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The global automotive battery box market size was USD 464.9 million in 2020. The market is projected to grow from USD 497.2 million in 2021 to USD 871.6 million in 2028 at a CAGR of 8.4% in the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with the automotive battery box witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a negative growth of -5.6% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
An automotive battery box is vital equipment that protects the battery from potential weather/outside elements and battery mishaps. It is primarily made of lightweight material that is corrosion resistant and protects the battery from battery acid leaks, UV exposure, gas, water, and others. The battery enclosure material is heavy-duty and is designed to protect the battery against unwanted liquids. A battery enclosure is important as it protects one of the most vital parts of the RV. There are different types of materials that are used for automotive battery enclosures. Metallic and non-metallic materials are used for battery boxes, in which plastic is mostly used.
Blockades in Battery Supply to Harm Automotive Battery Box Market Growth During COVID-19
The COVID-19 pandemic has heavily impacted the global battery box industry, which has slowed battery supply across the globe. Most of the battery manufacturers are situated in China, thus increasing the dependence on China with the associated risk factors. This factor has further diverted the interest of various stakeholders for regionalization/localization of supply chains in European and American regions for new opportunities in the market. Also, several battery box manufacturers are set to revise their expenditures for the present year to fulfill their targets.
Growing Consumer Preference for Pollution-Free Electric & Hybrid Vehicles is Anticipated to Increase the Adoption of the Product in Vehicles
The growing consumer preference for pollution-free hybrid and electric vehicle types propelled with stringent emission standards initiated by the government is expected to boost the growth of the global market over the forecast period. The increase in the number of electric vehicles globally is expected to create growth opportunities for the market.
For example, in October 2021, Hyundai Motors disclosed its FCEV roadmap under its Hydrogen Wave Forum, followed by IAA mobility 2021. The firm also disclosed an innovative fuel cell type called ‘Full Flat System,’ which has application in PBVs, MPVs, trams, and buses. The company is expected to sell around 110,000 passenger and commercial FCEVs worldwide by 2025. In addition, the increasing environmental issues on CO2 emissions primarily by conventional vehicles are further estimated to fuel the demand.
Major Organic and Inorganic Expansions across Key Players to Shape the Industry
Continuous efforts by various major players to boost their output efficiency across the globe are set to unveil new opportunities for the industry outlook. For instance, in March 2021, Hankook & Company Co., Ltd. completed the merger with Hankook AtlasBX Co., Ltd. and declared its transformation into a new operating holding company. As per the new agreement, the firm is set to seek new growth opportunities by combining its resources and capabilities to improve synergy amid the automotive industry crisis. In addition, the company will bolster the competitiveness of new businesses while searching for new business opportunities for the future.
Growing Integration of Electronics in Automotive to Foster Market Progress
Technological advancements in the automotive industry, majorly in electric vehicles, are expected to create attractive growth opportunities for major players. Thus, the growing traffic of international transportation has increased the demand for automotive transport, which is ultimately responsible for the growth of the car battery box market. Also, the rise in electrification and modification in the automotive battery industry is estimated to boost the market outlook. Furthermore, the growing adoption of infotainment systems in different vehicles has propelled the demand for energy-efficient batteries.
Increasing Research and Development in Battery Technology to Augment Automotive Battery Box Market Growth
The growing research and development in automotive battery technology for the automobile fuel cell is expected to boost the market growth. Furthermore, the development of lithium ion batteries based on nanotechnology propelled with government initiatives for electric vehicle sales worldwide is further expected to create growth opportunities for the battery box market. For example, in October 2021, General Motors declared to build a new facility that will expand the firm's battery technology and accelerate research and development of a longer range to develop more electric vehicle batteries. The new Wallace center will be located in GM’s Global Technical Center based in Michigan.
Stringent Lead Pollution Norms to Restrain Market Growth
One of the key market restraints for this market is the stringent lead pollution norms in electric vehicles. Also, the large import taxes on global EV battery systems and fluctuating raw materials prices are expected to hinder the market pace. Furthermore, the failure of batteries, owing to excess heating and availability of underdeveloped support infrastructure for EVs and batteries are other factors hampering the market growth.
