San Francisco, 20 March 2019: 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.
Browse more reports of this category by Grand View
Research at: https://www.grandviewresearch.com/industry/automotive-and-transportation
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
Access Press Release of
U.S. Automotive Battery Aftermarket@ https://www.grandviewresearch.com/press-release/us-automotive-battery-aftermarket-analysis
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.
For More Information: www.grandviewresearch.com
