Automotive Battery Market Set to Attain Global Revenue of $34,967.2 Million by 2023

There is a discernable increase in demand for vehicles including two-wheelers and cars across the globe owing to the economic outburst that has made it possible for people to afford fuel and maintenance charges of vehicles. Subsequently, this has led to a myriad of opportunities in the global automotive battery market valuation of which is poised to attain a massive figure of $34,967.2 million by the end of 2023 with a healthy compound annual growth rate (CAGR) of 8.5% during the forecast period of 2018 to 2023, according to a recently published report by IndustryARC. 

The business intelligence report is compiled with well-marshaled and analyzed facts and statistics along with the challenges and opportunities that are foreseeable in the future. It provides a detailed peek into the prospects of the business along with the customer-base and pricing environment in all the regions worldwide. The report is titled, “Automotive Battery Market: By Battery Type (Lead Acid Batteries, Lithium Ion Batteries, Nickel Cadmium, Others); By Function (Electric Propulsion, SLI); By Engine Type (ICE vs EV); By Vehicle Type (Passenger, Two wheeler, Commercial); By Geography - Forecast (2018-2023).”

The geographical market study by the market analyst has led to an inference that APAC had the maximum automotive battery market share in 2017, and the market will prove to be lucrative through to 2025 and witness an impressive revenue of $17,516.90 million by 2023. This is much attributed to the economic growth in the region along with the proliferating urbanization in countries such as China, India, Indonesia, Malaysia, and the Philippines. Furthermore, the pricing of vehicles in the region is favorable to the customers which enables them to make the purchase and support the automotive battery market. 

The automotive battery market is segmented on the basis of applications of these batteries in passenger, commercial, and electric vehicles. Owing to the propitious progress in the electric vehicles segment, the application of automotive batteries is set to observe a staggering CAGR of 23.8% in electric vehicles over the forecast period. The world is leapfrogging towards alternative sources of energy due to the threatening depletion of the conventional sources of energy. This is leading to growth in production of electric vehicles which will substantially stroke the automotive battery market. 

With the population outflow, the demand for transportation is growing at a rapid rate. Furthermore, there have been changes in city structures. The industries have moved out of the urban regions, which is the main reason a multitude of people travel miles for work. This is leading to demand influx in the transportation sector. Evidently, with increasing transportation, battery power consumption grows, and a vehicle demands battery replacement faster. This is leading to revenue growth in the automotive battery market.

Conventional fuels are causing serious concerns about the environment, and governments worldwide are taking actions to reduce air pollution. According to the World Health Organization (WHO), 9 out of 10 people are breathing polluted air, and 4.3 million deaths are attributed to air pollution . With these disquieting figures, the world is in dire need to implement air pollution reducing methods one of which is the incorporation of EVs. The future foresees an exponential expansion of the EVs market which will further flourish the automotive battery market.

The renewable and clean source of energy trend will make the vendors in the automotive battery market take a leap into the lithium-ion battery segment which is projected to grow at a rapid rate during the forecast period. The robust growth potential in the lithium-ion battery segment as gauged by the market analyst will make more vendors venture into the automotive battery market. 

There is a concern about the electrode life and electrolytic consumption in automotive batteries. However, there is a lot of research in progress to improve battery performance. This may increase the cost-prize of batteries; however, owing to the enhanced efficiency, the customer-base will make the purchase which will help vendors reap better returns on investment (ROI). 

Some of the key companies identified in the security screening market intelligence report that are crusading for market share are Panasonic Corp., LG Chem, BYD Company, Bosch Gmbh Robert, Daimler Ag, Ford Global Tech Llc, Hitachi Ltd., and a few others.