Automotive Battery Market Growth, Size & Share (2022-27) (2023)

The Automotive Battery Market is segmented by Battery Type (Lead Acid, Lithium-Ion, and Other Battery Types), Vehicle Type (Passenger Car and Commercial Vehicle), Drive 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 the Automotive Battery Market in Value (USD billion) for all the above segments.

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Market Snapshot

Automotive Battery Market Growth, Size & Share (2022-27) (7)
Study Period:2018-2027
Base Year:2021
Fastest Growing Market:Asia-Pacific
Largest Market:Asia-Pacific
CAGR:5.5 %
Automotive Battery Market Growth, Size & Share (2022-27) (8)

Automotive Battery Market Growth, Size & Share (2022-27) (9)

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Market Overview

The Automotive Battery Market was valued at USD 46 billion in 2021, and it is expected to reach USD 65 billion by 2027, registering a CAGR of 5.5% during the forecast period (2022 - 2027).

The impact of COVID-19 is inevitable on any industry as there were continuous lockdowns and halts of manufacturing units worldwide. The COVID-19 pandemic slowed battery supply chains as most 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 the US and EU regions, paving the way for new opportunities in the market.

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

The highest growth rate is observed in Asia-Pacific, and the region is expected to grow further in the coming years. Conversely, China ranks as the fastest-growing automotive battery market, owing to the high demand for commercial and passenger vehicles.

Scope of the Report

The Automotive Battery Market is segmented by Battery Type (Lead Acid, Lithium-Ion, and Other Battery Types), Vehicle Type (Passenger Car and Commercial Vehicle), Drive 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 the Automotive Battery Market in Value (USD billion) for all the above segments.

Battery Type
Other Battery Types
Vehicle Type
Passenger Cars
Commercial Vehicles
Drive 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 and Africa

Report scope can becustomized per your requirements. Click here.

Key Market Trends

The 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. A lithium-ion battery is equipped for applications that demand high-energy density solutions, such as hybrid and electric automobiles. Additionally, to increase vehicle economies, manufacturers are continuously focusing on reducing the price of the battery, propelling the market growth globally.

Compared to the traditional battery technology, lithium-ion batteries charge faster, last longer, and they 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 compared to conventional batteries such as lead-acid and nickel-metal hydride batteries.

With stringent fuel efficiency norms in countries such as the United States, India, Germany, and Japan, manufacturers are trying to reduce the cost of lithium-ion batteries, increasing 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 batteries. For instance, the IRS (Internal Revenue Service) tax credit is USD 2,500-7,500 per new electric vehicle purchased in the United States. Similarly, California provides USD 2,500 rebates, Delaware provides USD 1,000 rebates, and Colorado provides USD 5,000 tax credits on purchasing electric vehicles.

Automotive Battery Market Growth, Size & Share (2022-27) (10)

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The Asia-Pacific Region to Dominate the Automotive Battery Market

The Asia-Pacific region is expected to have the fastest growth in the value of the automotive battery, owing to the increasing demand for electric passenger and commercial cars. However, North America dominates the automotive battery market outlook as all the string lead-acid battery manufacturers are in the region.

Growing product demand for automotive applications in various countries, including South Korea, India, Malaysia, and Indonesia, is likely to influence the region's growth during the forecast period. Furthermore, ongoing product developments by various companies to manufacture cost-efficient and high-performance vehicles are projected to contribute to the regional market's growth. In addition, government initiatives to provide subsidies to increase the adoption of electric vehicles are also anticipated to drive market growth during the forecast period.

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

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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 market players adopt 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 produce batteries for electric vehicles jointly. 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 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 May 2022, Stellantis and Samsung announced to invest USD 2.5 billion to build a battery manufacturing facility in Indiana. The factory is likely to start production by the year 2025.
  • In December 2021, Toyota announced to invest USD 1.3 billion for the establishment of a battery manufacturing plant in North Carolina. The plant is likely to have the capacity to produce Lithium-Ion batteries for 800,000 vehicles and is expected to commence production by 2025.
  • In Oct 2021, the United States Department of Energy (DOE) announced the opening 13 new projects at various stages to expand the country's battery production for automotive needs. The commissioning of these battery manufacturing plants is set to finish by 2025

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 Forces 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

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      2. 5.2.2 Commercial Vehicles

    3. 5.3 Drive 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 and 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

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      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.

      13. 6.2.13 LG Chem Ltd.


Frequently Asked Questions

What is the study period of this market?

The Automotive Battery Market market is studied from 2018 - 2027.

What is the growth rate of Automotive Battery Market?

The Automotive Battery Market is growing at a CAGR of 5.5% over the next 5 years.

What is Automotive Battery Market size in 2018?

The Automotive Battery Market is valued at 46 Billion USD in 2018.

Which region has highest growth rate in Automotive Battery Market?

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

Which region has largest share in Automotive Battery Market?

Asia-Pacific holds highest share in 2021.

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Who are the key players in Automotive Battery Market?

A123 Systems, Exide, GS Yuasa, Panasonic, LG Chem are the major companies operating in Automotive Battery Market.

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Is the battery industry growing? ›

The global solid-state battery market was valued at USD 805 million in 2021. It is expected to reach USD 13,156 Million by 2030, registering a CAGR of 36.4% during the forecast period (2022–2030).
Report MetricDetails
Key Market OpportunitiesGrowing Demand for Electric Vehicles
11 more rows
Jul 14, 2022

How big is the EV battery market? ›

20, 2022 (GLOBE NEWSWIRE) -- The global electric vehicle battery market size is expected to gain momentum by reaching USD 154.90 billion by 2028 while exhibiting a CAGR of 28.1% between 2021 to 2028.
Report CoverageDetails
Segments coveredBy Battery Type, By Vehicle Type
9 more rows
Sep 20, 2022

How important is group size for car battery? ›

Although some vehicles may accommodate a battery from more than one group size, it is important that you use a battery approved for use in your vehicle. Make make sure your new battery will fit the proper CCA according to the vehicle manufacturer's specifications.

What are the sizes of automotive battery? ›

In general, these more-common battery group sizes are 24, 24F, 25, 34, 35, 51, 51R, 52, 58, 58R, 59, and 65. Helpful Hint: Some vehicles can handle a larger battery than was originally installed. A physically larger battery usually has more power and reserve time than a smaller battery.

How big is the global battery market? ›

The global market size is expected to be USD 44.49 billion in 2021 and is projected to reach USD 193.13 billion by 2028, exhibiting a CAGR of 23.3% during the forecast period from 2021-2028.
Report CoverageDetails
Base Year2020
Market Size in 2020USD 36.90 billion
Historical Data for2017-2019
No. of Pages200
6 more rows
Jul 18, 2022

What is the most popular battery brand? ›

Best Battery Brands
  1. 1 Energizer. ...
  2. 2 Duracell. ...
  3. 3 PowerKing. ...
  4. 4 Panasonic. ...
  5. 5 Voyager. ...
  6. 6 DieHard.
  7. 7 Enercell. ...
  8. 8 Toshiba Toshiba Corporation is a Japanese multinational conglomerate corporation headquartered in Tokyo, Japan.


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