An automotive battery is a rechargeable battery that supplies electrical current to a motor vehicle. Its main purpose is to feed the starter, which starts the engine. Once the engine is running, power for the car's electrical systems is supplied by the alternator.
The market demand for these battery is huge as more and more vehicles are being developed daily and more electric vehicles are increasingly being used.
As the automotive technology has advanced, automobiles consist of a large number of functions these days. These functions have increased exponentially during the past few years, as a result of the intense competition amongst the vehicle manufacturers. Features, like state-of-the-art gadgets and lighting, car infotainment systems, etc. have trickled down even into the entry-level automobiles. These new attributes have put immense pressure on car batteries, which have to take on higher loads. The new fuel-saving technologies, like micro-hybrid systems are also leading to higher battery usage. Features in commercial and passenger vehicles are set to increase exponentially during the forecast period, which is anticipated be a major driver for the automotive battery market.
The 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.