Industrial Battery Market Analysis by Mordor Intelligence
The Industrial Battery Market size is estimated at USD 36.07 billion in 2025, and is expected to reach USD 80.37 billion by 2030, at a CAGR of 17.38% during the forecast period (2025-2030).
Falling lithium-ion prices, expanding grid-scale storage projects, and the march toward warehouse automation position batteries as indispensable infrastructure for energy‐transition agendas. Heightened policy support in the United States and Europe spurs fresh manufacturing capacity, while Asia-Pacific leverages integrated supply chains to keep cost leadership. Consolidation is gathering speed as leading cell makers move upstream into raw materials and downstream into systems integration to secure margins, offset mineral price volatility, and comply with tightening safety standards. At the same time, second-life leasing models, micro-grid deployments, and the rise of sodium-ion alternatives are widening the addressable pool of applications and anchoring long-term demand for the industrial battery market.
Key Report Takeaways
- By technology, lithium-ion held 51.16% of the industrial battery market share in 2024; sodium-ion is projected to grow at an 18.41% CAGR through 2030.
- By application, forklift and motive power led with 31.47% revenue share in 2024, while automated guided vehicles are forecast to expand at an 18.53% CAGR to 2030.
- By end-user industry, the power and utilities segment accounted for 37.74% of the industrial battery market size in 2024 and is growing at an 18.07% CAGR through 2030.
- By geography, Asia-Pacific commanded 49.81% of the industrial battery market in 2024; Asia-Pacific records the fastest projected CAGR at 19.45% to 2030.
- CATL, BYD, LGEnergySolution, EnerSys, and EastPenn collectively held a major share of 2024 revenues, underscoring a moderately fragmented competitive field.
Global Industrial Battery Market Trends and Insights
Drivers Impact Analysis
Driver | ( ~ ) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Declining lithium-ion battery cost curve | +3.2% | Global, early gains in China and North America | Medium term (2-4 years) |
Renewable-powered ESS build-outs | +2.8% | Global, high in Asia-Pacific and North America | Long term (≥ 4 years) |
Warehouse automation & AGVs surge | +2.1% | North America & EU core, spill-over to APAC | Short term (≤ 2 years) |
DC micro-grids in data centres | +1.9% | Global, early adoption in North America | Medium term (2-4 years) |
Telecom tower storage mandates | +1.5% | APAC and MEA, latent in Latin America | Short term (≤ 2 years) |
OEM-driven 2nd-life leasing models | +1.2% | North America & EU pilots, global scaling | Long term (≥ 4 years) |
Source: Mordor Intelligence
Declining Lithium-Ion Battery Cost Curve
Average lithium-ion pack prices fell 89% between 2010 and 2024 to USD 139 /kWh and are trending toward the USD 100 /kWh tipping point that unlocks mass industrial adoption. Global nameplate capacity rose from 95 GWh in 2020 to more than 1,200 GWh in 2024, driving scale economies and higher factory utilization in China. LG Energy Solution’s Arizona complex will add 43 GWh of annual output from 2025, targeting production costs 25% below prevailing North American averages. Lower prices widen the installed base, enabling battery-as-a-service models that shift capex to opex and reduce customer adoption risk. The virtuous loop of falling prices and rising volumes is expected to solidify lithium-ion’s leadership within the industrial battery market while paving the way for high-volume sodium-ion and solid-state introductions later in the decade.
Renewable-Powered ESS Build-Outs
Global grid-scale battery additions reached 15 GW in 2024, as utilities integrate storage to stabilize networks with renewable penetration above 30%.[1]“Global Energy Storage Installations Reach 15 GW in 2024,” Energy Storage News, energystoragenews.com California alone fast-tracked 4.6 GWh worth of projects, while Queensland commissioned multiple 300-500 MWh systems to back its 50% renewables target. Beyond the utility domain, industrial micro-grids pair rooftop solar with on-site batteries to shave demand charges and guarantee power continuity. Cost declines, modular architectures, and streamlined procurement frameworks make batteries the least-cost solution for frequency control and capacity reserves, yielding a structural tailwind for the industrial battery market.
