Car Batteries Market Report 2024

The car batteries market size has grown strongly in recent years. It will grow from $23.19 billion in 2023 to $24.48 billion in 2024 at a compound annual growth rate (CAGR) of 5.6%. The growth during the historic period was driven by the expansion of hybrid vehicles, rising demand for automotive batteries, particularly lead-acid and deep cycle batteries, and increasing efforts in battery recycling.

The car batteries market size is expected to see strong growth in the next few years. It will grow to $30.9 billion in 2028 at a compound annual growth rate (CAGR) of 6%. Anticipated growth in the forecast period is attributed to the global surge in electric vehicle demand, increasing adoption of stationary energy storage systems, heightened consumer awareness, and advancements in energy density and range. Key trends expected in this period include the widespread adoption of lithium-ion batteries, advancements in lead-acid battery technology, integration of smart battery management systems, development of fast-charging capabilities, and a growing emphasis on sustainable practices through advancements in battery recycling technologies.

The car battery market is poised for growth due to increasing demand for electric vehicles (EVs). Electric vehicles are automobiles powered either entirely or partially by electricity stored in batteries. This demand is fueled by the environmental advantages and lower operating costs of EVs, making them increasingly popular among consumers and businesses. Car batteries in EVs serve essential roles in providing propulsion energy, supporting auxiliary systems, enabling regenerative braking, and ensuring overall vehicle functionality and safety. For instance, the Global EV Outlook 2023 report by the International Energy Agency revealed a 35% year-on-year increase in electric car sales, totaling 3.5 million in 2023 compared to 2022. Thus, the rising adoption of electric vehicles is driving the expansion of the car battery market.

Leading companies in the car battery market are prioritizing innovation with products such as superfast charging lithium iron phosphate (LFP) batteries to enhance performance and meet consumer expectations. These batteries charge significantly faster than standard ones, leveraging lithium iron phosphate for improved safety, durability, and thermal stability, making them ideal for electric vehicles. For example, in August 2023, Contemporary Amperex Technology Co., Limited (CATL) introduced Shenxing, the world’s first 4C superfast charging LFP battery. It offers a 400 km range with just a 10-minute charge and over 700 km on a full charge, achieved through advanced cathode technology and nano-crystallized LFP material for efficient lithium-ion extraction and rapid charging. Shenxing also boasts long-range capability, fast charging in varied temperatures, and enhanced safety features through innovative design and intelligent algorithms.

In April 2024, Advik, an India-based automotive component manufacturer, acquired Aceleron Energy for an undisclosed sum. This acquisition is part of Advik's strategy to expand its footprint in the electric vehicle (EV) and energy storage system (ESS) sectors, aiming to broaden its product portfolio and customer base while advancing next-generation energy storage solutions. Aceleron Energy, based in the UK, specializes in manufacturing lithium-ion batteries and 12V Essential batteries used in sports cars.

Major companies operating in the car batteries market are Volkswagen Group, Stellantis NV, Mercedes-Benz Group AG, Hyundai Motor Company, Tesla Inc, Nissan Motor Co. Ltd., BYD Company Limited, Panasonic Corporation, Renault Group, Toyota Industries Corporation, LG Energy Solution, Samsung SDI, Clarios LLC, Chaowei Power Holdings Ltd., Exide Industries Ltd., East Penn Manufacturing Company, Amara Raja Energy & Mobility Limited, Saft, A123 Systems Inc., Motorcraft, CITROËN.

Asia-Pacific was the largest region in the car batteries market in 2023. The regions covered in the car batteries market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the car batteries market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Car batteries, also referred to as automotive batteries, are rechargeable devices that supply electrical energy to operate a vehicle's starter motor, lights, and other electrical systems. They are indispensable for ensuring vehicles operate reliably by providing the necessary power to start engines and sustain electrical functions.

The primary categories of car batteries include valve-regulated lead-acid (VLA) batteries, flooded batteries, and other variants. Valve-regulated lead-acid (VRLA) batteries are a specific type of rechargeable battery engineered with a valve-regulated mechanism that manages the release of gases produced during charging. These batteries support various functions such as electric propulsion, starting, lighting, and ignition, distributed through diverse sales channels such as original equipment manufacturers (OEMs), automotive outlets, e-commerce platforms, wholesale clubs, and other channels.

The car batteries market research report is one of a series of new reports that provides car batteries market statistics, including car batteries industry global market size, regional shares, competitors with a car batteries market share, detailed car batteries market segments, market trends and opportunities, and any further data you may need to thrive in the car batteries industry. This car batteries market research report delivers a complete perspective on everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The car batteries market consists of sales lead-acid batteries, lithium-ion batteries, battery cables and accessories, battery testers and analyzers, battery jump starters, and battery terminal cleaners and tools. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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