is today perceived as a high-performance variant for four-wheelers, capable of delivering better starting power, durability, and potentially longer lifespan than conventional lead-acid batteries.

• September 2024: GS Yuasa, Kyoto-based Japanese battery manufacturer, with lead-acid and lithium-ion battery chemistry experience for all types of vehicles, as well as other applications in aviation and space, recently revealed a new order for its 50MWh lithium-ion battery storage system for the Tsunokobaru Power Storage Station in Ōita at the island Kuyshu in Japan.