Automotive Battery Market

Automotive Battery Market Outlook (2024 to 2034)

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.

• In North America, the market in Mexico is forecasted to hold a share of 7.3% by 2034, increasing from 6.3% in 2024, attracting suppliers to establish their business here and make good profits.
• The market in South Korea in East Asia is poised to increase its revenue from US$ 4.2 billion in 2024 to US$ 7.71 billion by the end of 2034. The country has a good amount of minerals making it a potential market for suppliers and manufacturers.
• There are different types of batteries available in the market, including lead-acid and lithium-ion batteries. More customers are using these batteries prominently for passenger vehicles compared to commercial vehicles.

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

Why is the Automotive Battery Market Growth Accelerating Steadily?

“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.

What is Pushing Down the Automotive Battery Market Size?

“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.

Country-wise Analysis

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.

How are Suppliers Making Profits in the United States?

“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.

What is Helping Manufacturers in China to Increase Sales?

“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.

Category-wise Evaluation

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.

Which Battery Type is Widely Getting Popular Among More Automotive Drivers Globally?

“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.

What Vehicle Categories are Automotive Batteries Used Extensively?

“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

Competition Rivalry

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.

• Morocco said in March 2024 that it will create its first industrial zone specifically for the manufacturing of batteries for electric vehicles, with an initial investment of USD 2.3 billion. Companies including the Moroccan-based African private investment fund Al Mada and the Chinese company CNGR are also planning to make investments in the 283-hectare industrial zone.
• February 2024: JSW Group intends to invest USD 4.82 billion in Odisha to start up facilities for the production of batteries and electric vehicles. The company, which established a joint venture with SAIC Motor of China in November, intends to take on both local and foreign competitors in India's expanding EV industry.
• In May 2022, Exide Industries said that it will invest USD 773.43 million to construct a gigawatt-scale lithium-ion factory using SVOLT technology. The plant began operations within the course of the next three to four years. Its initial production capacity is six gigawatt-hours (GWh), with an expansion to twelve GWh, planned for the next eight to ten years.

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.

Segmentation of Automotive Battery Market Research

• By Battery Type :

  • Lead Acid
    • Floored
    • Absorbed Glass Mats
    • Gel Cell Batteries
  • Lithium Ion
  • Nickel Metal Hybride
  • Others

• By Vehicle Type :

  • Internal Combustion Engines
    • Two Wheelers
    • Passenger Cars
    • Light Commercial Vehicles
    • Heavy Commercial Vehicles
  • Electric & Hybrid Vehicles
    • Two Wheelers
    • Passengers Cars
    • Light Commercial Vehicles
    • Heavy Commercial Vehicles

• By Vehicle Category :

  • Passenger Cars
  • Commercial Vehicles

• By Sales Channel :

  • OEMs
  • Aftermarket

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa