Published: Feb, 2018
The global automotive battery market has been prognosticated in a report by Transparency Market Research (TMR) to come across changing landscapes that could increase the significance of the product in the coming years. Automotive battery could soon become an inevitable source to operate electric vehicles and hybrids as it has been conventionally used to power up their entire electrical framework and engine. OEMs and automobile manufacturers have been focusing on facilitating optimized power consumption when developing vehicle systems and components. This scenario has been expected to have taken effect in parallel to the introduction of automotive battery technologies that offer power-saving options and enable quick recharging.
TMR has forecast the global automotive battery market to be valued at a US$54.5 bn by the completion of 2022. The market could expand at a 5.7% CAGR during the forecast tenure 2017-2022. On the basis of chemical composition, small sealed lead acid (SSLA) has been anticipated to lead the market, taking cue from its more than 38.0% revenue share obtained in 2017. All through the end of the forecast tenure, Europe could maintain its position as a larger region while securing a valuation of US$15.1 bn by 2022.
Demand for Fuel Efficiency and Strict Emission Norms Support Growth
Market analysts have already predicted the strong growth of SSLA automotive battery. However, lithium-ion (Li-ion) automotive battery could showcase a steady sales growth as more number of plug-in hybrid and electric vehicles are being produced in the recent time. OEMs have been encouraged to introduce new electric and hybrid models owing to the promise of attractive incentives and successful commercialization. The worldwide demand for fuel efficiency and strictness of emission norms has compelled OEMs to develop products that could fulfill future transportation requirements.
The inception of electric vehicles has caused a surge in the number of both OEMs and electric vehicle models. For instance, Mercedes Benz had planned to introduce a plug-in electric vehicle model in four months until the end of 2017. By 2018, Toyota has pledged to introduce an all-electric vehicle and a plug-in hybrid vehicle.
Safety Issues and Underdeveloped Support Infrastructure Fetter Demand
The demand for automotive battery has been prophesied to be negatively affected by the rise of safety issues associated with battery usage and availability of underdeveloped support infrastructure for electric vehicles. Moreover, the overflowing sales of mid-sized and compact vehicles compared to those of other types of vehicles has been making it difficult for automotive battery manufacturers to provide products at a correspondingly aggressive pace. However, manufacturers have been observed to complain less about producing automotive battery for mid-sized and compact vehicles. This could be because the manufacturing requires no additional cost and is relatively less complex.
Manufacturers could also explore regions that display increased trade activities and a high demand for automobiles and commercial aircrafts as these factors have been envisaged to up the growth of the international automotive battery market. Rapid technological, economic, and infrastructural development could be another factor expected to support the demand for automotive battery.
The information presented in this review is based on a TMR report, titled “Automotive Battery Market (Chemical Composition - Lithium-ion, Nickel-metal Hydride, Nickel-cadmium, and Small Sealed Lead Acid; Vehicle - Compact, Mid-sized, Premium, Luxury, Commercial, and Heavy Commercial; Sales Channel - OEM and Aftermarket) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2017 - 2022.”
- Demand for automotive battery with SSLA composition to gain traction until 2022.
- Europe to make a higher contribution to the market in terms of revenue.
The global automotive battery market has been segmented as presented below:
Global Automotive Battery Market: Chemical Composition
- Nickel-metal Hydride
- Small Sealed Lead Acid
Global Automotive Battery Market: Vehicle
- Compact Vehicle
- Mid-sized Vehicle
- Premium Vehicle
- Luxury Vehicle
- Commercial Vehicle
- Heavy Commercial Vehicle
Global Automotive Battery Market: Sales Channel
Global Automotive Battery Market: Region
- North America
- Latin America
- Asia Pacific excluding Japan
- Middle East and Africa
- GCC Countries
- South Africa
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