Secondary Battery Market Size, Share, and Industry Analysis By Technology (Lead Acid Battery, Lithium Ion Battery, and Others), By Application (Automotive Batteries, Industrial Battery, Stationary, and Others), and Regional Forecast till 2032

The global secondary battery market size was valued at USD 123.07 billion in 2024. The market is projected to grow from USD 151.49 billion in 2025 to USD 648.74 billion by 2032, exhibiting a CAGR of 9.54% during the forecast period. The global secondary battery market is experiencing a surge in demand, driven primarily by the rapid growth of electric vehicles (EVs) and renewable energy storage systems. As consumers and businesses seek more sustainable and efficient energy solutions, secondary batteries are becoming an essential component. Lithium-ion batteries offer a high energy-to-weight ratio, making them ideal for portable devices and EVs.

In July 2024, Chinese electric car maker BYD announced that it would surpass Tesla in electric vehicle (BEV) sales in 2024. This is a big change in the global electric car market.

Chinese battery makers have stirred up the industry with their new lithium battery pack, which has a range of 1.5 million kilometers.

Secondary Battery Market Driver

Increasing Demand for Secondary Battery in Consumer Electronics to Drive the Market Growth

The proliferation of consumer electronics has been a significant catalyst for the growth of the secondary battery market. As consumers increasingly rely on portable and wireless devices, the demand for high-performance, long-lasting batteries has soared. The trend toward smaller, more compact devices has necessitated the development of batteries with higher energy density and reduced size. The increasing popularity of wireless devices, such as smartphones, tablets, and laptops, has driven the need for reliable and efficient batteries.

Secondary Battery Demand Market Restraint

Technological Challenges May Hinder Secondary Battery Market growth 

Ensuring the safe operation and handling of batteries is crucial, especially in applications such as electric vehicles. Battery fires and thermal runaway incidents can pose significant risks. Developing efficient recycling processes for used batteries is essential to minimize environmental impact and recover valuable materials. Challenges include the complexity of battery chemistry and the need for specialized infrastructure.

Secondary Battery Market Opportunity

Advancements in Battery Technology to Open Doors to New Avenues

Secondary batteries enable cordless operation of power tools, offering greater flexibility and convenience for workers. Advancements in battery technology have led to increased power and runtime, making cordless tools more competitive with corded alternatives. Secondary batteries provide the power needed for mobile robots and automated systems to operate independently, enhancing efficiency and productivity.

Segmentation

Key Insights

The report covers the following key insights:

• Latest Technological Advancements
• Key Emerging Trends – For Major Countries
• Key Industry Developments (Mergers, Acquisitions, and Partnerships)
• Insight on Regulatory Landscape
• Impact of COVID-19 on the Market 

Analysis by Technology

Based on technology, the market is divided into lead acid battery, lithium ion battery, and others.

Lead acid batteries have seen a significant share in recent years. Lead-acid batteries are generally more affordable than other battery technologies, making them a viable option for applications where cost is a primary concern.

Lithium-ion batteries are the second dominating segment in the secondary battery market. They offer a high energy-to-weight ratio, making them ideal for portable devices such as smartphones, laptops, and tablets. They can withstand a large number of charge-discharge cycles without significant degradation in performance, making them suitable for long-term applications.

Analysis by Application

Based on application, the market is subdivided into automotive batteries, industrial battery, stationary, and others.

The automotive batteries segment holds a significant share of the secondary battery market. As the demand for EVs continues to rise, so does the need for high-performance batteries to power them. Hybrid vehicles, which combine electric and gasoline power, also require secondary batteries for their electric motors. For instance, according to the International Energy Association, the electric car market is witnessing significant growth, with sales anticipated to have touched around 14 million in 2023. The contribution of electric cars in total sales has surged from ~4% in 2020 to ~18% in 2023.

In addition, EV sales are anticipated to continue to grow considerably in 2024. Around 3 million electric cars were sold in the first quarter, which is around 25% more than in the same period in the previous year. 

The industrial battery segment is the second dominating segment in the secondary battery market. Cordless power tools, such as drills, saws, and grinders, rely heavily on secondary batteries for their operation. The increasing demand for portable and convenient tools has driven the growth of this market.

Regional Analysis

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Based on region, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

The region has a well-established automotive industry, leading to a significant demand for automotive batteries, particularly for electric vehicles (EVs). North American companies have been at the forefront of battery technology research and development, driving innovation and improving battery performance.

Europe is the second-largest market. Europe has a strong commitment to sustainability and renewable energy, driving the demand for secondary batteries for energy storage and electric vehicles.

Key Players Covered

The global secondary battery market is fragmented, with the presence of a large number of group and standalone providers.

The report includes the profiles of the following key players:

• Tianjin Lishen Battery Joint-Stock Co., Ltd (China)
• BYD Global (China)
• Tesla (U.S.)
• Contemporary Amperex Technology Co., Limited. (China)
• Resonac (Japan)
• Duracell Inc. (U.S.)
• Samsung SDI Co,. Ltd (South Korea)
• EnerSys (U.S.)
• Saft Group SA (France)
• GS Yuasa International Ltd (Japan)
• Panasonic Corporation (Japan)
• LG Chem (South Korea)

Key Industry Developments

• In April 2024, Panasonic Energy Co., Ltd., a Panasonic Group company, completed the construction of a new manufacturing battery production development facility at the Suminoe plant in Osaka, Japan. This advanced facility, dedicated to the next generation, aims to strengthen the company's manufacturing competitiveness and expand its global production capacity, becoming a center for the development of manufacturing process technology.
• In February 2024, General Motors plans to spend nearly USD 19 billion over the next decade through a new supplier agreement to source critical materials for use in electric vehicle batteries from LG Chem. The long-term supply agreement would see LG Chem supply GM with more than 500,000 tonnes of cathode materials, including nickel, cobalt, manganese, and aluminum, from 2026 to 2035.