Automotive Battery Market Overview:
Automotive Battery Market Size was valued at USD 66.2 Billion in 2022. The market is projected to grow from USD 70.549 Billion in 2023 to USD 103.348 Billion by 2030, exhibiting a compound annual growth rate (CAGR) of 6.57% during the forecast period (2023 - 2030).
Increasing demand of end users for zero-emission hybrid and electric vehicles, owing to the falling battery price, reducing crude oil reserves, and environmental effects of conventional automobiles. And an increase in global battery production capacity has helped achieve economies of scale in the automotive battery industry are the key market drivers enhancing market growth.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Automotive Battery Market Trends
Increased Demand for Lithium-Ion Battery is driving the market growth
Market CAGR for lithium-ion batteries is expected to grow fastest during the forecast period. A lithium-ion battery is equipped for applications that demand high-energy density solutions, such as hybrid and electric automobiles. Additionally, to increase vehicle economies, manufacturers are continuously focusing on reducing the price of the battery, propelling the market growth globally.
Lithium-ion batteries charge faster, last longer, and have a higher power density for more battery life in a lighter package than traditional battery technology. The automotive lithium-ion battery has emerged as an eco-friendly, rechargeable power source compared to conventional batteries such as lead-acid and nickel-metal hydride. With stringent fuel efficiency norms in countries such as the United States, India, Germany, and Japan, manufacturers are trying to reduce the cost of lithium-ion batteries, increasing the demand for electric vehicles.
For instance, in September 2019, Maruti Suzuki partnered with Toshiba and Denso to set up the world's largest automotive lithium-ion battery manufacturing unit in Gujrat (India). Numerous governments are providing incentives/ tax credits to promote the use of electric vehicles, which is expected to increase the demand for automotive lithium-ion batteries. For instance, the IRS (Internal Revenue Service) tax credit is USD 2,500-7,500 per new electric vehicle purchased in the United States. Similarly, California provides USD 2,500 rebates, Delaware provides USD 1,000 rebates, and Colorado provides USD 5,000 tax credits on purchasing electric vehicles.
Additionally, Leading automotive Original Equipment Manufacturers (OEMs) are collaborating with battery OEMs to strengthen their operation to develop high-performance EV batteries that will reduce charging time which is one of the vital factors driving the market growth. Moreover, manufacturers are working on developing batteries with a higher energy density that extends battery range and using nanowires that reduce charging time to meet rapidly growing market revenue.
Automotive Battery Market Segment Insights:
Car Battery Vehicle Type Insights
Based on vehicle type, the Automotive Battery Market segmentation includes passenger cars, heavy commercial vehicles (HCV), and light commercial vehicles (LCV). The passenger cars segment dominated the market because of the growing sales of mid-range and premium passenger vehicles with added features, including autonomy.
Moreover, Light Commercial Vehicle has numerous systems for virtual assistance, eye tracking, driver monitoring, speech recognition, gesture recognition, and natural language interfaces. These systems rely on regular OTA updates for safe operation, further contributing to the market's growth.
Automotive Battery type Insights
The Automotive Battery Market segmentation based on type includes lead acid, lithium-ion, and nickel metal hydride. The lead-acid segment dominated the market. Lead acid is one of the oldest energy storage devices, which is being used in numerous applications. Advanced lead-acid batteries provide the start-stop functionality to improve the fuel efficiency of micro-hybrid vehicles.
Lead-acid batteries are mainly used for SLI applications in conventional vehicles because of their higher cold-cranking performance, low cost, and increased reliability. Some key benefits of lead-acid batteries are that they are inexpensive and simple to manufacture, capable of high discharge rates, have minimal maintenance, and have superior starting capacity. The lithium-ion-based segment is estimated to witness the highest growth rate over the forecast period.
Lithium-ion batteries are used in applications that demand high-energy density solutions. They are mostly used in applications such as notebook computers, cellular phones, and hybrid automobiles. The use of lithium-ion batteries for onboard energy storage is increasing owing to the continuous efforts by automotive manufacturers to produce more vehicles with electric drive trains. Automakers focus on reducing the overall cost while increasing vehicle range and energy density.
