IC Engine Battery Market Size, Share, and COVID-19 Impact Analysis, By Engine Type (Gasoline, Diesel, and Alternate Fuels), By Battery Type (Lithium-ion, Lead-acid, and Others), By Vehicle Type (Passenger Cars and Commercial Vehicles), and Regional Forecast, 2024-2032

As automotive sales are spurring around the globe, so is the demand for automotive batteries. It is a prime component for the operation of an automobile. Batteries are the powerhouse used for multiple purposes, including energy for electronic vehicle devices such as headlights, motors, sensors, and other similar applications. The battery used is a rechargeable battery, with its primary function being to provide electric current to the starter motor, which then starts the chemically powered IC engine, further propelling the demand for vehicle.

The increase in demand for transportation globally is bolstering the need for automotive batteries. The rapid development of road infrastructure supports surging transportation demand, resulting in the increased adoption of automotive batteries. Various batteries adopted in automobiles use Lead-Acid, Lithium-Ion, Nickel-Metal Hydride, and other types of battery cells. Among all, Lithium is the lightest and is mostly used in the automotive industry owing to its ability to charge faster and provide higher power density. Growing technological advancements in the automotive industry and the adoption of higher optimized batteries in vehicles are expected to drive the growth of the IC engine battery market significantly.

The growing awareness of environmental concerns is slowly migrating customers to a greener alternative, i.e., electric vehicles, and the adoption of electric vehicles will suppress the need for IC Engine vehicles, resulting in a deteriorating demand for batteries needed for IC-powered vehicles. As the automobile industry moves towards electrification, the demand for carbon-emitting vehicles may be pulled into the backseat.

Impact of COVID-19 on the IC Engine Battery Market

The pandemic resulted in a global economic downturn, causing a decline in vehicle sales. With fewer new vehicles being sold, the demand for IC engine batteries also decreased. Many automakers faced temporary production shutdowns or reduced manufacturing capacities due to the pandemic's impact on their workforce and operations. This slowdown in automotive production affected the demand for IC engine batteries. With the growing emphasis on reducing emissions, there was an increased interest in hybrid vehicles that combine an internal combustion engine with an electric motor. This shift in preference affected the demand for pure IC engine batteries. The pandemic accelerated the focus on sustainability and clean energy. As a result, the adoption of electric vehicles increased, diverting attention and investments away from IC engine battery technologies.

Segmentation

Key Insights

The report will cover the following key insights:

• Key Industry Developments – Mergers, Acquisitions, and Partnerships


• Porter's Five Forces Analysis


• Technological Developments


• Impact of COVID-19 on the IC engine battery market

Analysis by Battery Type

Lithium-ion batteries are expected to lead the internal combustion engine's battery market due to their capability to deliver higher power output and better performance than traditional lead-acid batteries. Moreover, Lithium-ion batteries typically have a longer lifespan than traditional lead-acid batteries, providing reliable and durable power storage solutions for IC engine vehicles.

Analysis by Vehicle Type

Passenger cars are expected to lead the internal combustion engine battery market because many passenger vehicle manufacturers are incorporating hybrid technology into their models. Hybrid vehicles combine an internal combustion engine with an electric motor, requiring advanced batteries to store and deliver electric power. The increasing popularity of hybrid passenger vehicles contributes to the demand for batteries.

Regional Analysis

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The Asia Pacific region is predicted to lead the IC Engine Battery market over the coming decade.  The region has a massive existing fleet of internal combustion engine vehicles. As the automotive industry expands and modernizes, the demand for replacement batteries and aftermarket battery services also grows. The region has diverse vehicle segments, from small cars to heavy-duty trucks and buses. Each of these segments may have specific battery requirements, offering a broad market for different types of IC engine batteries. In some countries within the region, the initial purchase cost of electric vehicles is higher than that of traditional IC engine vehicles. As a result, IC engine vehicles remain a preferred option for cost-conscious consumers, leading to sustained demand for IC engine batteries. Asia Pacific is home to some of the world's largest and fastest-growing automotive markets, including China, India, Japan, and South Korea. This region's high demand for vehicles translates to a substantial market for IC engine batteries.

Key Players Covered

The report includes the profiles of key players such as Exide Industries, Panasonic Corporation, Robert Bosch GmbH, Hitachi Group, A123 Systems, Samsung SDI Company LTD, BYD Company LTD, LG Chem, EnerSys, GS Yuasa, and Contemporary Amperex Technology Co. Ltd.

Key Industry Developments

• March 2022 - Exide Technologies with Shenyang Dongbei Storage Battery Company formed a joint venture to operate in China to perform mass production of automotive batteries in the market.


• May 2021 – Daimler Truck AG and lithium-ion battery manufacturer CATL announced their global strategic partnership expansion to develop advanced next-generation batteries.


• December 2021 – Toyota announced an investment of USD 1.3 Billion to establish a battery manufacturing plant in North Carolina. The plant will have the projected capacity to produce Lithium-ion batteries for 800000 vehicles.