Battery Market

The global battery market size was USD 195.0 Billion in 2025 and is expected to register a revenue CAGR of 14.0% during the forecast period. Market revenue growth is supported by two large, simultaneously expanding demand pools, EV and automotive batteries and stationary energy storage systems, with SNE Research confirming that global lithium-ion battery energy storage system shipments reached 461.3 gigawatt-hours in the first half of 2026, up 71% year-on-year, outpacing the growth rate of EV battery shipments over the same period. CATL, the world's largest battery manufacturer across both categories, led the global energy storage battery market in the first half of 2026 with a 27.1% share on 125.0 gigawatt-hours shipped, up 81% year-on-year, while also holding a 39.9% share of the global EV battery market on 242.7 gigawatt-hours of deliveries, confirming the company's position as the dominant supplier across both of the market's largest application categories. Grid storage applications accounted for 75.2% of total energy storage system battery demand in the first half of 2026, reflecting utility and grid operator investment in battery storage to integrate renewable generation and firm up capacity. Every application category in this market, from EV propulsion to grid-scale storage to consumer electronics, competes for the same underlying cell manufacturing capacity, and the relative growth rate of energy storage system demand relative to EV demand is increasingly shaping how manufacturers allocate new capacity between the two categories. These are some of the key factors driving revenue growth of the market.

Lithium-ion, lead-acid, nickel-based, and emerging chemistries including sodium-ion and solid-state are the technology categories that constitute the battery market, applied across EV and automotive, energy storage system, consumer electronics, and industrial applications. For instance, in April 2026, CATL unveiled its third-generation Qilin battery and Qilin Condensed Battery at its Super Tech Day event, alongside its third-generation Shenxing fast-charging battery and continued development of its Naxtra sodium-ion battery platform, illustrating how a single manufacturer's product roadmap now spans conventional lithium-ion, condensed semi-solid, and sodium-ion chemistry simultaneously. Lithium-ion batteries account for the large majority of market revenue across every application category, from EV propulsion to grid storage to consumer electronics, though the specific chemistry within the lithium-ion category, lithium iron phosphate versus nickel manganese cobalt, varies significantly by application and region.

However, the battery market's two largest application categories, EV and energy storage systems, both compete for the same constrained pool of lithium, nickel, cobalt, and graphite raw materials, meaning a supply shock or price spike in any single critical mineral can simultaneously affect cost and availability across automotive and stationary storage battery programmes that might otherwise be viewed as separate markets. Battery manufacturing remains highly concentrated among a small number of Chinese and South Korean suppliers, with CATL and BYD together accounting for 54.3% of global EV battery cell demand in the first half of 2026 according to SNE Research, a concentration that leaves automakers, utilities, and grid operators in North America and Europe exposed to geopolitical and trade policy risk when sourcing cells for applications ranging from vehicles to grid infrastructure. Tightening battery safety regulation, including China's GB 38031-2025 standard requiring EV battery packs to survive thermal runaway without fire or explosion for 120 minutes from July 2026, is also raising compliance and testing costs across the industry, a cost that ultimately flows through to battery pricing across every application category. These factors substantially limit battery market growth over the forecast period.

Based on application, the global battery market is segmented into EV and automotive, energy storage systems, consumer electronics, and industrial and other applications. The EV and automotive segment commands the largest revenue share because it represents the highest-volume battery application globally by disclosed gigawatt-hour shipments, with CATL alone reporting 2025 lithium-ion battery sales of 661 gigawatt-hours across its full product portfolio, and every additional battery-electric, plug-in hybrid, or hybrid vehicle produced requiring a battery pack sized substantially larger than the batteries used in consumer electronics or most industrial applications.

The energy storage systems segment is expected to register a rapid revenue growth rate in the global battery market over the forecast period. Global lithium-ion battery energy storage system shipments reached 461.3 gigawatt-hours in the first half of 2026, up 71% year-on-year according to SNE Research, outpacing EV battery shipment growth over the same period, with grid storage applications accounting for 75.2% of total energy storage system demand as utilities and grid operators invest in battery storage to integrate renewable generation and provide grid services. CATL's leadership in this segment, with a 27.1% global energy storage battery market share and 125.0 gigawatt-hours shipped in the first half of 2026, up 81% year-on-year, illustrates how the same manufacturers dominating EV battery supply are also capturing the fastest-growing application category in the broader battery market.

• 01What is the global battery market size in 2025 and what CAGR is expected during 2026-2035?
• 02How fast did global lithium-ion energy storage system battery shipments grow in the first half of 2026, and how does that compare with EV battery shipment growth?
• 03What global market share does CATL hold in both the EV battery and energy storage battery markets?
• 04What share of total energy storage system battery demand came from grid storage applications in the first half of 2026?
• 05What proportion of LG Energy Solution's first-half 2026 shipments came from North America, and what applications did they serve?
• 06Why does the EV and automotive segment hold the largest revenue share despite faster growth in energy storage systems?
• 07What order intake and backlog growth did Fluence Energy report in 2026, and what is driving it?
• 08Why does raw material supply risk affect both EV and energy storage battery applications simultaneously?
• 09How does China's GB 38031-2025 battery safety standard affect compliance costs across all battery applications?
• 10Why does CATL's dominance across both EV and energy storage applications create concentrated geopolitical risk for buyers in both categories?

This report covers the global battery market across all major applications, chemistries, product types, and geographic regions. Primary research combines panel conversations with industry experts and is cross-referenced against company financial disclosures and independent shipment-tracking data. All market size figures use 2025 as the base year with a 2026-2035 forecast period.