Automotive Battery Market To Reach $105.61 Billion By 2030

Automotive Battery Market Growth & Trends

The global automotive battery market size is expected to reach USD 105.61 billion by 2030, registering a CAGR of 6.4% during the forecast period, according to a new report by Grand View Research, Inc.  Features of an automotive battery have evolved drastically over the years as modern engines are smaller in displacement and use lower-viscosity engine oils. Furthermore, modern fuel injectors spray the gasoline directly onto the cylinder itself. Due to this, batteries in recent times are connected to vehicle’s electrical system. Additionally, contemporary batteries act as a capacitor in the electrical system of vehicles to absorb voltage spikes, which are often created when the electric switch closes or opens.

Large-scale availability of batteries in various sizes and specifications along with high current level is expected to drive the market over the forecast period. Lead acid batteries are relatively cheaper as compared to other batteries and can be manufactured with relatively lower technology equipment, which in turn is projected to keep their demand high during the forecast period.

Sodium-ion batteries are the direct replacement of lithium-ion batteries, raw materials of which are costlier than the former. Moreover, Na-ion batteries are available in abundance. Compared to Li-ion batteries, they are a potentially safer and cheaper alternative. However, these batteries are still in the development stage and not available for practical use. In 2015, researchers developed a prototype of sodium-ion batteries in the industry standard of 18650 cylindrical formats.

Consensus to reduce carbon footprint is leading to a shift towards electric vehicles. Increasing fuel prices along with growing environmental concerns in developed countries are resulting in rising interest of individuals in electric vehicles. Several favorable regulatory initiatives are further supporting the sales of electric vehicles, which are estimated to augment the market.

Development of electric vehicles is also poised to be driven by an agreement promoted by the U.S., European Union, and Japan. The regions co-operate on the convergence of regulatory obligations to control cost pertaining to electric vehicles worldwide. Currently, electric cars represent a small share of the overall automobile sales, owing to which the agreement plays a crucial role in economic recovery and price-sensitivity of the industry.

Growing sales of vehicles and favorable government initiatives in developing economies such as India, China, Vietnam, and Mexico are likely to provide a fillip to the automotive battery market over the forecast period. For instance, in 2013, the Indian government set up the National Electric Mobility Mission Plan (NEMMP) 2020 to take into account various issues pertaining to vehicular pollution and national energy security. Penetration of electric vehicles in the India market is considerably low due to high cost of vehicles, low consumer disposable income, and absence of requisite infrastructure in the region. However, advent of low-cost EVs such as Mahindra e2o and Mahindra eVerito is projected to bolster the adoption in coming years, thereby providing substantial growth opportunities for the automotive battery market.

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Automotive Battery Market Report Highlights

• Lead acid batteries are the most commonly used type. On the other hand, the lithium-ion batteries segment is expected to post the highest CAGR during the forecast period

• Sodium-ion batteries are anticipated to gain tremendous popularity after their commercialization, owing to abundant availability of raw materials

• In terms of vehicle, passenger vehicles are estimated to command more than half of the market revenue throughout the forecast horizon

• The Asia Pacific automotive battery market is anticipated to witness the fastest growth over the forecast period.

Automotive Battery Market Segmentation

Grand View Research has segmented the global automotive battery market based on type, drive, vehicle, and region:

Automotive Battery Type Outlook (Revenue, USD Billion, 2018 - 2030)

• Lithium-ion Based

• Lead-acid Based

• Nickel Based

• Sodium-ion

• Others

Automotive Battery Drive Outlook (Revenue, USD Billion, 2018 - 2030)

• ICE

• Electric Vehicle

  • BEV

  • PHEV

Automotive Battery Vehicle Outlook (Revenue, USD Billion, 2018 - 2030)

• Passenger Cars

• Commercial Vehicles

• Others

Automotive Battery Regional Outlook (Revenue, USD Billion, 2018 - 2030) 

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Germany

  • UK

  • France

• Asia Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

• Latin America

  • Brazil

• Middle East and Africa (MEA)

  • South Arabia

  • UAE

  • South Africa

List of Key Players in the Automotive Battery Market

• Exide Technologies

• GS Yuasa International Ltd.

• Panasonic Corporation

• LG Energy Solution

• A123 Systems Corp (Wanxiang A123 Systems Corp.)

• East Penn Manufacturing Company

• Robert Bosch GmbH

• ENERSYS.

• Samsung SDI

• Hitachi, Ltd.