Automotive Battery Market Size, Share & Trends Analysis Report By Battery Type (Lithium-Ion Based, Lead-Acid Based), By Vehicle Type (Passenger Vehicles, Electric Vehicles), And Segment Forecasts, 2018 - 2025

Industry Outlook

The global automotive battery market size was valued at USD 48.71 billion in 2016. The market is expected to witness significant growth over the coming years owing to rapid expansion in the automotive industry in emerging economies such as Mexico, Vietnam, Indonesia, India, and Thailand. Furthermore, growing consumer preference for pollution-free electric and hybrid vehicles is one of the key trends anticipated to fuel the demand for automotive batteries over the forecast period.

An ideal automotive battery must be capable of offering adequate reserve capacity, which signifies the amount of electrical energy that the battery can deliver when it is fully charged. Some of the rankings that are commonly used to measure battery performance include cold cranking amperes (CCA), amp-hours (AH), power (Watts), and reserve capacity (RC).

Successful manufacturing of an EV requires the implementation of supportive policies by federal, state, and area administrative bodies to sustain long-term benefits. Electric utility providers are also required to develop a uniform platform and provide operational support for EVs. Favorable regulatory policies can provide a phenomenal push to sales of electric vehicles, which in turn can help the automotive battery market to gain tremendous momentum over the forecast period.

Battery Type Insights

Based on battery types, the market has been classified into lithium-ion based, nickel-based, lead-acid based, sodium-ion, and others. The lead-acid segment has been further classified based on construction type and product. The other segment includes flow batteries and zinc batteries. The lead-acid segment dominated the market in 2016 with a valuation of USD 30.46 billion.

Lead-acid is one of the oldest energy storage devices, which is being used in numerous applications. Advanced lead-acid batteries provide the start-stop functionality to improve the fuel efficiency of micro-hybrid vehicles. Lead-acid batteries are majorly used for SLI applications in conventional vehicles owing to their higher cold cranking performance, low cost, and increased reliability. Some of the key benefits of lead-acid batteries are inexpensive and simple in manufacturing, capable of high discharge rates, minimal maintenance, and superior starting capacity.

The lithium-ion based segment is estimated to witness the highest growth rate over the forecast period. Lithium-ion batteries are used in applications that demand high-energy density solutions. They are mostly used in applications such as notebook computers, cellular phones, and hybrid automobiles.

The use of lithium-ion batteries for onboard energy storage is increasing owing to the continuous efforts by automotive manufacturers to produce more vehicles with electric drivetrains. Automakers are focusing on reducing the overall cost while increasing vehicle range and energy density. With the maturing lithium-ion battery supply chains and improving battery manufacturing processes, battery manufacturers and automotive OEMs are continually striving to reduce costs of battery packs.

Vehicle Type Insights

Based on vehicle types, the market has been divided into passenger vehicles, commercial vehicles, electric vehicles, and others. Passenger vehicles represented the leading share in the market in 2016. The EV segment has been further bifurcated into a battery electric vehicle (BEV) and plug-in hybrid electric vehicle (PHEV).

The EV segment is poised to register the highest growth over the forecast period. The new EV registration hit a new record in 2016 with around 750 thousand units sold across the globe. China accounted for more than 40% of the total electric cars sold in 2016. An increasing number of electric cars on the road would subsequently result in the growth of privately and publicly accessible charging infrastructure.

Despite a continuous increase in the production of electric cars, the deployment of Electric Vehicle Supply Equipment (EVSE) and sales of electric cars have been declining. Mass production and increasing investment in R&D is leading to a rapid decline in battery cost and an increase in energy density.

EVs form the foundation for sustainable future transport systems along with the optimization of urban and suburban infrastructures. However, manufacturers are required to achieve the necessary sustainability target set by regulatory authorities. The Paris Declaration on “Electro-Mobility and Climate Change & Call to Action” estimates deployment of 400 billion electric 2- and 3-wheelers and 100 billion electric cars by 2030.

Regional Insights

The Asia Pacific market is poised to post the highest CAGR of 9.2% over the forecast period. Growing product demand in automotive applications in various countries including South Korea, India, Malaysia, and Indonesia is likely to positively influence the growth of the region during the forecast period. High sales of commercial cars, passenger cars, and motorcycles are likely to promote industry expansion. Ongoing product developments by various companies to manufacture cost-efficient and high-performance vehicles are projected to contribute to the growth of the regional market. Government initiatives to provide subsidies based on the price difference between EVs and Internal Combustion Engine (ICE) enabled vehicles, with a maximum limit of Yen 85,000, are also providing a fillip to the market in APAC.

The North American market dominated the market in 2016. The strong presence of lead-acid battery manufacturers such as Exide, Johnson Controls, and Odyssey in the U.S. is expected to promote market growth in the region. Increasing demand for electric vehicles in the U.S. and Mexico, owing to rising government efforts to reduce carbon emission by developing eco-friendly products, is likely to spur the growth of the electric vehicles segment in the U.S. over the forecast period.

Europe has been one of the leading producers of automobiles in the past and is anticipated to continue its prominence over the forecast period. Domicile of major automotive manufacturers including Jaguar, BMW, Mercedes Benz, Aston Martin, Audi, Volvo, Fiat, Ferrari, Volkswagen, Lamborghini, and Porsche is estimated to augment the demand for automotive batteries in the region over the forecast period.

Automotive Battery Market Share Insights

The market rivalry is high owing to the presence of numerous manufacturers. The market is dependent on raw material suppliers and manufacturers. Mergers & acquisitions and joint ventures are among the key strategies adopted by market players in an attempt to consolidate their market presence. Fluctuating raw material prices are poised to result in high entry barriers for new entrants.

The market is also characterized by the presence of companies with global capacities. Companies established in Europe and North America have either set up their production units in China or entered the Chinese market through partnerships with local companies. For instance, Exide Technologies operates in China through its joint venture with Shenyang Dongbei Storage Battery Co. The joint venture was established in July 2001 and has helped the former company in establishing its foothold in the emerging market.

Key players operating in the market include A123 Systems, LLC, BYD Co., Ltd., East Penn Manufacturing Company, EnerSys, Exide Technologies, and GS Yuasa Corporation.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest trends and opportunities in each of the sub-segments over the forecast period. For the purpose of this study, Grand View Research has segmented the global automotive battery market report based on battery type, vehicle type, and region:

• Battery Type Outlook (Revenue, USD Billion, 2014 - 2025)

  • Lithium-ion based

  • Lead-acid based

    • Construction type

      • VRLA battery

      • Flooded

    • Product

      • SLI

      • Stationary

      • Motive

  • Nickel-based

  • Sodium-ion

  • Others

• Vehicle Type Outlook (Revenue, USD Billion, 2014 - 2025)

  • Passenger vehicles

  • Commercial vehicles

  • Electric vehicles

    • BEV

    • PHEV

  • Others

• Regional Outlook (Revenue, USD Billion, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • South America

    • Brazil

  • The Middle East and Africa (MEA)