Automotive Battery Market Report Overview
The Automotive Battery Market size is analysed to grow at a CAGR of 5.5% during the forecast 2022-2027 to reach $62 billion by 2027. The Automotive Battery Market is expected to grow steadily during the forecast period, owing to an increasing preference among end users for zero-emission hybrid and electric vehicles, because of falling battery prices, shrinking crude oil reserves, and the environmental effects of conventional automobiles. In addition, an expansion in global battery production capacity has aided in the achievement of economies of scale in the automotive battery sector, which is another important driver of market growth. Alternators are automotive parts that are used to charge batteries and power electrical systems. Increasing adoption of electricity-based vehicles due to various environment issues such as rising CO2 emission that cause air pollution, is expected to increase the demand for automotive alternator and voltage regulator. The market is likely to increase significantly in the next years because of the rapid expansion of the automotive industry in emerging markets. Furthermore, rising customer desire for pollution-free electric and hybrid vehicles is one of the significant factors expected to drive demand for automotive batteries over the forecast period. One of the market's key trends is the advancement of nickel-based materials utilized in vehicle nickel metal hydride batteries. In hybrid automobiles, nickel metal hydride batteries are increasingly being employed. These batteries were useful for the automobile industry due to their wide temperature range of -30 °C to + 75 °C and rapid charging capacity. This is projected to drive market expansion. By Battery Type, the Automotive Battery Market is segmented by Lead Acid, Lithium Ion, and Others. In comparison to the conventional batteries such as lead-acid and nickel-metal hydride, the automotive lithium-ion battery has developed as an eco-friendly, rechargeable power source. The prevalence of fast automotive battery chargers for increased battery performance promises well for the growth of the Automotive Battery Market.
The report: “Automotive Battery Industry Outlook – Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the Automotive Battery industry.
By Battery Type:
Lead Acid, Lithium-Ion, and Others.
By Vehicle Type: Passenger Cars, Commercial Vehicles.
By Engine Type: Internal Combustion Engine, Electric Vehicles
By Geography: North America, South America, Europe, APAC, and RoW
- The Lithium-Ion segment is expected to grow at the fastest CAGR of 8.4% during the forecast period. A lithium-ion battery is designed for use in applications that require high-energy-density solutions, such as hybrid and electric vehicles. Furthermore, in order to boost vehicle economies, manufacturers are always concentrating on lowering the price of the battery, accelerating global market growth.
- During the forecast period, the Electric Vehicle segment is expected to grow at the fastest CAGR of 12.6% in the global Automotive Battery Market. Increased demand for fuel-efficient, high-performance, and low-emission vehicles, stringent government rules and regulations on vehicle emissions, as well as lower costs of electric vehicle batteries and rising fuel costs, all contribute to the growth of the electric vehicle.
- In 2021, APAC accounted for the largest market share of 35% in the Automotive Battery Market. Due to increased demand for vehicles and high sales of passenger cars, commercial vehicles, and motorbikes, the Asia-Pacific region is predicted to have the quickest growth in the Automotive Battery Market value.
- Technology improvements have prompted prominent corporations to expand their reach into previously unexplored markets. Notably, the ubiquity of rapid car battery chargers for increased battery performance will augur well for the growth of the Automotive Battery Market.
Automotive Battery Market Share, By Region, 2021
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Automotive Battery Market Segment Analysis – By Battery Type
By Type, Automotive Battery Market has been segmented into Lead Acid, Lithium-Ion, and Others. The Lithium-Ion segment is expected to grow at the fastest CAGR of 8.4% during the forecast period. A surge in demand for smartphones and other electronic devices, as well as an increase in electric vehicles, are some of the key factors driving the growth of the lithium-ion battery. Lithium-ion batteries charge faster, last longer, and have a better power density for more battery life in a lighter container than older battery technology. In comparison to conventional batteries such as lead-acid and nickel-metal hydride, the vehicle lithium-ion battery has developed as an environmentally friendly, rechargeable power source which will help to boost growth of Lithium-Ion battery and eventually Automotive Battery Market. Manufacturers are trying to reduce the cost of lithium-ion batteries by implementing severe fuel efficiency standards in nations such as the United States, India, Germany, and Japan, hence raising the demand for electric vehicles. For example, In January 2020, Maruti Suzuki announced a collaboration with Toshiba and Denso to establish the world's largest vehicle lithium-ion battery production factory in Gujarat (India).
Automotive Battery Market Segment Analysis – By Engine Type
By Engine Type, Automotive Battery Market has been segmented into Internal Combustion Engine, Electric Vehicles. During the forecast period, the Electric Vehicle segment is expected to grow at the fastest CAGR of 12.6% in the Automotive Battery Market. Increased demand for fuel-efficient, high-performance, and low-emission vehicles, stringent government rules and regulations on vehicle emissions, as well as lower costs of electric vehicle batteries and rising fuel costs, all contribute to the growth of the electric vehicle and will help to boost the Automotive Battery Market. The cost of EV batteries has decreased over the last decade as a result of technological improvements and the mass production of EV batteries in enormous quantities. As EV batteries are one of the most expensive components of the car, this has resulted in a fall in the cost of electric vehicles. This is due to lower manufacturing costs for these batteries, lower cathode material prices, increased output, and so on. The price of EV batteries is predicted to decline to around $60 per kWh by 2030, significantly lowering the price of EVs and making them cheaper than conventional ICE vehicles. This is expected to boost the market growth.
