The Report U.S. Automotive Battery Aftermarket Size, Share & Trends Analysis Report
By Vehicle Type (Passenger, Commercial), By Battery Type (Lead Acid,
Lithium-ion), By Distribution Channel, And Segment Forecasts, 2019 - 2025
The U.S.
automotive battery aftermarket size is
expected to reach USD 4.2 billion by 2025 at a 1.4% CAGR during the forecast
period, according to a new study by Grand View Research, Inc.Worldwide sales of
electric vehicles are anticipated to increase significantly over the forecast
period, which will emerge as one of the key factors boosting market growth.
A notable rise in
availability of charging outlets and financial incentives for manufacturing
Hybrid electric vehicles (HEVs) has emerged as a crucial factor for the growth
of the electric vehicle market in the recent past. Lower running cost of
electric vehicles compared to that of conventional Internal Combustion Engine
(ICE)-operated vehicles is also expected to bolster market growth. Various
government regulatory agencies have implemented policies that support increased
usage of electric vehicles globally. In addition, environmental issues, such as
increasing levels of pollution, energy depletion, global warming, and
biological hazards, are leading to a substantial shift in consumer preferences
from conventional vehicles to electric vehicles.
Leading manufacturers of
electric vehicles are also increasingly incorporating eco-friendly materials in
their production mechanisms. Ford, for instance, has started using bio-based
and recycled materials to manufacture external structures of its electric
vehicles. Nissan, on the other hand, is using a different approach to being
environment-friendly when it comes to its electric vehicles. The company
extensively uses old car parts, water bottles, and plastic bags to manufacture
interior and exterior parts of these vehicles.
The automotive
aftermarket is witnessing a dynamic phase change in customary automotive
component sales and delivery paradigms with the convergence of digitalization
and auto repair and maintenance service delivery techniques. Several start-ups
have surfaced in the industry, delivering custom-made components at economical
rates. For instance, CarParts.com and US Auto Parts Network, Inc. are leading
global auto spare parts suppliers for maintaining vehicles. These start-ups
also suggest an estimate for the right price to be paid for an auto component
along with recommendations for customizations.
Similarly, ‘Auto Parts
Warehouse’ allows users to compare and get components at economical rates with
ease and delivers instant quotes for battery replacement and maintenance. This
convergence enables component suppliers to provide pickup and drop services
even from remote locations in cases of repair and replacements. Digitalization
has, thereby, enabled transparency in auto repair and maintenance service
delivery. Digitalization in automotive component suppliers has enabled OEMs to
deliver directly to the customer’s home or office from across the globe, at the
click of a button.
However, fluctuating raw
material prices are hampering the growth of the U.S. automotive battery
aftermarket. Lead oxide, sulfuric acid, and polypropylene are key raw materials
used to manufacture batteries. Polypropylene, which is used to make cases for
batteries, is derived from carbon compound and petroleum. Crude oil and natural
gas derivatives are the primary feedstock used to produce polypropylene.
Therefore, fluctuation in prices of crude oil and natural gas plays a key role
in structuring the cost dynamics of plastics used for battery manufacturing.
Crude oil witnessed
tremendous fluctuation in prices over the past few years owing to the large
supply-demand gap. As a result, several nations implemented policies in order
to stock up on crude oil resources to maintain constant internal supply.
Volatility in prices of crude oil also has a direct impact on the manufacturing
cost of its downstream derivatives.
Key manufacturers and
distributors are continuously expanding their service reach by resorting to
geographical expansion and mergers and acquisition across U.S. states. In April
2017, for instance, A123 Systems, LLC announced plans to construct a new
headquarter in Michigan. This strategy is likely to help the company in
amplifying its presence in U.S. over the near future. In June 2014, the company
acquired intellectual property-related assets of Leyden Energy, based in
California, U.S., and China. This strategic acquisition is projected to benefit
the company in gaining access to the latter’s lithium-ion technology and
battery materials, thus widening the former’s technological expertise.
In U.S., most automotive
aftermarket batteries are manufactured by three leading companies, namely East
Penn Manufacturing Company, Exide Industries Ltd., and Johnson Controls. These
companies offer batteries under various brand names, which manufactures
batteries according to desired specification of retailers, so the
specifications of their products may vary. Johnson Controls, which supplies
batteries to more than half market, announced in November 2018 that it has
agreed to sell its power solutions business, which involves automotive battery
business, to Brookfield Business Partners L.P. The transaction was valued at
nearly USD 13.2 billion.
Access Research Report of U.S.
Automotive Battery Aftermarket @ https://www.grandviewresearch.com/industry-analysis/us-automotive-battery-aftermarket
Further key findings from the report suggest:
· Rising investments and initiatives aimed at
developing Hybrid Electric Vehicles (HEV) are expected to propel market growth.
For instance, the U.S. American Recovery and Reinvestment Act grants funds to
private and government entities to develop HEVs
· By distribution channel, the e-commerce
segment is expected to exhibit the highest CAGR of 5.5% over the forecast
period
· A123 Systems, LLC; East Penn Manufacturing
Company; EnerSys; Delphi Technologies; Exide Technologies; Johnson Controls;
NEC Corporation; Samsung SDI Co., Ltd.; Tesla, Inc.; and Interstate Battery
System of America, Inc. are some of the key players in the U.S. automotive
battery aftermarket.
Grand View Research has
segmented the U.S. automotive battery aftermarket based on battery type,
vehicle type, and distribution channel:
U.S. Automotive Battery Aftermarket Battery Type Outlook
(Volume, Million Units; Revenue, USD Million, 2014 - 2025)
·
Lithium-ion
·
Lead Acid
·
Nickel-based
·
Sodium-ion
·
Others
U.S. Automotive Battery Aftermarket Vehicle Type Outlook
(Volume, Million Units; Revenue, USD Million, 2014 - 2025)
·
Passenger Vehicle
·
Electric Vehicle
·
Commercial Vehicle
·
Others
U.S. Automotive Battery Aftermarket Distribution Channel
Outlook (Volume, Million Units; Revenue, USD Million, 2014 - 2025)
·
Retail/Brick
·
E-commerce
·
Others
About Grand View Research
Grand View Research, Inc. is a
U.S. based market research and consulting company, registered in the State of
California and headquartered in San Francisco. The company provides syndicated
research reports, customized research reports, and consulting services. To help
clients make informed business decisions, we offer market intelligence studies
ensuring relevant and fact-based research across a range of industries, from
technology to chemicals, materials and healthcare.
