Increasing Demand for Electric Vehicles amid Mounting Environmental Concerns to Aid Market Growth
The automotive sector has witnessed waves of evolution over the past couple of decades due to advancements in technology and rapidly changing regulatory framework. Mounting environmental concerns coupled with the growing demand for environment-friendly vehicles have compelled OEMs and automobile manufacturers to develop electric vehicles. Moreover, increasing support offered by governments and authoritative bodies for the development of electric vehicles ecosystem is another major factor expected to boost the prospects of electric vehicles in the upcoming decade. The considerable boom in the demand for electric vehicles is projected to augment the overall growth of the global power-sports batteries market.
At present, players involved in the current global power-sports batteries market landscape are increasingly focusing on improving the design and efficiency of power-sports batteries to gain a competitive edge in the market. In addition, due to the increasing demand for lightweight vehicles and components, market players are likely to invest considerable resources in product design and innovations to minimize the size of the power-sports batteries. Power-sports batteries are increasingly being used in a range of electric vehicles, including golf carts, motorcycles, snow mobiles, water mobiles, and lawn mowers.
At the back of these factors coupled with increasing investments toward the overall development of the electric vehicle infrastructure, the global power-sports batteries market is on the course to surpass the US$ 12.4 Bn mark by the end of 2030.
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Focus on Development of Innovative Power-sports Batteries to Drive Market
The entry of a number of small startups and businesses into the electric vehicles segment has played an imperative role in boosting innovations. Technological advancements and noteworthy developments in the lithium ion battery technology space have played a key role in boosting the demand for lithium-ion power-sports batteries over the past decade. The dwindling prices of power-sports batteries around the world is a major factor that is anticipated to influence consumers from shifting from conventional batteries to power-sports batteries with improved performance. Several government initiatives across the world, particularly in the U.S. and China have played a pivotal role in boosting the adoption of power-sports batteries in recent years.
For instance, in January 2020, the U.S. Department of Energy announced the launch of the Energy Storage Grand Challenge– the initiative aims to utilize R&D investments and encourage partnerships between local players to develop a domestic battery industry and decrease the dependence on China that is the largest producer of lithium-ion batteries. The European Battery Alliance is another such initiative that is expected to promote the development of power-sports batteries across the European Union. The increasing partnerships between research institutions such as Washington State University, University of Washington, and PNLL, along with the development of a robust startup ecosystem is projected to increase the demand for power-sports batteries in the upcoming decade.
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Market Players Focus on Expanding Product Portfolio to Gain Advantage
Market players operating in the current power-sports batteries market are increasingly focusing on expanding their product portfolio to gain a competitive edge in the current market landscape. For instance, Power Sonic announced the launch of a new hyper sport lithium series–batteries that integrate lithium technology with intelligent monitoring solutions. The strategy to expand the product range is in line with the growing consumer demand for faster charging, lightweight, and energy efficient power-sports batteries. Similarly, Exide announced the launch of a new motorbike & sport battery range– a lightweight lithium-ion battery that offers high performance and energy efficiency. While expanding the product portfolio is anticipated to remain a key growth strategy, market players are also expected to increase focus on research and development to gain a competitive edge.
Demand Likely to Decline amid COVID-19 Pandemic
The outbreak of the novel COVID-19 pandemic is expected to have a negative impact on the overall growth of the global power-sports batteries market in 2020. The automotive sector has taken an immense beating during the COVID-19 pandemic, as governments across nations, including China and India announced stringent lockdowns in the first two quarters of 2020 to curb the transmission of the novel coronavirus. The lockdown in China played a vital role in disrupting the supply chain across the power-sports batteries market due to which, the transportation of raw materials and other components were major barriers. However, as the lockdown restrictions are gradually being lifted, the power-sports batteries market is showing signs of recovery and likely to gain momentum
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Power-sports Batteries Market: Overview
· The global power-sports batteries market is anticipated to expand at a CAGR of ~6% during the forecast period, owing to adoption of technologies to increase vehicle efficiency and vehicle performance by automakers in their vehicles. Increase in demand for electric vehicles, including e-bikes, coupled with the demand for vehicle technology to reduce vehicle emissions is likely to propel the global power-sports batteries market during the forecast period.
· Technological advancements in battery charging technology have enabled batteries to charge at a rapid rate. Additionally, developments have enhanced battery life, along with its performance. This is anticipated to increase the trend toward electric vehicles, which, in turn, is projected to fuel the power-sports batteries market during the forecast period.
Challenges for Power-sports Batteries Market
· Disruptions in supply chain catering to the automobile industry, owing to shutdown of production and manufacturing facilities and raw material shortage caused by coronavirus pandemic across the world is estimated to contract the market in 2020. However, the market is anticipated to recover through economic losses by increasing production volume of vehicle components as well as vehicle production from 2021.
· Governments across the globe have enacted stringent regulations on manufacturing, storage, and transportation of batteries, owing to chemically sensitive nature of batteries. For instance, battery manufacturers must have two types of recycling facilities as required by regulations. Smaller facilities for temporary storage and larger facilities are designed for long-term operation. Additionally, battery recycling facilities are supposed to collect, sort, store, package, and ship used electric vehicle batteries; however, they are not allowed to disassemble these, except for inspection purposes. These regulations are expected to hinder the market.
Segmentation of Power-sports Batteries Market
· The global power-sports batteries market has been segmented based on vehicle type, voltage range, battery type, sales channel, and region
· Based on vehicle type, the global power-sports batteries market has been divided into motorcycles, mopeds & scooters, ATVs and UTVs, golf carts, watersports, snowmobiles, and lawn mowers. Increase in demand for motorcycles can be attributed to its benefits, including easy ride mode, powerful engines, faster commute, and cost-effectiveness. Increasing adoption of electric fuel injection technology, adoption of Bluetooth technology, and rising use of the GPS technology are being witnessed among motorcycle riders. All technologies mentioned above require continuous supply of electric power, which is supplied through batteries. This, in turn, is anticipated to drive the global power-sports batteries market.
· Based on sales channel, the aftermarket segment dominated the power-sports batteries market, in terms of revenue, in 2019. A major factor leading the aftermarket segment is limited lifespan of a battery, which requires periodic replacement. However, technological advancements in batteries are expected to prolong their shelf-life. Additionally, batteries offered by an OEM ensure warranty for consumers. This, in turn, is expected to increase preference for OEM battery suppliers and consequently, boost the segment at a rapid pace by the end of forecast period.
Power-sports Batteries Market: Regional Analysis
· The global power-sports batteries market has been split into North America, Latin America, Europe, Asia Pacific, and Middle East & Africa
· Asia Pacific is projected to be a highly lucrative market, globally, during the forecast period. Asia Pacific has presence of major two-wheeler manufacturers. Additionally, demand for motorcycles in China, India, and Indonesia is comparatively higher than that witnessed in any other region, globally. Therefore, an increase in motorcycle production coupled with rise in the demand for fleet of motorcycles and scooters in Asia Pacific is projected to boost the power-sports batteries market during the forecast period.
Power-sports Batteries Market: Competition Landscape
· Key players operating in the global power-sports batteries market include
o Crown Battery
o Discover Battery
o East Penn Manufacturing Company
o Exide Technologies
o Fullriver Battery
o Go Power!
o GS Yuasa Corporation
o Harris Battery
o Interstate Batteries
o Johnson Controls
o MIDAC Batteries
o Navitas Systems
o Power Sonic Corporation
o ELiON Batteries
o Scorpion Battery, Inc.
o Skyrich Powersport Batteries
o Smart Battery
o Trojan Battery
o U.S. Battery