GLOBAL AUTOMOTIVE BATTERY MARKET

INTRODUCTION

 Battery is a critical component in any automobile. Whether it’s starting or ignition, powering the electronics, laminating the lights and most importantly complete propulsion in an electric vehicle the battery plays crucial role. Advanced gadgets and lighting, latest infotainment system and the shift towards EV across the world have been driving the battery market. The safety related to the support infrastructure however at certain instances remains as one of the concern.

MARKET SEGMENTATION

By Type

• Lead-acid
• Lithium-ion
• Nickel based
• Others

By Vehicle Type

• ICE
• BEV
• PHEV

By Distributor Channel

• OEM
• Aftermarket

By Battery Size (KWH)

• <30
• 30-60
• 60-80

By Geography

• US
• Europe
• China
• India
• ROW

MARKET DYNAMICS

 Rising consumer preference for hybrid and electric vehicles will boost the battery market.

The strict emission standards set by the governments has led to increase in numbers of BEVs and PHEVs globally, this will increase the battery market as the batteries constitute for as many as 30-40% of the production price

BY TYPE

Lead-acid batteries are the oldest type of batteries still used extensively in the cars. The find numerous applications the major being Start Lighting & Ignition (SLI) application which is fundamental in every vehicle. The features such as start-stop functionality implemented in almost every new model will increase the lead-acid battery share in passenger cars segment. The new technology in infotainment will boost the lead-acid market. The high discharge rate from these batteries makes them primary choice to use them for start and ignition

Under Lead-acid batteries we witness 2 types based on its construction

• Valve Regulated Lead-Acid (VRLA)
• Flooded Lead Batteries

VRLA batteries hold the highest share in the market as they are superior in performance than the flooded batteries. The VRLA witnesses the higher penetration in the cars as they need less maintenance and there is no situation of electrolyte spillage unlike in flooded type.

The lithium-ion batteries are the fastest growing type of batteries and their application in PHEV and BEV has propelled its market. The Lithium-ion batteries possess high energy density making them most in-demand batteries for longer shelf life,

BY VEHICLE TYPE

The ICE powered passenger cars holds the majority of share in the market, solely due to its higher population. The automotive battery penetration among electric vehicles especially passenger car segment is expected to witness high rise. EVs account for 2.5% of overall passenger car sales across the world. The number is subjected to increase in the future considerably. This will boost the high capacity batteries market.

The graph below shows the battery market share by vehicle type:

BY DISTRIBUTOR CHANNEL

Aftermarket segment has occupied largest share in the market. Also, the aftermarket replacement of batteries is expected to see a rise. The OEM battery market is expected to witness a steady growth owing to increase in EV sales. 

US AUTOMOTIVE BATTERY MARKET

 USA has the leading lead-acid battery manufacturers and this will promote market growth. Strict emission control laws will propel the battery production in the country. US BEVs has the highest capacity of batteries compared to all other regions around 60KWH. The need for the high capacity battery will increase the US market share.  

EUROPE AUTOMOTIVE BATTERY MARKET

There is a growing demand for Absorbent Glass Mat (AGM) batteries which are also called as advanced lead acid batteries. European Union has spent $550 million on R&D of the battery projects targeting to be the leader in the battery market.

CHINA AUTOMOTIVE BATTERY MARKET

China is the largest EV market and holds more than 50% of market share in global EV sales. This is the major boosting the battery market. Moreover, there is an increase in brands coming up with the battery production plants in China. China is among the leading lithium producers, the easy availability of raw materials will boost the lithium-ion battery market.

INDIA AUTOMOTIVE BATTERY MARKET

Lead-acid batteries hold the major share in the Indian market. The highest number of 2 wheelers and low penetration of EV cars in India has resulted in lead-acid battery to be market leader. However, increase in electric 2 wheeler and car models will expand the lithium-ion battery market in the region.

The BS-VI norms arrival in India will boost the penetration of higher capacity batteries in two wheeler segment.

MARKET SIZE AND FORECAST

Battery manufacturers are focussed on producing compact and cost effective batteries. Thus the various opportunities will boost the market in future.

China’s plan to extend the subsidies and incentives to EV car owners will revive the EV car sales. This will help quicken the battery market in future.

RECENT MARKET TREND

• SK Innovation from South Korea to supply batteries for BAIC electric car scheduled to release in second half of 2020.
• Nissan has signed an agreement with APB Corporation to mass produce low cost lithium-ion batteries for EV in Japan.
• Brookfiel Business Partners under the name Clarios has completed the acquisition of US based battery manufacturer Johnson Controls.
• GS Yuasa’s has set up plant new in Hungary and has started producing 12-V lithium-ion batteries for European car makers.
• BYD, Chinese EV and battery manufacturer has launched its new product ‘Blade Battery’ and it is expected to optimise the space utilisation up to 50% and mitigate concerns about battery safety in EV.
• Due to the ongoing COVID-19 pandemic, it will cause the shortage in demand of lithium, thus affecting the battery supply at least till mid-2021.
• Cummins has completed acquisition of Johnson Matthey automotive battery manufacturer from UK.

COMPETITIVE LANDSCAPE

Some of the leading players in the global market are BYD (China), Microvast (US), Exide Technologies (US), GS Yuasa (Japan) and Varta (Germany).

COMPANY PROFILE

1. Exide Technologies
2. Microvast
3. BYD Co Ltd
4. GS Yuasa
5. Clarios
6. Bosch GmbH
7. A123 Systems
8. Varta
9. East Penn US
10. Furukawa Japan