U.S. Automotive Battery Aftermarket Size, Share & Trends Analysis Report By Vehicle Type (Passenger, Commercial), By Battery Type (Lead Acid, Lithium-ion), By Distribution Channel, And Segment Forecasts, 2019 - 2025

Industry Insights

The U.S. automotive battery aftermarket size was valued at USD 3.8 billion in 2017 and is expected to register a CAGR of 1.4% from 2018 to 2025. The market is majorly driven by stringent government regulations and emission norms governing the auto industry.

Regional regulatory authorities such as the U.S. Environmental Protection Agency (EPA) and other federal and international agencies are implementing stringent government regulations. For instance, the U.S. EPA implemented regulations related to storage of used lead-acid batteries to avoid pollution. In addition, lithium batteries are required to adhere to guidelines levied by the International Air Transport Association (IATA) for transportation purposes.

Implementation of policies such as the Kyoto protocol, to bring down Greenhouse Gas (GHG) emissions, is expected to increase adoption of hybrid electric vehicles (HEVs) over the forecast period. Moreover, stringent regulations related to carbon emissions have increased demand for the start-stop battery technology. In addition, rise in incentives from the U.S. government for manufacturing HEVs are likely to increase investments from public and private domains, which, in turn, is anticipated to improve penetration of HEVs in the country. For instance, the U.S. American Recovery and Reinvestment Act grants funds to private and government entities to develop HEVs.

Increasing fuel prices, along with growing environmental concerns in developed countries, have also effectively combined to raise interest in the potential of electric vehicles in replacing conventional fuel-based vehicles globally. This optimistic scenario for HEVs is expected to have a positive impact on market growth over the next few years.

Technological advancements have also triggered business changes, owing to which OEMs and suppliers are focusing on collaborations not only within the industry but also with technology companies. These collaborations are expected to play a pivotal role in the future development of the market. They allow different entities to work together to draft standards for emerging technologies such as battery charging infrastructure for electric vehicles.

Battery Type Insights

On the basis of battery type, the market has been segmented into lithium-ion, lead acid, nickel-based, sodium-ion, and others. Of these, the lead acid segment is anticipated to dominate the U.S. market in terms of size by 2025. Lead acid batteries are expected to witness a significant rise in demand chiefly on account of their recyclable nature. Lead as an element is toxic and should not be disposed. Therefore, it is recycled and reused to produce new batteries. Lead acid batteries are most suitable to recycle as 70.0% of their weight contains reusable lead. This segment is anticipated to observe steady growth over the forecast period.

Battery recycling companies in the U.S. collect used batteries from consumers for recycling and reuse. These are first broken into pieces and lead, heavy materials, and plastics are separated from the broken pieces. The plastic waste is properly washed and sent for recycling into a plastic recycler where the pieces are melted. The molten plastic is then given shape by the process of extrusion and is then sent to battery manufacturers for further processing. Lead oxide, lead grids, and lead parts are cleaned properly and are melted in smelting furnaces.

Vehicle Type Insights

Based on vehicle type, the U.S. automotive battery aftermarket has been segmented into passenger vehicle, electric vehicle, commercial vehicle, and others. The passenger vehicle segment accounts for the largest share in terms of revenue and is anticipated to retain its dominance by way of size through 2025. On the other hand, the electric vehicle segment is expected to register the highest CAGR from 2018 to 2025 in terms of revenue.

Significant rise in advancements in battery technology over the years has increased the use of various battery-operated devices across the U.S. HEVs, for instance, are equipped with a number of features that consume a substantial amount of battery power. These include GPS navigation system, power windows, air-conditioning systems, and display systems that denote battery charge level.

Distribution Channel Insights

The U.S. market has been segmented based on distribution channel into retail/brick, e-commerce, and others. The retail/brick segment held the dominant share in the automotive aftermarket in terms of size and is anticipated to retain its lead through 2025. The segment is likely to grow at a stable rate over the forecast period.

The e-commerce segment is likely to witness relatively faster growth in terms of revenue and register the highest CAGR from 2018 to 2025. The e-commerce sector in the country features established e-retail companies such as Amazon.com and e-Bay. Rising penetration of e-commerce in the supply chain will enhance growth prospects of the market over the forecast period.

U.S. Automotive Battery Aftermarket Share Insights

Key players operating in the market include A123 Systems, LLC; East Penn Manufacturing Company; EnerSys; Delphi Technologies; Exide Technologies; Johnson Controls; NEC Corporation; Samsung SDI Co., Ltd.; Tesla, Inc.; and Interstate Battery System of America, Inc.

Several manufacturers are expanding their portfolio through product innovation. In May 2016, East Penn Manufacturing Company introduced Fahrenheit technology to manufacture and design Absorbent Glass Mat (AGM) batteries. These are known to demonstrate features such as good thermal shielding and sustainability under elevated heat or temperature. This strategic launch is expected to benefit the company in meeting increasing demand for heavy-duty batteries. In September 2017, A123 Systems, LLC invested in Solid Power, Inc. with the aim of developing a new portfolio of battery technology. This strategy is likely to help the company develop a new product line in future.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at country and state levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the U.S. automotive battery aftermarket report on the basis of battery type, vehicle type, and distribution channel:

• Battery Type Outlook (Volume, Million Units; Revenue, USD Million, 2014 - 2025)

  • Lithium-ion

  • Lead Acid

  • Nickel-based

  • Sodium-ion

  • Others

• Vehicle Type Outlook (Volume, Million Units; Revenue, USD Million, 2014 - 2025)

  • Passenger Vehicle

  • Electric Vehicle

  • Commercial Vehicle

  • Others

• Distribution Channel Outlook (Volume, Million Units; Revenue, USD Million, 2014 - 2025)

  • Retail/Brick

  • E-commerce

  • Others