The U.S. automotive battery aftermarket size is estimated to reach USD 4.2 billion, by 2025, and is projected to grow at a CAGR of 1.4% from 2018 to 2025, according to a new report by Million Insights. The increasing demand for electric vehicle is expected to be a key factor fostering growth of the market.
Growing trend of hybrid electric vehicle (HEV) along with increasing number of charging points is projected to bode well in the market growth during the forecast period in the report. Low running cost associated with electric vehicle when compared with conventional vehicles is boosting the growth of batteries. Additionally, rising air pollution, global warming, are some of the key factors which are expected to change consumer preference from conventional fuel type vehicles to electric vehicles.
Electric vehicle manufacturers also focus on offering vehicles made from eco-friendly materials. For example, Ford uses recycled and bio-based materials for its car manufacturing.
Digitalization and development in maintenance & repair services is increasing the need for customised vehicle, which in turn is expected to boost the market growth. For example, auto art network, and carparts.com are the major supplier of automobile spare parts. This trend of customization at affordable prices is expected to gain traction among consumers.
Auto parts warehouse provide auto components at affordable prices with maintenance and battery replacement.Moreover, the digitalization has allowed OEMs to deliver auto supplies to respective location anywhere in the world. It includes drop and pickup service at remote locations with additional repair services.
Fluctuations in prices of raw material are restraining the growth of U.S. automotive battery aftermarket. Polypropylene. sulfuric acid, and lead oxide are used for manufacturing batteries. Propylene is originated from petroleum, and carbon compound. Natural gas and crude oil are the primary elements used to produce propylene.Therefore, the changing prices of these oils have impact on cost dynamics of battery.
Manufacturers in the industry engage in acquisitions, and business expansions in the U.S. market. For instance, in 2017, A123 systems has planned to construct its new headquarters in Michigan. In 2014, company acquired Leyden Energy’s intellectual property assets. This strategy is projected to bolster the technology abilities of the company.
Key manufacturers in the market include Exide Industries ltd, Johnson Controls, and East Penn manufacturing company.These companies manufacture batteries with different battery brands. Johnson controls contributes to over 50.0% of total U.S. batteries market. The company has sold its power solution to Brookfield business partners for over USD 13.0 billion.
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Further key findings from the report suggest:
• Development of hybrid electric vehicle (HEV) with high investment plans is projected to support market growth. for example, American reinvestment act has granted fund to government and private entities to develop electric vehicles.
• Based on distribution channel, in 2018, e-commerce channel segment is anticipated to grow at a CAGR of over 5.5%from 2019 to 2025.
• Key players in the U.S. automotive battery aftermarket includes, EnerSys, Exide Technologies, Johnson controls, Tesla, Inc., NEC Corporation, and Delphi Technologies
Million Insights has segmented the U.S. automotive battery aftermarket based on battery type, vehicle type, distribution channel, and region:
U.S. Automotive Battery Aftermarket Battery Type Outlook (Volume, Million; Revenue, USD Million, 2014 - 2025)
• Lead Acid
U.S. Automotive Battery Aftermarket Vehicle Type Outlook (Volume, Million; Revenue, USD Million, 2014 - 2025)
• Passenger Vehicle
• Electric Vehicle
• Commercial Vehicle
U.S. Automotive Battery Aftermarket Distribution Channel Outlook (Volume, Million; Revenue, USD Million, 2014 - 2025)