The market for Power-sports Batteries is expected to grow at a CAGR of around 5.8% from 2020 to 2027 and expected to reach the market value of around US$ 10.23 Bn by 2027.
Power sports batteries comprises of Absorbent Glass Mat (AGM) technology combined with latest innovative design offering more power, high reliability, and long life. These power sports batteries yield high performance coupled with 100% free maintenance, with complete sealing. The automotive sector has witnessed drastic changes over decades. The factors attributed include rapid technological advancements and consistent change in regulatory framework.
Rising two wheeler production and high preference towards purchase of sports bikes bolsters the growth of power sports batteries market. Surge in disposable incomes among the population base supports the trend for purchase of powerful motor bikes. In addition, developments in enhancing battery life along with its performance gradually uplift the overall market growth of power sports batteries.
What Political Changes will Influence the Automobile Industry in the Future?
As per the Indian Brand Equity Foundation (IBEF), India became the fourth largest auto market in 2019 replacing Germany with about 3.99 million units sold in the commercial and passenger vehicles category. By 2021, India will displace Japan by embossing third largest automobile market. This is due to rise in sales of two wheelers and passenger cars that accounted for 80.8% and 12.9% market share respectively that resulted in combined sales of 20.1 million vehicles in FY 2020.
Government of India has a strong political influence that comprises of investments and government initiatives. The automobile industry has attracted Foreign Direct Investments (FDI) worth US$ 24.5 billion between April 2000 and June as per the statistics released by the Department for Production of Industry and Internal Trade (DPIIT). Further, the Government of India aims to develop India as a global manufacturing center and 12 Volt (R&D) hub. Under NATRiP, the government of India has planned to set up R&D centers at a total cost of US$ 388.5 million.
Production of Electric Vehicles to Minimize Economical Hazards
Environmental concerns supporting the surge in demand for environment-friendly vehicles have provoked the manufacturers to develop electric vehicles (EV). High government initiatives and support is the major factor that drives the demand for development of electric vehicles with taking ecosystem into consideration.
The Ministry of Heavy Industries, Government of India has shortlisted 11 cities in the country for introduction of EV in public transport under the FAME (Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles in India) system. The Government has also planned to set up incubation center for start-ups working in the EVs space.
February 2019, The Government of India announced FAME-2 system with a fund requirement of Rs. 10,000 crore (US$ 1.39 billion) for FY 20-22. NATRiPs proposal “Grant-in-Aid for test facility infrastructure for EV performance Certification under NATRIP Implementation Society under the FAME Scheme was approved on January 2019
Customer Centric Approach by Automobiles Manufacturers to be Always on a Front Line for the Global Market
The two wheeler segment in India dominates the market in terms of volume due to rise in growing middle class and young population. Growing interest of the companies towards exploring the rural markets spur the growth of this sector. Premium motorbike sales in India recorded a high jump in domestic sales reaching 13,982 units between April-September 2019. The sale of the luxury cars stood between15,000 to 17,000 units in first six months of 2019.
Technology Standing as a Building Block for the Power Sports Batteries Market
Competitive players present in the global market of power sports batteries focusing improvement in design and efficiency of power sports batteries to take a strong lead in the market. Currently, there is a high preference for light weight vehicles and components where players are likely to invest considerable resources in product design to minimize size of the power sports batteries. There are wide Voltage Ranges of power sports batteries used electric vehicles, golf carts, motorcycles, snow mobiles, lawn movers, and water mobiles. On the other hand, countries like Europe are taking strong initiative to develop and improve the design of power sports batteries for the benefit of economy and sustainability.
One such initiative is European Battery Alliance that has a strong focus to develop power sports batteries across the European Union. European has also committed US$ 647 billion for climate protection and clean technologies with development of batteries that can store renewable energy and to power electric vehicles (EV). It is anticipated that European EV production will increase six fold in the next eight years with improvement in battery value chain from mining to production to recycling that accounts for 250 billion Euros by 2025.
