Global Automotive Battery Market 2021-2026

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    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.

     

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    AUTOMOTIVE BATTERY 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

     

    To know more about Global Automotive AGM Battery Market, read our report

     

    AUTOMOTIVE BATTERY MARKET DYNAMICS

     

    Sl.no Timeline Developments
    1 Q2-2021 Due to EV sales surging worldwide, in Europe there are 38 new gigafactories for battery manufacturing plants planned to be built with an investment of $ 47 billion.
    2 Q3-2021 The Indian government is announced to provide incentives for large scale battery manufacturers under PLI scheme with an estimation of Rs 18,000 crores
    3 Q4-2021 Lead acid battery separator and battery manufacturer, Daramic has doubled its production capacity in its manufacturing plant due to increase in the battery demand. 
    4 Q4-2021 Tesla plans to open its battery manufacturing plant in Canada and the plant will manufacture high range 4680 battery cells . 
    5 Q4-2021 The Congo government announced a series of measures to boost the capacity of battery manufacturing.
    6 Q3-2021 Largest battery manufacturer CATL to maximize its lithium-ion batteries production with an investment of $9 billion from stock market by setting up six new gigafactories.
    7 Q4-2021 US Department of energy to provide $209 million funding for the battery research projects and also partnered with Argonne National Laboratory to support the domestic battery supply chain.

     

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

     

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    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

     

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    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:

     

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    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. 

     

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    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.

     

    To know more about Europe Automotive Lead-acid Battery Market, read our report

     

    AUTOMOTIVE BATTERY MARKET IN JAPAN

    Marubeni Corp, a Japanese trading company, has inked a memorandum of understanding (MOU) with Northvolt AB, a Swedish battery producer, to engage in the lithium-ion battery market in order to address growing demand in Europe.

     

     Northvolt, a former Tesla employee, aims to build Europe’s largest battery cell plant in Sweden, with funding from Volkswagen-owned truckmaker Scania and Swiss engineering firm ABB. Northvolt’s battery facility may get manufacturing equipment such as coating and slitting machines, as well as raw materials such as cathode and anode materials, from Marubeni. 

     

    The Japanese trade company also intends to boost the Swedish firm’s storage battery sales by leveraging its renewable energy expertise, and the two companies are considering collaborating on a battery recycling business.

     

    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.

     

    AUTOMOTIVE BATTERY MARKET SIZE AND FORECAST

    Battery manufacturers are focused 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.

     

    The growth and development of the automotive battery market is steered by the rising demand for electric vehicles that contribute to zero-emissions. The growth is also dependent on factors such as the decrease in cost and complexity of the BMS (battery management system) and increase in the awareness of climate change globally. With the advancement in Li-ion battery packs, demand for electric vehicles and government regulations on climate control, the growth of this sector is expected to rise.

     

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    However, the impact of the COVID-19 pandemic has been inevitable on any industry due to lockdowns and manufacturing halts. The pandemic has reduced the growth predicted for the automotive battery markets as most of the battery packs are manufactured in China. To subside the dependence on China, companies across the world have paved the way for new technologies and opportunities.

     

    The highest growth rate is estimated in the Asia-Pacific region, where China represents the fastest developing automotive battery market due to the high demand in commercial as well as personal zero-emission vehicles.

     

    Governments across the globe are introducing incentives and tax benefits to promote the incorporation of electric vehicles which in turn uplifts the demand for Li-ion automotive battery packs. The US provides IRS tax credit (Internal Revenue Service) in the amount of $2500-$7500 per new EV purchased.  

     

    In the Asia-Pacific region, governments are providing subsidies as incentives based on the difference between price of EV and ICE-enable vehicles with a maximum limit of 85,000 CNY, it is providing a flip in this market.

     

    The battery market for the automotive sector was valued at worth $XX Billion in the year 2020, the market is expected to increase in value with XX% CAGR at $XX Billion by the year 2026.

