Global automotive battery market to reach US$95 billion by 2025
October 9, 2018
A market research report from Million Insights predicts that in 2025 the global automotive battery market will be worth US$95.57 billion (AUD$129 billion).
That will reflect a compound annual growth rate of 7.9 per cent, making the market in 2025 about 70 per cent bigger than it is today.
The report considers all types of automotive batteries, from lead acid starter batteries to lithium ion and other batteries used in electric and hybrid vehicles.
Fastest growth is forecast to be in Asia-Pacific, at 9.2 per cent per annum. However, in 2016 North America represented the largest part of the market. This was attributed to the presence of key manufacturers in the region and rising demand for electric vehicles in the US and Mexico.
That may change in coming years. In 2016, 40 per cent of total electric car sales were in China, and India is also a large battery market.
CMA Ecocycle Business Development Manager Mr Daryl Moyle said that while the report is all about new automotive batteries coming onto the market, it’s also helpful to recyclers.
“By 2025 many of the automotive batteries being sold today will be reaching the end of their useful lives, and recycling as many as possible will be necessary for both environmental and economic reasons,” he said.
“Reports like this provide the battery recycling industry with data that will aid in predicting how much recycling infrastructure will be required to meet demand.”
While Australia may not get a mention in this report, it’s possible to extrapolate from other, similar markets to estimate what local recycling capacity may be required.
“It’s no surprise that this report predicts that the future automotive battery market will be huge,” Mr Moyle said.
“The markets for home storage and grid scale batteries could grow even faster. That’s why CMA Ecocycle is already investing in the equipment and technology that will allow us to recycle large quantities of all types of batteries when the deluge of dead batteries begins.”