Warehouse Automation & AGVs Surge
The global AGV fleet grows 35% annually as e-commerce fulfillment centers automate to counter labor shortages.[2]“AGV Adoption Accelerates in Fulfillment Centres,” Rockwell Automation, rockwellautomation.com Forklift electrification forms the backbone of this shift: lithium-ion modules enable rapid opportunity charging, eliminate battery swap rooms, and extend cycle life beyond 4,000 deep discharges. Amazon, JD.com, and DHL operate thousands of battery-powered robots that demand high-throughput charging infrastructure, nudging integrators to specify premium chemistries. Continuous operation requirements spur innovation around high-power LFP packs capable of full recharge in under 60 minutes, reinforcing advanced chemistry pull-through in the industrial battery market.
DC Micro-Grids in Data Centres
Hyperscale operators replace legacy AC architectures with DC micro-grids that couple solar arrays, fuel cells, and battery banks to trim 10-15% conversion losses.[3]“Grid-Interactive UPS for Data Centres,” Microsoft, microsoft.com Batteries now deliver backup, peak shaving, and grid-service revenues in unified systems, shortening payback to under three years in many North American sites. Google’s aggregated renewable portfolio surpasses 10 GW, and colocated storage ensures 24/7 clean-energy matching for latency-sensitive compute workloads. Edge data centres in regions with unstable grids replicate the model, creating a fast-growing niche that demands high-cycling, long-life battery solutions and cements data-centre power as a strategic growth pillar within the industrial battery market.
Restraints Impact Analysis
Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Critical-mineral price volatility | -2.3% | Global, with acute impacts in regions dependent on imports | Short term (≤ 2 years) |
Lead-acid pollution regulations | -1.8% | EU and North America primary, spreading to APAC urban centers | Medium term (2-4 years) |
Solid-state tech "wait-and-see" effect | -1.4% | Global, concentrated in premium applications and early adopters | Medium term (2-4 years) |
Rising BESS fire-risk insurance costs | -1.1% | North America & EU primary, with regulatory spill-over to APAC | Short term (≤ 2 years) |
Source: Mordor Intelligence
Critical-Mineral Price Volatility
Lithium carbonate prices spiked 1,000% from 2020-2022 before sliding 80% in 2024, disrupting procurement strategies and margin planning.[4]“Global Critical Mineral Outlook 2025,” International Energy Agency, iea.org Cobalt and nickel exhibit similar gyrations driven by geopolitical tensions and export restrictions in the Democratic Republic of Congo and Indonesia. Minerals account for up to 50% of lithium-ion system cost; volatility, therefore, translates into wide swings in projected total cost of ownership. Manufacturers hedge through multi-year offtake agreements, diversified feedstock, and recycling programs, but smaller players face balance-sheet pressure. Prospectors of sodium-ion and iron-based chemistries position their technologies as buffers against price shocks, creating a countervailing trend that tempers volatility risk for the industrial battery market.
Lead-Acid Pollution Regulations
Stricter emissions caps under the 2024 US EPA review raise compliance costs for lead smelters and recyclers by an estimated 18%. The European Battery Regulation imposes cradle-to-grave reporting obligations and extended producer responsibility that erodes lead-acid’s standby power cost advantage. California’s proposal to restrict indoor use of lead-acid forklifts signals a broader health-driven phaseout trajectory. Producers respond with closed-loop recycling upgrades and cleaner pasting processes, yet capital outlays tighten margins and quicken customer migration to lithium-ion. The net impact is a gradual contraction of lead-acid volumes, reallocating share toward advanced chemistries and reinforcing growth prospects for the industrial battery market.
Segment Analysis
By Technology: Lithium-Ion Dominance Accelerates
Lithium-ion captured 51% of the industrial battery market share in 2024, underpinned by an 89% decade-long cost plunge and superior round-trip efficiency. The segment is projected to expand at an 18% CAGR to 2030 as LFP formulations deliver 95% capacity retention after 6,000 cycles, pushing the lifetime cost of ownership below USD 0.08 per kWh delivered. Sodium-ion enters commercial scale via CATL’s 2024 launch, offering 30% lower material costs and competitive performance for stationary storage. Flow batteries hold a foothold in applications requiring more than eight-hour discharge; a 100 MW/400 MWh vanadium redox plant in China illustrates bankable 20-year lifespans. Nickel-cadmium and nickel-metal hydride supply harsh-environment niches where -40 °C to 70 °C operation is essential, notably in remote oilfields. Solid-state prototypes promising 50% higher energy density line up for pilot production after 2027, with global automakers backing production qualification lines jointly.
The industrial battery market size for lithium-ion systems is forecast to climb from USD 18.4 billion in 2025 to USD 47.6 billion by 2030. Continuous scale-up dampens capital intensity per GWh, encourages vertical integration, and widens the performance gap with legacy chemistries. Simultaneously, innovation on high-manganese cathodes, silicon anodes, and high-voltage electrolytes intends to further trim unit costs and sharpen lithium-ion’s value proposition. Suppliers invest in Gigafactory-adjacent recycling hubs to harvest cobalt, nickel, and lithium, underpinning circular-economy credentials required under new EU stewardship rules. The combined effect cements lithium-ion’s leadership while allowing complementary chemistries to secure clearly defined roles, ensuring technology diversity within the industrial battery market.
Note: Segment shares of all individual segments available upon report purchase
By Application: Industrial Automation Drives Growth
Forklift and motive power solutions commanded 31% of revenue in 2024, rising from 24/7 e-commerce fulfillment and robotics adoption. Lithium-ion platforms cut charging downtime by 70%, lift equipment uptime, and eliminate acid-spill hazards, creating a tangible operational payback. The industrial battery market size for warehouse equipment will reach USD 19.7 billion by 2030 at an 18.5% CAGR. Automated guided vehicles, the segment’s fastest-growing sub-category, record 40% annual unit increases as sensors, telematics, and 5G connectivity enable higher autonomy classes.
Grid-scale energy storage is the second-largest application, bolstered by utility mandates for renewable integration and capacity adequacy. Battery-backed peaker replacements in the United States and Australia now routinely surpass 100 MW four-hour specifications. UPS and data centre solutions form a high-margin application where downtime penalties justify premium chemistries and intelligent battery management. Telecom tower electrification grows steadily; 5G densification increases site power draw, requiring chemistry shifts toward high-rate capable lithium-ion. Rail, marine, and off-highway vehicles present emergent growth pools as emissions legislation tightens around ports and urban rail corridors, further expanding demand across the industrial battery market.
By End-User Industry: Power Sector Transformation
Power and utilities absorbed 38% of 2024 volumes and grew 18% annually as grids migrated from centralized fossil plants to renewable-led configurations. Batteries now deliver frequency regulation, black-start, capacity reserves, and congestion relief in vertically integrated and deregulated markets. Utility customers' industrial battery market share is expected to surpass 40% by 2030 as regulatory frameworks in the United States, Japan, and India formalize storage as a tradable asset class. Manufacturing and warehousing are the second-largest demand block, propelled by robotics and lean operations that rely on battery runtime predictability.
Oil and gas installations adopt hybrid power modules that trim diesel fuel burn by 15-20%, translating into lower maintenance and carbon intensity. The West Mira drilling rig achieved a 42% drop in generator runtime with a 6 MWh lithium-ion overlay. Telecom operators extend backup durations to handle 5G traffic surges, and edge compute nodes multiply storage nodes across urban footprints. Infrastructure owners in airports, ports, and railways integrate battery banks into micro-grids to shave peak tariffs and support resilience mandates, broadening the industrial battery market’s sectoral scope.

