Automotive Battery Market Size, Share, By Battery Type (Lead-Acid, Lithium-ion, Nickel-Metal Hydride, Other), By Vehicle Type (Passenger Cars, Commercial Vehicles) By Drive Type (Internal Combustion Engine, Electric Vehicles, Hybrid Electric Vehicles), and By Region - Trends, Analysis and Forecast till 2034

Automotive Battery market size was valued at USD 93.5 Billion in 2024 and is expected to reach USD 516.4 Billion by 2034, growing at a CAGR of 20.6%

The automotive battery market is in a phase of transition, accelerated by the global drive toward sustainable transport. Traditionally, lead-acid has been the mainstay for powering conventional vehicles. However, the recent surge in electric and hybrid vehicles brings lithium-ion batteries to the fore and changes the whole face of the industry. It's a very dynamic market, covering everything from lead-acid and lithium-ion to nickel-metal hydride (NiMH) and newer emerging alternatives like solid-state batteries. These represent the power sources for many forms of vehicles, such as passenger cars, commercial vehicles, motorcycles, and electric two-wheelers. Characterized by rapid technological changes, rising demands for higher energy density and extended lifespan, and environmental concerns, the automotive battery market grows in the face of a world racing to reduce carbon emissions and improve air quality. This market expansion is due to government incentives, strict emission regulations, and increasing consumer awareness of the advantages of electric vehicles. Improving the manufacturing process for batteries and their cost reduction have made electric vehicles within reach of more people. The automotive battery market is an incredibly complex arena, with so many players involved: from manufacturers of batteries to automotive OEMs, material suppliers, and operators of charging infrastructure. Cooperation and innovation between companies will, in the future, be key to developing next-generation battery technologies in response to sustainable requirements.

Key Drivers of Target Market:

Increased Adoption of Electric Vehicles (EVs)

• Increased demand for electric vehicles is about to happen because of the global shift towards clean and sustainable transportation. Governments worldwide are getting ready with the policies, subsidies, and incentives for the EV owners that would eventually raise the bar on the demand for advanced automotive batteries—basically lithium-ion batteries.

Better Technologies in Batteries

• Due to continuous research and development in the domain of batteries, there has been an increase in energy density, charging speed, lifespan, and safety. Additions such as solid-state batteries and innovations in lithium-ion technologies will further raise the automotive battery market.

Restrains:

Volatile Raw Material Prices

• The cost of most parts depends on zinc, steel, and iron ore prices. Such price volatility affects the last price of the galvanized steel, bruising both producers and consumers. This feature increases manufacturers' production risk and will bring undulating profit margins. For example, if zinc prices suddenly escalated, it would cause an increase in the cost of Automotive Battery products. This, in turn, could compromise demand or squeeze profits for its makers who cannot raise the price in response.

Opportunities:

Second-Life Applications for EV Batteries

• EV batteries could be repurposed to other applications—for instance, systems of energy storage for renewable energy at the end of their life from automotive uses. Having a solid market for second-life batteries can offer extra revenue streams and facilitate the circular economy

The market is segmented based on Battery Type, Vehicle Type, Drive Type, and Region.

Battery Type Insights:

• Lead-Acid Battery: The lead-acid battery is the oldest and most commonly used automotive battery type. It is inexpensive and reliable; thus, it finds major applications in conventional internal combustion engine vehicles. These batteries have many variants, such as Flooded, Enhanced Flooded, and Absorbent Glass Mat. While being cheap and finding wider applications, lead-acid batteries have lower energy density and a shorter life than newer technologies.
• Lithium-Ion Battery: Lithium-ion batteries have taken a prime role in the automotive industry, most especially with the increasing popularization of electric vehicles. With high energy density and light weight, coupled with a long cycle life, lithium-ion batteries are quite ideal for contemporary EVs and plug-in hybrid vehicles. Available at one's disposal are various variants that cater to different performance and safety needs, such as Lithium Iron Phosphate, Lithium Nickel Manganese Cobalt Oxide, and Lithium Nickel Cobalt Aluminum Oxide. On the negative side, they are more expensive than lead-acid batteries.
• Nickel-Metal Hydride (NiMH) Battery: NiMH batteries find huge applications in hybrid vehicles because they provide the required balance among energy density, cost, and safety. Though heavier and less energy dense when compared with lithium-ion batteries, they do provide a reliable and robust solution for HEVs. They have a long service life and are less prone to thermal runaway, which makes them safer for some applications.
• Other: This includes new and niche battery technologies like solid-state batteries, zinc-air batteries, and sodium-ion batteries. For instance, solid-state batteries can offer greater energy density and, with their solid electrolytes, are also much safer. However, they are still under development. All such alternative technologies definitely hold some potential for enhancing the prospects related to energy storage and automotive applications in the future.

