Automotive Battery Market Forecasts to 2028 - Global Analysis By Battery Type (Lithium-Ion, Lead Acid and Other Battery Types), Vehicle Type (Commercial Vehicles and Passenger Cars), Engine Type (Electric Vehicle and Internal Combustion (IC) Engine), Func

Automotive Battery Market Forecasts to 2028 - Global Analysis By Battery Type (Lithium-Ion, Lead Acid and Other Battery Types), Vehicle Type (Commercial Vehicles and Passenger Cars), Engine Type (Electric Vehicle and Internal Combustion (IC) Engine), Function (Electric Propulsion, Ignition and Lighting), Sales Channel (Aftermarket and OEM (Original Equipment Manufacturer)) and Geography

According to Stratistics MRC, the Global Automotive Battery Market is accounted for $48.48 billion in 2022 and is expected to reach $74.82 billion by 2028 growing at a CAGR of 7.5% during the forecast period. Automotive batteries are usually rechargeable batteries that provide electric current to motor vehicles. The lithium-ion, lead-acid, nickel, and sodium-ion battery types are instances of those used in automobiles. The main electrical component of a car is typically a 12-volt, six-cell battery. The component's primary function is to start the engine, after which the alternator supplies power to the electrical system.

According to the Global Change Data Lab, the Li-ion battery costs reduced by around by 97%. The price of battery capacity of one kilowatt-hour was dropped from USD 7,500 in 1991 to USD 181 in 2018, which is 41 times less.

Market Dynamics:

Driver:

Growing Preference for Zero-Emission Automobiles

Because of health and environmental concerns, the adoption of emission-free hybrid and all-electric vehicles is increasing, and this trend is expected to continue as battery prices fall and the price of fossil fuels rises. Furthermore, government support and financial incentives for EV adoption, along with strict emission standards for conventional vehicles, are additional factors that are anticipated to fuel market expansion.

Restraint:

High Cost

The price of the battery and the technology used in the vehicle are the main determinants of the cost and range of a battery-powered vehicle. Electric vehicles are currently more expensive than powered by diesel or gasoline. This is majorly because the battery packs used in electric vehicles are expensive. The overall cost of the vehicles is high due to the high price of the batteries, which is hindering the market's overall growth.

Opportunity:

Surge in Automotive Sales

Due to overstretched public transportation systems and the use of electric vehicles in the mobility as a service market, there are likely to be new opportunities for market expansion. Additionally, the government's initiative to electrify public transportation is also expected to fuel demand for lithium-ion batteries in this market. Moreover, it is anticipated that the market will be influenced by the developed countries' increasing electrification of commercial vehicles.

Threat:

Low Penetration of Electromobility in Underdeveloped Economies

Future market growth may be constrained by the slow adoption rate of electric vehicles in some developing and underdeveloped regions due to low electromobility penetration and changing governmental regulations regarding the import and export of automotive batteries. Additionally, the main factors limiting the growth of the automotive battery market are the growing concern over safety issues related to battery usage and the lack of adequate infrastructure required for the proper operation of battery-driven vehicles.

Covid-19 Impact:

Due to the ongoing lockdowns and halts of manufacturing facilities around the world, the impact of COVID-19 is inevitable on industry. The COVID-19 pandemic slowed battery supply chains because majority of battery cells are made in China, highlighting China's dependence and the risks that come with it. This has thrilled interest among different stakeholders in localizing/regionalizing supply chains in the US and EU regions, paving the way for new business opportunities.

The passenger cars segment is expected to be the largest during the forecast period

The passenger car segment dominated the largest market share as it is expanding because of rising sales of passenger cars. The International Organization of Motor Vehicle Manufacturers reported, approximately 54 million passenger cars and nearly 24 million commercial vehicles were sold worldwide. Additionally, it is expected that the segment will grow over the coming years as a result of the rapidly expanding electrification of passenger cars and the manufacturers' initiatives to initiate a premium range of passenger EVs in order to capitalise on early revenue growth opportunities in the rapidly changing automotive industry.

The Lithium-Ion segment is expected to have the highest CAGR during the forecast period

During the forecast period, lithium-ion battery demand is anticipated to grow at the highest pace as it is organised for applications that consider high-energy density solutions, such as electric and hybrid automobiles. Additionally, manufacturers are constantly working to lower the price of the battery in order to increase vehicle economies, which is driving market growth on a global scale. Lithium-ion batteries have a higher power density for longer battery life in a lighter package than traditional battery technology, and they charge more rapidly.

Region with largest share:

Due to the rising demand for electric passenger and commercial vehicles, the Asia-Pacific region is anticipated to hold the largest market share for automotive batteries during the forecast period. The ongoing product development by various enterprises to produce affordable, high-performance vehicles is also anticipated to aid in the expansion of the regional market. Additionally, government efforts to boost the adoption of electric vehicles through subsidies are also anticipated to fuel market expansion during the forecast period.

Region with highest CAGR:

Due to the rapid uptake of electric vehicles, demand for lithium-ion batteries is rising, North America is anticipated to experience the highest CAGR during the forecast period. Additionally, the demand for lead-acid batteries will also rise due to rising commercial vehicle sales and production across the U.S., further influencing the market's growth, which leads to the region's technological development and the presence of significant electric automakers such as Tesla, General Motors, and other major key players.

Key players in the market

Some of the key players in Automotive Battery market include A123 Systems, Panasonic Corporation, Exide Technologies, Robert Bosch GmbH, BYD Company Ltd, Hitachi Group Ltd, East Penn Manufacturing Company, Exide Industries Ltd, GS Yuasa International Ltd, Samsung SDI Co. Ltd, LG Chem and Contemporary Amperex Technology Co. Limited

Key Developments:

In May 2021, premium automaker Daimler Truck AG and leading lithium-ion battery manufacturer CATL announced the expansion of their global strategic partnership to develop advanced next-generation batteries for truck-specific applications.

In March 2021, General Motors partnered with lithium metal battery developer Solid Energy Systems to form a joint venture for EV battery development.

Battery Types Covered:
• Lithium-Ion
• Lead Acid
• Other Battery Types

Vehicle Types Covered:
• Commercial Vehicles
• Passenger Cars

Engine Types Covered:
• Electric Vehicle
• Internal Combustion (IC) Engine

Functions Covered:
• Electric Propulsion
• Ignition
• Lighting

Sales Channels Covered:
• Aftermarket
• OEM (Original Equipment Manufacturer)

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements