Batteries Market Report 2026

The batteries market size has grown strongly in recent years. It will grow from $134.74 billion in 2025 to $145.43 billion in 2026 at a compound annual growth rate (CAGR) of 7.9%. The growth in the historic period can be attributed to increasing demand for portable electronic devices, growth in automotive electrification, limited energy storage technologies, rising industrial applications, adoption of lead-acid and lithium-ion batteries.

The batteries market size is expected to see strong growth in the next few years. It will grow to $205.14 billion in 2030 at a compound annual growth rate (CAGR) of 9%. The growth in the forecast period can be attributed to demand for high energy density batteries, growth in renewable energy storage, advancements in solid-state and sodium-ion batteries, government incentives for clean energy, expansion of electric vehicle infrastructure. Major trends in the forecast period include solid-state battery development, fast charging technologies, battery recycling & circular economy initiatives, advanced battery management systems (bms), integration of energy storage with renewable energy.

The increasing demand for electric vehicles is expected to propel the growth of the battery market going forward. Electric vehicles (EVs) are powered primarily by electricity. Batteries in EVs store and supply the electrical energy required to drive the vehicle’s motors, allowing them to operate without fossil fuels and offering a more sustainable alternative to conventional gasoline-powered vehicles. For instance, in January 2024, a report by the International Council on Clean Transportation, a US-based professional non-profit organization, indicated that the share of new vehicle sales that are plug-in electric rose to around 7% in 2022 and exceeded 10% by Q3 2023. Therefore, the increasing demand for electric vehicles is driving the growth of the battery market going forward.

The increasing energy storage for renewable energy is expected to propel the growth of the batteries market going forward. Renewable energy refers to energy sourced from natural resources that are replenished on a human timescale. Expanding energy storage for renewable energy is crucial to maintain a stable and reliable power supply, as it helps balance intermittent generation from sources like solar and wind, storing excess energy for use during periods of high demand or low generation. Batteries play a key role by storing surplus electricity generated during peak renewable output, which can then be discharged when generation is low or demand is high, ensuring a consistent energy supply. For instance, in 2024, the Clean Energy Council, an Australia-based membership organization, reported that renewable energy accounted for 39.4% of Australia’s total energy, up from 35.9% in 2022, while 27 utility-scale battery projects with 5 GW/11 GWh capacity were under construction, representing a record investment of AUD 4.9 billion. Therefore, the increasing energy storage for renewable energy is driving the growth of the battery market.

Major companies in the batteries market are committed to developing innovative products, particularly focusing on electric vehicle (EV) batteries, to ensure the delivery of reliable services to their customers. EV batteries are rechargeable energy storage devices specifically designed to power the electric motors of electric vehicles (EVs). An example of this innovation can be seen in Volkswagen, a German-based company well-known for manufacturing batteries for electric vehicles, which introduced the Astroinno, a new EV battery in May 2023. The Astroinno battery boasts an impressive 1000 km range, exceeding the typical lithium-iron-phosphate (LFP) batteries in terms of energy density while remaining cost-effective compared to nickel and cobalt-based batteries. With this new battery, EVs equipped with a 140 kWh battery pack can achieve a remarkable driving range of more than 1,000 km.

Major companies operating in the batteries market are Samsung SDI Co. Ltd., LG Chem Ltd., BYD Electronic Company Limited, TDK Corporation, Panasonic Corporation, Chaowei Power Holdings Ltd., GS Yuasa Corporation, SK Inc., Berkshire Hathaway Inc., China Aviation Lithium Battery Co. Ltd., Hefei Guoxuan High-Tech Power Energy Co. Ltd., Sunwoda Electronic Co. Ltd., Farasis Energy Inc., E-One Moli Energy Corp., EVE Energy Co. Ltd., Hitachi Chemical Co. Ltd., Johnson Controls International plc, Kokam Co. Ltd., Tianjin Lishen Battery Co. Ltd., Murata Manufacturing Co. Ltd., Dongguan Boliwei Battery Co. Ltd., Northvolt AB, Saft Groupe SA, OptimumNano Energy Co. Ltd., Tesla Inc., A123 Systems LLC, Toshiba Corporation, VARTA AG, Wanxiang Group Corporation, Winston Global Energy Limited, Zhejiang Narada Power Source Co. Ltd., Exide Industries Limited, Amara Raja Batteries Limited.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have affected the battery market by increasing the cost of importing key raw materials such as lithium, cobalt, and nickel, which are essential for battery production. The automotive and portable battery segments are most impacted, particularly in regions such as North America and Europe that rely on imports from Asia-Pacific hubs. While tariffs have increased production costs, they have also encouraged local manufacturing and investment in domestic battery production capabilities, potentially boosting regional supply chain resilience.

The batteries market research report is one of a series of new reports that provides batteries market statistics, including batteries industry global market size, regional shares, competitors with a batteries market share, detailed batteries market segments, market trends, and opportunities, and any further data you may need to thrive in the batteries industry. This batteries market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

A battery is an electrochemical device comprising one or more electrochemical cells that can be charged using an electric current and discharged as needed. These devices consist of multiple electrochemical cells connected to external inputs and outputs.

The primary types of batteries are secondary batteries and primary batteries. Secondary batteries are a batch system in which the active materials are the electrodes. These electrodes are consumed by the reaction during discharge and regenerate during the charging process. This reaction continues until the active material is depleted. The equipment can be operated through both online and offline modes. Various sales channels, including original equipment manufacturers (OEM) and aftermarket, are used for automotive batteries, industrial batteries, portable batteries, power tool batteries, starting, lighting, and ignition batteries (SLI batteries), and other applications.Asia-Pacific was the largest region in the batteries market in 2025. Western Europe was the second largest region in the batteries market. The regions covered in the batteries market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the batteries market report are China, India, Japan, Australia, Indonesia, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, Taiwan, New Zealand, UK, Germany, France, Italy, Spain, Austria, Belgium, Denmark, Finland, Ireland, Netherlands, Norway, Portugal, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The batteries market consists of sales of lead acid batteries, lithium-ion (Li-Ion) batteries, nickel-cadmium (Ni-cd), nickel metal hydride batteries, alkaline primary batteries, lithium primary batteries, and other batteries. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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