Battery Pack Market Size - By Application (Electric Vehicles, Utility-Scale Batteries, Behind-the-Meter Batteries), By Battery Chemistry, Forecast, 2025 – 2034

Battery Pack Market Size

The global battery pack market size was valued at USD 139.8 billion in 2024 and is estimated to grow at a CAGR of 12.7% from 2025 to 2034. Rising global shift towards sustainable transportation supported by government promotions for EVs through subsidies, tax incentives, and stricter emissions regulations will accelerate the product adoption. As per IEA, electric car sales increased by nearly 25% in Q1 of 2024, along with the same growth in Q1 2022.
 

Growing global policies aimed at reducing carbon emissions will accelerate the adoption of battery technologies. Additionally, growing technological advancements such as the development of lithium-ion batteries, along with other chemistries such as sodium-ion, solid-state, and flow batteries with improved energy density, charging speed, and lifespan of batteries will uplift the product adoption.
 

Rising proliferation of smartphones, laptops, wearables, and portable devices will further improve the demand for compact, efficient battery packs, thereby fostering battery pack market outlook. According to the first survey on smartphone ownership by the Center, most Americans, approximately 98%, now possess a cellphone. Around 91% specifically own a smartphone, a significant increase from 35% in 2011.
 

Increasing demand for battery packs in industrial machinery, robotics, and grid stabilization solutions as a backup power during outages and peak load management will complement the industry statistics. Rising consumers and industries' prioritization of eco-friendly solutions made from recyclable materials will create lucrative opportunities for reusing components of battery.
 

Battery Pack Market Trends

• Growing awareness of environmental issues and rising stringent regulations on emissions have propelled the shift towards EVs, a major driver for battery packs adoption. The forecast for the year 2024 suggests that electric vehicles have the potential to achieve a market share of 45% in China, 25% in Europe, and over 11% in the U.S. Moreover, progress in battery technology, including Lithium Iron Phosphate (LFP) and solid-state batteries designed to improve energy density, life cycle, and safety will further foster rate of adoption.
   
• Rising investments in developing fast-charging technology will improve battery pack adoption. Companies are developing ultra-fast chargers that can recharge EV batteries within minutes instead of hours, improving business trend. Additionally, used EV batteries still retain up to 80% of their capacity, leading to a growing market for second-life applications. These repurposed battery packs are being utilized in stationary energy storage systems for homes, businesses, and grid applications, reducing waste and increasing affordability for energy storage solutions thereby boosting industry scenario.
   
• Growing companies’ expansion to overcome the product need and improve business revenue will foster the battery pack market growth. In February 2025, Kinetic Group launched a new plant in Ahmednagar, Maharashtra for battery production which entailed an investment of USD 5.8 million. The group is planning to enter the EV battery market and expects its investment to greatly assist in the advancement of EV technologies. Range-X, the latest addition to the plants, is poised to design and manufacture high-efficiency battery packs for two- and three-wheeled vehicles.
   
• Growing acceptance of solid-state batteries for energy storage systems will boost product development owing to their high energy density, rapid charging, and greater safety as compared to conventional lithium-ion batteries. Toyota and QuantumScape are among the companies making significant investments in this technology, which has the potential to transform electric vehicles and portable gadgets by increasing battery life and lowering the risk of overheating or fire hazards, therefore supporting business trends.
   

Battery Pack Market Analysis

• The battery pack market was valued at USD 99.8 billion, USD 121.2 billion and USD 139.8 billion in 2022, 2023 and 2024 respectively. The industry is segmented into nickel cobalt aluminum, lithium iron phosphate, nickel manganese cobalt, lithium manganese oxide and others based on battery chemistry.
   
• Nickel cobalt aluminum growth is expected to exceed USD 98 billion by 2034 due to their high energy density which makes them suitable for lightweight applications that require long operating hours. The growing use of batteries with longer cycle lives than other chemistries, which guarantee durability and cost efficiency in the long run, will improve the industry outlook. Additionally, recent advancements in thermal management systems aimed to address safety concerns associated with NCA batteries, such as overheating will complement the battery demand.
   
