Global demand for light-duty vehicle batteries is expected to increase by $34 billion over the next five years

With the acceleration of the pace of global energy transition, strict regulation of vehicle greenhouse gas emissions is significantly driving the growth of the light vehicle battery market, according to the report released by Technavio, an international market research institution, it is expected that the market share of light vehicle batteries will increase by $34.
06 billion from 2021 to 2026, and the market growth momentum will accelerate
at a CAGR (compound annual growth rate) of 12.
72%.

Stringent regulations on vehicle greenhouse gas emissions are one of the key drivers supporting the growth of
the light-duty vehicle battery market.
In the United States, more than half of carbon pollution comes from the power and transportation industries
.
Therefore, to ensure increased fuel savings, a cleaner environment, and reduced oil imports, the EPA and NHTSA have jointly developed regulations
to control greenhouse gas emissions and improve the fuel economy of passenger cars and trucks.

Increasing regulations related to greenhouse gas emissions from transportation vehicles have led to an increase in the global demand for electric vehicles, which in turn is expected to boost the growth
of the global lightweight vehicle battery market during the forecast period.

Increasing collaboration among market vendors is another factor
supporting the growth of the light vehicle battery market.
Many suppliers are building ?? Partnerships to deliver innovative products and increase profitability
.
This partnership also helps them stay competitive
in the market.
Continuous technological innovation will stimulate sales of light vehicle batteries, thereby driving the growth of
the global light vehicle battery market during the forecast period.

The widening gap between lithium supply and demand is one of
the factors hindering the growth of the light vehicle battery market.
The demand for lithium-ion batteries in the transportation sector is increasing due to the increasing
adoption of electric vehicles, which mainly use lithium-ion batteries.
Thanks to various improvements in energy, battery cycle life, power density, cost, and safety, these batteries have become the battery system
of choice for electric vehicles.
This has led to increased
lithium consumption in electric vehicles as well as consumer electronic devices such as smartphones and laptops.
Therefore, the gap between supply and demand of lithium may hinder the growth of
the global light vehicle battery market.

Over the forecast period, 53% of the market growth will come from Asia Pacific
.
China, Japan, and India are the major markets
for the light vehicle battery market in the Asia-Pacific region.
The market growth in this region will be faster than that in other regions
.
At the same time, the increasing economic level will boost the growth of
the light vehicle battery market in the Asia-Pacific region.

Although in the first half of 2020, the COVID-19 pandemic severely impacted the light vehicle battery market
in the Asia-Pacific region.
However, with the spread of COVID-19 vaccines and the resumption of production facilities in the automotive industry, the market has been recovering
since 2021.
Thus, these factors are expected to increase the demand for light vehicles, which in turn will drive the growth of
the regional light vehicle battery market during the forecast period.