With the maturing lithium-ion battery supply chains and improving manufacturing processes, battery manufacturers and automotive OEMs continually strive to reduce battery pack costs.
Car Battery Function Insights
Based on function, the Automotive Battery Market data includes ignition, lighting, electric propulsion, and start. The electric propulsion segment dominated the market. The electric category will witness faster growth, with a rate of 28%. This has much to do with government support, such as grants and initiatives, for the acceptance of EVs and the strict emission regulations. Furthermore, nearly all EVs are equipped with innovative connected systems for effective processes and high security and safety.
Automobile Battery Engine Type Insights
The Automotive Battery Market engine type industry includes electric vehicle internal combustion engines. The electric vehicle internal segment dominated the market. Due to their increasing adoption, they are completely electric and run on rechargeable batteries. In addition, technological advancement and declining battery prices are significant reasons to complement market growth. Moreover, BEVs are zero-emissions vehicles and do not emit toxic gases like conventional gasoline vehicles, expected to drive revenue growth over the forecast period.
Figure1: Automotive Battery Market, by Engine Type, 2022& 2030(USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Automotive Battery Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American automotive battery market will dominate this market owing to rising government efforts to reduce carbon emissions by developing eco-friendly products, boosting the market growth in this Region.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure2: Automotive Battery Market Share By Region 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe's automotive battery market accounts for the second-largest market share due to increasing end-user demand for zero-emission hybrid and electric vehicles. Further, the German automotive battery market held the largest market share, and the UK automotive battery market was the fastest-growing market in the European Region.
The Asia-Pacific automotive battery market is expected to grow at the fastest CAGR from 2023 to 2030. This is because the high sales of commercial, passenger, and motorcycles will likely promote industry expansion. Ongoing product developments by various companies to manufacture cost-efficient and high-performance vehicles are projected to contribute to the growth of the regional market. Moreover, China’s automotive Battery market held the largest market share, and the Indian automotive battery market was the fastest-growing market in the Asia-Pacific region.
Automotive Battery Key Market Players& Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines, which will help the automotive battery market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The automotive battery industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global car battery industry to benefit clients and increase the market sector. In recent years, the automotive battery market has offered some of the most significant advantages to the automobile sector. Major automotive battery market players include Exide, GS Yuasa, Panasonic, LG Chem, A123 Systems, East Penn Manufacturing Company, Robert Bosch Gm BH, EnerSys, and others, are attempting to increase market demand by investing in research and development operations.
Stellantis N.V. is a multinational automotive manufacturing corporation formed in 2021 based on a 50–50 cross-border merger between the Italian-American conglomerate Fiat Chrysler Automobiles and the French PSA Group. The company is headquartered in Amsterdam. Their innovative products and services: include Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, and mobility brands Free2move and Leasys. Stellantis and Samsung announced investing USD 2.5 Billion to build a battery manufacturing facility in Indiana. The factory is likely to start production by the year 2025.
Toyota Motor Corporation is a global automotive industry leader manufacturing vehicles in 27 countries or regions and marketing the company’s products in over 170 countries and regions. Founded in 1937 and headquartered in Toyota City, Japan, Toyota Motor Corporation employs nearly 350,000 people globally.
Toyota Motor Corporation is a Japanese multinational automotive manufacturer headquartered in Toyota City, Aichi, Japan. It was founded by Kiichiro Toyoda and incorporated on August 28, 1937. Toyota is one of the largest automobile manufacturers in the world, producing about 10 million vehicles per year. Toyota announced an investment of USD 1.3 Billion to establish a battery manufacturing plant in North Carolina. The plant is likely to have the capacity to produce Lithium-Ion batteries for 800,000 vehicles and is expected to commence production by 2025.