Vehicle type insights:

• Passenger Cars: This includes all such vehicles designed to move people, mainly comprising sedans, hatchbacks, sports utility vehicles, and coupes. A rise in demand due to increasing interest in electric vehicles and hybrid technologies propels passenger cars as the largest segment in the automotive battery market. The shift to greener and more fuel-efficient vehicles has quickened the demand for advanced battery technologies.
• Commercial Vehicles: This includes light commercial vehicles such as vans and trucks, and heavy commercial vehicles that include buses and large trucks. It forms an integral part of logistics and public transport in industries. There is a huge demand in this segment for reliable and long-life batteries, and lately, there has been a growing trend towards electric and hybrid commercial vehicles in order to reduce emissions and operational costs.

Drive Type insights:

• Internal Combustion Engines run due to traditional fuels like petrol or diesel. ICE vehicles make up the significant market share, and it continues to see healthy sales in countries with underdeveloped charging infrastructure. These ICEs come equipped with lead-acid batteries that power functions such as starting, lighting, and ignition.
• Electric Vehicles: EVs are powered only by electric motors and batteries; they do not have an internal combustion engine. It includes Battery Electric Vehicles and Plug-in Hybrid Electric Vehicles. Major applications of lithium-ion batteries are in EVs due to their high energy density, efficiency, and capacity for providing longer ranges concerning driving. EVs are growing rapidly due to advanced technology and government incentives for clean energy.
• Hybrid Electric Vehicles: HEVs combine an internal combustion engine with one or more electric motors and a battery. This configuration generally allows for improved fuel efficiency and reduced emissions compared to traditional ICE vehicles. NiMH and lithium-ion batteries operate HEVs, depending on the needs of the vehicle design and performance requirement. The position of the HEV is that of interim technology leading to fully electric vehicles.

Regional insights:

• North America comprises the United States, Canada, and Mexico. This region contains a mature automotive market; in absolute terms, the penetration level of electric and hybrid vehicles is already very high. Favorable government regulations and incentives, coupled with a strong focus on reducing carbon emissions, drive demand for advanced battery technologies.
• Europe is a marketplace for countries like Germany, France, the U.K., Italy, and Spain, and is a clear leader in electric and hybrid vehicles. Tight emission norms and initiatives by governments to support sustainable transport have accelerated the adoption of lithium-ion batteries and other advanced technologies. Europe also serves as a centre for automotive R&D, thereby encouraging innovation in the area of batteries.
• Asia-Pacific: This is the fastest-growing region in the market, having big markets such as China, Japan, India, and South Korea. In addition, China is the leading country in terms of EV production and sales worldwide, with strong government support and a large consumer base. A belief in the reduction of air pollution and dependence on fossil fuel, in light of this, drives demand for different types of batteries.
• Latin America: Brazil and Argentina are the emerging automotive battery markets. Though the adoption of electric and hybrid vehicles is not as fast as that in North America and Europe, the increasing environment awareness and government policies related to clean energy are likely to boost the market growth during the next few years.
• Middle East & Africa: This region includes countries such as South Africa and those forming part of the GCC nations. In countries in Middle East & Africa, there has been a slow growth noted in the market for automotive batteries, mainly due to economic development and process of urbanization taking place. Though penetration for electric vehicles is currently low, there is potential for growth with improving infrastructure and rising environmental concerns.

Automotive Battery Market Report Scope:

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034. For the purpose of this study segmented the target market report based on Battery Type, Vehicle Type, Drive Type, and Region.

