Automotive Battery Market - Growth, Trends, COVID-19 Impact and Forecasts (2021 - 2026)

The Automotive Battery Market is segmented by Battery Type (Lead Acid, Lithium-Ion, and Other Battery Types), Vehicle Type (Passenger Car and Commercial Vehicle), Engine Type (IC Engines and Electric Vehicles), and Geography (North America, Europe, Asia-Pacific, and Rest of the World). The Report offers market size and forecast for Automotive Battery Market in Value (USD billion) for all the above segments.

Market Snapshot

automotive battery market
Study Period:

2018 - 2026

Base Year:


Fastest Growing Market:

Asia Pacific

Largest Market:

Asia Pacific


5.5 %

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Market Overview

The Automotive Battery Market was valued at USD 43 billion in 2020 and is expected to reach USD 59 billion in 2026 registering a CAGR of 5.5% during the forecast period (2021 - 2026).

The impact of COVID-19 is inevitable on any industry as there were continuous lockdowns and halt of manufacturing units across the world. The covid-19 pandemic has slowed battery supply chains as most of the battery cells are manufactured in china, thereby highlighting the dependence on China and the associated risks. This has spurred interest among various stakeholders for localization/regionalization of supply chains in US and EU regions paving way for new opportunities in the market.

The global automotive battery market is anticipated to witness a steady growth during the forecast period due to increasing end users’ preference for zero-emission hybrid and electric vehicles, owing to falling battery price, reducing crude oil reserves, and environmental effect of conventional automobiles. In accumulation to this, increase in the global battery production capacity has helped to achieve economies of scale in the automotive battery industry, which is another major driver for the growth of the market.

The highest growth rate is observed in Asia Pacific and is expected to rise in the coming years. China on the other hand ranks as the fastest growing automotive battery market owing to the high demand for commercial and passenger vehicles in the region. In addition, the new trend of vehicles with latest features will be largely observed in North America and Europe along with the U.S. and China. Increasing demands from other Asian countries such as India, Malaysia, Thailand, and the Philippines further impacts the global market growth in a positive way.

Scope of the Report

An automotive battery is a rechargeable battery,and it supplies electrical current to a motor vehicle.The batteries are mainly used for powering starting, lighting and ignition system of a vehicle. Apart from this, it is also used to provide power to automobile accessories such as radio, wipers, music players, air conditioners, and charging plugs. The Automotive Battery Market Report covers the latest trends, covid-19 impact followed by technological developments in the market.

The scope of the report covers segmentation based on Battery Type, Vehicle Type, Engine Type and Geography. By Battery Type, the market is segmented by Lead Acid, Lithium Ion, and Other Battery Types. By Vehicle Type, the market is segmented by Passenger Car and Commercial Vehicles. By Engine Type, the market is segmented into IC Engines and Electric Vehicles and By Geography, the market is segmented into North America, Europe, Asia-Pacific, and Rest of the World. For each segment, market sizing and forecast have been done on basis of value (USD billion).

Battery Type
Lead Acid
Lithium Ion
Other Battery Types
Vehicle Type
Passenger Cars
Commercial Vehicles
Engine Type
Internal Combustion Engine
Electric Vehicles
North America
United States
Rest of North America
United Kingdom
Rest of Europe
South Korea
Rest of Asia-Pacific
Rest of the World
South America
Middle East & Africa

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Key Market Trends

Lithium-Ion Battery Segment Expected To Have Significant Growth

The Market for lithium-ion batteries is anticipated to observe the fastest growth during the forecast period. Lithium-ion battery is equipped in applications, which demand high-energy density solutions such as hybrid and electric automobiles. Also, in an effort to increase vehicle economies, manufacturers are continuously focusing on reducing the price of the battery, which leads to propel the market growth, globally.

As compared to traditional battery technology, lithium-ion batteries charge faster, last longer, and have a higher power density for more battery life in a lighter package. The automotive lithium-ion battery has emerged as an eco-friendly, rechargeable power source as compared to conventional batteries such as lead-acid and nickel-metal hydride batteries.

With the implementation of stringent fuel efficiency norms in countries such as the U.S., India, Germany, and Japan, manufacturers are trying to reduce the cost of lithium-ion batteries, which in turn, increases the demand for electric vehicles. For instance, in September 2019, Maruti Suzuki partnered with Toshiba and Denso to set up the world’s largest automotive lithium-ion battery manufacturing unit in Gujrat (India).

Numerous Governments are providing incentives/ tax credits to promote the use of electric vehicles, which is expected to increase the demand for automotive lithium-ion battery. For instance, the IRS (Internal Revenue Service) tax credit is of USD 2,500 to USD 7,500 per new electric vehicle purchased for use in the United States. Similarly, countries such as California provides USD 2,500 rebate, Delaware provides USD 1,000 rebate and Colorado provides USD 5,000 tax credit on the purchase of electric vehicles.