Power Sports Batteries Market Opportunity amid COVID-19
The pandemic outbreak of corona virus had a negative impact on the overall growth of power sports batteries market in 2020. The automobile sector has gone through a rough phase as government across the nations announced stringent lockdowns in first two quarters of 2020 to stop the transmission of novel corona virus. With gradual lifting of lockdowns the power sports batteries market is showing signs of recovery and will gain momentum. One solution for the recovery is to encourage innovation. The new entrants like startups and small businesses into electric vehicles segment will play a vital role in boosting innovation. One such example is technological advancement in lithium ion battery. The preference for lithium ion battery is rising from the automobile industry due to its environmental sustainability function. Innovation in the technology brings recycling of lithium ion batteries which can become a trend in the industry.
Power Sports Batteries market is segmented by Vehicle Type, Battery Type, Voltage Range, and Sales Channel. By Vehicle type, the market is segmented as Motorcycles, ATVS and Quads, Water Sports, Snowmobiles, Scooters & Mopeds, Lawn Movers, and UTVs. By Battery type, the market is segregated AGM Batteries, Lithium ion Batteries, Conventional Batteries, and Others. Further, Voltage range is segmented as 24 Volt, 6 Volt, 12 Volt, 48 Volt, and Others. Finally, Sales Channel is classified into Aftermarket/Replacement and OEM.
By battery type, lithium ion batteries will grab a significant market share for the power sports batteries market. Growth of this segment is supported by government initiatives with a strong focus by harnessing solar and wind energy. With minimal effect on the environment and serious disposable concerns it gives a second thought to the manufacturers to adopt them.
Currently, lithium ion batteries have grabbed a strong attention from the auto makers for its portability and long operational life. As lithium ion batteries possess high energy density, low impact of time, and high discharge power it has wide Voltage Ranges in EVs. With revise emission standards for the zero or low emission vehicles lithium ion batteries serves as a promising asset for the EVs. It is expected the sale of lithium ion batteries will have notable sales revenue in the auto industry in the forecast period.
Based on regions, the market for Power Sports Batteries covers North America, Asia Pacific, the Middle East & Africa, Latin America, and Europe.
Based on regions, Asia Pacific will gain a significant market share worldwide. This can be attributed to presence of competitive market players manufacturing majorly two-wheelers. Moreover, high demand for motorcycles from counties like Indonesia, China, and India is comparatively higher as compared to other regions. A surge in sales of motorbikes from Asia Pacific countries bolster the growth of power sports batteries in Asia Pacific.
Key companies profiled in this report involve Clarios, Crown Battery, Discover Battery, East Penn Manufacturing Company, EnerSys, Exide Technologies, Fullriver Battery, Go Power, GS Yuasa Corporation, Harris Battery, Interstate Batteries, Johnson Controls, Power Sonic Corporation, and others.
Market By Vehicle Type
ATVS and Quads
Scooters & Mopeds
Market By Battery Type
Lithium ion Batteries
Market By Voltage Range
Market By Sales Channel
Market By Geography
Middle East & Africa
The market for Power-Sports Batteries is expected to reach a market value of around US$ 10.23 Bn by 2027.
The Power-Sports Batteries Market is expected to grow at a CAGR of around 5.8% from 2020 to 2027.
By Batteries, Lithium ion Batteries is the leading segment in the overall market
Rising demand for electric vehicles, government support, and market players focus on product innovation fuel the demand for Power-Sports Batteries market.
Clarios, Crown Battery, Discover Battery, East Penn Manufacturing Company, EnerSys, Exide Technologies, Fullriver Battery, Go Power, GS Yuasa Corporation, Harris Battery, Interstate Batteries, Johnson Controls, Power Sonic Corporation, and others.
Asia Pacific is anticipated to grab the highest market share in the regional market
Europe is expected to be the fastest growing market in the forthcoming years