Secondary Battery Market to Grow by USD 34.49 Trillion (2025-2029), Declining Lithium-Ion Battery Costs Drive Growth, Report with Market Evolution Powered by AI - Technavio

NEW YORK, Jan. 30, 2025 /PRNewswire/ -- Report on how AI is driving market transformation - The global secondary battery market size is estimated to grow by USD 34.49 trillion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of over 23.2% during the forecast period. Decline in lithium-ion battery costs is driving market growth, with a trend towards development of advanced lead-based secondary batteries. However, operational and environmental issues associated with lead-acid batteries poses a challenge. Key market players include Accumulatorenwerke HOPPECKE Carl Zoellner and Sohn GmbH, Brookfield Business Partners LP, BYD Co. Ltd., Contemporary Amperex Technology Co. Ltd., East Penn Manufacturing Co. Inc., EEMB, EnerSys, Exide Technologies, Furukawa Electric Co. Ltd., GS Yuasa International Ltd., Hitachi Ltd., Leoch International Technology Ltd., LG Energy Solution Ltd., Lithium Battery Co., Murata Manufacturing Co. Ltd., Panasonic Holdings Corp., Samsung Electronics Co. Ltd., Shenzhen GMCELL Technology Co., Ltd., Stellantis NV, Tesla Inc., Tata AutoComp GY Batteries Pvt. Ltd, TianJin Lishen Battery Joint Stock Co. Ltd., TotalEnergies SE, Toyota Motor Corp., and U.S. Battery Manufacturing Co.

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Market Driver

The secondary battery market is experiencing significant growth, particularly in the sectors of Electric Vehicles (EVs) and renewable power generation. Lithium-ion batteries (LIB) are currently leading the trend due to their high capacity-to-weight ratio and long life cycle. Minerals like cobalt, cadmium, copper, lead, iron, nickel, manganese, zinc, mercury, and lead are essential components in battery production. EVs and consumer electronic devices are major consumers of these batteries, driving up demand and prices. The telecommunication sector also relies heavily on batteries, with lead-acid batteries dominating the market for 5G towers. However, the shift towards LIB is gaining momentum due to their superior performance and longer life. The EV market, including mobility aids, boats, sweeper trucks, automotive batteries, industrial batteries, portable batteries, and power tools batteries, is expected to grow exponentially. Nickel and copper are key materials in LIB production, contributing to CO2 emissions during mining and manufacturing. The electric car market's expansion necessitates the development of charging infrastructure and the reduction of battery prices. Battery chemistries and technologies continue to evolve, with LIB being a popular choice due to its low emissions compared to petrol-powered two-wheelers. The renewables sector's growth and the increasing focus on e-mobility are expected to further boost the secondary battery market. 

Advanced lead-acid batteries offer superior performance compared to standard lead-acid batteries. These batteries, which include Enhanced Flooded Batteries (EFBs), absorbent glass mat (AGM) batteries, and lead-carbon batteries, address common issues like sulfation that negatively impact regular lead-acid batteries. In energy storage systems for both on-grid and off-grid applications, advanced lead-acid batteries ensure continuous electricity supply. In the automotive sector, they are predominantly used in micro-hybrid vehicles and electric vehicles for start/stop functions. 

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Market Challenges

• The secondary battery market is experiencing significant growth due to the increasing demand for electric vehicles (EVs) and renewable power generation. Lithium-ion batteries are currently dominating the market, but their production relies heavily on minerals like cobalt, nickel, manganese, and copper. The extraction of these minerals can pose environmental and ethical challenges. Moreover, the telecommunication sector and mobility aids also rely on various battery types, including lead-acid batteries. However, the shift towards EVs and renewables is driving the need for more advanced battery technologies with better capacity-to-weight ratio, such as lithium-ion batteries (LIB). The rising prices of LIBs and the growing electric vehicle market are creating challenges for OEMs and consumers. The electric car market's expansion also necessitates the development of charging infrastructure. Furthermore, the shift towards e-mobility and 5G services is increasing the demand for batteries in consumer electronic devices, hybrid vehicles, and 5G towers. The battery industry must address the challenges of sustainability, affordability, and safety while ensuring the availability of raw materials. The use of alternative battery chemistries and recycling initiatives can help mitigate these challenges. Additionally, reducing CO2 emissions, nitrogen oxides, and greenhouse gases from battery production is crucial for a sustainable future.
• Lead-acid batteries are commonly utilized in various applications due to their cost-effectiveness compared to other battery technologies. However, their use comes with certain limitations. These batteries have a lower energy density than alternatives like lithium-ion or nickel batteries, making them heavier. Their life span under continuous charge is influenced by factors such as charging frequency, charging voltage, and depth of discharge. High temperatures can reduce their life expectancy. Additionally, lead-acid batteries lose their ability to accept a charge when discharged for extended periods due to sulfation, a process that forms lead sulfate crystals in the battery's lead plates. Despite these challenges, lead-acid batteries remain a popular choice due to their affordability.

