Automotive Battery Market size reflects positive market growth with a CAGR of 6.98%
Automotive Battery Market is consolidated market across the competitive automotive industry with 6.98% CAGR through 2026. The increase incorporation of infotainment and ambient lighting systems that run on battery power in next-generation vehicles is showcasing positive impact on Automotive Battery market value
Further, major factors driving automotive battery market growth are development of new fuel-saving technologies, such as micro-hybrid systems, improved and increased number of features in commercial vehicles and passenger cars.
However, the relative short lifecycle of batteries resulting in timely recharging or replacement restrains the automotive battery market growth.
Increasingly stringent environmental protection and safety regulations are drastically changing the automotive battery market growth. The start-stop technology facilitates to remain the engine shut, when the vehicle is immobile, thereby, reducing the emissions.
Automotive battery market is set to growth over micro-hybrid to meet the OEMs solution for the stringent emission standards, and better fuel efficiency.
VARTA batteries, powered by Clarios are the delivering fuel-saving innovations like start-stop engines manufactured with up to 20 percent fewer emissions.
Automotive battery market is favouring both NiMH and Li-Ion technology
Rising awareness about the environment has paved the way for hybrid and pure-play electric vehicles which use nickel-metal hydride (NiMH) and lithium-ion (Li-Ion) batteries.
The inferior battery technology of present vehicles and the increasing power requirement in next-generation vehicles loaded with features strongly demands for advance automotive battery technology such as NiMH and Li-Ion technology.
Li-ion batteries are capturing market growth over advantages of energy efficiency, lighter weight and falling of lithium-ion batteries. Further, the rise in number of hybrid and electric locomotives hold a strong market opportunity for Li-ion batteries in the medium to long term future.
The key ODMs and OEMs across automotive battery business division are developing, manufacturing customized modules and high voltage battery systems. For instance, commercial vehicles such as truck cabins are upgraded to a whole new level of comfort with the unsurpassed VARTbatteries.
Asia Pacific is emerging as a strong player of automotive battery market
Asia Pacific is expected to witness the fastest growth rate during the forecast period over high demand for the automotive battery. Factors driving the growth of the automotive battery market in the region are - rising commercial vehicle sales as well as rise in electric vehicles sales across China and India.
China is the single largest market of ETWs (Electric Two-Wheelers) with more than 90 percent of the ETWs in China use lead-acid battery as a source of power. Other major regions contributing to the automotive market are North America, Europe, Central & South America and Middle East & Africa.
Competitive innovation and expansion of portfolio by key vendors
Major automotive battery market players are focussing on lighter and efficient battery system with prolonged battery life. Accordingly, in April 2019, Innolith, claimed to have made manufactured world’s first 1,000 Wh/kg rechargeable battery. In comparison to that, the batteries that Tesla uses in its Model 3 are weighing an estimated 250 Wh/kg, and Innolith plans to eventually push that to 330 Wh/kg.
Moreover, the expansion of product portfolio is also integrated with self accessing softwares and maintenance free approaches. For instance, in April 2018, Exide launches Advanz, a completely sealed and maintenance free battery which can accurately indicate the health of the battery and determine its end of life.
Further key players contributing strong market growth include A123 Systems, Panasonic Corporation, Exide, VARTA, Clarios,GS Yuasa Corporation, Hitachi Group Ltd,Robert Bosch GmbH,China Aviation Lithium Battery Co. Ltd, Contemporary Amperex Technology Co. Limited, and SAMSUNG SDI CO. LTD.