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Know Your Power: The State of the Automotive Battery Industry

Batteries are one of the most utilized global consumer commodities, helping to power everyday essentials that include everything from personal devices and household appliances to equipment being used in the latest space exploration missions. In fact, last year alone, batteries accounted for an estimated $134B in global sales and is expected to grow at a compound annual growth rate (CAGR) of 16.4% from 2025 to 2030.

One of the largest business sectors that relies on battery performance and productivity is the automotive industry. By 2028, the light, medium and heavy-duty automotive aftermarket is expected to be a $664.3 billion industry and a pivotal component within the aftermarket sector that will help contribute to this sales forecast is the battery.

While these statistics certainly seem indicative of a sprawling industry that shows no signs of slowing down in popularity any time soon, these numbers only begin to scratch the surface on the current and future state of the battery industry and its influence on the transportation sector.

When it comes to exploring the various facets of the battery market landscape and its impact on consumers and the overall economy, did you know…

1 out of every 4 U.S. jobs are related to or reliant on batteries.

Not only do batteries help to power are everyday essentials, including the vehicles that help transport us from point A to point B, but they are helping American workers earn a livelihood. For professionals that are tied to the supply chain industry, from “direct to your doorstep” delivery drivers to commercial fleets that transport consumer goods across the country, the dependability of the batteries used to power these heavy-duty vehicles is paramount to business operations.

The average age of light vehicles is 12.6 years.

This trend, observed in 2024 and projected to continue, signals that Americans are holding onto their cars and trucks for longer periods than ever before. Contributing factors include higher prices for new vehicles, coupled with increased interest rates that make financing more costly. Furthermore, vehicles are generally built to be more durable and reliable than in previous decades, allowing them to remain operational longer. To help keep up with this trend, manufacturers are engineering their batteries to last longer to provide vehicle owners with a lower Total Cost of Ownership (TCO).

The replacement rates for batteries in vehicles between the age of 11-15 years is approximately 37%.

While the longevity of light vehicles is increasing due to factors noted above, the normal lifespan of an automotive battery that’s properly maintained is between 3-5 years. Therefore, it’s not surprising that the replacement rates for batteries in vehicles 11 years or older is almost 40%. Accumulated wear and tear over more than a decade of use, exposure to fluctuating temperatures, and the electrical demands of the vehicle contribute to the eventual end of life of batteries – regardless of the chemistry. This replacement statistic underscores a consistent demand for batteries within the automotive aftermarket and is an important reminder to regularly check in on the health of your battery to achieve the best performance outcome for your vehicle.

The rate of U.S. energy consumption is projected to increase 27% by 2050.

While this speaks to broader power consumption overall — which is influenced by many factors — one of the industries that will play a pivotal role in that growth percentage is the automotive battery industry.

In 2024, the global automotive battery market size was valued at $52.44B and is projected to grow to $82.90B by 2032.

That’s a 58% increase in less than a 10-year span. Those are compelling numbers and could have a lot to do with the fact that the chemistries behind the latest battery innovations have evolved to provide ample cranking power and exceptional cycle life for an overall lower TCO. All attractive features that can help grow sales within the market landscape and continue to attract interest among consumers for years to come.

According to 2024 Experian Vehicles in Operation (VIO) data, the top 3 battery DIN sizes (G47/H5/LN2, G48/H6/LN3 and G94R/H7/LN4) are set to cover more than 40% of all vehicles in operation in North America in 2025.

The term “DIN” stands for “Deutsches Institut für Normung”, which is German for “German Institute for Standardization”. What began as a slow adoption has grown into what EnerSys calls “The DIN Tsunami”, with 80% of the last three Internal Combustion Engine (ICE) model year vehicles now using DIN battery sizes.

The consolidation of battery fitments signals a significant trend towards standardization in the automotive aftermarket. This concentration of key battery sizes streamlines manufacturing processes, simplifies inventory management for distributors and retailers, and potentially makes battery replacement easier and more straightforward for a large segment of consumers and automotive service professionals.

In 2025, the Absorbed Glass Mat (AGM) battery market is projected to be valued at $13B and is expected to grow to $23B by 2035.

The Absorbed Glass Mat (AGM) battery market is poised for significant expansion in the coming decade. This robust growth trajectory highlights the increasing demand and adoption of AGM battery technology across various industries. A significant contributor will be rising sales of electric vehicles (EVs), which use AGM batteries for their 12-volt systems to power accessories and other non-driving functions. AGM batteries are also used in hybrid-electric vehicles.

By 2027, up to 19% of all replacement automotive batteries are predicted to be AGM – nearly 3X that of 2022.

This growing market share, reported in the 2024 S&P Global Powertrain Forecast, reflects the increasing adoption of AGM technology, driven by its suitability for modern vehicles with higher electrical demands, such as those featuring start-stop systems and advanced driver-assistance features. AGM batteries, such as ODYSSEY® batteries from EnerSys, offer several advantages over traditional flooded lead acid batteries, including longer life, better cycling performance, faster recharging, enhanced vibration resistance, and a maintenance-free, spill-proof design.

Backed by an industry-leading warranty, ODYSSEY® batteries are engineered to deliver 2X the power and 3X the life of conventional flooded lead acid batteries. Manufactured with AGM Thin Plate Pure Lead (TPPL) technology – or AGM2 – the latest in AGM power, ODYSSEY® batteries are maintenance-free, extreme temperature tolerant and provide ample cranking, even at a low Depth of Discharge (DOD). All the common DIN size batteries are available within the ODYSSEY® battery product line, along with a wide range of Group sizes, with the ability to service 90% of the market as direct fit.

Check out our websites at www.odysseybattery.com and www.eu.odysseybattery.com for the latest ODYSSEY® battery global news and updates.

You can also connect with us on social media using the hashtag #MYODYSSEY by following us on the below platforms based on region:
United States — InstagramX and Facebook
European Union — Instagram and Facebook

 

ABOUT ENERSYS

EnerSys is a global leader in stored energy solutions for industrial applications, designs, manufactures and distributes energy systems solutions and motive power batteries, specialty batteries, battery chargers, power equipment, battery accessories and outdoor equipment enclosure solutions to customers worldwide. The company goes to market through four lines of business: Energy Systems, Motive Power, Specialty and New Ventures. Energy Systems, which combine power conversion, power distribution, energy storage, and enclosures, are used in the telecommunication, broadband and utility industries, uninterruptible power supplies, and numerous applications requiring stored energy solutions. Motive power batteries and chargers are utilized in electric forklift trucks and other industrial electric powered vehicles. Specialty batteries are used in aerospace and defense applications, portable power solutions for soldiers in the field, large over-the-road trucks, premium automotive, medical and security systems applications. New Ventures provides energy storage and management systems for various applications including demand charge reduction, utility back-up power, and dynamic fast charging for electric vehicles. EnerSys also provides aftermarket and customer support services to its customers in over 100 countries through its sales and manufacturing locations around the world. More information regarding EnerSys can be found at www.enersys.com.

SUSTAINABILITY

Sustainability at EnerSys is about more than just the benefits and impacts of our products. Our commitment to sustainability encompasses many important environmental, social and governance issues. Sustainability is a fundamental part of how we manage our own operations. Minimizing our environmental footprint is a priority. Sustainability is our commitment to our employees, our customers and the communities we serve. Our products facilitate positive environmental, social and economic impacts around the world. To learn more visit: https://www.enersys.com/en/about-us/sustainability/.