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Segment Overview 

This secondary battery market report extensively covers market segmentation by

1. Technology 
• 1.1 Lead-acid
• 1.2 Lithium-ion
• 1.3 Others
2. Application 
• 2.1 Automotive batteries
• 2.2 Industrial batteries
• 2.3 Portable batteries
• 2.4 Others
3. Geography 
• 3.1 APAC
• 3.2 Europe
• 3.3 North America
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Lead-acid- Lead-acid batteries, an old yet effective technology, dominate the secondary battery market due to their affordability and ease of availability. FLA batteries, a type of lead-acid battery, are the most cost-effective solution with the lowest cost per ampere-hour. Enhanced flooded batteries (EFBs) offer improved cyclic durability and charge acceptance, making them suitable for start/stop applications in automobiles. Absorbent glass mat (AGM) batteries are a higher-tier option, providing good cold-start characteristics and ample reserved power for automobiles with premium equipment. Lead-carbon batteries, another lead-acid technology, offer long cycle life, minimal sulfurization rate, and resolution of high-rate partial state of charge phenomenon, making them ideal for various applications, including peak power stabilization, energy storage in electric grids, and renewable power plants. The global automotive industry's growth, driven by factors like low-interest rates, low fuel prices, and increasing spending capacity, will fuel the demand for lead-acid batteries in starting, lighting, and ignition applications, as well as start/stop systems in conventional vehicles and electric vehicles (EVs). The expanding use of lead-acid batteries in motive applications, such as forklifts and locomotives, and stationary applications, such as UPS systems and renewable energy systems, will further boost the market's growth during the forecast period.

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Research Analysis

The secondary battery market is witnessing significant growth due to the increasing demand for Lithium-ion batteries (LIB) in various sectors. Lithium-ion batteries are widely used in Electric Vehicles (EVs) and consumer electronic devices for their high energy density and long cycle life. The telecommunication sector and renewable power generation are also adopting LIBs due to their ability to store and deliver power efficiently. Minerals such as Cobalt, Cadmium, Nickel and Copper, and metals like Lead and Iron are essential components in battery production. However, the use of Cobalt, which is often extracted using harmful chemicals like Cyanide, has raised environmental concerns. InnoBat, a European battery innovation center, is focusing on developing sustainable battery technologies using alternative materials to Lithium-ion batteries. Lead-acid batteries, a traditional battery technology, are still widely used in automotive applications due to their low cost and availability. Battery chemistries and technologies are continually evolving to improve battery performance, safety, and sustainability. Lithium-ion battery prices are expected to decrease as production scales up and new technologies emerge. The battery market is expected to continue growing as the world transitions to more sustainable energy sources and electric mobility.

Market Research Overview

The secondary battery market encompasses various types of rechargeable batteries, with a focus on Lithium-ion batteries (LIBs) due to their high energy density and increasing usage in Electric Vehicles (EVs). LIBs are also utilized in the telecommunication sector for powering 5G towers, renewable power generation for energy storage, and in mobility aids, boats, sweeper trucks, automotive batteries, industrial batteries, portable batteries, power tools batteries, SLI batteries, and electric vehicles. Minerals such as Cobalt, Cadmium, Cyanide, Copper, Lead, Iron, Nickel, Manganese, Zinc, Mercury, and Lead are essential for battery production. Lithium-ion battery prices have been decreasing due to advancements in battery chemistries and technologies. EVs have gained popularity due to their potential to reduce CO2 emissions, nitrogen oxides, and greenhouse gases. The electric vehicle market and charging infrastructure are growing, with the automotive industry transitioning towards e-mobility. Consumer electronic devices, hybrid vehicles, petrol-powered two-wheelers, and the electric car market are also significant contributors to the secondary battery market. Gigawatt-hour (GWh) is a common unit of measurement for battery capacity. OEMs play a crucial role in the production and implementation of these batteries.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Technology
• Lead-acid
• Lithium-ion
• Others
• Application
• Automotive Batteries
• Industrial Batteries
• Portable Batteries
• Others
• Geography
• APAC
• Europe
• North America
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio