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Automobile Storage Battery Market Outlook- 2030
An automotive storage battery, also known as an automotive battery, is a rechargeable battery that is used to start a vehicle. Its primary function is to supply an electric current to the electric-powered starting motor, which then starts the chemically-fueled internal combustion engine that drives the vehicle. The battery continues to supply power to the car's electrical systems after the engine is running, with the alternator charging the battery as demand increases or decreases. The market is expected to grow steadily, due to end users' growing preference for zero-emission hybrid and electric vehicles as well as falling battery prices, dwindling crude oil reserves, and conventional automobiles' negative environmental effects. In addition, expansion in the global battery manufacturing capacity has aided the automotive battery sector in achieving economies of scale, which is another key driver of the automobile storage battery market.
The global automobile storage battery market is segmented on the basis of type, vehicle type, engine type, application, and region. Based on type, the market is divided into nickel cadmium battery, nimh batteries, lithium-ion battery, lithium polymer battery, lead-acid battery. In terms of vehicle type, the market is categorized into passenger vehicles, commercial vehicles, electric vehicles (BEV, PHEV), and others. On the basis of engine type, the market is divided into internal combustion engine, electric vehicles. On the basis of application, the market is divided into electric car and non-electric car. Geographically, the market is analyzed across several regions such as North America, Europe, Asia-Pacific, and Latin America, Middle East & Africa (LAMEA).
Key players operating in the global automobile storage battery industry include Bosch, Moll Batteries, Motorcraft, GS Yuasa, GS Battery, AC Delco, Exide Technologies, Primearth EV Energy, Esan Battery, A123 Systems. These companies have adopted several strategies such as product launches, partnerships, collaborations, mergers & acquisitions, and joint ventures to strengthen their foothold in the global automobile storage battery market.
COVID-19 Impact Analysis
COVID-19 had an inevitable influence on any industry, since there were ongoing lockdowns and halts of industrial units across the world. As most battery cells are made in China, the COVID-19 epidemic has delayed battery supply chains, emphasizing China's reliance and related concerns. This has sparked interest among different players in the U.S. and the EU for supply chain localization/regionalization, paving the door for new automobile storage battery market share opportunity.
Top Impacting Factors
Governments of countries, such as the U.S., Japan, and China, are offering incentives and tax credits to encourage the adoption of electric cars, which is expected to boost the demand for automobile storage battery market. For example, the Internal Revenue Service (IRS) offers a tax credit of $2,500-7,500 for each new electric car purchased in the U.S. Similarly, California offers $2,500 rebate, Delaware offers $1,000 rebate, and Colorado offers $5,000 tax credit on electric car purchases.
In February 2020, Panasonic and Toyota formed a joint venture to develop electric car batteries. Panasonic stated mass manufacturing of batteries for electric vehicles that begun at the Gigafactory in Nevada, which was built in partnership with Tesla. All these factors the surging the automobile storage battery market globally.
New product launches to flourish the market
Inverted Energy, a Delhi-based battery manufacturer, built its lithium battery production plant in New Delhi, India, in November 2020. The plant's commissioning aims to reduce the country's reliance on China, with a current production capacity of 100 MWh (megawatt hour) per year.
LG Chem Ltd, a Korean Chemical company announced in December 2020 that it plans to double its battery cell manufacturing capacity in China for Tesla Inc. electric cars (EV) in 2021 to keep up with its U.S. client's development in the world's largest car market. It is a supplier for Tesla's Shanghai-built Model 3, would also export expanded production from China and Korea to Tesla's plants in Germany and the U.S.
Surge in usage in electric automobiles
The automobile storage battery market is expected to develop at a rapid rate. Lithium-ion batteries are designed for applications that need great energy density such as hybrid and electric vehicles. Additionally, manufacturers are always focused on lowering the price of the battery to enhance vehicle economies, pushing market expansion internationally.
Manufacturers are attempting to lower the cost of lithium-ion batteries by implementing rigorous fuel economy requirements in nations such as the U.S., India, Germany, and Japan, thereby increasing the demand for electric vehicles. For instance, in September 2019, Maruti Suzuki collaborated with Toshiba and Denso to open the world's largest vehicle lithium-ion battery production facility in Gujarat (India).
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Questions Answered in Automobile Storage Battery Market Report
Key Market Segments
Key Market Players