Automotive Battery Market Size, Share, Growth Analysis, By Type (Lead Acid, Lithium-Ion), By Function (Ignition, Lighting), By Engine Type (Electric Vehicle Internal, Combustion Engine), By Vehicle Type (Passenger Cars, Commercial Vehicles), By Region - Industry Forecast 2024-2031


Report ID: SQMIG25A2333 | Region: Global | Published Date: November, 2024
Pages: 220 |Tables: 100 |Figures: 71

Automotive Battery Market Insights

Global Automotive Battery Market size was valued at USD 63 billion in 2022 and is poised to grow from USD 66.9 billion in 2023 to USD 109.1 billion by 2031, growing at a CAGR of 6.3% during the forecast period (2024-2031).

Ongoing research and development efforts were focused on improving batteries, increasing efficiency, and reducing costs. This improvement was aimed at addressing both battery range, charging time and durability concerns.

The global automotive battery market has faced raw material availability challenges, especially for lithium and cobalt. Furthermore, geopolitical conflicts and trade policies have affected the availability and prices of these vital resources. Entrants in the automotive battery industry faced increased competition from new entrants, including technology companies and start-ups focused on battery technology This fierce competition led to new factors encouraged partnership and collaboration throughout the project. Government subsidies, tax incentives, and regulations aimed at reducing greenhouse gas emissions and promoting clean energy solutions continued to shape the automotive battery market and so these systems influenced customer purchasing decisions and OEM strategies.

Market Snapshot - 2024-2031

Global Market Size

USD 48.22 Billion

Largest Segment

Lithium-ion

Fastest Growth

Lead-acid

Growth Rate

9.7% CAGR

Global Automotive Battery Market ($ Bn)
Country Share for Asia Pacific Region (%)

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Automotive Battery Market Segmental Analysis

Global Automotive Battery Market is segmented by Type, Function, Engine Type, Vehicle Type and region. Based on Type, the market is segmented into Lead Acid, Lithium-Ion, Nickel Metal Hydride. Based on function, the market is segmented into Ignition, Lighting, Electric Propulsion, Start. Based on Engine Type, the market is segmented into Electric Vehicle Internal, Combustion Engine. Based on Vehicle Type, the market is segmented into Passenger Cars, Heavy Commercial Vehicles (HCV), Light Commercial Vehicles (LCV). Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa. 

Analysis by Battery

The lithium-ion segment will be dominating the market CAGR of 8.6% during the forecast period. Declining lithium-ion battery prices, technological advancements and mass production are expected to fuel the growth of the segments during the forecast period. Furthermore, government initiatives to promote e-mobility adoption are on the rise by providing financial incentives and stricter standards and regulations. Demand for batteries is expected to fuel. For example, the European Union has implemented emission regulations such as Euro 5 and Euro 6 across Europe to reduce carbon emissions. Moreover, electric cars cost less compared to conventional cars. So higher fossil fuel prices make consumers more attracted to electric cars.

The lead-acid segment accounted for the largest market share of 51.79% by 2020. Lead-acid batteries are widely accepted in conventional vehicles. Thus, the number of conventional vehicles in the world is driving the growth of this segment. For example, according to the International Energy Agency (IEA), conventional vehicles will account for 97.4% of global vehicle sales by 2019. The increasing presence of lead batteries in the aftermarket channel influences the growth of the segment. Apart from that, lead-acid batteries are also used to drive other power loads of electric vehicles, such as electronic devices and sensors used in vehicles so it is expected that electricity consumption an increasing growth will also provide significant revenue growth opportunities for the segment over the forecast period.

Analysis by Engine Type

The IC engine segment accounted for the largest market share by 2020 owing to the increasing sales of automobiles across the globe. The widespread availability and relatively low cost of IC engine vehicles compared to electric vehicles is expected to drive global adoption. Moreover, the high demand for IC engine vehicles in countries with limited EV penetration like India is expected to be the demand for IC engines in heavy vehicles, such as heavy trucks and passenger cars will drive future growth of the segment.

The electric vehicle segment is expected to show the fastest CAGR in the coming years. With increasing demand for electricity transmission due to environmental concerns, fuel due to increasing mineral prices are the major drivers of growth in this sector. Besides, falling lithium-ion battery prices and government initiatives to provide financial support for EV adoption are expected to boost this segment in the coming period. The manufacturer’s focus on diversifying its vehicle offerings to make it emission-free in exchange for early revenue opportunities in mobility solutions will positively impact the segment.

Global Automotive Battery Market By Battery (%)

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Automotive Battery Market Regional Insights

Asia Pacific is the dominating region in the global automotive battery market. The growth is driven by rapid expansion in the use of electronic devices and automotive industries especially in emerging countries such as China and India. Increasing urbanization, increasing disposable income, growing awareness in energy, a sustainable solution is the demand for batteries, so batteries, in Asia Pacific. Aside from packaging and incentives, the authorities’ initiatives and incentives for adoption of electric vehicles also contribute to this growth trajectory.

