U.S. Automotive Battery Aftermarket Trends and Demand by Regions till 2025

Felton, California , USA, Nov 9, 2020 — /EPR Network/ — 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.

Get Free PDF Sample Copy of the Report (Including Full TOC, List of Tables & Figures, Chart and Covid-19 Impact Analysis): https://www.millioninsights.com/industry-reports/us-automotive-battery-aftermarket-industry/request-sample

Impact of COVID-19

The COVID-19 pandemic has negatively impacted the U.S. automotive battery aftermarket. COVID-19 outbreak has slowed down the production of passenger and commercial vehicle. Various OEMs, and battery cells suppliers are facing supply chain disruption as a result the market has witnessed a decline in auto sales. For instance, the sales of electric vehicles (EVs) in the U.S. were dropped by 33.0% during the first quarter of 2020.

U.S. automotive battery manufacturers purchase battery cells from China, but COVID-19 pandemic has slowed the shipment and supply chain of batteries. Thus, the manufacturers are focusing on localizing their supply chain network to mitigate production risks.

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.

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.

Top Key players profiled the U.S. automotive battery aftermarket report include: EnerSys, Exide Technologies, Johnson controls, Tesla, Inc., NEC Corporation, and Delphi Technologies

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