![]() ![]() The Asia-Pacific Region to Dominate the Automotive Battery Market 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. For instance, the IRS (Internal Revenue Service) tax credit is USD 2,500-7,500 per new electric vehicle purchased in the United States. 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, 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). ![]() 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. 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. Additionally, to increase vehicle economies, manufacturers are continuously focusing on reducing the price of the battery, propelling the market growth globally.Ĭompared 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. A lithium-ion battery is equipped for applications that demand high-energy density solutions, such as hybrid and electric automobiles. The market for lithium-ion batteries is anticipated to observe the fastest growth during the forecast period. The Lithium-Ion Battery Segment Expected To Have Significant Growth ![]() Conversely, China ranks as the fastest-growing automotive battery market, owing to the high demand for commercial and passenger vehicles. The highest growth rate is observed in Asia-Pacific, and the region is expected to grow further in the coming years. 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 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. 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 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. The impact of COVID-19 is inevitable on any industry as there were continuous lockdowns and halts of manufacturing units worldwide. 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). ![]()
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