North America is the fastest growing segment in the global automotive battery market. This dominance can be attributed to the widespread adoption of advanced battery technologies, especially in electric vehicles and renewable energy. North America’s robust manufacturing and technology infrastructure, with strong safety guidelines density has led to calls for advanced packaging for batteries.

Global Automotive Battery Market By Geography
  • Largest
  • Fastest

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Automotive Battery Market Dynamics

Drivers

Technological Advancements in Automobile Industry

  • Recent developments and technological advances in the automotive industry have increased the energy storage capacity of automotive batteries, just as the high capacity of high-capacity lithium-ion batteries deepen the range of electric vehicles the. Thus, the plans of automakers to incorporate these advanced batteries in their upcoming vehicles are expected to boost the market growth in the coming years Furthermore, advanced products, such as car batteries create faster, acquisition for enhanced performance will further accelerate market growth in the next few years.

Increasing Adoption of Electric Vehicles (EVs)

  • The global shift towards sustainable transportation solutions is driving demand for battery-powered electric vehicles. As automakers ramp up production of electric vehicles to meet stricter emissions regulations and meet consumer demand for cleaner vehicles, packaging batteries are on the market is growing rapidly.

Restraints

Compliance Challenges

  • Strict regulations on transportation, handling and disposal of batteries pose compliance challenges for market players. Compliance with safety standards and environmental regulations complicates design and manufacturing processes, which can hinder market expansion.

Supply Chain Disruption

  • The global automotive battery market is susceptible to supply chain disruptions through factors such as raw material shortages, geopolitical pressures and unforeseen natural disasters in the infrastructure and supply chain can disrupt production planning and limit market growth opportunities.

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Automotive Battery Market Competitive Landscape

The competitive scenario of the global automotive battery market is characterized by various companies competing for market share These companies are based on factors such as product quality, innovation, cost and factors a competes on environmental sustainability. As demand for batteries increases in sectors such as automotive, utility, and renewable energy, competition intensifies. Marketers focus on R&D efforts if products advanced packaging is used to meet evolving industry standards and address environmental concerns. In addition, partnerships and collaborations between competitors are common strategies to expand their markets and cater to a wider customer base.

Top Player’s Company Profiles

  • Contemporary Amperex Technology Co. Ltd. (CATL) 
  • BYD 
  • LG Energy Solution 
  • Samsung SDI 
  • Panasonic Corporation 
  • Clarios 
  • GS Yuasa Corporation 
  • A123 Systems 
  • VARTA AG 
  • China Aviation Lithium Battery (CALB) 
  • East Penn Manufacturing 
  • EVE Energy Co. Ltd. 
  • Gotion High-Tech 
  • Robert Bosch GmbH 
  • Envision AESC 
  • Hitachi Group 
  • Farasis Energy 
  • Sunwoda Electronic Co. Ltd. 
  • Northvolt 
  • SK On

Recent Developments

  • In April 2022, Deutsche Post DHL Group, announced a new response to packaging requirements for retailers to make freight cost-effective and it is not environmentally friendly.
  • In May 2021, luxury car manufacturer Daimler Truck AG and leading lithium-ion battery manufacturer CATL announced the expansion of their global strategic partnership to develop next-generation advanced battery manufacturing a particular truck.
  • In March 2021, General Motors partnered with lithium metal battery developer Solid Energy Systems to form a joint venture to develop EV batteries.

Automotive Battery Key Market Trends

Rising Emphasis on Sustainability in Automotive Battery

  • A key trend in the global Automotive Battery market relates to the increasing emphasis on sustainability and environmental responsibility. As the demand for batteries increases in sectors such as automotive, power utilities, energy storage and renewable energy, stakeholders recognize the importance of adoption environmentally friendly packaging solutions this trend is driven by increased environmental concerns, regulatory pressures and consumer demands for sustainability routine activities. To reduce the environmental impact of packaging batteries, manufacturers are actively exploring new materials such as bio-based plastics, recycled metals and manufacturable polymers compostable in addition to a concerted effort to optimize packaging design for better recycling and end-of-life management. Collaboration between industry, government agencies and environmental organizations accelerates the adoption of sustainable practices throughout the battery supply chain While prioritizing sustainability in supply chains packaging, manufacturing and manufacturing, the stakeholders aim to reduce consumption, reduce waste, reduce battery production. This disposal and environmental reduction trend are not only consistent with corporate environmental goals, but also meets growing societal concerns about environmental issues protection of our environment is also addressed, thus the future scenario of the global Automotive Battery market.

Automotive Battery Market SkyQuest Analysis

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.

The global automotive battery market was characterized by rapid technological development, increased demand driven by EV adoption, supply chain challenges, fierce competition, government policies pushing for sustainable transportation solutions encouraged with these developments reshaped the industry landscape and allowed companies to innovate and adapt to emerging trends and consumer preferences. Entrants in the automotive battery industry faced increased competition from new entrants, including technology companies and start-ups focused on battery technology This fierce competition led to new factors encouraged partnership and collaboration throughout the project.