Geography Analysis
Asia-Pacific retained a 50% revenue share in 2024, driven by cost-efficient giga-scale factories, government incentives, and vertically integrated supply chains. China accounts for two-thirds of regional capacity, with single plants exceeding 40 GWh annually. Japan's material science prowess and South Korea's premium cell expertise reveal a robust ecosystem that keeps regional prices 15-20% below Western benchmarks. Asia-Pacific's industrial battery market size is set to climb at a 19.45% CAGR, fueled by domestic renewables targets, export-oriented manufacturing, and accelerating electric-vehicle infrastructure that shares common supply chains with stationary storage.
North America is one of the fastest-growing developed regions, through 2030, due to the Inflation Reduction Act incentives, defense-oriented supply-chain reshoring, and abundant renewable resources. Between 2022-2025, announced investments exceed USD 100 billion, led by LG Energy Solution's USD 5.5 billion Arizona plant and Tesla's USD 200 million megafactory in Texas. Federal loan guarantees and production tax credits lower capital hurdles, while state-level fast-track permits compress project timelines.
Europe pursues strategic autonomy via the Green Deal Industrial Plan and European Battery Alliance, yet high energy costs and permitting complexity slow build-out. Germany, Sweden, and Hungary host most projects; Norway and Finland leverage low-carbon power to attract anode and cathode processing. The Middle East and Africa represent nascent but promising markets as off-grid solar plus storage displaces diesel generators; South Africa's REIPPP programme and the UAE's smart-city ambitions drive early adoption. Latin America's lithium triangle stimulates downstream investment discussions, positioning the region as a resource hub and a future manufacturing base for the industrial battery market.

Competitive Landscape
The industrial battery market features moderate fragmentation, with the top five suppliers accounting major share of 2024 revenues. CATL, BYD, LG Energy Solution, Samsung SDI, and Panasonic dominate lithium-ion volumes through enormous scale and broad chemistry portfolios. EnerSys and East Penn defend lead-acid incumbency by modernizing plants, adding partial lithium-ion lines, and securing recycling loops. Consolidation accelerates as players lock in raw material offtake, absorb integrators, and pursue direct-to-end-user channels. LG Energy Solution’s USD 1.4 billion US stationary storage plant exemplifies vertical integration: cathode to cell to rack.
Scale is now the key entry barrier. Gigafactory economies of scope allow leading firms to quote system prices 10-15% lower than tier-2 rivals while funding intensive R&D into solid-state prototypes. Tesla leverages pack-level design integration plus proprietary software to carve a premium position in grid storage and commercial micro-grids. Chinese champions capture emerging markets by bundling EPC services with subsidized financing, though Western buyers increasingly weigh supply-chain security, environmental disclosures, and cybersecurity in sourcing decisions.
Technological differentiation persists in specialist niches. Saft’s nickel-cadmium products excel in high-temperature oilfield and rail signaling, commanding price premiums. ESS Inc.’s iron-flow technology offers 12-hour durations attractive for wind-rich grids in Australia and the United States. Patent filings in solid-state chemistry swelled 300% since 2022, reflecting an arms race that could reorder competitive rankings after 2027. Meanwhile, warranty analytics and digital twins become critical to securing competitive advantage, lowering lifetime service costs, and strengthening customer retention in the industrial battery market.
Industrial Battery Industry Leaders
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EnerSys
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East Penn Manufacturing
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GS Yuasa Corporation
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Exide Industries
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Saft Groupe SA
- *Disclaimer: Major Players sorted in no particular order

Recent Industry Developments
- June 2025: Prevalon commissioned an 80 MW battery storage system for Idaho Power, underscoring utility confidence in large-scale batteries for grid stabilization.
- June 2025: Akaysha Energy initiated commissioning of a 300 MWh project in Queensland, growing Australia’s storage footprint.
- April 2025: Strata Clean Energy broke ground on a 150 MW/600 MWh facility in Arizona, reflecting steady US utility-scale momentum.
- March 2025: Tesla announced a USD 200 million battery megafactory in Brookshire, Texas, to meet surging stationary demand.
Global Industrial Battery Market Report Scope
Industrial batteries are sources of electrical energy that are generated from electrochemical reactions. Industrial batteries are an important part of uninterrupted power supply (UPS) systems, which are widely used for stationary or mobile applications.
