Enjoy complimentary customisation on priority with our Enterprise License!
The automotive batteries market is estimated to grow at a CAGR of 17.75% between 2022 and 2027. The size of the market is forecast to increase by USD 89.21 billion. The growth of the market depends on several factors, including the rise in sales of passenger cars, the growing demand for air conditioning systems in commercial vehicles in APAC, and the rise in sales of electric vehicles, which is increasing demand for automotive batteries.
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 report includes historic market data from 2017 to 2021.
To learn more about this report, Download Report Sample
Technavio categorizes the global automotive batteries market as a part of the global renewable electricity market within the global independent power and renewable electricity market. The parent global renewable electricity market covers companies engaged in the generation and distribution of electricity using renewable sources. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The rise in sales of passenger cars is notably driving the market growth, although factors such as multiple limitations and the short life cycle of lead-acid batteries may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Automotive Batteries Market Driver
The rise in sales of passenger cars is notably driving market growth. Increasing preference for fuel efficiency and the comfort of traveling in three-row seats in crossovers and SUVs are the main drivers of the SUV and crossover market. Although both SUVs and crossovers look similar, they are distinct in fuel efficiency and usability. Additionally, the reduction of interest rates on car loans in some countries like the US has enabled consumers to buy larger and more expensive vehicles. Automotive batteries in the passenger cars segment contribute to the majority of the global market.
OEMs, such as Toyota, have undertaken manufacturing plans for increasing their production of passenger cars. Toyota is planning to relocate its auto production to Mexico to meet the increased demand for SUVs and crossovers in Canada and the US. The new plant is also set for manufacturing its flagship model, Corolla. Thus, the growing preference for fuel efficiency and the comfort of traveling will drive the market growth during the forecast period.
Significant Automotive Batteries Market Trend
Growing demand for AGM batteries is an emerging trend in the market. Earlier in the 1980s, AGM batteries were used in aircraft. They are perfect for vehicles that are heavily equipped with electrical accessories, such as navigation systems; touchscreen infotainment systems; and electric parking brakes and technologies, such as start and stop. As there is an increase in the trend of electrical accessories, the popularity of AGM batteries has also grown.
One of the primary benefits of AGM batteries is that they discharge slowly as compared with conventional lead-acid batteries. Therefore, they have a longer life. In addition, since the free flow of electrolytes is restricted, the probability or the chances of the spill hazard is comparatively much lower than the lead-acid batteries. This enhances the safety of the vehicle. Moreover, the lifespan of AGM batteries is almost twice of conventional batteries. 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.
Major Automotive Batteries Market Challenge
Multiple limitations and the short life cycles of lead-acid batteries are major challenges impeding the 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.
Key Automotive Batteries Market Customer Landscape
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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Automotive Batteries Market Customer Landscape
Vendors 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.
Clarios - The company operates under one segment. The company under this segment offers a line of batteries such as lead-acid and lithium-ion for automotive, heavy-duty, marine, and power sports industries. The key offerings of the company include automotive batteries such as Lithium-ion batteries.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
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.
Get a glance at the market contribution of various segments Request a PDF Sample
The passenger car segment was valued at USD 30.57 billion in 2017 and continued to grow until 2021. 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.
For more insights on the market share of various regions Request PDF Sample now!
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.
China, India, and Japan are the major markets in APAC that account for most of the sales of the vehicles. The production of such batteries in APAC depends on the production and sales of passenger cars and commercial vehicles and the rising demand for export-oriented production of automotive components. Furthermore, lower wages, the ready availability of human resources, the availability of raw materials and associated transportation services, and the lower value of local currency further drive the manufacturing industry in these countries.
The primary drivers for the growth include the increasing disposable income and the launches of new car models by OEMs. 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.
In 2020, the automotive battery market in APAC witnessed certain challenges owing to the COVID-19 outbreak. However, the lifting of travel restrictions, the resumption of operations in the manufacturing sector, and the initiation of large-scale COVID-19 vaccination drives in 2021 increased the demand for these batteries. Additionally, the increasing penetration of renewable energy in the energy mix is expected to play a major role in the growth of the regional market during the forecast period. Therefore, such factors will drive the growth of the regional market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented 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).
Automotive Batteries 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 Vendors, Market Positioning of Vendors, 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. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
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
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.