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Global auto battery market to hit $95.57b by 2025: Study

Xinhua | Updated: 2018-03-13 17:05
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Drivers charge their electric cars at a public charging station in Beijing. [Photo Provided to China Daily]

SAN FRANCISCO - The global automotive battery market size is expected to reach $95.57 billion by 2025, registering a compound annual growth rate (CAGR) of 7.9 percent during the forecast period, Grand View Research Inc (GVR), a leading US market research firm reported on Monday.

Large-scale availability of batteries in various sizes and specifications alongside high electric-current-levels is expected to drive the market over the forecast period, said GVR, a San Francisco-based market research and consulting firm.

The report said that sealed-lead-acid batteries, which are relatively cheaper compared to other types of batteries, can be manufactured with relatively lower technology equipment, which in turn, is projected to keep their high demand through 2025.

In addition, Sodium-ion batteries (SIB) are the direct replacement of lithium-ion batteries and is anticipated to gain tremendous popularity after their commercialization, owing to abundant availability of raw materials.

Natrium-ion batteries are regarded as potentially safer and cheaper alternative as it is available in abundance, said the report.

Growing sales of vehicles and favorable government initiatives in developing economies such as India, China, Vietnam, and Mexico are likely to provide a fillip to the automotive battery market over the forecast period, according to the GVR.

Passenger vehicles are estimated to command more than half of the market revenue throughout the forecast horizon, with Asia Pacific dominating the market in 2016, accounting for over 48 percent of the market revenue, it said.

Key players in the market include Japan's Hitachi Ltd and NEC Corporation, South Korea's LG Chem Ltd and Tesla Inc of the United States, said the GVR.

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