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The automotive batteries market size is forecast to increase by USD 89.21 billion, at a CAGR of 17.75% between 2022 and 2027. Market growth hinges on several key factors. Firstly, the increasing sales of passenger cars contribute significantly to expanding the market. Moreover, in the Asia-Pacific region, there is a notable surge in demand for air conditioning systems in commercial vehicles, further bolstering market growth. Additionally, the rising popularity of electric vehicles (EVs) is driving up the demand for automotive batteries. As more consumers opt for EVs due to environmental concerns and government incentives, the need for high-performance batteries grows correspondingly. This trend not only stimulates the automotive battery market but also promotes advancements in battery technology to meet the evolving needs of electric vehicle manufacturers. Overall, these factors collectively shape the trajectory of market growth in the automotive sector, highlighting promising opportunities for stakeholders.
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The market is propelled by advancements in electrochemical device like lithium-ion batteries, offering sustainable solutions for electrical energy storage in vehicles. These batteries power essential components such as the engine, starting motor, and ignition system, ensuring reliable performance. With a focus on sustainability, manufacturers address concerns regarding greenhouse gas emissions and consumer constraints. Factors like charging time and durability influence consumer decisions, while the rise in vehicle ownerships and urbanization drives market growth. Population trends further shape demand, particularly in the passenger vehicles segment.
This report extensively covers market segmentation by vehicle type (passenger cars and commercial vehicles), channel (OEM and aftermarket), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the market forecast report includes historic market data from 2017 to 2021.
The market share growth by the passenger car segment will be significant during the forecast period. The global passenger car market is constantly undergoing changes in terms of technological development. These upgrades are primarily driven by the dynamic nature of emission regulations, fuel efficiency standards, safety standards, and the pressure to decrease production costs.
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The passenger car segment was valued at USD 30.57 billion in 2017. A passenger car makes use of a significant number of interior electronics to provide comforts, such as lighting, heating, air conditioning, and audio systems. The battery also acts as a source for starting the vehicle. In addition, they are used to power electric vehicles. As the demand for battery electric vehicles increases worldwide due to emission norms, policies, and incentives provided by governments, the demand for batteries will rise during the forecast period. It is estimated that by 2030, there will be a requirement of 2,700 Gigawatt hour worth of lithium-ion batteries a year. All these factors will drive the demand for batteries, and the global market for the passenger vehicle segment will witness steady growth during the forecast period.
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APAC is estimated to contribute 55% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The Automotive Batteries Market in APAC is primarily driven by the increasing sales of passenger cars and commercial vehicles, as well as motorcycles. Factors such as rising disposable income, social status, and government regulations are influencing the growth of this market. The SLI batteries segment dominates, but there is significant potential for growth in VRLA batteries, particularly in micro hybrid vehicles and those equipped with start-stop systems, regenerative braking, and energy recuperation. The aftermarket segment, including battery replacements, is also a significant contributor to market growth. Performance degradation due to charge-discharge cycles and lifespan concerns are key challenges. Industrialization and affordability are also important factors, with lead-acid batteries and advanced designs playing a key role. The market encompasses various applications, including passenger cars, IC engine vehicles, and New Energy Vehicles, as well as uninterruptible power supply, backup power applications, and industrial uses. Nickel metal hydride batteries are also gaining traction in this market. Moreover, APAC has the maximum number of potential first-time buyers of passenger cars, which is also leading to growth in the sales of passenger cars, which, in turn, is driving the market.
The market encompasses electrochemical devices that provide electrical energy to power various systems in passenger vehicles. These systems include the starting motor for ignition, the alternator for charging, voltage stabilizer for power regulation, and electrical accessories such as lights and radio. With the rise of sustainable transportation, the market for batteries in Electric Vehicles (EVs) has gained significant traction. Consumer constraints, including battery cost, energy density, charging time, and performance, continue to influence the market. The shift towards population growth and urbanization necessitates the development of durable and low-maintenance batteries with extended charge-discharge cycles. The SLI (Starting, Lighting, Ignition) batteries segment remains a significant contributor to the market. Greenhouse gas emissions reduction is a key driver for the adoption of battery electric vehicles, with Lithium-ion batteries being a popular choice due to their high energy density.
The rise in sales of passenger cars is notably driving market growth. The automotive battery market is significantly linked to the expansion of the passenger car industry. In the market, passenger cars account for a substantial share. In the US, the growing popularity of SUVs and crossovers, driven by their improved fuel efficiency and the comfort of three-row seating, is fueling market growth. Although similar in appearance, SUVs, and crossovers differ in fuel efficiency due to their distinct frames and lighter weights. Automotive batteries function as electrochemical devices that provide electrical energy to the engine's starting motor, ignition system, alternator, and voltage stabilizer, as well as powering lights, the radio, and electrical accessories. With the shift towards sustainable transportation, battery electric vehicles (BEVs) are gaining traction, necessitating an increased focus on battery technology.
