Automotive Battery Market

Automobile manufacturers from around the world are observing the rapid innovation and advent of battery technologies with a technology-neutral standpoint. OEMs are adopting new designs and mechanics to develop automobile components that enable optimization of electricity consumption. Such practices support the inclusion of advanced batteries in automobiles. Moreover, with increasing preference to electric vehicles and hybrids, manufacturers of automotive batteries will be focusing largely on extending the capacity of individual batteries and developing new technologies that enable speedy recharging and assured stabilization. According to Transparency Market Research, the global market for automotive batteries will witness a steady growth over the forecast period, 2017-2022. The report estimates that by the end of 2022, the global automotive battery market will be worth over US$ 54.5 billion. For providing insightful forecast on the global automotive battery market, the report has analyzed the market into a slew of segments.

High Demand for Automotive Batteries with Chemical Composition - Small Sealed Lead Acid (SSLA)

Chemical composition of automotive batteries plays the most instrumental role in their adoption among automobile manufacturers. Chemicals filled inside these batteries have the critical influence in performance of battery with respect to power efficiency, engine ignition and electrical functioning of the entire vehcile. The report projects that chemical composition – Small Sealed Lead Acid – commonly identified as SSLA is becoming a sought-after in the global automotive battery market. In 2017, over 38 percent of revenues procured in the global automotive battery market are expected to be accounted by the SSLA composition. Batteries made with this chemical composition are expected to outsell the ones equipped with Lithium-ion (Li-ion). Over the forecast period, sales of Li-ion batteries are anticipated to incur a steady pace, while SSLA batteries are estimated to register a CAGR of 6.7%. 

Key Focus on Equipping Compact and Mid-Sized Vehicles

Manufacturers of automotive batteries in the global market are expected to remain focused on delivering batteries for brimming sales of compact and mid-sized vehicles. As the global sales of these two vehicle-segments continues to soar beyond that of premium, luxury and commercial vehicles, providing automotive batteries at an equally rapid pace is becoming a challenge for market players. Nevertheless, manufacturing automotive batteries for compact vehicles and mid-sized automobiles is relatively less complex, and entails no added expenditure with respect to adopting new and untested technologies. The report anticipates that by the end of 2017, mid-sized and compact vehicles will contribute to nearly half of the revenues being procured in the global automotive battery market.

Automotive Battery Aftermarkets to Witness Steady Sales Traction

With respect to the sales of automotive batteries, OEMs are being observed as the largest channel in the global automotive battery market. According to the report, automotive batteries sold globally through OEMs will rake in nearly US$ 40 billion by the end of 2022. The report also expects that over the forecast period, OEMs will witness robust CAGR with respect to sales of automotive batteries. On the other hand, the aftermarket sales of automotive batteries will witness a relatively moderate CAGR over the forecast period. Low need for changing automotive batteries in vehicle customization processes will be limiting the growth of automotive battery aftermarkets around the world.

Key Manufacturers of Automotive Batteries

The report observes that companies namely, Johnson Controls International plc., Haldex Incorporated, ZF TRW Automotive Holdings Corporation, Hitachi Ltd., EnerSys, Furukawa Electric Co. Ltd., Leoch International Tech, GS Yuasa Corporation, Crown Battery Manufacturing Company, and Exide Industries Limited will be key players in the global automotive battery market throughout the forecast period. A majority of these players are likely to focus on regulatory compliance in production of batteries and the chemicals being filled in them. The overall competition environment in the global automotive battery market is expected to remain aggressive in the upcoming years.