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.
Browse full research report on U.S. Automotive Battery
Aftermarket: https://www.grandviewresearch.com/industry-analysis/us-automotive-battery-aftermarket
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.
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
request sample of this report by Grand View Research: https://www.grandviewresearch.com/industry-analysis/us-automotive-battery-aftermarket/request/rs1
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.
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