Segmentation:

By Battery Type:

• Lead-Acid
• Lithium-ion
• Nickel-Metal Hydride
• Other Products

By Vehicle Type:

• Passenger Cars
• Commercial Vehicles

By Drive Type:

• Internal Combustion Engine
• Electric Vehicles
• Hybrid Electric Vehicles

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The key players operating the Automotive Battery Market include Johnson Controls International plc.,Crown Battery Manufacturing Company, Exide Industries Limited, A123 Systems LLC, East Penn Manufacturing Company, GS Yuasa Corporation, Furukawa Electric Co. Ltd., Leoch Battery Inc., BYD Company Ltd., and Alf Technologies Pvt. Ltd.

• In January 2023, Solid Power Entters into Pilot Production of Solid-State Batteries: Solid Power, a developer of solid-state battery technology, announced the start of pilot production of its solid-state batteries. The devices boast higher energy density with better safety features than traditional lithium-ion batteries.
• In February 2023, Tesla announced an increase in its 4680 battery cell production at its Gigafactory in Nevada. Reports have it that the new 4680 cells will have an increased energy density and a lesser cost per kWh, both of which will enhance performance and bring down the total cost of Tesla electric vehicles.

• Johnson Controls Internationals Plc.

• Company Overview
• Product Portfolio
• Key Highlights
• Financial Performance
• Business Strategies

• Crown Battery Manufacturing Company
• GS Yuasa Corporation
• Furukawa Electric co.Ltd.
• Leoch Battery Inc.
• BYD Company
• Alf Technologies

“*” marked represents similar segmentation in other categories in the respective section.

Research Objective and Assumption

• Research Objectives
• Assumptions
• Abbreviations

Market Preview

• Report Description
  • Market Definition and Scope
• Executive Summary
  • Market Snippet, By Battery Type
  • Market Snippet, By Vehicle Type
  • Market Snippet, By Drive Type
  • Market Snippet, By Region
• Opportunity Map Analysis

Market Dynamics, Regulations, and Trends Analysis

• Market Dynamics
  • Drivers
  • Restraints
  • Market Opportunities
• Market Trends
• Product Launch
• Merger and Acquisitions
• Impact Analysis
• PEST Analysis
• Porter’s Analysis

Market Segmentation, Battery Type, Forecast Period up to 10 Years, (USD Bn)

• Overview
  • Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Segment Trends
• Lead-Acid
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Lithium-ion
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Nickel-Metal Hydride
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Other
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Market Segmentation, Vehicle Type, Forecast Period up to 10 Years, (USD Bn)

• Overview
  • Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Segment Trends
• Passenger Cars
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Commercial Vehicles
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Market Segmentation, Drive Type, Forecast Period up to 10 Years, (USD Bn)

• Overview
  • Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Segment Trends
• Internal Combustion Engine
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Electric Vehicles
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Hybrid Electric Vehicles
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Market Segmentation, By Region, Forecast Period up to 10 Years, (USD Bn)

• Overview
  • Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Regional Trends
• North America
  • Market Size and Forecast (USD Bn), By Battery Type, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Vehicle Type, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Drive Type, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
    • U.S
    • Canada
• Asia Pacific
  • Market Size and Forecast (USD Bn), By Battery Type, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Vehicle Type, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Drive Type, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
    • India
    • Japan
    • South Korea
    • China
    • Rest of Asia Pacific
• Europe
  • Market Size and Forecast (USD Bn), By Battery Type, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Vehicle Type, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Drive Type, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
    • UK
    • Germany
    • France
    • Russia
    • Italy
    • Rest of Europe
• Latin America
  • Market Size and Forecast (USD Bn), By Battery Type, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Vehicle Type, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Drive Type, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
    • Brazil
    • Mexico
    • Rest of Latin America
• Middle East and Africa
  • Market Size and Forecast (USD Bn), By Battery Type, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Vehicle Type, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Drive Type, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
    • GCC
    • Israel
    • South Africa
    • Rest of Middle East and Africa

Competitive Landscape

• Heat Map Analysis
• Company Profiles

• Johnson Controls Internationals Plc.
• Crown Battery Manufacturing Company
• GS Yuasa Corporation
• Furukawa Electric co. Ltd.
• Leoch Battery Inc.
• BYD Company
• Alf Technologies

The Last Word

• Future Impact
• About Us
• Contact