SAN FRANCISCO, March 12, 2018 /PRNewswire/ --
The global automotive battery market size is anticipated to reach USD 95.57 billion by 2025, according to a new report by Grand View Research, Inc., registering a CAGR of 7.9% during the forecast period. Features of an automotive battery have evolved drastically over the years as modern engines are smaller in displacement and use lower-viscosity engine oils. Furthermore, modern fuel injectors spray the gasoline directly onto the cylinder itself. Due to this, batteries in recent times are connected to vehicle's electrical system. Additionally, contemporary batteries act as a capacitor in the electrical system of vehicles to absorb voltage spikes, which are often created when the electric switch closes or opens.
Large-scale availability of batteries in various sizes and specifications along with high current level is expected to drive the market over the forecast period. Lead acid batteries are relatively cheaper as compared to other batteries and can be manufactured with relatively lower technology equipment, which in turn is projected to keep their demand high through 2025.
Sodium-ion batteries are the direct replacement of lithium-ion batteries, raw materials of which are costlier than the former. Moreover, Na-ion batteries are available in abundance. Compared to Li-ion batteries, they are a potentially safer and cheaper alternative. However, these batteries are still in the development stage and not available for practical use. In 2015, researchers developed a prototype of sodium-ion batteries in the industry standard of 18650 cylindrical formats.
Consensus to reduce carbon footprint is leading to a shift towards electric vehicles. Increasing fuel prices along with growing environmental concerns in developed countries are resulting in rising interest of individuals in electric vehicles. Several favorable regulatory initiatives are further supporting the sales of electric vehicles, which are estimated to augment the market.
Development of electric vehicles is also poised to be driven by an agreement promoted by the U.S., European Union, and Japan. The regions co-operate on the convergence of regulatory obligations to control cost pertaining to electric vehicles worldwide. Currently, electric cars represent a small share of the overall automobile sales, owing to which the agreement plays a crucial role in economic recovery and price-sensitivity of the industry.
Growing sales of vehicles and favorable government initiatives in developing economies such as India, China, Vietnam, and Mexico are likely to provide a fillip to the automotive battery market over the forecast period. For instance, in 2013, the Indian government set up the National Electric Mobility Mission Plan (NEMMP) 2020 to take into account various issues pertaining to vehicular pollution and national energy security. Penetration of electric vehicles in the India market is considerably low due to high cost of vehicles, low consumer disposable income, and absence of requisite infrastructure in the region. However, advent of low-cost EVs such as Mahindra e2o and Mahindra eVerito is projected to bolster the adoption in coming years, thereby providing substantial growth opportunities for the automotive battery market.
Browse full research report with TOC on" Automotive Battery Market Size, Share & Trends Analysis Report By Battery Type (Lithium-Ion Based, Lead-Acid Based), By Vehicle Type (Passenger Vehicles, Electric Vehicles), And Segment Forecasts, 2018 - 2025" at: https://www.grandviewresearch.com/industry-analysis/automotive-battery-market
Further key findings from the report suggest:
- Lead acid batteries are the most commonly used type. On the other hand, the lithium-ion batteries segment is expected to post the highest CAGR during the forecast period
- Sodium-ion batteries are anticipated to gain tremendous popularity after their commercialization, owing to abundant availability of raw materials
- In terms of vehicle, passenger vehicles are estimated to command more than half of the market revenue throughout the forecast horizon
- Asia Pacific dominated the market in 2016, accounting for over 48.0% of the market revenue
- Manufacturers either outsource powertrain or batteries from specialist suppliers or carry out the entire manufacturing process. Key players in the market includeHitachi; Ltd.; NEC Corporation; Johnson Controls; LG Chem Ltd.; and Tesla, Inc. These companies have a firm foothold in the market with capabilities to cater to the local as well as the international market.
Browse related reports by Grand View Research:
- Pneumatic Tire Market - The global pneumatic tire market size was valued at USD 192.40 billion in 2014 and is expected to witness significant growth over the forecast period on account rising demand from automotive industry.
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- Dashboard Camera Market - The global dashboard camera market was valued at over USD 950 million in 2014. Rising awareness for in-car safety coupled with favorable government initiatives is anticipated to drive the demand for dashboard camera market over the forecast period.
- Automotive HVAC Market - The global automotive HVAC market size was valued at USD 11.68 billion in 2014. Increasing income level and growing middle-class population are expected to boost industry growth over the forecast period.
Grand View Research has segmented the global automotive battery market based on battery type, vehicle type, and regions:
- Automotive Battery Type Outlook (Revenue, USD Billion, 2014 - 2025)
- Lithium-ion based
- Lead-acid based
- Construction type
- VRLA battery
- Construction type
- Automotive Battery: Vehicle Type Outlook (Revenue, USD Billion, 2014 - 2025)
- Passenger vehicles
- Commercial vehicles
- Electric vehicles
- Automotive Battery: Regional Outlook (Revenue, USD Billion, 2014 -2025)
- North America
- Asia Pacific
- South America
- Middle East and Africa (MEA)
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About Grand View Research
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.
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