     

    RECENT AUTOMOTIVE BATTERY MARKET TREND

     

    SI.no Timeline Company Developments
    1 Q4-2021 Tesla SiILion, a battery startup, was acquired by Tesla to develop and to produce innovative batteries in the market.
    2 Q4-2021 StoreDot StoreDot, an Israel based startup received its patent for its digital battery system used in electric cars. 
    3 Q4-2021 Amperex Technology Ltd, The company is building a battery cell manufacturing plant in Gurugram, India and it is expected to start its operation in the final quarter of 2022.
    4 Q4-2021 ElevenEs ElevenEs is partnered with EIT InnoEnergyto set up a new gigafactory in Europe for the production of LFP lithium-ion battery. The gigafactory construction is expected to start in 2024.

     

    • In March 2021, LG Chem announced estimates to double the manufacturing capacity of batteries in China for Tesla. It will also delegate the increasing demand for Tesla’s Model 3 from factories in China and Korea to Tesla’s production units in Germany and USA.
    • In March 2021, Amara Raja Batteries, the second largest producer of automotive batteries in India, opened operations to develop Li-ion cells as its maiden technology center facility in Andhra Pradesh.
    • Exide Technologies introduced dual lid DIN batteries and a new generation of UPS-Power NXT IoT enabled.
    • As of March 2021, Varta AG has received a public funding of EUR 300 million for its battery cell manufacturing facility (IPCEI).
    • Companies are introducing battery swapping and battery-as-a-service (BaaS) as part of new business models. These allow the customers to swap/change batteries once discharged and saves time on recharging.
    • In November 2020, CATL and RCS global group announced partnership to identify CATL’s lithium, cobalt and graphite suppliers. RCS will account for conformance with the human and environmental rights for the suppliers developing a responsible and clean supply chain system.
    • The company in August 2020, introduced a new EV battery without nickel or cobalt. The company’s economical strategy has reduced significant production costs as cobalt is one of the most expensive materials used in the battery.
    • In June 2021, CATL and SAIC motor group have launched the second phase of the advanced traction battery project for industrialisation.
    • In April 2020, Samsung SDI announced the replacement of the liquid electrolyte with a solid electrolyte in the battery cells to improve battery performance.
    • Panasonic Corporation in collaboration for a new battery visualisation technique with Japan Fine Ceramics Center (FJCC) and Institute of Materials and System Nagoya University has introduced a technique to Visualize real time Li-ion battery dynamics in solid state batteries with a nanometer scale. The technique uses scanning transmission electron microscopy (STEM) and machine learning.
    • As of March 2020, Samsung SDI has acquired an addition of 15% shares in the Samsung SDI-ARN power battery company (SABP) . It is now the majority stakeholder with the ownership of 65% in the company. 
    • As of July 2020, LG Chem has declared the recycle and reuse of its batteries  by developing technologies to estimate the remaining life from the batteries used by customers.
    • BMW and Volkswagen have announced contracts to buy battery packs from Asian companies like CATL, LG Chem and Samsung SDI.
    • Microvast has partnered with Gaussin power to introduce state-of-the-art modular battery packs with varieties of cell chemistry and has expanded into the French E-Bus market.
    • The company has also entered into a joint development agreement with Oshkosh Corporation to facilitate battery innovation and collaboration for the future, where Oshkosh will invest $25 Million.
    • The USABC (United States Advanced Battery Consortium LLC) has announced a $4.5 million contract to the company as part of the development project for low-cost fast-charge batteries for EVs.
    • SK Innovation from South Korea to supply batteries for BAIC electric cars scheduled to release in the 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 a plant 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% only 1.35 cm in thickness 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 the UK.

     

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    AUTOMOTIVE BATTERY MARKET COMPETITIVE LANDSCAPE

     

    SI.no Timeline Company Developments
    1 Q4-2021 LionVolt LionVolt a Dutch based startup, has raised €4m in its seed funding for the production of high energy density lithium metal-based solid-state batteries. 
    2 Q4-2021 Mitra Chem  Mitra Chem raised $20 million Series A funding to invest in product R&D and to boost its production in North America. 
    3 Q4-2021 LionVolt Dutch based startup, has raised €4m in its seed funding for the production of high energy density lithium metal-based solid-state batteries.
    4 Q4-2021 Our Next Energy  Our Next Energy (ONE) raised $25 million from BMW in its series A funding to develop its innovative battery products.

