Battery Market Size: Strong 17.20% CAGR, Driven by Electric Vehicles and Consumer Electronics, Says Mordor Intelligence

The global battery market is entering a period of rapid expansion, with its size projected to grow from USD 180.66 billion in 2025 to USD 399.45 billion by 2030, reflecting a strong CAGR of 17.20% This growth is fueled by rising demand for electric vehicles (EVs), the increasing need for energy storage systems, and the widespread adoption of consumer electronics. While challenges such as raw material supply constraints remain, the overall outlook points to significant opportunities across regions and applications.

Batteries are no longer just a supporting technology; they are becoming central to the transition toward cleaner energy and sustainable mobility. From powering smartphones to enabling grid-scale storage, the battery industry is positioned at the heart of global energy and transportation strategies.

Emerging Trends in the Battery Industry

Electric Vehicles Driving Demand

The automotive sector is the fastest-growing segment of the battery market. Lithium-ion batteries, known for their high energy density and lightweight design, have become the standard for EVs. Europe has seen a sharp rise in EV adoption, supported by emission regulations and government incentives. In 2024, EV sales in Europe reached 3.4 million units, marking a 34-fold increase compared to 2014 This surge is expected to continue as countries push toward climate neutrality.

Asia-Pacific Leading Global Growth

Asia-Pacific dominates the battery market, with China, India, Japan, and South Korea driving demand. China’s investment in AI-driven data centers and renewable energy storage has created new opportunities for advanced battery solutions. Japan, home to major automotive manufacturers, is investing heavily in gigafactories to secure domestic supply and expand exports. Government-backed funding in Japan aims to achieve 150 GWh annual battery output capacity by 2030, underscoring the region’s leadership

Renewable Energy and Storage Integration

The growing use of solar and wind energy has increased the need for reliable storage solutions. Batteries are essential for balancing intermittent energy supply, making them critical for grid stability. Countries with strong renewable energy programs are investing in large-scale energy storage systems (ESS), further boosting demand for advanced battery technologies.

Declining Lithium-ion Prices

Falling lithium-ion battery prices are making energy storage and EV adoption more affordable. This trend is expected to continue, widening the market for both consumer and industrial applications. However, supply chain risks related to raw materials such as lithium and cobalt remain a concern.

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Battery Market Segmentation

The battery market is segmented by type, technology, application, and geography, offering a clear view of its diverse opportunities:

• By Type
• Primary Batteries
• Secondary Batteries
• By Technology
• Lead-acid Battery
• Lithium-ion Battery
• Nickel-metal Hydride (NiMH) Battery
• Nickel-cadmium (NiCd) Battery
• Nickel-zinc (NiZn) Battery
• Flow Battery
• Sodium-sulfur (NAS) Battery
• Zinc-manganese Dioxide Battery
• Small Sealed Lead-acid Battery
• Other Technologies (Dual Carbon, Zinc-carbon, Silver-oxide, etc.)
• By Application
• Automotive Batteries (HEV, PHEV, EV)
• Industrial Batteries (Motive, Stationary, Telecom, UPS, ESS)
• Portable Batteries (Consumer Electronics)
• Power Tool Batteries
• SLI Batteries
• Other Applications
• By Geography
• North America (United States, Canada)
• Asia-Pacific (China, India, Japan, South Korea)
• Europe (Germany, France, UK, Italy, Russia)
• South America (Brazil, Argentina)
• Middle East & Africa (Saudi Arabia, UAE, South Africa)

Browse Top Key Players Profiles: https://www.mordorintelligence.com/industry-reports/battery-market/companies?utm_source=industrytoday

Key Players in the Battery Market

The global battery industry is fragmented, with several major companies competing across technologies and regions. Leading players include:

• Duracell Inc. – A household name in consumer batteries, focusing on reliability and brand strength.
• Panasonic Corporation – A key supplier of lithium-ion batteries, particularly for automotive applications.
• Contemporary Amperex Technology Co. Limited (CATL) – A dominant force in EV battery manufacturing, especially in Asia.
• BYD Co. Ltd – A Chinese company with strong presence in both EVs and battery production.
• Tesla Inc. – Known for its Gigafactories and integration of battery technology into EVs and energy storage solutions.

Conclusion:

While raw material supply challenges may pose risks, ongoing investments in gigafactories, declining lithium-ion prices, and supportive government policies are expected to sustain momentum.

For businesses, investors, and policymakers, the battery industry represents a critical opportunity to align with global energy and mobility trends. As demand accelerates, companies that can innovate, scale production, and secure supply chains will be best positioned to thrive in this dynamic market.

Explore Related Reports:

Industrial Battery Market - The Market report is segmented by technology (lithium-ion, lead-acid, nickel-based, and others), application (forklift and motive power, telecom backup, ups/data centres, grid-scale ess, and others), end-user industry (power and utilities, oil and gas, manufacturing and warehousing, telecom, and others)

Battery Cell Market - The market is divided into three main segments: by type (prismatic, cylindrical, pouch), by application (automotive, industrial, portable electronics, power tools, SLI, and other uses), and by geography (North America, Asia-Pacific, Europe, and other regions). This structure highlights the wide range of battery designs, end-use sectors, and global demand patterns.

Primary Battery Market - The primary battery market is segmented by type—covering alkaline, lithium, and other batteries—and by geography, including North America, Europe, Asia-Pacific, South America, and the Middle East & Africa. The report provides market size and revenue forecasts (USD) for each of these segments.

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