The market for car batteries carcar batteries is anticipated to grow at a CAGR of 5.2% from 2018 to 2028, reaching a value of USD 92.60 billion. Some of the major drivers influencing market revenue growth include rising environmental concerns, falling battery prices, declining crude oil reserves, and rising demand for pollution-free hybrid and electric vehicles (EVs).
A rapidly growing consumer base of environmentally conscious consumers is expected to favor zero-emission electric and hybrid vehicles, leading to robust revenue growth for the worldwide automotive battery market. The market is expanding as a result of the increase in worldwide battery manufacturing, which has compelled industry participants to attain economies of scale. Other significant drivers of market revenue growth include an increase in vehicle production and sales, rising demand for cutting-edge technologies, and changing lifestyles. A significant market trend is a demand from automakers for batteries with sufficient power storage and reserve capacity to enable more effective performance and run-time and to grow consumer bases. Additionally, it is anticipated that increased investment in EV research and development will create abundant growth prospects.
Investment in automotive batteries is anticipated to increase as ongoing attempts to lower greenhouse gas emissions continue. Automotive manufacturers are aware of the future of the oil industry, the shifting global consumer preference for more environmentally friendly transportation options, and the need to contribute to reducing environmental impact as a personal duty or responsibility among an increasing number of consumers. Alternative energy sources, such as batteries, are becoming increasingly important. The need for raw materials to make automobile batteries is anticipated to rise as the importance of oil as an energy source declines, particularly in light of the COVID-19 pandemic’s impact on demand and price collapses caused by excess supply.
Major players in the market include Exide Technologies, A123 Systems, LLC, Enersys, Hitachi, Ltd., GS Yuasa Corporation, LG Chem Ltd., BYD Co. Ltd., NEC Corporation, Samsung SDI Co., Ltd., and LG Chem Ltd.
Revenue from the lithium-ion battery segment is anticipated to expand quickly throughout the projection period. These battery types feature a high power density, quick charging, and extended life. Comparing lithium-ion batteries to old or conventional batteries, they have become a more environmentally friendly rechargeable power source. Lithium-ion batteries, which are used in the majority of electric vehicles, and ongoing R&D to cut costs will further propel this segment’s revenue growth.
Due to ongoing lockdowns, limitations, and the closure of numerous companies and sectors worldwide, COVID-19 has had a severe influence on world markets. This was also the case about the manufacture of automobile batteries. Additionally, the sanctions that followed put China in a difficult situation that abruptly led to a shortage of batteries for the rest of the world. Several market participants have also been inspired by the pandemic to plan and implement strategies to relocate their respective production facilities to emerging nations to take advantage of market opportunities.
Due to improved output efficiency and less polluting byproducts, fuel-cell technology-based automobile batteries are registering significant levels of usage. This is a result of the use of safe products like hydrogen and oxygen as battery fuel. Automotive companies are funding research to create lithium-ion batteries based on nanotechnology and fuel-cell vehicles. Government support for promoting the use of electric vehicles is another factor fueling industry expansion.
Type Outlook (Revenue, USD Billion; 2018–2028)
- Nickel-based Battery
- Lithium-ion Based Battery
- Sodium-ion Battery
- Lead-acid Based Battery
- Others
Vehicle Type Outlook (Revenue, USD Billion; 2018–2028)
- ICE Vehicles
- Electric Vehicles
- BEV
- PHEV
- Others
Sales Channel Outlook (Revenue, USD Billion; 2018–2028)
- OEM
- Aftermarket
Regional Outlook (Revenue, USD Billion; 2018–2028)
- North America
- Europe
- the Asia Pacific
- Latin America
- Middle East & Africa
