Global demand for automotive batteries is forecast to rise 13% per year to $54.1 billion in 2022, expanding to 38% of total sales. Rising manufacturing and use of motor vehicles worldwide will spur sales growth. The HEV segment will more than quadruple in size as these vehicles increasingly penetrate global markets. Electric vehicles, which use more expensive batteries than hybrids, will post particularly strong growth, boosting overall market value. While falling prices for lithium-ion batteries (on a kWh basis) will be a major contributor to growth for HEVs, a shift toward batteries with higher capacities will boost prices on a unit basis and contribute to the expanding market size. These and other trends are presented in Global Batteries, 11th Edition, a new study from The Freedonia Group, a Cleveland-based industry research firm.
The automotive market is the largest outlet for battery sales worldwide, accounting for 34% of demand in 2017. The universal need for aftermarket batteries creates a massive global market for these products and provides a stabilizing influence in comparison to the more volatile OEM segment. Lead-acid batteries account for the vast majority of automotive market demand, but lithium-ion and nickel-based types have steadily become increasingly prevalent with the commercialization of HEVs.
Global demand for batteries in all outlets is forecast to rise 9.8% per year to $141 billion in 2022, improving on the 2017-2022 performance. According to analyst Elliott Woo, “Growth prospects vary significantly among product and market segments, and suppliers will need to carefully tailor their strategies to the differing needs of target areas.”
Global Batteries, 11th Edition (published 6/2018, 374 pages) is available for $6800 from The Freedonia Group. For further details or to arrange an interview with the analyst, please contact Corinne Gangloff by phone 440.684.9600 or email [email protected].
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