Key Companies in the automotive battery market include
- Exide
- GS Yuasa
- Panasonic
- LG Chem
- A123 Systems
- East Penn Manufacturing Company
- Robert Bosch Gm BH
- EnerSys
Automotive Battery Industry Developments
May 2022: Stellantis and Samsung announced investing USD 2.5 Billion to build a battery manufacturing facility in Indiana. The factory is likely to start production by the year 2025.
April 2024 : The Chinese battery manufacturer Zhengzhou Yutong Bus Co. and the Chinese battery giant CATL have just introduced a 'long-life' electric vehicle battery pack designed for new-energy commercial vehicles. This battery pack has a lifetime of around 15 years and can travel 1.5 million kilometers.
Additionally, during the launch ceremony, the firms presented a power battery that claimed to have a lifetime of up to ten years and one million kilometers. These battery packs are expected to cater to several CV sectors, including light trucks, buses, and heavy vehicles, all of which fall under the Yutong brand. This information comes from a news story that was published by CnEVPost.
Yutong has also said that these batteries do not experience any deterioration during the first thousand cycles of charging and recharging. This enables the batteries to have a longer lifetime and more dependability in terms of energy density throughout the different use cycles.
A strategic cooperation with CATL that has lasted for ten years and will be extended in 2022, Yutong, one of the leading producers of buses worldwide, continues to preserve this partnership. One hundred percent of the brand's electric buses marketed in China and more than forty other countries across the world, particularly in the European area, are outfitted with batteries purchased from CATL.
One of the most prominent brands of electric buses that originates from China and is sold in European markets is Yutong, which has a significant portion of the market in that area. The development of long-life e-bus batteries has considerably increased the feasibility and practicability of electric buses for public mass transit, which may promote wider adoption in worldwide markets.
In order to develop batteries for a wide range of automotive applications, CATL is collaborating with a number of different manufacturers. Beginning at the beginning of this month, the corporation announced that it will be working with the Chinese automobile manufacturer Nio to create a 'long-life' battery.
Automotive Battery Market Segmentation:
Automotive Battery Vehicle Type Outlook
Automotive Battery Type Outlook
- Lead Acid
- Lithium-Ion
- Nickel Metal Hydride
- Others
Automotive Battery Function Outlook
- Ignition
- Lighting
- Electric Propulsion
- Start
Automotive Battery Engine Type Outlook
- Electric Vehicle Internal
- Combustion Engine
Automotive Battery Regional Outlook
North America
Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
Rest of the World
- Middle East
- Africa
- Latin America
| Attribute/Metric |
Details |
| Market Size2022 |
USD 66.2 Billion |
| Market Size 2023 |
USD 70.549 Billion |
| Market Size 2030 |
USD 103.348 Billion |
| Compound Annual Growth Rate (CAGR) |
6.57% (2023-2030) |
| Base Year |
2022 |
| Market Forecast Period |
2023-2030 |
| Historical Data |
2019- 2021 |
| Market Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Vehicle Type, type, Function, Engine Type, and Region |
| Geographies Covered |
North America, Europe, AsiaPacific, and the Rest of the World |
| Countries Covered |
The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled |
Exide, GS Yuasa, Panasonic, LG Chem, A123 Systems, East Penn Manufacturing Company, Robert Bosch Gm BH, EnerSys |
| Key Market Opportunities |
Increase in the adoption of streams that include the cars |
| Key Market Dynamics |
Pollution – Free vehicles Government concerning environmental protection |
Automotive Battery Market Highlights:
Frequently Asked Questions (FAQ) :
The Automotive Battery Market was valued at USD 66.2 Billion in 2022.
The global market is projected to grow at a CAGR of 6.57% during the forecast period, 2023-2030.
North America had the largest share of the global market
The key players in the market are Exide, GS Yuasa, Panasonic, LG Chem, A123 Systems, East Penn Manufacturing Company, Robert Bosch Gm BH, and EnerSys.
The lead-acid category dominated the market in 2022.
The electric vehicle internally had the largest share of the global market.
