Electric and Hybrid Vehicles Driving Global Automotive Battery Market

Global warming has caught the attention of the world in the recent past and hence, practices that help in reducing the emission of greenhouse gases are being encouraged like never before. The advent of electric and hybrid vehicles is one such innovation that is being aggressive pursued as automobiles are held as culprit for a large chunk of atmospheric pollution. For electric vehicles to truly achieve their potential, the development and availability of battery is essential. Consequently, the global market for automotive batter is in for a fruitful future.

As per a recent business and commerce study by Transparency Market Research, the demand in the global automotive battery market will increment at a CAGR of 5.7% during the forecast period of 2017 to 2022, with the total revenue in the market estimated to swell up to US$54.5 bn by 2022.

What are the key factors driving the demand for automotive battery?

The global automotive battery market is primarily driven by the growing demand for transportation, of goods and people alike, increasing integration of electronics with vehicles, the growing need to curb pollution and safe the environment, fuel saving and government incentives for cleaner transportation, and advent of hybrid and electric automotive models from original equipment manufacturers. On the other hand, underdeveloped support infrastructure for EVS, growing concerns regarding battery usage, high initial cost, limited range, and fluctuating price of raw materials are some of the challenges obstructing the prosperity of the global automotive battery market. Nevertheless, growing demand for hybrid and electric vehicles and aggressive research and development pertaining to batteries are expected to open new opportunities for the vendors operating in this market.

Which market segments are showing greater promise?

On the basis of chemical composition type, the global automotive battery market gains maximum demand for the segment of small sealed lead acid (SSLA), which accounted for 38 percent of the total demand in 2017. The demand for this particular segment is projected to increment at an above-average CAGR of 6.7% during the said forecast period. Lithium-ion (Li-ion), Nickel-Metal Hydride (Ni-MH), and Nickel-Cadmium (Ni-Cd) are other chemical compositions studied under this report. 

Which region has the maximum potential?

Europe has emerged as the most lucrative region for the vendors operating in the global automotive battery market. Several countries in this region have implemented strong environmental regulations and promoted the concept of electric vehicles. By the end of 2022, the Europe automotive battery market is estimated to be worth US$15.1 billion. At the same time, the report picks out Asia Pacific excluding Japan (APEJ) as another key region to focus on. The simple volume of vehicle production in the emerging economies of India and China is humongous and the trend of battery driven automotive is quickly catching up, particularly for public transport.

What is the nature of competitive landscape?

The shares in the global automotive battery market is distributed among a large number of companies, such as Haldex Incorporated, Johnson Controls International plc., ZF TRW Automotive Holdings Corporation, EnerSys, Hitachi Ltd., Furukawa Electric Co. Ltd., GS Yuasa Corporation, Leoch International Tech, Crown Battery Manufacturing Company, and Exide Industries Limited. Most of these vendors are investing on research and development of products that meet environmental concerns and offer greater reliability.


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