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Automotive Battery Market - Segment Analysis & Forecast 2017 - 2022
TMR has forecast the global automotive battery market to be valued at a US$54.5 bn by the completion of 2022. The market could expand at a 5.7% CAGR during the forecast tenure 2017-2022. On the basis of chemical composition, small sealed lead acid (SSLA) has been anticipated to lead the market, taking cue from its more than 38.0% revenue share obtained in 2017. All through the end of the forecast tenure, Europe could maintain its position as a larger region while securing a valuation of US$15.1 bn by 2022.
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Demand for Fuel Efficiency and Strict Emission Norms Support Growth
Market analysts have already predicted the strong growth of SSLA automotive battery. However, lithium-ion (Li-ion) automotive battery could showcase a steady sales growth as more number of plug-in hybrid and electric vehicles are being produced in the recent time. OEMs have been encouraged to introduce new electric and hybrid models owing to the promise of attractive incentives and successful commercialization. The worldwide demand for fuel efficiency and strictness of emission norms has compelled OEMs to develop products that could fulfill future transportation requirements.
The inception of electric vehicles has caused a surge in the number of both OEMs and electric vehicle models. For instance, Mercedes Benz had planned to introduce a plug-in electric vehicle model in four months until the end of 2017. By 2018, Toyota has pledged to introduce an all-electric vehicle and a plug-in hybrid vehicle.
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Safety Issues and Underdeveloped Support Infrastructure Fetter Demand
The demand for automotive battery has been prophesied to be negatively affected by the rise of safety issues associated with battery usage and availability of underdeveloped support infrastructure for electric vehicles. Moreover, the overflowing sales of mid-sized and compact vehicles compared to those of other types of vehicles has been making it difficult for automotive battery manufacturers to provide products at a correspondingly aggressive pace. However, manufacturers have been observed to complain less about producing automotive battery for mid-sized and compact vehicles. This could be because the manufacturing requires no additional cost and is relatively less complex.
Manufacturers could also explore regions that display increased trade activities and a high demand for automobiles and commercial aircrafts as these factors have been envisaged to up the growth of the international automotive battery market. Rapid technological, economic, and infrastructural development could be another factor expected to support the demand for automotive battery.
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Transparency Market Research (TMR) is a market intelligence company, providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants, use proprietary data sources and various tools and techniques to gather, and analyze information. Our business offerings represent the latest and the most reliable information indispensable for businesses to sustain a competitive edge.
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