Automotive Batteries Market size is set to grow by USD 119.8 billion from 2024-2028, Rise in sales of passenger cars boost the market, Technavio

NEW YORK, July 3, 2024 /PRNewswire/ -- The global automotive batteries market size is estimated to grow by USD 119.8 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 19.75% during the forecast period. Rise in sales of passenger cars is driving market growth, with a trend towards growing demand for AGM batteries. However, multiple limitations and short life cycle of lead-acid batteries poses a challenge. Key market players include A123 Systems LLC, Amara Raja Group, CLARIOS LLC, Crown Battery Manufacturing Co., East Penn Manufacturing Co. Inc., EnerSys, Exide Industries Ltd., Furukawa Electric Co. Ltd., GS Yuasa International Ltd., HBL Power Systems Ltd., Hitachi Ltd., Leoch International Technology Ltd., LG Corp., Montana Tech Components AG, Panasonic Holdings Corp., Robert Bosch GmbH, Samsung SDI Co. Ltd., Shandong Sacred Sun Power Sources Co. Ltd., Toshiba Corp., and TotalEnergies SE.

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              Automotive Batteries Market Scope



     Report Coverage                              
      Details



     Base year                                                                                                                                                      2023



     Historic period                              
      2018 - 2022



     Forecast period                              
      2024-2028


      Growth momentum & CAGR                                                                                                               Accelerate at a CAGR of 19.75%


      Market growth 2024-2028                      
      USD 119.8 billion



     Market structure                             
      Fragmented


      YoY growth 2022-2023 (%)                                                                                                                                     17.09


      Regional analysis                            
      APAC, North America, Europe, South America, and Middle East and Africa


      Performing market
       contribution                                                                                                                                           APAC at 62%



     Key countries                                
      China, US, Germany, and India


                                                     A123 Systems LLC, Amara Raja Group, CLARIOS LLC, Crown Battery Manufacturing Co., East Penn Manufacturing Co. Inc.,
                                                       EnerSys, Exide Industries Ltd., Furukawa Electric Co. Ltd., GS Yuasa International Ltd., HBL Power Systems Ltd.,
                                                       Hitachi Ltd., Leoch International Technology Ltd., LG Corp., Montana Tech Components AG, Panasonic Holdings Corp.,
                                                       Robert Bosch GmbH, Samsung SDI Co. Ltd., Shandong Sacred Sun Power Sources Co. Ltd., Toshiba Corp., and
      Key companies profiled                           TotalEnergies SE

Market Driver

AGM batteries, utilized in aircraft since the 1980s, have gained popularity due to their suitability for heavily electrical-accessorized vehicles. Manufactured with fiberglass mat separators, these batteries evenly distribute acid across plates, ensuring better resistance during vibration and longer life. Their slow discharge rate reduces the likelihood of spills, enhancing safety. With a lifespan almost double that of conventional batteries, superior recharging capability, and benefits for heavy traffic regions, the demand for AGM batteries in the automotive market is expected to increase significantly.

The Automotive Batteries market is experiencing significant growth due to the increasing demand for electric and hybrid vehicles. Advanced technologies such as lithium-ion and nickel-metal hydride batteries are driving this trend. These batteries offer longer battery life, higher energy density, and faster charging times compared to traditional lead-acid batteries. Additionally, governments worldwide are investing in renewable energy and electric vehicles, further boosting the market. Passenger cars and commercial vehicles are the major applications for automotive batteries. Companies are focusing on research and development to improve battery performance and reduce costs. The future of the automotive batteries market looks bright with the shift towards sustainable transportation solutions.

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Market Challenges

    --  The lead-acid battery, the first rechargeable battery for commercial
        use, remains popular due to its affordability and reliability. However,
        its limitations include heavy weight, reduced durability compared to
        nickel and lithium-based systems, and permanent capacity loss after full
        discharge. The battery's lifespan is influenced by charge conditions and
        temperature, with optimal functioning at 77 F. Elevated temperatures
        reduce battery life. Additionally, lead-acid batteries have low energy
        density, limiting their ability to be stored in a discharged state.
        These factors contribute to premature battery failure and hinder market
        growth.
    --  The Automotive Batteries market faces several challenges. The use of
        electric and hybrid vehicles is increasing, requiring advanced battery
        technology for longer driving ranges and faster charging times.
        Consumers demand cost-effective and reliable batteries, which can be a
        challenge for manufacturers due to the high cost of raw materials and
        the need for continuous innovation. Additionally, regulations on
        emissions and battery disposal add complexity to the market. Proper
        management of the supply chain, from raw material sourcing to recycling,
        is essential to meet demand and mitigate risks. The market is
        competitive, with companies constantly seeking to improve battery
        performance and reduce costs. Collaboration and innovation will be key
        to addressing these challenges and driving growth in the Automotive
        Batteries market.

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Segment Overview

This automotive batteries market report extensively covers market segmentation by

    1. Vehicle Type
        --  1.1 Passenger cars
        --  1.2 Commercial vehicles
    2. Channel
        --  2.1 OEM
        --  2.2 Aftermarket
    3. Geography
        --  3.1 APAC
        --  3.2 North America
        --  3.3 Europe
        --  3.4 South America
        --  3.5 Middle East and Africa

1.1 Passenger cars- The automotive batteries market is experiencing technological advancements due to emission regulations, fuel efficiency standards, and consumer preferences. Passenger cars utilize batteries for starting, interior electronics, and electric vehicles. With the rise of high-voltage systems and the shift towards electric vehicles, demand for energy-efficient batteries will increase. By 2030, an estimated 2,700 GWh of lithium-ion batteries will be required annually. One ton of lithium produces enough material for 90 EVs, but range anxiety may increase the number of cells in battery packs. The passenger vehicle segment will drive market growth as demand for battery electric vehicles continues to rise.

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Research Analysis

The Automotive Batteries Market encompasses electrochemical devices designed to store and release electrical energy for various applications in passenger vehicles. These batteries power the starting motor for ignition systems, support the alternator for voltage stabilization, and supply power to lights, radio, and electrical accessories. With the shift towards sustainable transportation, the market for Electric Vehicles (EVs) and Battery Electric Vehicles (BEVs) is experiencing significant growth. Consumer constraints, such as charging time and performance, are being addressed through advancements in Lithium-ion batteries, which offer higher energy density and longer charge-discharge cycles. Urbanization and population growth are driving the demand for vehicles, leading to increased focus on the durability and maintenance requirements of automotive batteries across the SLI (Starting, Lighting, Ignition) batteries segment.

Market Research Overview

The Automotive Batteries Market encompasses the production, sales, and supply of batteries used in the automotive industry. These batteries provide power to various vehicle systems, including the starter motor, lighting, and other electrical components. The market is driven by factors such as increasing vehicle production, growing demand for electric and hybrid vehicles, and advancements in battery technology. The market also faces challenges such as price volatility of raw materials and increasing competition. The market is segmented based on battery type, vehicle type, and geography. Battery types include Lead-Acid, Nickel-Metal Hydride, Lithium-Ion, and others. Vehicle types include Passenger Cars and Commercial Vehicles. Geographically, the market is analyzed across regions such as North America, Europe, Asia Pacific, and the Rest of the World.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

    --  Vehicle Type
        --  Passenger Cars
        --  Commercial Vehicles
    --  Channel
        --  OEM
        --  Aftermarket
    --  Geography
        --  APAC
        --  North America
        --  Europe
        --  South America
        --  Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com

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SOURCE Technavio