An automotive battery is type of rechargeable battery that is utilized for the starting, lighting, and ignition of a vehicle, and for handling all the electric parts of the vehicle. Automotive batteries are installed in both, IC engine-propelled vehicles as well as electric & hybrid vehicles. Electrification of vehicle components and increasing preference toward electrical vehicles factors are expected to boost the demand for automotive batteries over the forecast period.
A study by PMR concludes that, the ANZ automotive battery market will expand at a CAGR of 7 % over the forecast period of 2020 to 2030, and reach a valuation of US$ 1.5 Bn by the end of 2030.
Key Takeaways of ANZ Automotive Battery Market Study
- Australia holds a leading market share in ANZ automotive battery market, due to overall huge vehicle fleet and increasing electrical vehicle sales in the country.
- For the ANZ automotive battery market, as most of installations take place in the aftermarket, where quality and pricing are deciding factors for a sale to materialize, it becomes extremely important for players to fight for the same piece of pie with a double-edged pricing strategy.
- By battery type, the lead acid batteries segment is anticipated to hold a significant market share, and is expected to continue its dominance over the forecast period.
- Market participants are increasing their online e-Commerce platforms and dealer networks across the region, which is a key emerging trend in the ANZ automotive battery market.
- The COVID-19 crisis is estimated to have significant impact on the ANZ automotive battery market, owing to the limited production capabilities of market participants in present times. Moreover, the crisis has also had a direct impact on the overall sales of automotive batteries.
“Increasing preference toward e-mobility solutions and technical advantages of lithium-ion batteries is a key market trend. Moreover, the prices of lithium-ion batteries have witnessed a significant drop over the past few years, and will continue to do so in the coming years. With these falling prices and growing penetration of electrical vehicles, market participants would need to focus more on the production of lithium-ion batteries,” says a PMR analyst.
ANZ Automotive Battery Market: Competitive Landscape
The ANZ automotive battery has a fairly fragmented market structure, in which the top five players hold around 20% to 25% of the market share. Tier-I companies are expected to remain a dominant force over the forecast period, owing to their product expertise, brand name, and widespread market. Tier-II and other players are focusing on introducing cost-effective, customized, and value-for-money products to improve their market penetration.
Amidst the turmoil in the automotive industry, the shutdown of production plants in Australia and New Zealand since 2017 has halted the progress of automotive production in the region. However, extensive automotive fleet and emerging demand for electric vehicles provide lucrative opportunities, and is anticipated to reflect in market growth over the forecast years. Improvement in electric vehicle infrastructure as well as higher demand for light vehicles with IC engines are projected to boost the growth of the ANZ automotive battery market through 2030.
About the Report
The research report analyzes the total sales of automotive batteries on the basis of volume (units) and value (US$ Mn). The market is projected on the basis of factors such as ANZ automotive industry growth, automotive fleet scenario, electric & I.C. engine vehicle sales, industry value added, and growing industrialization. The scope of the research report includes new sales of automotive batteries for I.C engine and electric & hybrid vehicles. Under the scope of research, battery type includes lead acid, lithium-ion, NIMH, and other type of batteries.
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About PMR – Automotive & Transportation
Persistence Market Research’s team of automotive and transportation market experts has been tracking the industry for nearly a decade now. The team has authored 1,000+ reports, covering a broad spectrum – from passenger cars and freight to components and railways. Our market research includes market sizing, forecasting, product, and market segmentation, and a detailed discussion on prevailing and anticipated market conditions. Reach out to us for more information on how we can help.