Non-Metallic Segment is Likely to Observe Significant Growth Due to its Highest Adoption Rate
Based on material, the automotive battery box market is bifurcated into metallic and non-metallic. The non-metallic segment is projected to observe considerable growth during the forecast period. There is continuous large-scale adoption of non-metallic materials, such as plastics, fiber-reinforced plastic (FRP), and many others, for automotive battery housing. Liquid batteries are usually covered by non-metallic housing as acid doesn’t harm plastic material.
The metallic segment is expected to grow steadily during the forecast period. Players, including Hitachi Metals, Selectrify, Voestalpine, and others manufacture metallic enclosures for automotive batteries. Steel, mild steel, and aluminum are majorly used materials to manufacture metallic enclosures for battery boxes.
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Passenger Vehicles Will Dominate the Market Owing to Large Fleet Size
Based on application, the market is segmented into passenger vehicle and commercial vehicle. The passenger vehicle segment dominates the market and is estimated to be the most opportunistic and fastest-growing segment over the projected period. This factor is attributed to the growing market of electric vehicles across the globe. Passenger vehicles are further categorized into conventional and electric vehicles. Electric vehicles (EV) are largely adopted to reduce greenhouse gas emissions from vehicles and minimize the dependency on oil. The commercial vehicle segment is expected to exhibit steady growth in the market globally. This factor is attributed to the major demand coming from emerging economies such as India and China.
Asia Pacific Automotive Battery Box Market Size, 2020 (USD Million)
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The market has been analyzed across major regions, including North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa. Asia Pacific occupied the largest regional market size which stood at USD 225.1 million in 2020. China holds the maximum share in the market and dominates the regional market. China accounts for the fastest-growing market due to the country’s huge demand for passenger and commercial vehicles. According to the June 2020 IEA report, China’s stock was 4,300 FCB and around 1,800 FCH light-duty trucks. Furthermore, the rising demands of EVs and battery from other regional countries, including India, Australia, Japan, and Southeast Asian nations, are positively stimulating the global market growth.
North America is expected to witness significant growth rate during the forecast period. The primary factor driving the growth in the region is the presence of major string lead-acid battery manufacturers in the region. In addition, strict norms in the region related to the usage of eco-friendly products, impacting the battery box market in the region. Also, several activities led by the key players in the region are expected to propel the market size. For instance, in December 2020, LG Chem Ltd. declared to double the battery cells production capacity for Tesla Inc. electric vehicles in 2021 to maintain balance with the U.S. client's growth in the market.
In Europe, the market for the automotive battery box is expected to witness healthy CAGR owing to the presence of key battery manufacturers in the region. Major automotive manufacturers such as BMW, Aston Martin, Jaguar, Porsche, Audi, Ferrari, Volvo, Fiat, Volkswagen, and Lamborghini are estimated to propel the demand for automotive batteries enclosures in the region during the forecast period. Besides, the new technological advancements in the automotive sector propelled by new battery plants are expected to boost the market outlook in the region. For example, in September 2021, Valmet Automotive officially opened its Finland battery plant to start the production of high-voltage battery packs and automotive battery modules for its electric vehicle battery-related manufacturing. The battery plant is expected to have the battery capacity to construct 500,000 packs annually.
Leading Companies to Provide Automotive Battery Enclosures to Increase their Market Share
This market is highly fragmented with the presence of several manufacturers. Exide Industries, Amara Raja, Banner Batteries, Novelis, and Hitachi Metals form a significant portion of the market for delivering automotive battery enclosures across the globe. These companies are focusing on after sales service and additional components such as battery enclosures to cater larger customers in the market.
An Infographic Representation of Automotive Battery Box Market
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The global automotive battery box market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.
Value (USD Million)
By Material, Application, and Region
Fortune Business Insights says that the global market size was USD 464.9 million in 2020 and is projected to reach USD 871.6 million by 2028.
In 2020, the market value stood at USD 464.9 million.
Growing at a CAGR of 8.4%, the market will exhibit healthy growth during the forecast period (2021-2028).
Passenger vehicles are expected to be the leading segment in this market during the forecast period.
Stringent lead pollution norms, significant import taxes on global EV batteries, and fluctuating raw material prices are expected to hamper this market.
Exide Industries, Amara Raja, Novelis, GS Yuasa, Hitachi Metals, and Banner Batteries are among the leading players in the global market.
Asia Pacific dominated the market share in 2020.
Increasing research and development across the automotive battery technology, growing consumer preference for pollution-free hybrid and electric vehicles, and major organic and inorganic expansions across several key players are the key factors driving the market.
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