Automotive Battery Market Share Segment Analysis - Geography
By Geography, Automotive Battery Market has been segmented into North America, Europe, APAC, South America, and RoW. In 2021, APAC accounted for the largest market share of 35% in the Automotive Battery Market. Due to increased demand for vehicles and high sales of passenger cars, commercial vehicles, and motorbikes, the Asia-Pacific region is predicted to have the quickest growth in the Automotive Battery Market value. Rising product demand for automotive applications in a number of nations, including South Korea, India, Malaysia, and Indonesia, is expected to have a beneficial impact on the region's growth throughout the projection period. Furthermore, continued product development by various businesses to build cost-effective and high-performance automobiles is expected to help the growth of the regional market. Furthermore, government measures to provide subsidies based on the price difference between EVs and ICE-enabled vehicles, with a maximum limit of CNY 85,000, are delivering a boost to the Asia-Pacific market. Various electric vehicle manufacturers have signed contracts or agreements with Asia's vehicle battery manufacturers, boosting the region's demand for automotive batteries. For example, BMW and Volkswagen signed contracts with CATL and Korean companies LG Chem and Samsung SDI to purchase batteries. This region is rapidly developing in terms of infrastructure, economy, and technology.
Automotive Battery Market Drivers
The Growing Integration of Electronics Is Set To Drive The Automotive Battery Market:
The role of electronics in enhancing vehicle performance has been critical in two areas, refining powertrain performance to reduce emissions and improve fuel economy, and refining chassis, exterior, and interior to increase vehicle safety and comfort. These advancements in safety, better connection, and wider telematics availability are likely to pave the path for future growth of electronics in automobiles and this will help to boost the Automotive Battery Market. The increasing demand for efficiency in automobiles has prompted the development of novel solutions that aid in fuel conservation. To save gasoline, start-stop systems turn off the engine while it is idle. During this time, the battery powers the vehicle's electronics, which also aids in restarting the engine. These advancements have increased the demand for improved batteries with higher energy density and will eventually help to boost market growth.
Investments in EVs Will Positively Impact Market Growth in The Future:
With the rising popularity of emission-free battery and hybrid electric vehicles, industry participants are likely to expand their investments in EVs. Furthermore, technology improvements have prompted prominent corporations to expand their reach into previously unexplored markets. Notably, the ubiquity of rapid car battery chargers for increased battery performance will augur well for the growth of the Automotive Battery Market. Furthermore, increased electrification of commercial vehicles in mature economies will fuel industry growth. Stakeholders are also likely to increase their output as a result of strong government initiatives encouraging the adoption of EVs. In February 2022, The Ontario government-backed an investment of $18.5 million by car components producer Ventra Group. This investment will allow the Ontario economy to boom as a result of domestic auto manufacturers' regional development programs. Furthermore, corporations anticipate that this investment will be used to build a flex-ion battery innovation center, which will boost employment and the economy.
Automotive Battery Market Challenges
A dip in Automotive Production Amid the Pandemic may limit the market growth
The industry has been disrupted as a result of a drop in automotive manufacturing and the closure of transportation services. The suspension of automotive battery production, in particular, didn't seem to work well for the global market outlook. However, the removal of prohibitions and strong government policies may lead to the selling of batteries. Despite the fact that the emergence of COVID-19 halted global production and sales of new automobiles, the impact on electric vehicles was good. The overall number of EVs sold in 2020 exceeded the entire number of EVs sold in 2019. Component production, on the other hand, was negatively impacted, and tiny Tier II and Tier III manufacturers suffered liquidity concerns. Major automotive events throughout the world were canceled or postponed, including the 2020 Geneva motor show, the Qatar Grand Prix, the New York International Auto Show, and the Australian Grand Prix. Fiat Chrysler Automobiles, Ford, PSA Group, Volkswagen Group factories in Europe, Ducati, Tesla factory in California, BMW Group European factories, Rolls-Royce, and General Motors are among the worldwide automakers that have halted production owing to the Coronavirus (COVID-19) epidemic. This hampered the market growth.
Automotive Battery Market Landscape
Technology launches, acquisitions, Partnerships and R&D activities are key strategies adopted by players in Automotive Battery Market. In 2021, the market Automotive Battery Market share has been fragmented by several companies. Automotive Battery top 10 companies include
- EXIDE INDUSTRIES LTD.
- Panasonic Corporation
- LG Chem
- GS Yuasa International Ltd.
- Robert Bosch GmbH.
- Hitachi Group Ltd
- Contemporary Amperex Technology Co. Limited
- A123 Systems
- SAMSUNG SDI CO. LTD
- BYD Company Ltd.
- In February 2022, In Germany, Mercedes-Benz created a new sustainable battery logistics centre. The company intends to be carbon neutral by the end of this year, thus all new Mercedes-Benz EQEs will be made in the Bremen factory in Germany. Furthermore, DB Cargo will transfer essential battery modules from Mercedes-facility Benz's in Hedelfingen over a distance of 650 kilometres to the logistics centre in Bremen. This will help in the growth of Automotive Battery Market.
- In November 2020, Inverted Energy, a battery manufacturer situated in New Delhi, India, announced the opening of its lithium battery manufacturing facility. The plant's commissioning, which currently has a production capacity of 100 MWh (megawatt hour) per year, is intended to reduce reliance on China. This opening of the company will help to boost the Automotive Battery Market growth in India.
- In August 2020, CATL announced to develop a new EV battery with no nickel or cobalt in it. The company focuses to save a major portion of the cost with this development as cobalt is one of the most expensive components in an EV battery. This will help to reduce the cost of EV battery and will eventually contribute in the Automotive Battery Market growth.
Relevant Report Titles:
Report Code: ESR 0300
Next Generation Battery in Automotive Market
Report Code: ATR 0048
Report Code: ESR 0137
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