China Automotive Battery Market Forecast And Opportunities, 2018
Published Date: May - 2025 | Publisher: MIR | No of Pages: 320 | Industry: Automotive | Format: Report available in PDF / Excel Format
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China Automotive Battery Market Size was valued at USD 66.2 Billion in 2022. The market is projected to grow from USD 70.549 Billion in 2023 to USD 103.348 Billion by 2030, exhibiting a compound annual growth rate (CAGR) of 6.57% during the forecast period (2023 - 2030).
Automotive Battery Market Trends
Increased Demand for Lithium-Ion Battery is driving the market growth
Market CAGR for lithium-ion batteries is expected to grow fastest 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.
Lithium-ion batteries charge faster, last longer, and have a higher power density for more battery life in a lighter package than traditional battery technology. 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. 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.
Additionally, Leading automotive Original Equipment Manufacturers (OEMs) are collaborating with battery OEMs to strengthen their operation to develop high-performance EV batteries that will reduce charging time which is one of the vital factors driving the market growth. Moreover, manufacturers are working on developing batteries with a higher energy density that extends battery range and using nanowires that reduce charging time to meet rapidly growing market revenue.
Automotive Battery Market Segment Insights
Car Battery Vehicle Type Insights
Based on vehicle type, the Automotive Battery Market segmentation includes passenger cars, heavy commercial vehicles (HCV), and light commercial vehicles (LCV). The passenger cars segment dominated the market because of the growing sales of mid-range and premium passenger vehicles with added features, including autonomy.
Moreover, Light Commercial Vehicle has numerous systems for virtual assistance, eye tracking, driver monitoring, speech recognition, gesture recognition, and natural language interfaces. These systems rely on regular OTA updates for safe operation, further contributing to the market's growth.
Automotive Battery type Insights
The Automotive Battery Market segmentation based on type includes lead acid, lithium-ion, and nickel metal hydride. The lead-acid segment dominated the market. Lead acid is one of the oldest energy storage devices, which is being used in numerous applications. Advanced lead-acid batteries provide the start-stop functionality to improve the fuel efficiency of micro-hybrid vehicles.
Lead-acid batteries are mainly used for SLI applications in conventional vehicles because of their higher cold-cranking performance, low cost, and increased reliability. Some key benefits of lead-acid batteries are that they are inexpensive and simple to manufacture, capable of high discharge rates, have minimal maintenance, and have superior starting capacity. The lithium-ion-based segment is estimated to witness the highest growth rate over the forecast period.
Lithium-ion batteries are used in applications that demand high-energy density solutions. They are mostly used in applications such as notebook computers, cellular phones, and hybrid automobiles. The use of lithium-ion batteries for onboard energy storage is increasing owing to the continuous efforts by automotive manufacturers to produce more vehicles with electric drive trains. Automakers focus on reducing the overall cost while increasing vehicle range and energy density.
With the maturing lithium-ion battery supply chains and improving manufacturing processes, battery manufacturers and automotive OEMs continually strive to reduce battery pack costs.
Car Battery Function Insights
Based on function, the Automotive Battery Market data includes ignition, lighting, electric propulsion, and start. The electric propulsion segment dominated the market. The electric category will witness faster growth, with a rate of 28%. This has much to do with government support, such as grants and initiatives, for the acceptance of EVs and the strict emission regulations. Furthermore, nearly all EVs are equipped with innovative connected systems for effective processes and high security and safety.
Automobile Battery Engine Type Insights
The Automotive Battery Market engine type industry includes electric vehicle internal combustion engines. The electric vehicle internal segment dominated the market. Due to their increasing adoption, they are completely electric and run on rechargeable batteries. In addition, technological advancement and declining battery prices are significant reasons to complement market growth. Moreover, BEVs are zero-emissions vehicles and do not emit toxic gases like conventional gasoline vehicles, expected to drive revenue growth over the forecast period.
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SourceSecondary Research, Primary Research, MRFR Database, and Analyst Review
Automotive Battery Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American automotive battery market will dominate this market owing to rising government efforts to reduce carbon emissions by developing eco-friendly products, boosting the market growth in this Region.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
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Key Companies in the automotive battery market include
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