Battery technology market to reach $137 billion by 2031
Asia Pacific is the largest market for battery tech with a share of 50%, followed by Europe and North America. In terms of products, lead-acid battery is the largest segment with a share of 55%.
The global market for battery technology was estimated to be worth USD 81.37 billion in 2024 and is forecast to reach USD 136.66 billion by 2031 with a CAGR of 7.8% during the forecast period 2025-2031, according to a report by research firm QY Research.
This expansion is fueled by increasing demand across diverse industries, advancements in technology, and the globalization of trade and supply chains. The market is poised for further growth, driven by innovation and the adoption of sustainable practices.
Asia Pacific is the largest market, with a share about 50%, followed by Europe and North America, QY Research said in a media release. In terms of products, lead-acid battery is the largest segment, with a share of nearly 55%. In terms of application, the largest application is passenger vehicles, followed by commercial vehicles and industrial vehicles.
The global battery technology market is at the forefront of a transformative era, driven by the increasing demand for efficient, sustainable and high-performance energy storage solutions.
“As the world transitions toward renewable energy, electric mobility, and smart technologies, batteries have become the cornerstone of modern innovation,” the report says. “From powering electric vehicles (EVs) to enabling grid storage and portable electronics, battery technology is reshaping industries and redefining how we store and use energy.”
Market leaders include Johnson Controls, Chaowei Power, GS Yuasa, Exide Technologies and CATL.
The global shift toward electric mobility is one of the most significant drivers of the battery technology market, the report says. Lithium-ion batteries, with their high energy density and long cycle life, are the preferred choice for EVs. Governments worldwide are implementing policies to promote EV adoption, further accelerating demand for advanced battery technologies.
“As the world embraces solar, wind, and other renewable energy sources, the need for efficient energy storage systems has grown,” the media release says. “Batteries play a critical role in stabilizing grids, storing excess energy, and ensuring a reliable power supply. Technologies like flow batteries and solid-state batteries are gaining traction for large-scale energy storage applications.”
The proliferation of smartphones, laptops, wearables and other portable devices has fueled the demand for compact, high-capacity batteries. Innovations in battery technology are enabling longer battery life, faster charging and improved safety for consumer electronics.
Emerging trends in battery tech include solid-state batteries, sodium-ion batteries, battery recycling and second-life applications, and AI and smart battery management, the report says.
Despite its rapid growth, the battery technology market faces challenges such as high production costs, supply chain constraints for raw materials like lithium and cobalt, and safety concerns related to battery fires.
