Analysis of Automotive Battery Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Expanding at a CAGR of 6.1%, the global automotive battery market is projected to increase from a valuation of US$ 52.71 billion in 2024 to US$ 95.29 billion by 2034.
The market for car batteries is expanding rapidly due to several important considerations. Primarily, the growing utilization of electric and hybrid cars is a significant driver of market growth. Several automakers are moving increasingly toward electric and hybrid vehicles due to strict pollution rules and a rising worldwide emphasis on sustainable transportation, which calls for high-performance batteries. The energy density, durability, and charging capacities of batteries are also being improved by technological developments, especially in lithium-ion batteries, propelling the market's expansion.
The need for dependable batteries to power these components is being driven by the growing demand for vehicle electronics, such as infotainment systems and Advanced Driver Assistance Systems (ADAS). Geographically speaking, North America is dominating the market due to the presence of several automakers and the rising use of electric cars in countries including China and India. As the automobile industry moves toward electrification and the need for effective energy storage solutions rises, the market for automotive batteries is expected to grow in the long run.
| Report Attribute | Detail |
|---|---|
| Automotive Battery Market Size (2024E) | US$ 52.71 Billion |
| Forecasted Market Value (2034F) | US$ 95.29 Billion |
| Global Market Growth Rate (2024 to 2034) | 6.1% CAGR |
| East Asia Market Value (2034F) | US$ 26.78 Billion |
| North America Market Share (2034F) | 31.2% |
| Lithium-Ion Segment Value (2034F) | US$ 41.45 Billion |
| United States Market Value (2034F) | US$ 23.75 Billion |
| Key Companies Profiled | SAMSUNG SDI CO. LTD Hitachi Group Ltd EXIDE INDUSTRIES LTD. LG Chem Robert Bosch GmbH. Contemporary Amperex Technology Co. Limited A123 Systems GS Yuasa International Ltd. BYD Company Ltd. East Penn Manufacturing Company Exide Technologies Panasonic Corporation |
“Surging Popularity of Electromobility Contributing to Increased Sales of Automotive Batteries”
Global demand for vehicle batteries is driven by the growing e-mobility adoption in rich economies as well as the evolving automotive sector in potentially high growth countries. Increasing automobile sales and improving the standard of living of several people, along with manufacturers' emphasis on introducing next-generation EVs, are driving the electrification of the automotive sector. Thereby, the global market will rise steadily in the next years due to the increasing demand for lithium-ion batteries in electric vehicles (EVs).
Over the past ten years, there has been a rapid increase in global electric vehicle sales. For example, the International Energy Agency estimated that global EV sales would surpass 10 million units in 2022. Electric vehicles made up 18% of the total, up from 14% in 2022, and their percentage is rising quickly over time. Global sales of electric vehicles are being driven by several factors, including rising fuel prices and stricter pollution control standards and laws.
In the upcoming years, it is forecasted that the decreased cost of an electric vehicle battery will have a positive impact on the uptake of EVs and present the industry with significant prospects for revenue development.
“Zero-Emission Automobiles Trending Among Customers Pushing Demand for Batteries”
The market is expanding with the growing health and environmental concerns about the adoption of emission-free hybrid and all-electric cars, as well as declining prices of such batteries and the surging prices of fossil fuels. Furthermore, the imposition of stringent pollution regulations on conventional vehicles along with government backing and financial incentives for the adoption of EVs will drive market expansion.
Vehicle batteries, such as high-energy density lithium-ion batteries, now have greater energy storage capabilities because of recent research and technical advancements in the automobile sector. The increased capacity extends the electric vehicle's range of travel. Thereby, more manufacturers intending to include these cutting-edge batteries in their next vehicles would propel market expansion in the years to come. In addition, the availability of cutting-edge goods such as quick car battery chargers for improved performance would hasten the market's expansion over the coming years.
New market development prospects are created by the global spike in car sales caused by overcrowded public transportation and the use of electric vehicles in mobility as a service sector. Furthermore, the government's plan to electrify public transportation is also increasing demand for lithium-ion batteries. The market is steadily expanding because of the increasing popularity of turning vehicles into electric categories.
“Inadequacy of Infrastructure and Lack of Charging Facilities Limiting Market Expansion”
The market for vehicle batteries is severely constrained by the rising concern over battery safety. Electric cars commonly employ lithium-ion batteries, which will surely explode and cause fires if not made, assembled, and managed appropriately. This prevents the market from growing. Another significant barrier to the growth of the automotive battery business is the absence of the infrastructure needed for battery-powered vehicles to operate properly.
