Battery Market, By Type (Primary Battery and Secondary Battery), By Technology (Lead-acid Battery , Lithium-ion Battery, Nickel-metal Hydride Battery, Nickel-cadmium Battery, Nickel–zinc Battery, Flow Battery, Sodium–sulfur Battery, Zinc-manganese Dioxide Battery, Small Sealed Lead-acid Battery , Other Technologies), By Application (Automotive Batteries, Industrial Batteries, Portable Batteries, Power Tools Batteries, SLI Batteries, Other Applications), By Geography (North America, Latin America, Europe, Asia Pacific, Middle East & Africa)

Published In : Feb 2025

Code : CMI5170

Pages :161

Formats :

Excel and PDF

Industry : Semiconductors

Battery Market Size and Trends

Global battery market is estimated to be valued at US$ 151.54 billion in 2025 and is expected to reach US$ 480.15 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 17.9% from 2025 to 2032.

Battery Market Key Factors

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Global battery market growth is driven by increasing demand for EVs and energy storage systems across the globe. Lithium-ion batteries continue to dominate the transportation and stationary storage applications due to their high energy density. Furthermore, decreasing prices of lithium-ion batteries makes EVs and energy storage more viable and affordable. Governments around the world are also supporting the shift to sustainable technologies by providing various incentives and subsidies for EVs and renewable energy projects. This increasing focus on reducing emissions is expected to boost demand for batteries over the next decade.

Rising Adoption of Electric Vehicles

Growing concern over environmental pollution and rising fuel costs have resulted in increased focus on developing more sustainable transportation solutions. Electric vehicles that run on advanced battery technologies are emerging as a viable alternative to fuel-based vehicles. Several automobile manufacturers have ramped up investments in electric vehicles in response to tightening emission norms and shifting consumer preferences towards green mobility options. Battery electric vehicles and plug-in hybrid electric vehicles provide comparable driving ranges to gasoline vehicles and allow consumers to refuel using electricity from the grid instead of gasoline. The upfront costs of EVs are compensated over time through lower fuel and maintenance expenses. Supportive government initiatives such as purchase incentives and investments in charging infrastructure are encouraging more consumers to make the switch to EVs. Major automakers are aggressively expanding their EV lineups with new models featuring longer driving ranges. This rising adoption of electric vehicles across passenger and commercial segments is anticipated to boost demand for advanced lithium-ion battery packs.

For instance, in September 2023, Gotion, a lithium-ion battery manufacturer, announced a US$ 2 billion investment in its inaugural factory in Manteno, Illinois, U.S. This facility, slated to become the largest EV battery production, will repurpose an existing Kmart distribution center and is projected to employ up to 2,600 workers. The plant will churn out 40 GWh lithium-ion battery cells and 10 GWh battery packs, focusing on energy storage system integration and supporting Illinois' climate change objectives. Gotion stands to gain significant state incentives and intends to erect a battery component factory in Michigan.