     

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

     

    The automotive battery production market is extremely competitive because of the presence of a high number of manufacturers. As the market is dependent on suppliers of raw materials and manufacturers; mergers, joint ventures and acquisition by companies are the key strategies in attempts to consolidate the market presence.

    • Exide Technologies through the joint venture with Shenyang Dongbei Storage battery company operates in China for the mass production of automotive batteries.
    • Panasonic and Toyota have announced the joint venture of producing battery packs for EVs. 
    • Panasonic and Tesla have announced the collaboration for the mass production of batteries for automotive use to begin in the Gigafactory setup in Nevada.

     

    The BYD group had the revenue of $23.66 million, out of which approximately 8% represented for the rechargeable batteries and photovoltaic products. The majority 53% represented automobiles and related products while the rest 39% represented mobile handset components and assembly services for the year 2020.

     

    “The price of the battery pack manufactured by CATL decreased to $130.7/kWh in the year 2020 with a reduction of 8.6%. However, the revenue increased to $7.77 billion with an increase in the net profit to $860 million. In the year 2020, the company’s sale of Li-ion batteries also rose to 46.84 GWh with an increase of 14.36 %.”

     

    Bosch GmbH reported a sales revenue of EUR 71.5 billion with a total profit after tax reduction of about EUR 749 million in the year 2020. The company has EUR 1.7 billion in EBIT employing 73,000 engineers and researchers across the globe. 

     

    Varta AG has reported the revenue of EUR 869.58 Million with a whooping increment of 139.8% in the year 2020 as opposed to the year 2019. The company generated a consolidated result of EUR 95.5 Million with an increase of 89.3% in the 2020 as that of EUR 50.5 Million in the year 2019.

     

    Exide Technologies had a net turnover of INR 9,857 Crores with an increase of 9.5%, operating at the profit of INR 1,365 Crores with an increase of 7.4% in the fiscal year 2020. Although the growth was slower than anticipated due to the drop in sales of electric vehicles and halts in manufacturing units across the globe, the company maintained a steady pace.

     

    AUTOMOTIVE BATTERY MARKET 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

    THIS AUTOMOTIVE BATTERY MARKET REPORT WILL ANSWER FOLLOWING QUESTIONS

    1. Automotive Battery Market size and Forecast, by region, by application
    2. Average B-2-B price for Automotive Battery Market, by region, per user
    3. Technology trends and related opportunity for new Automotive Battery Market tech suppliers
    4. Automotive Battery Market share of leading vendors, by region,
    5. Coronavirus impact on Automotive Battery Market earnings
    Sl no Topic
    1 Market Segmentation
    2 Scope of the report
    3 Abbreviations
    4 Research Methodology
    5 Executive Summary
    6 Introduction
    7 Insights from Industry stakeholders
    8 Cost breakdown of Product by sub-components and average profit margin
    9 Disruptive innovation in the Industry
    10 Technology trends in the Industry
    11 Consumer trends in the industry
    12 Recent Production Milestones
    13 Component Manufacturing in US, EU and China
    14 COVID-19 impact on overall market
    15 COVID-19 impact on Production of components
    16 COVID-19 impact on Point of sale
    17 Market Segmentation, Dynamics and Forecast by Geography, 2021-2026
    18 Market Segmentation, Dynamics and Forecast by Product Type, 2021-2026
    19 Market Segmentation, Dynamics and Forecast by Application, 2021-2026
    20 Market Segmentation, Dynamics and Forecast by End use, 2021-2026
    21 Product installation rate by OEM, 2021
    22 Incline/Decline in Average B-2-B selling price in past 5 years
    23 Competition from substitute products
    24 Gross margin and average profitability of suppliers
    25 New product development in past 12 months
    26 M&A in past 12 months
    27 Growth strategy of leading players
    28 Market share of vendors, 2021
    29 Company Profiles
    30 Unmet needs and opportunity for new suppliers
    31 Conclusion
    32 Appendix

     

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