Automotive Battery Market_trend 1

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Asia Pacific Region To Dominate the Automotive Battery Market

The Asia Pacific is expected to be the region that would have the fastest growth of the automotive battery market Value because of the increasing demand for such vehicles and high sales of passenger cars, commercial cars, and motorcycles. North America dominates the automotive battery market Outlook because all the string lead-acid battery manufacturers are in the region, which leads to the increasing demand for electric vehicles. The area also has strict norms towards using eco-friendly products, ensuring that the automotive battery market Share gets a sharp rise.

Growing product demand in automotive applications in various countries including South Korea, India, Malaysia, and Indonesia is likely to positively influence the growth of the region during the forecast period. Ongoing product developments by various companies to manufacture cost-efficient and high-performance vehicles are projected to contribute to the growth of the regional market. Government initiatives to provide subsidies based on the price difference between EVs and Internal Combustion Engine (ICE) enabled vehicles, with a maximum limit of Yen 85,000, are also providing a fillip to the market in Asia Pacific region.

Apart from the aforementioned factors, various electric vehicle manufacturers have been signing contracts or deals with Asia's vehicle battery manufacturers which in turn augmenting the demand for automotive battery in the region. For instance, BMW and Volkswagen have signed contracts to buy batteries from CATL, as well as Korean producers, LG Chem and Samsung SDI.

Automotive Battery Market_geography

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Competitive Landscape

The Automotive Battery Market is highly competitive owing to the presence of numerous manufacturers. The market is dependent on raw material suppliers and manufacturers. Mergers & acquisitions and joint ventures are among the key strategies adopted by market players in an attempt to consolidate their market presence. For Instance,

  • Exide Technologies operates in China through its joint venture with Shenyang Dongbei Storage Battery Co. This helps in the mass production of automotive batteries in the market.
  • Panasonic and Toyota announced their plan to jointly produce batteries for electric vehicles. Panasonic announced that the mass production of batteries for electric vehicles began in the Gigafactory set up by the collaboration of Panasonic and Tesla in Nevada.

Some of the other key players operating in the market include A123 Systems, LLC, LG Chem, BYD Co., Ltd., East Penn Manufacturing Company, Robert Bosch GmBH, EnerSys, Exide Technologies, and GS Yuasa Corporation.

Recent Developments

  • In November 2020, Delhi-based battery maker Inverted Energy announced the opening of its lithium battery manufacturing facility in New Delhi, India. The commissioning of the plant, which currently has a production capacity of 100 MWh (megawatt hour) annually, is aimed at reducing dependence on China.
  • In December 2020, LG Chem Ltd announced its plans to more than double the production capacity of battery cells it makes in China for Tesla Inc electric vehicles (EV) in 2021, to keep up with its United States client's growth in the biggest car market. The firm, a supplier for Tesla's Shanghai-built Model 3, will also ship its increased output from China as well as Korea to Tesla's factories in Germany and the United States.

Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.3.1 Bargaining power of suppliers

      2. 4.3.2 Bargaining Power of Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry


    1. 5.1 Battery Type

      1. 5.1.1 Lead Acid

      2. 5.1.2 Lithium Ion

      3. 5.1.3 Other Battery Types

    2. 5.2 Vehicle Type

      1. 5.2.1 Passenger Cars

      2. 5.2.2 Commercial Vehicles

    3. 5.3 Engine Type

      1. 5.3.1 Internal Combustion Engine

      2. 5.3.2 Electric Vehicles

    4. 5.4 Geography

      1. 5.4.1 North America

        1. United States

        2. Canada

        3. Rest of North America

      2. 5.4.2 Europe

        1. Germany

        2. France

        3. United Kingdom

        4. Rest of Europe

      3. 5.4.3 Asia-Pacific

        1. China

        2. India

        3. Japan

        4. South Korea

        5. Rest of Asia-Pacific

      4. 5.4.4 Rest of the World

        1. South America

        2. Middle East & Africa


    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles*

      1. 6.2.1 A123 Systems

      2. 6.2.2 Panasonic Corporation

      3. 6.2.3 Exide Technologies

      4. 6.2.4 VARTA

      5. 6.2.5 Clarios

      6. 6.2.6 GS Yuasa Corporation

      7. 6.2.7 Hitachi Group Ltd

      8. 6.2.8 Robert Bosch GmbH

      9. 6.2.9 China Aviation Lithium Battery Co. Ltd

      10. 6.2.10 Contemporary Amperex Technology Co. Limited

      11. 6.2.11 SAMSUNG SDI CO. LTD

      12. 6.2.12 East Penn Manufacturing Co


**Subject to Availability

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Frequently Asked Questions

The Automotive Battery Market market is studied from 2018 - 2026.

The Automotive Battery Market is growing at a CAGR of 6.5% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

  • A123 Systems
  • Exide
  • Panasonic
  • Clarios

Are the major companies operating in Automotive Battery Market.

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