Consumer constraints, such as energy density, charging time, and performance, influence the choice of battery chemistry and materials. Automobile manufacturers and the battery supply chain are collaborating to develop advanced rechargeable batteries, such as lithium-ion batteries, to meet the demands of the electric vehicle market. Lithium, graphite, and other battery materials are undergoing extensive research and development to improve energy density, charging time, and performance. The increasing popularity of electric vehicles, driven by population growth, urbanization, and the need to reduce greenhouse gas emissions, is expected to further boost market growth. Durability and maintenance requirements are also critical factors influencing the market. Thus, the growing preference for fuel efficiency and the comfort of traveling will drive the market growth during the forecast period.
Growing demand for AGM batteries is an emerging trend in the market. The market encompasses the use of electrochemical devices to store and release electrical energy for various automotive applications. In the context of modern vehicles, AGM batteries have gained popularity due to their suitability for heavily electrical equipped automobiles. These batteries, manufactured with fiberglass mat separators, ensure even distribution of battery acid across plates and improved resistance to vibration. Automotive batteries power starting motors and ignition systems in internal combustion engine vehicles. They also serve as voltage stabilizers in alternators and provide power for lights, radio, and electrical accessories. With the rise of sustainable transportation and electric vehicles, lithium-ion batteries have emerged as a significant alternative.
Consumer constraints, such as energy density, charging time, and performance, influence the choice of battery chemistry and materials. Automobile manufacturers and the battery supply chain collaborate to meet the demands of electric vehicle ownerships, driven by population growth and urbanization. Lithium and graphite are essential battery materials, and mergers and collaborations among industry players shape the market landscape. Electric current from the car battery powers electric starting motors and internal combustion engine propulsion systems. In electric vehicles, the battery provides energy to electric vehicle motors. The automotive battery market is influenced by factors such as vehicle ownerships, population growth, and urbanization. The trend towards reducing greenhouse gas emissions and the increasing popularity of electric vehicles further impact the market. All these benefits have led to an increase in the popularity of AGM batteries which will drive the global market growth during the forecast period.
Multiple limitations and the short life cycles of lead-acid batteries are major challenges impeding market growth. The lead-acid battery was the first rechargeable battery that was used for commercial applications and is still widely used. There are multiple reasons for its popularity. However, lead-acid is heavy and less durable than nickel or lithium-based systems. A full discharge causes a permanent depletion of the small amount of the capacity of the battery. The loss of the small capacity of the battery does not have a major impact on the running of the vehicle when the battery is in good operating condition but will have a major impact once the performance drops to half of the nominal capacity.
Furthermore, the life expectancy of batteries under continuous charge depends on charge voltage, frequency and depth of discharge, and temperature. Elevated temperature reduces the lifespan of the batteries. Apart from the aforementioned limitations, lead-acid batteries have low energy density and, therefore, cannot be stored in a discharged condition. Hence, such factors will hamper the growth of the market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments.
The market is a significant segment in the global electrical components industry. This market caters to the demand for batteries used in various types of vehicles, including passenger cars, commercial vehicles, and two-wheelers. The increasing adoption of electric and hybrid vehicles is driving the growth of the automotive batteries market. The market is competitive with key players such as Exide Technologies, Johnson Controls, and CATL. The market is segmented based on battery type, vehicle type, and region. The Lead-Acid battery segment dominates the market due to its low cost and wide usage in traditional internal combustion engine vehicles. However, the Lithium-ion battery segment is expected to grow at a significant rate due to its high energy density and long life cycle.
Furthermore, the market in Asia Pacific is expected to dominate the global automotive batteries market due to the large production base and increasing demand for electric and hybrid vehicles in countries like China and India. The market in Europe and North America is also expected to grow due to the increasing adoption of electric vehicles in these regions. The market is driven by factors such as increasing demand for electric and hybrid vehicles, stringent emission norms, and government initiatives to promote the adoption of electric vehicles. The market is also facing challenges such as high battery costs and limited charging infrastructure. In conclusion, the automotive batteries market is expected to grow at a significant rate due to the increasing demand for electric and hybrid vehicles and government initiatives to promote their adoption. The market is competitive with key players focusing on innovation and cost reduction to gain a competitive edge.
Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 17.75% |
Market growth 2023-2027 |
USD 89.21 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
16.01 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 55% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
A123 Systems LLC, Amara Raja Group, Clarios, Crown Battery Manufacturing Co., East Penn Manufacturing Co. Inc., EnerSys, Exide Industries Ltd., Furukawa Electric Co. Ltd., GS Yuasa Corp., HBL Power Systems Ltd., Hitachi Ltd., Leoch International Technology Ltd., LG Corp., Panasonic Holdings Corp., Robert Bosch GmbH, Samsung SDI Co. Ltd., Shandong Sacred Sun Power Sources Co. Ltd., TotalEnergies SE, Montana Tech Components AG, and Toshiba Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Vehicle Type
7 Market Segmentation by Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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