The global automotive battery market value is estimated to reach US$ 34,967.2 million by 2023, according to new data released by Mordor Intelligence. This represents a compound annual growth rate of around 6.5% during 2018 – 2023.
It is believed that by 2040, sales of electric vehicles could account for one third of the world’s car fleet, totalling no less than 530 million vehicles. If true, the e-cars could jointly substitute 8 million barrels of oil per day by that year.
Additionally, the global lithium-ion battery recycling market was worth approximately US$ 1.85 billion in 2017. This market will reach US$ 6.17 billion by 2023, set to grow 22.23% between 2018 and 2023.
Producers eager to stand out
Panasonic is currently the biggest lithium-ion battery producer, with a 19.6% stake in the market last year (see graph for more details). The battery giant has started mass production of Prismatic-type lithium-ion car batteries at its facility in Dalian, China, in March of this year.
Meanwhile, it is pointed out that the Renault-Nissan-Mitsubishi Alliance is trying to take the lead in new solid-state battery technology – by 2025 ‘if that’s possible’.
Prominent growth, but where?
The Asia-Pacific region is expected to be the fastest-growing region in the automotive battery market and is poised to be led by countries, such as China, India, Japan, and Indonesia, which are forecasted to experience strong growth in the sales of passenger and commercial vehicles. Electric cars, which currently have very low penetration in the Asia-Pacific region, are expected to experience a boom there during the coming 5 years.
In Indian government is also aiming to bring a sizeable fleet of electronic vehicles on the roads in 2020 and is thus providing a helping hand like giving subsidies and aiding R&D to the automotive and electronic battery manufactures to kick-start the work.
North America, led by the United States, Mexico and Canada, should see ‘strong growth’ in the automotive battery market as well. Africa is predicted to emerge as a ‘good’ market post-2020, as rising disposable incomes and improving infrastructure is expected to induce more people to own modern-day vehicles. For instance; South Africa, Nigeria and Ghana are hailed as the key markets in the region post-2020.