Car Batteries Global Market Report 2025

The car batteries market size has grown steadily in recent years. It will grow from $24.48 billion in 2024 to $25.68 billion in 2025 at a compound annual growth rate (CAGR) of 4.9%. The growth in the historic period can be attributed to the growth of hybrid vehicles, demand for automotive batteries, demand for lead-acid batteries, the rise of deep cycle and gel batteries, and increasing emphasis on battery recycling.

The car batteries market size is expected to see strong growth in the next few years. It will grow to $31.29 billion in 2029 at a compound annual growth rate (CAGR) of 5.1%. The growth in the forecast period can be attributed to increasing global demand for electric vehicles, growing demand for stationary energy storage systems, rising consumer awareness, and increased energy density and range. Major trends in the forecast period include increasing adoption of lithium-ion batteries, development of advanced lead-acid batteries, integration of smart battery management systems, development of fast-charging capabilities, and growing focus on sustainable practices with advancements in battery recycling technologies.

The forecast of 5.1% growth over the next five years reflects a modest reduction of 0.8% from the previous estimate for this market.This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US through tariffs on lithium, nickel, and cobalt-based battery cells and battery management systems sourced from China and South Korea, raising EV battery pack costs and affecting price competitiveness.The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The car battery market is poised for growth due to increasing demand for electric vehicles (EVs). Electric vehicles are automobiles powered either entirely or partially by electricity stored in batteries. This demand is fueled by the environmental advantages and lower operating costs of EVs, making them increasingly popular among consumers and businesses. Car batteries in EVs serve essential roles in providing propulsion energy, supporting auxiliary systems, enabling regenerative braking, and ensuring overall vehicle functionality and safety. For instance, the Global EV Outlook 2023 report by the International Energy Agency revealed a 35% year-on-year increase in electric car sales, totaling 3.5 million in 2023 compared to 2022. Thus, the rising adoption of electric vehicles is driving the expansion of the car battery market.

Leading companies in the car battery market are prioritizing innovation with products such as superfast charging lithium iron phosphate (LFP) batteries to enhance performance and meet consumer expectations. These batteries charge significantly faster than standard ones, leveraging lithium iron phosphate for improved safety, durability, and thermal stability, making them ideal for electric vehicles. For example, in August 2023, Contemporary Amperex Technology Co., Limited (CATL) introduced Shenxing, the world’s first 4C superfast charging LFP battery. It offers a 400 km range with just a 10-minute charge and over 700 km on a full charge, achieved through advanced cathode technology and nano-crystallized LFP material for efficient lithium-ion extraction and rapid charging. Shenxing also boasts long-range capability, fast charging in varied temperatures, and enhanced safety features through innovative design and intelligent algorithms.

In April 2024, Advik, an India-based automotive component manufacturer, acquired Aceleron Energy for an undisclosed sum. This acquisition is part of Advik's strategy to expand its footprint in the electric vehicle (EV) and energy storage system (ESS) sectors, aiming to broaden its product portfolio and customer base while advancing next-generation energy storage solutions. Aceleron Energy, based in the UK, specializes in manufacturing lithium-ion batteries and 12V Essential batteries used in sports cars.

Car batteries, also referred to as automotive batteries, are rechargeable devices that supply electrical energy to operate a vehicle's starter motor, lights, and other electrical systems. They are indispensable for ensuring vehicles operate reliably by providing the necessary power to start engines and sustain electrical functions.

The primary categories of car batteries include valve-regulated lead-acid (VLA) batteries, flooded batteries, and other variants. Valve-regulated lead-acid (VRLA) batteries are a specific type of rechargeable battery engineered with a valve-regulated mechanism that manages the release of gases produced during charging. These batteries support various functions such as electric propulsion, starting, lighting, and ignition, distributed through diverse sales channels such as original equipment manufacturers (OEMs), automotive outlets, e-commerce platforms, wholesale clubs, and other channels.

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.

The sharp rise in U.S. tariffs and ensuing trade tensions in spring 2025 are placing significant strain on the transport sector, especially in areas such as fleet maintenance and logistics. Increased duties on imported commercial vehicles, tires, and engine parts have driven up operating costs for trucking and freight firms, forcing them to either raise shipping rates or accept lower profit margins. Airlines and maritime operators are also under pressure, as tariffs on aircraft components and shipbuilding materials have pushed capital expenditures higher. Meanwhile, retaliatory tariffs in key export markets have weakened demand for U.S.-manufactured transportation equipment, further squeezing revenues. To cope, the industry is turning to fuel efficiency measures, alternative supply sources, and greater automation to manage rising costs while maintaining dependable service.

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

Major companies operating in the car batteries market are Volkswagen Group, Stellantis NV, Mercedes-Benz Group AG, Hyundai Motor Company, Tesla Inc, Nissan Motor Co. Ltd., BYD Company Limited, Panasonic Corporation, Renault Group, Toyota Industries Corporation, LG Energy Solution, Samsung SDI, Clarios LLC, Chaowei Power Holdings Ltd., Exide Industries Ltd., East Penn Manufacturing Company, Amara Raja Energy & Mobility Limited, Saft, A123 Systems Inc., Motorcraft, CITROËN.

Asia-Pacific was the largest region in the car batteries market in 2024. The regions covered in the car batteries market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the car batteries market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The car batteries market consists of sales lead-acid batteries, lithium-ion batteries, battery cables and accessories, battery testers and analyzers, battery jump starters, and battery terminal cleaners and tools. 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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