Car Batteries Market Report 2026

The car batteries market size has grown strongly in recent years. It will grow from $25.68 billion in 2025 to $27.03 billion in 2026 at a compound annual growth rate (CAGR) of 5.3%. The growth in the historic period can be attributed to automotive production growth, lead-acid battery dominance, vehicle electrification trends, aftermarket replacement demand, cold-cranking requirements.

The car batteries market size is expected to see steady growth in the next few years. It will grow to $32.71 billion in 2030 at a compound annual growth rate (CAGR) of 4.9%. The growth in the forecast period can be attributed to ev adoption growth, battery technology advancements, recycling regulations, smart battery monitoring, demand for longer battery life. Major trends in the forecast period include transition toward lithium-ion batteries, rising demand for agm and efb batteries, growth of start-stop systems, expansion of aftermarket battery sales, focus on battery recycling.

The increasing demand for electric vehicles is expected to propel the growth of the car battery market going forward. Electric vehicles (EVs) are automobiles powered partially or entirely by electricity stored in batteries, and their rising adoption is driven by environmental benefits and lower operating costs. Car batteries play a critical role in EVs by providing primary propulsion energy, supporting auxiliary systems, enabling regenerative braking, and ensuring overall vehicle functionality and safety. For instance, in April 2024, according to the Global EV Outlook 2023 published by the International Energy Agency, electric car sales increased by 3.5 million units in 2023 compared to 2022, representing a 35% year-on-year rise. Therefore, the increasing demand for electric vehicles is driving the growth of the car battery market.

Leading companies in the car battery market are prioritizing innovation with products such as superfast charging lithium iron phosphate (LFP) batteries to enhance performance and meet consumer expectations. These batteries charge significantly faster than standard ones, leveraging lithium iron phosphate for improved safety, durability, and thermal stability, making them ideal for electric vehicles. For example, in August 2023, Contemporary Amperex Technology Co., Limited (CATL) introduced Shenxing, the world’s first 4C superfast charging LFP battery. It offers a 400 km range with just a 10-minute charge and over 700 km on a full charge, achieved through advanced cathode technology and nano-crystallized LFP material for efficient lithium-ion extraction and rapid charging. Shenxing also boasts long-range capability, fast charging in varied temperatures, and enhanced safety features through innovative design and intelligent algorithms.

In April 2024, Advik, an India-based automotive component manufacturer, acquired Aceleron Energy for an undisclosed sum. This acquisition is part of Advik's strategy to expand its footprint in the electric vehicle (EV) and energy storage system (ESS) sectors, aiming to broaden its product portfolio and customer base while advancing next-generation energy storage solutions. Aceleron Energy, based in the UK, specializes in manufacturing lithium-ion batteries and 12V Essential batteries used in sports cars.

Major companies operating in the car batteries market report include Clarios LLC, Exide Industries Ltd., East Penn Manufacturing Company, Amara Raja Energy & Mobility Limited, GS Yuasa Corporation, Panasonic Corporation, Samsung SDI, LG Energy Solution, Chaowei Power Holdings Ltd., Tianneng Power International Ltd., Leoch International Technology Limited, Camel Group Co., Ltd., FIAMM Energy Technology S.p.A., EnerSys, Banner Batteries, Mutlu Battery, Hankook AtlasBX, Sebang Global Battery, VARTA AG, ACDelco.

Asia-Pacific was the largest region in the car batteries market in 2025. The regions covered in the car batteries market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the car batteries market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The car batteries market consists of sales lead-acid batteries, lithium-ion batteries, battery cables and accessories, battery testers and analyzers, battery jump starters, and battery terminal cleaners and tools. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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