Report Metric Details
Market size value in 2022 USD 63 billion
Market size value in 2031 USD 109.1 billion
Growth Rate 6.3%
Base year 2023
Forecast period 2024-2031
Forecast Unit (Value) USD Billion
Segments covered
  • Type
    • Lead Acid, Lithium-Ion, Nickel Metal Hydride
  • Function
    • Ignition, Lighting, Electric Propulsion, Start
  • Engine Type
    • Electric Vehicle Internal, Combustion Engine
  • Vehicle Type
    • Passenger Cars, Heavy Commercial Vehicles (HCV), Light Commercial Vehicles (LCV)
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • Contemporary Amperex Technology Co. Ltd. (CATL) 
  • BYD 
  • LG Energy Solution 
  • Samsung SDI 
  • Panasonic Corporation 
  • Clarios 
  • GS Yuasa Corporation 
  • A123 Systems 
  • VARTA AG 
  • China Aviation Lithium Battery (CALB) 
  • East Penn Manufacturing 
  • EVE Energy Co. Ltd. 
  • Gotion High-Tech 
  • Robert Bosch GmbH 
  • Envision AESC 
  • Hitachi Group 
  • Farasis Energy 
  • Sunwoda Electronic Co. Ltd. 
  • Northvolt 
  • SK On
Customization scope

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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Automotive Battery Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Automotive Battery Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Automotive Battery Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Automotive Battery Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Automotive Battery Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Automotive Battery Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.

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FAQs

Global Automotive Battery Market size was valued at USD 63 billion in 2022 and is poised to grow from USD 66.9 billion in 2023 to USD 109.1 billion by 2031, growing at a CAGR of 6.3% during the forecast period (2024-2031).

The competitive scenario of the global automotive battery market is characterized by various companies competing for market share These companies are based on factors such as product quality, innovation, cost and factors a competes on environmental sustainability. As demand for batteries increases in sectors such as automotive, utility, and renewable energy, competition intensifies. Marketers focus on R&D efforts if products advanced packaging is used to meet evolving industry standards and address environmental concerns. In addition, partnerships and collaborations between competitors are common strategies to expand their markets and cater to a wider customer base. 'Contemporary Amperex Technology Co. Ltd. (CATL) ', 'BYD ', 'LG Energy Solution ', 'Samsung SDI ', 'Panasonic Corporation ', 'Clarios ', 'GS Yuasa Corporation ', 'A123 Systems ', 'VARTA AG ', 'China Aviation Lithium Battery (CALB) ', 'East Penn Manufacturing ', 'EVE Energy Co. Ltd. ', 'Gotion High-Tech ', 'Robert Bosch GmbH ', 'Envision AESC ', 'Hitachi Group ', 'Farasis Energy ', 'Sunwoda Electronic Co. Ltd. ', 'Northvolt ', 'SK On'

Recent developments and technological advances in the automotive industry have increased the energy storage capacity of automotive batteries, just as the high capacity of high-capacity lithium-ion batteries deepen the range of electric vehicles the. Thus, the plans of automakers to incorporate these advanced batteries in their upcoming vehicles are expected to boost the market growth in the coming years Furthermore, advanced products, such as car batteries create faster, acquisition for enhanced performance will further accelerate market growth in the next few years.

A key trend in the global Automotive Battery market relates to the increasing emphasis on sustainability and environmental responsibility. As the demand for batteries increases in sectors such as automotive, power utilities, energy storage and renewable energy, stakeholders recognize the importance of adoption environmentally friendly packaging solutions this trend is driven by increased environmental concerns, regulatory pressures and consumer demands for sustainability routine activities. To reduce the environmental impact of packaging batteries, manufacturers are actively exploring new materials such as bio-based plastics, recycled metals and manufacturable polymers compostable in addition to a concerted effort to optimize packaging design for better recycling and end-of-life management. Collaboration between industry, government agencies and environmental organizations accelerates the adoption of sustainable practices throughout the battery supply chain While prioritizing sustainability in supply chains packaging, manufacturing and manufacturing, the stakeholders aim to reduce consumption, reduce waste, reduce battery production. This disposal and environmental reduction trend are not only consistent with corporate environmental goals, but also meets growing societal concerns about environmental issues protection of our environment is also addressed, thus the future scenario of the global Automotive Battery market.

Asia Pacific is the dominating region in the global automotive battery market. The growth is driven by rapid expansion in the use of electronic devices and automotive industries especially in emerging countries such as China and India. Increasing urbanization, increasing disposable income, growing awareness in energy, a sustainable solution is the demand for batteries, so batteries, in Asia Pacific. Aside from packaging and incentives, the authorities’ initiatives and incentives for adoption of electric vehicles also contribute to this growth trajectory.

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