Description

Automotive battery is widely used for starting, lighting and ignition purposes in automobiles. These batteries also provide voltage supply to vehicle accessories such as radio, music players, air conditioners, wipers and charging plugs.

Increasing vehicle production coupled with rising adoption of vehicle electrification are anticipated to be the major factors that will create vast opportunities for key players in automobile lead acid battery market.

Automotive battery market size is expected to reach USD 23.5 billion by 2024, growing at a compounded annual growth rate (CAGR) of five point seven percent (5.7%) during the forecast period 2016-2024.

The automotive battery market is driven by various factors such as increasing number of automobiles on road, rising infrastructure and as well as rising urbanization.

Further, integration of features in automobiles like hands free calling, state of art sensors and car infotainment system have flourished the demand for automotive battery.

Moreover, the new fuel saving technologies such as smart hybrid vehicle system (SHVS) are also leading to higher battery usage. These factors are envisioned to bolster the growth of automotive battery market.

By vehicle type, automotive battery can be classified into

– Two-wheeler
– Three-wheeler
– Passenger vehicle
– Commercial vehicle
– Electric vehicle

Based on vehicle type, passenger cars accounted for the largest market share of more than forty-five percent (45%) in 2016.

Moreover, passenger cars are expected to be the fastest growing and most opportunistic segment over the forecast period owing to emerging market of electric vehicles.

By battery type, automotive battery can be classified into

– Lithium ion
– Nickel-metal hydride
– Nickel-cadmium
– Gasoline
– Lead-acid

Smuggling, grey imports of second-hand vehicles and the lack of reliable data make the exact size of Nigeria’s vehicle market and fleet size difficult to quantify. Challenges concerning the licensing and identification of vehicles further contribute to this difficulty.

According to National Bureau of Statistics (NBS), vehicle population in Nigeria is eleven million, four hundred and sixty thousand (11,460,000) with commercial vehicles accounting for the largest share.

This report examines the financial viability of importing, storing and selling lead–acid battery into Nigeria.

The global lead–acid battery market share reached a value of $56.9 billion in 2017 and is predicted to generate $70.7 billion by 2023, growing with a compounded annual growth rate (CAGR) of three point seven percent (3.7%) during the forecast period.

Lead-acid battery converts chemical energy into electrical power using lead peroxide and sponge lead and is composed of lead oxide and lead plates immersed in sulfuric acid solution.

The investor would import, store and sell two (2) twenty (20) FT container of lead-acid car battery monthly and each twenty (20) FT container can carry a maximum of twenty-seven (27) tons of battery.