Electric Battery Market Size, Share, Growth Analysis, By Product(Lead Acid and Lithium Ion), By Application Outlook(Automotive and Industrial Battery), By End User(Aerospace and Automotive), By Region - Industry Forecast 2024-2031

Global Electric Battery Market size was valued at USD 95.2 billion in 2022, USD 132.6 in 2023 and is projected to grow USD 242.53 billion by 2031, growing at a CAGR of 14.4% in the forecast period (2024-2031).

The automotive industry is using electric vehicles (EVs) to replace fossil fuels like petrol and diesel as they emit fewer emissions, are eco-friendly, it can be charged with renewable energy sources and will eventually result in lower electricity costs. As a result, the EV market is currently the largest for electric batteries. In addition, the relatively low road tax and registration payments linked to electric vehicles are anticipated to have an impact on market expansion. Given the decrease in battery costs and growing customer awareness of electric vehicles, there was a sign of the market's resilience early on when activity picked back up by the end of 2020.

On the other side, lithium-ion batteries are expected to overtake lead acid batteries in various applications, including autos, storage, plug-in electric vehicles, and electric vehicles during the forecast period. The expansion of the battery market is driven by the high demand for portable electronics, such as fitness bands and LCDs, tablets, smartphones, and wearable technology. Due to technical developments in terms of cost-effectiveness, improved efficiency, and product innovation, the market is anticipated to rise significantly. The recent switch from fossil fuels to renewable energy sources has resulted in a surge in global electrification and energy storage. The e-mobility sector is predicted to cause a large increase in the demand for batteries alone. With the EV industry driving the trend, lithium-ion battery solutions are likely to become the norm soon.