• The battery pack market from nickel manganese cobalt is expected to grow at a faster rate of 12% CAGR on account of its high energy density compared to other battery chemistries, making it an ideal choice for EVs and mobile devices, where battery weight and space are critical. Companies are coming up with different product range to boost product adoption. In September 2023, Turntide Technologies has launched the Turntide Lithium-ion NMC Battery Pack which boasts a modular structure that improves the energy density while reducing the dimensions and weight of the pack. The packs come in 44V and 52V which support air or liquid cooling.
   
• Lithium iron phosphate is expected to grow at a 13.8% CAGR driven by its safety, longevity, affordability, and sustainability. Compared to its NMC counterparts, LFP batteries are safer due to their decreased risk of thermal runaway. They also improve the longevity of EVs and energy storage by providing a longer cycle life—more than 4,000 charge cycles. Their cost advantage comes from the absence of expensive cobalt and nickel.

• Based on application, the battery pack market is segmented into electric vehicles, utility-scale batteries and behind-the-meter batteries. Electric vehicles segment holds a market share of 89% in 2024 on account of advancements in battery technology and large-scale manufacturing resulting in reduction in lithium-ion battery pack costs, dropping from USD1,100/kWh in 2010 to around USD 130/kWh in 2023.
   
• Improvements in energy density, fast charging, and durability have enhanced EV battery performance. Companies rising investments in solid-state batteries and LFP chemistry for their higher safety and longevity will uplift the product adoption. In August 2024, Samsung SDI came out with a new solid-state battery for electric vehicles that would enhance both performance and practicality of an electric vehicle. With the use of oxide solid-state technology, the battery achieves an astonishing 500 Wh/kg energy density. This is nearly double the current energy density average of 270 Wh/kg for automotive battery packs. This advancement promises to notably extend the driving range of EVs, underscoring a significant stride in battery technology.
   
• The battery pack market from utility-scale batteries are expected grow at a CAGR of over 13.1% by 2034. The swift increase in the adoption of renewable energy, including wind and solar, will increase the demand for battery packs as there will be a need for energy storage to accommodate the intermittent nature of these sources of renewable energy. Rising adoption of solutions offering peak lead management in utility applications by storing energy during off-peak hours and supplying it during peak periods will enhance the industry statistics.
   
• Behind-the-meter batteries are set to grow at a CAGR of over 6.1% by 2034 due to rising businesses and homeowner’s prioritization of decarbonization and carbon footprint reduction, accelerating the shift to BTM battery storage as a clean energy solution. Furthermore, rising solar and wind power adoption will boost the product adoption to provide on-site energy storage, ensuring a stable power supply even when generation fluctuates leading to business growth.

• As of 2024, North America holds more than 13% of the market share, which is expected to improve further by 2034. The U.S. battery pack market was valued at USD 12.2 billion, 14.9 billion, and 17.3 billion in 2022, 2023 and 2024 respectively.
   
• In the U.S. rising EV adoption, driven by government incentives, tax credits, and advancements in EV technologies will complement the product adoption. Furthermore, presence of key automakers such as Tesla, Ford, and General Motors and their investment in boosting the EV sector will enhance the product demand. For instance, in October 2024, Tesla announced its interest and investments of USD 3.5 billion in developing next generation battery pack with fewer parts, less weight and lower cost.
   
• In Europe, battery pack market is expected to grow by more than USD 118 billion by 2034. Growing battery innovations with significant advancements in lithium-ion, solid-state, and other emerging battery technologies will stimulate the industry scenario. Presence of strong environmental policies and regulations such as including the European Union’s Green Deal, aimed to reduce carbon emissions and achieve climate neutrality by 2050 will encourage automakers to transition to electric vehicles, accelerating the demand for EVs and, consequently, battery packs market.
   
