Next Generation Batteries Global Market Report 2025

The next generation batteries market size has grown strongly in recent years. It will grow from $4.73 billion in 2024 to $5.02 billion in 2025 at a compound annual growth rate (CAGR) of 6.2%. The growth observed in the historic period is attributed to the rising adoption of electric vehicles, increased integration of renewable energy, growing demand for consumer electronics, escalating energy storage requirements, and the implementation of government sustainability policies.

The next generation batteries market size is expected to see strong growth in the next few years. It will grow to $6.33 billion in 2029 at a compound annual growth rate (CAGR) of 6%. The projected growth in the forecast period is attributed to the expansion of grid modernization efforts, increased investment in research and development, higher demand for fast charging solutions, heightened concerns over carbon emissions, and the growing use of wearable technology. Key trends expected during the forecast period include progress in solid-state battery technology, adoption of dual carbon batteries, technological advancements in lithium-sulfur batteries, improvements in sodium-ion battery technology, and the emergence of quantum battery integration.

Rising demand for electric vehicles is expected to drive the growth of the next generation batteries market in the coming years. Electric vehicles (EVs) are automobiles powered wholly or partly by electricity, typically using batteries instead of traditional internal combustion engines. This increasing demand is largely fueled by economic advantages, as EVs offer lower operating costs, making them a cost-effective choice for consumers in the long run. Next-generation batteries, such as solid-state and lithium-sulfur types, improve EV performance by providing higher energy density, faster charging capabilities, longer lifespans, and greater safety, enhancing overall practicality and efficiency. For example, in April 2025, the European Automobile Manufacturers Association reported that battery-electric car sales rose by 23.9% in the first quarter of 2025, reaching 412,997 units and accounting for 15.2% of the EU market share. As a result, growing EV demand is contributing significantly to the expansion of the next generation batteries market.

Major companies in the next generation batteries market are prioritizing the development of advanced technologies such as EV battery systems to tackle challenges such as charging duration, energy capacity, and cost efficiency. EV battery systems are integrated power storage units that supply electricity to a vehicle’s motor, enabling propulsion and enhancing overall vehicle performance. For instance, in March 2025, BYD Auto Co. Ltd., a China-based automotive company, introduced the Next-Gen EV Battery System capable of delivering up to 400 km of driving range in just five minutes of charging. This groundbreaking system operates at 1,000 volts and offers ultra-fast charging speeds of up to 1,000 kW, using advanced lithium iron phosphate (LFP) technology. With its sophisticated thermal and battery management systems, this innovation allows models such as the BYD Han L and Tang L to recharge quickly and safely, drastically reducing downtime and improving user convenience.

In April 2024, Arkema S.A., a France-based adhesives manufacturer, acquired Proionic for an undisclosed sum. Through this acquisition, Arkema seeks to enhance its advanced battery materials portfolio by leveraging Proionic’s expertise in ionic liquids, which contribute to increased energy density, safety, and sustainability in next-generation batteries. Additionally, the acquisition supports Arkema’s growth in biomass processing and metal treatment, reinforcing its leadership in the advanced battery solutions sector. Proionic, based in Austria, specializes in the development and production of ionic liquids, which are critical components in the advancement of lithium-ion battery technology.

Major players in the next generation batteries market are Toyota Motor Corporation, Volkswagen AG, Samsung Electronics Co. Ltd., Ford Motor Company, General Motors Company, Bayerische Motoren Werke, Honda Motor Co. Ltd., Panasonic Holdings Corporation, LG Energy Solution Ltd., QuantumScape Corporation, SK On Co. Ltd., Build Your Dreams, ProLogium Technology Co. Ltd., Northvolt AB, Natron Energy Inc., ZincFive Inc., StoreDot Ltd., Factorial Energy Inc., Sion Power, Amprius Technologies Inc., Enovix Corporation, Showa Denko Materials, Blue Current Inc., and Solid Power Inc.

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

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

Next-generation batteries are advanced energy storage systems developed to surpass the limitations of conventional lithium-ion batteries by enhancing energy density, safety, affordability, sustainability, and longevity. These batteries utilize innovative materials, new chemical compositions, and unique structural designs to boost performance and tackle the environmental and resource-related issues of current technologies.

The primary types of next-generation batteries include lithium-sulfur, sodium-ion, solid-state, aluminum-ion, and flow batteries. Lithium-sulfur (Li-S) batteries, in particular, are rechargeable and feature sulfur as the cathode and lithium as the anode. They come in several formats, including cylindrical, prismatic, pouch, stacked, and flexible types. These batteries serve a wide range of applications, such as electric vehicles (EVs), consumer electronics, grid energy storage, industrial machinery, and portable power tools. End users span across industries such as aerospace and defense, automotive, telecommunications, healthcare, and consumer electronics manufacturing.

The next generation batteries market research report is one of a series of new reports that provides next generation batteries market statistics, including next generation batteries industry global market size, regional shares, competitors with a next generation batteries market share, detailed next generation batteries market segments, market trends and opportunities, and any further data you may need to thrive in the next generation batteries industry. This next generation 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.

The next generation batteries market consists of sales of battery packs or modules, portable energy storage devices, and smart battery systems. 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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