The industrial battery market is segmented by technology, application, end-user, and geography. By technology, the market is segmented into lithium-ion battery, lead-acid battery, and other technologies (nickel cadmium, nickel metal hydride, zinc-carbon, etc.). By application, the market is segmented into forklift, telecom, UPS, and other applications. By end-user, the market is segmented into the power sector, oil & gas sector, manufacturing sector, telecom, and other end-users. The report also covers the market size and forecasts for the industrial battery market across major regions, such as North America, Europe, Asia-Pacific, South America, and Middle-East and Africa.
For each segment, market sizing and forecasts have been done based on revenue (USD).
By Technology | Lithium-ion | ||
Lead-acid | |||
Nickel-based | |||
Others (incl. Flow Battery, Sodium-ion) | |||
By Application | Forklift and Motive Power | ||
Telecom Backup | |||
UPS/Data Centres | |||
Grid-Scale ESS | |||
Others (incl Automated Guided Vehicles, Rail and Marine) | |||
By End-User Industry | Power and Utilities | ||
Oil and Gas | |||
Manufacturing and Warehousing | |||
Telecom | |||
Others (incl Transportation and Logistics) | |||
By Geography | North America | United States | |
Canada | |||
Mexico | |||
Europe | Germany | ||
France | |||
United Kingdom | |||
Italy | |||
Spain | |||
Nordic Countries | |||
Russia | |||
Rest of Europe | |||
Asia-Pacific | China | ||
Japan | |||
India | |||
South Korea | |||
ASEAN Countries | |||
Rest of Asia-Pacific | |||
South America | Brazil | ||
Argentina | |||
Rest of South America | |||
Middle East and Africa | United Arab Emirates | ||
Saudi Arabia | |||
South Africa | |||
Rest of Middle East and Africa |
Lithium-ion |
Lead-acid |
Nickel-based |
Others (incl. Flow Battery, Sodium-ion) |
Forklift and Motive Power |
Telecom Backup |
UPS/Data Centres |
Grid-Scale ESS |
Others (incl Automated Guided Vehicles, Rail and Marine) |
Power and Utilities |
Oil and Gas |
Manufacturing and Warehousing |
Telecom |
Others (incl Transportation and Logistics) |
North America | United States |
Canada | |
Mexico | |
Europe | Germany |
France | |
United Kingdom | |
Italy | |
Spain | |
Nordic Countries | |
Russia | |
Rest of Europe | |
Asia-Pacific | China |
Japan | |
India | |
South Korea | |
ASEAN Countries | |
Rest of Asia-Pacific | |
South America | Brazil |
Argentina | |
Rest of South America | |
Middle East and Africa | United Arab Emirates |
Saudi Arabia | |
South Africa | |
Rest of Middle East and Africa |
Key Questions Answered in the Report
What is the size of the industrial battery market in 2025?
The market is valued at USD 36.07 billion in 2025 and is expected to reach USD 80.37 billion by 2030.
Which battery technology currently dominates the industrial battery market?
Lithium-ion technology leads with 51% of 2024 revenue and is expanding at an 18.4% CAGR through 2030.
What is the fastest-growing application for industrial batteries?
Forklift and motive power applications are advancing at an 18.53% CAGR due to accelerating warehouse automation.
Why are power utilities adopting large-scale battery storage?
Utilities deploy batteries to provide frequency regulation, capacity reserves, and renewable energy integration as wind and solar exceed 30% of generation in several markets.
How does critical-mineral price volatility influence market growth?
Volatile lithium, cobalt, and nickel prices can trim the market’s CAGR by 2.3 percentage points, prompting greater recycling, supply diversification, and interest in sodium-ion alternatives.
Which region is projected to grow the fastest by 2030?
Asia-Pacific is on track for a 19.45% CAGR, driven by domestic renewables targets, export-oriented manufacturing, and accelerating electric-vehicle infrastructure.
Page last updated on: July 4, 2025