• In Asia Pacific battery pack market is expected to grow by more than USD 255 billion due to booming EV industry in China, Japan, and South Korea supported by government initiatives coupled with rapid industrialization and urbanization will complement the product adoption. In the first half of 2024, China's new energy vehicle (NEV) sales reached approximately 4.94 million units, marking a significant year-on-year increase of 32%. Projections at that time estimated that annual NEV sales would surpass 11.5 million units by the end of 2024.These growing numbers will augment product demand.
   
• Furthermore, rising subsidies, tax benefits, and local manufacturing incentives to promote battery production in the region will foster the business trend. China’s NEV (New Energy Vehicle) policy, India’s FAME II scheme, and South Korea’s battery R&D funding have accelerated battery pack adoption.
   

Battery Pack Market Share

• Top three players, including Panasonic, Samsung and Blue Line Battery account for nearly 38.3% of the battery pack industry. These businesses are investing heavily in research and development to enhance battery pack performance, energy density, and safety. Such advancements help players meet the growing demand for high-performance and long-lasting batteries.
   
• Key players are forming alliances with automakers, renewable energy companies, and government bodies, allowing companies to co-develop customized battery solutions, access new markets, and share R&D costs.
   
• Companies are investing heavily in next-generation battery chemistries including solid-state batteries, silicon anodes, and lithium-sulfur batteries to enhance energy density, reduce weight, and extend lifespan. Furthermore, leading players collaborate with automakers, energy companies, and technology firms to secure long-term supply contracts.
   

Battery Pack Market Companies

• SAMSUN, a growing South Korean company in battery pack industry, posted quarterly revenue of USD 53 billion and USD 4.5 billion as operating profit in the quarter ended December 2024. In collaboration with General Motors (GM), Samsung SDI is investing approximately USD 3.5 billion to construct a new battery cell manufacturing plant in Indiana, USA. This facility is slated to commence operations in 2027, with an initial annual production capacity of 27 gigawatt-hours, potentially expanding to 36 GWh.
   
• Panasonic reported USD 56.8 billion net sales in 2024, and USD 56 billion in 2023. To meet growing demand, Panasonic is constructing a new battery plant in De Soto, Kansas, expected to begin operations in early 2025. This facility aims to bolster Panasonic's EV battery production capacity in North America, supplying major automakers and contributing to the regional economy.
   
• Blue Line Battery privately held company with estimated revenue of around USD 8.3 million is a growing player in the battery pack market. In January 2025, Blue Energy Motors has entered into an agreement with the Maharashtra government to establish a manufacturing facility capable of producing 30,000 electric trucks per year. The facility will also include a dedicated battery pack production line.
   

Eminent players operating in the battery pack market are:

• AGreatE
• Blue Line Battery
• FRIWO
• Omnitron Bulgaria OOD
• Panasonic
• PMBL Limited
• Rivian
• Rapport
• Samsung
• SK Innovation
• VARTA
   

Battery Pack Industry News

• In August 2024, Samsung SDI introduced its cutting-edge solid-state battery technology, designed to revolutionize EV performance. The advanced battery packs are currently being assessed by vehicle OEMs. Featuring an energy density of 500 Wh/kg—nearly double the industry standard—this innovation is expected to significantly boost vehicle driving range.
   
• In March 2021, Solvay's Battery Enclosure Materials Automation (BEMA) project, focused on creating an all-composite solution for energy-efficient battery packs, has secured significant funding from Innovate UK, part of the UK Research and Innovation agency.
   

The battery pack market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in “USD Billion” from 2021 to 2034, for the following segments:

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Market, By Application

• Electric Vehicles
• Utility-Scale Batteries
• Behind-the-Meter Batteries  

Market, By Battery Chemistry

• Lithium Iron Phosphate
• Nickel Cobalt Aluminum
• Nickel Manganese Cobalt
• Lithium Manganese Oxide
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • Spain
  • UK
  • Italy
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
• Middle East & Africa
  • Saudi Arabia
  • South Africa
• Latin America
  • Brazil
  • Argentina