Customers find it difficult to adopt electric vehicles due to the lack of charging facilities, especially in developing countries, which lowers the need for car batteries. Future market expansion will be constrained by the sluggish pace of electric vehicle adoption in some potentially high growth and underdeveloped countries caused by low electromobility penetration and shifting import-export regulations for automotive batteries.
The popularity of automotive batteries is going to reach around the globe as more customers are understanding the importance of these batteries and save their other expenses. A few of the major companies involved in this market are the United States, Canada, China, and Mexico battling to hold a significant automotive battery market share.
“Trend of EVs in the Country Pushing Sales for Automotive Batteries”
| Attribute | United States |
|---|---|
| Market Value (2024E) | US$ 14.94 Billion |
| Growth Rate (2024 to 2034) | 4.7% CAGR |
| Projected Value (2034F) | US$ 23.75 Billion |
The United States comprises several prominent automotive giants including Tesla Inc. Such companies are taking the help of the government to make customers aware of the power of advanced automotive batteries over traditional ones, leading to rising sales of them. More people are upgrading their cars with these battery-powered vehicles and saving a huge amount of money, which is otherwise spent on conventional fuel such as petrol. The government is also providing substantial subsidies to improve the market growth.
“Lithium-ion Deposits in the Country Profiting Manufacturers”
| Attribute | China |
|---|---|
| Market Value (2024E) | US$ 6.97 Billion |
| Growth Rate (2024 to 2034) | 5.5% CAGR |
| Projected Value (2034F) | US$ 11.86 Billion |
Lithium-ion is one of the vital components used in the production of automotive batteries as it helps in controlling and releasing the charged particles to run the vehicles. In China, there are several deposits of these elements which allows the manufacturers and suppliers to produce the batteries at much lower cost than other countries. This factor is not only helping in the production of lower-cost batteries but also allowing the customers to get the benefits at a much cheaper price, making China a key player country in East Asia.
As per the car configuration, suppliers in the market have introduced different battery models to expand their customer base. A few of the popular battery involves lead-acid and lithium-ions.
“Lead Acid Batteries are Prominently Preferred by Customers”
| Attribute | Lead Acid |
|---|---|
| Segment Value (2024E) | US$ 25.46 Billion |
| Growth Rate (2024 to 2034) | 5.7% CAGR |
| Projected Value (2034F) | US$ 44.12 Billion |
Lead Acid Batteries are becoming increasingly popular among drivers globally. Customers tend to prefer lead-acid batteries over lithium-ion batteries when purchasing automotive batteries due to their reliability, cost-effectiveness, and ability to withstand a wide range of temperatures. Lead acid batteries have a proven track record in the automotive industry and are widely trusted by drivers around the world for their consistent performance and durability. It is increasingly becoming a new automotive battery market trend.
“Passenger Cars are Widely Employing Automotive Batteries”
| Attribute | Passenger Cars |
|---|---|
| Segment Value (2024E) | US$ 30.05 Billion |
| Growth Rate (2024 to 2034) | 5.3% CAGR |
| Projected Value (2034F) | US$ 50.41 Billion |
Passenger cars are the vehicle category that most frequently uses automotive batteries. Whether it's compact cars, sedans, or SUVs, passenger vehicles rely heavily on automotive batteries to power essential systems such as ignition, lighting, and electronics. The widespread use of automotive batteries in passenger cars underscores their crucial role in ensuring the smooth and reliable operation of these vehicles daily. Given the high number of passenger cars on the road, it's not surprising that they are the leading vehicle category in terms of automotive battery usage
Key players in the automotive battery industry are coming up with new product launches including electric car batteries and battery chemicals to win the competition.
Fact.MR provides detailed information about the price points of key manufacturers of automotive batteries positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new market report.
How big is the size of the automotive battery market in 2024?
The global market for automotive batteries is evaluated at US$ 52.71 billion in 2024.
What is the demand forecast for automotive batteries for 2034?
Worldwide demand for automotive batteries is analyzed to reach a market value of US$ 95.29 billion by 2034.
At what CAGR is the demand for automotive batteries projected to accelerate?
The global market for automotive batteries is forecasted to expand at a CAGR of 6.1% from 2024 to 2034.
What is the contribution of North America to global market revenue?
North America is projected to account for a 31.2% share of the global market by 2034-end.
What is the calculated growth rate of automotive batteries in Japan?
Demand for automotive batteries in Japan is approximated to increase at a CAGR of 5.1% from 2024 to 2034.
How much share of the global market is projected to be held by automotive batteries in passenger vehicles?
Automotive batteries in passenger cars are evaluated to possess a 52.9% share of global market revenue by 2034-end.
Who are the prominent market players in the automotive batteries market?
Key players in this market are EXIDE INDUSTRIES LTD., Panasonic Corporation, and LG Chem.
Automotive Battery Market