Substation Batteries Global Market Report 2025

The substation batteries market size has grown strongly in recent years. It will grow from $95.26 billion in 2024 to $104.71 billion in 2025 at a compound annual growth rate (CAGR) of 9.4%. The growth during the historic period can be attributed to the increasing electrification of transportation, expansion of electrical infrastructure, rising frequency of natural disasters, growing focus on sustainable infrastructure development, and increasing demand for electric vehicles.

The substation batteries market size is expected to see strong growth in the next few years. It will grow to $147.3 billion in 2029 at a compound annual growth rate (CAGR) of 9%. The growth during the forecast period can be attributed to the shift towards renewable energy sources, urbanization and infrastructure development, aging power grid infrastructure, rising power demand, and government incentives and subsidies. Major trends in the forecast period include advancements in battery technologies, improved battery management systems, integration with smart grids, development of solid state batteries, and progress in battery recycling.

The growing adoption of renewable energy sources is expected to drive the growth of the substation batteries market in the coming years. Renewable energy sources are forms of energy obtained from natural processes that are continuously replenished, including solar, wind, water, and biomass. Their adoption is increasing due to rising concerns over climate change, as they offer a cleaner alternative that reduces greenhouse gas emissions compared to fossil fuels. Substation batteries support renewable energy sources by storing excess electricity generated from intermittent sources such as solar and wind and releasing it when generation declines, ensuring a stable and reliable power supply. For example, in October 2024, according to the International Energy Agency IEA, a France based intergovernmental organization, renewables are expected to account for nearly 20 percent of total final energy consumption by 2030, up from 13 percent in 2023. Therefore, the growing adoption of renewable energy sources is driving the growth of the substation batteries market.

Key companies in the substation batteries market are focusing on developing advanced solutions such as energy storage systems ESS to improve the integration of renewable energy by addressing the intermittent nature of sources such as solar and wind. Energy storage systems ESS are designed to store energy for future use, helping balance supply and demand while enhancing grid reliability. For example, in March 2025, Atlas Copco, a Sweden based industrial company, launched the ZBC 1000 1200 energy storage system ESS. This system delivers 1 MW of power from a single unit, using advanced battery technology to ensure reliable energy supply while reducing emissions by up to 90 percent and lowering operational costs. It is ideal for microgrid applications in substations and for powering equipment such as electrical shovels and tunnel boring machines.

In February 2025, Eternity Technologies, a United Arab Emirates based lead battery manufacturer, acquired the EnerSys plant in India for an undisclosed amount. The site will be upgraded into a state of the art production facility to improve operational efficiency, integrate modern technologies, and meet high environmental standards. EnerSys is a US based manufacturer of substation batteries.

Major players in the substation batteries market are Contemporary Amperex Technology Co Ltd. (CATL), LG Energy Solution Ltd., Clarios LLC, GS Yuasa Corp., EnerSys, East Penn Manufacturing, Leoch International Technology Limited Inc., Amara Raja Batteries, Exide Technologies, Saft, Hoppecke Co., Sacred Sun, Coslight Technology, HBL Power Systems, Crown Battery Corp., Trojan Battery Company, Eternity Technologies FZ LLC, Banner GmbH, FAAM, Rolls Battery, and Microtex Energy Private Ltd.

North America was the largest region in the substation batteries market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in substation batteries report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

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 rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the utilities sector, particularly in power generation, grid infrastructure, and renewable energy projects. Higher duties on imported equipment such as turbines, transformers, solar panels, and battery storage systems have increased capital and operational costs for utility providers, forcing them to reconsider project timelines or pass on expenses to consumers through higher energy rates. The water and waste management segments are also affected, with tariffs driving up the cost of essential machinery, piping, and treatment technologies. Additionally, retaliatory tariffs have disrupted global supply chains for critical raw materials like rare earth metals used in clean energy technologies, further complicating the transition to sustainable energy sources. The sector must now prioritize domestic sourcing, digitalization, and efficiency-driven innovations to manage escalating costs while ensuring energy security and regulatory compliance.

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

Substation batteries are energy storage systems that supply reliable direct current DC power to support essential operations within electrical substations. They are engineered to ensure steady performance and maintain operational reliability both during normal operation and in cases of power disruptions or outages.

Key types of substation batteries include lead acid batteries, lithium ion batteries, nickel cadmium batteries, and others. Lead acid batteries are rechargeable electrochemical storage devices that generate electricity using lead dioxide and sponge lead plates submerged in sulfuric acid. These batteries are used in applications such as transmission substations, distribution substations, and more, serving end users in residential, commercial, industrial, utility, and other sectors.

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

The substation batteries market consists of sales of high-capacity battery racks, battery monitoring systems, battery chargers, battery cabinets, and modular 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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