Automotive Battery Market Size to Reach USD 349.23 Billion by 2031, Driven by Electric Vehicle Demand - Mordor Intelligence

Automotive Battery Market Overview

According to Mordor Intelligence, the automotive battery market size is projected to reach USD 153.67 billion in 2026 and is expected to grow at a CAGR of 17.82% during the forecast period, reaching USD 349.23 billion by 2031. The market is benefiting from increasing demand for electric vehicles, ongoing investments in battery production facilities, and efforts by governments and manufacturers to strengthen local supply chains. Growing adoption of lithium-ion batteries across passenger and commercial vehicles is also contributing to automotive battery market growth.

The automotive battery industry continues to attract investment from manufacturers seeking to expand production capacity and improve supply security. While lithium-ion technology is gaining wider acceptance across electric mobility applications, lead-acid batteries remain widely used in conventional vehicle systems and replacement channels. The combination of established battery technologies and growing electric vehicle adoption is supporting steady expansion across the global automotive battery market.

Report Overview: https://www.mordorintelligence.com/industry-reports/automotive-battery-market?utm_source=openpr

Key Automotive Battery Market Trends

Growing Demand for Electric Vehicles Supporting Market: One of the most important automotive battery market trends is the increasing adoption of electric vehicles across several regions. Vehicle manufacturers are expanding their electric mobility portfolios to meet changing consumer preferences and regulatory requirements. As electric vehicle sales continue to rise, battery demand is increasing across passenger cars, commercial vehicles, and other transportation segments.

Regional Battery Manufacturing Expansion Strengthening Supply Chains: Another key automotive battery market trend is the expansion of localized battery manufacturing. Several regions are focusing on reducing supply chain dependence by encouraging domestic battery production and investment in manufacturing facilities.

Lithium-Ion Adoption Continues Across Vehicle Applications: Lithium-ion batteries continue to gain traction due to their suitability for electric mobility applications. Their growing use across electric passenger cars and commercial vehicles is influencing the overall automotive battery market share of battery technologies.

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Automotive Battery Market Segmentation

By Battery Type
-Lead-Acid
-Lithium-Ion
-Nickel-Metal Hydride
-Others

By Vehicle Type
-Passenger Cars
-Commercial Vehicles
-Two-Wheelers
-Off-Highway Vehicles

By Drive Type
-Internal Combustion Engine
-Hybrid Vehicles
-Battery Electric Vehicles
-Fuel-Cell Electric Vehicles

By Application
-Starting-Lighting-Ignition
-Propulsion
-Start-Stop
-Auxiliary Systems
-Battery-as-a-Service and Swap

By Sales Channel
-OEM
-Aftermarket

By Geography
-North America
-South America
-Europe
-Asia-Pacific
-Middle East and Africa

Explore Our Full Library of Automotive Research:

https://www.mordorintelligence.com/market-analysis/automotive?utm_source=openpr

Automotive Battery Industry Key Players

Competition within the automotive battery industry remains strong as major manufacturers focus on production capacity, technology development, and geographic expansion. Leading companies continue to strengthen their positions through investments, partnerships, and supply agreements.

Key players operating in the automotive battery market include:

LG Energy Solution

Panasonic Holdings

BYD Co. Ltd.

Samsung SDI

Explore more insights on automotive battery competitive landscape: https://www.mordorintelligence.com/industry-reports/automotive-battery-market/companies?utm_source=openpr

Conclusion

The automotive battery market is entering a period of sustained expansion supported by increasing electric vehicle adoption, regional manufacturing investments, and growing demand for advanced energy storage solutions. The market continues to benefit from a combination of established battery technologies and rising interest in vehicle electrification across global transportation sectors.

At the same time, the automotive battery industry remains shaped by diverse customer requirements spanning conventional vehicles, hybrid platforms, and fully electric mobility solutions. This diversity supports demand across multiple battery technologies and applications. Looking ahead, the automotive battery market forecast remains favorable as manufacturers continue to expand production capabilities and strengthen supply chains.

For more insights on the automotive battery, please visit the Mordor Intelligence page: https://www.mordorintelligence.com/industry-reports/automotive-battery-market?utm_source=openpr

Industry Related Reports

Automotive Connector Market: The automotive connector market is experiencing robust growth driven by increasing vehicle electrification, rising adoption of advanced driver-assistance systems (ADAS), and growing demand for reliable in-vehicle connectivity solutions.

Get more insights: https://www.mordorintelligence.com/industry-reports/automotive-connector-market?utm_source=openpr

Automotive Actuators Market size: The automotive actuators market was valued at USD 22.19 billion in 2025 and is projected to reach USD 30.53 billion by 2031 at a CAGR of 5.44%, fueled by increasing vehicle automation, growing integration of electronic control systems, and rising demand for fuel-efficient and safer vehicles. Expanding adoption of electric and hybrid vehicles is also supporting market growth.

Get more insights: https://www.mordorintelligence.com/industry-reports/automotive-actuators-market?utm_source=openpr

India Automotive Sensors Market share: The India automotive sensors market was valued at USD 3.21 billion in 2025 and is expected to reach USD 8.97 billion by 2031 at a CAGR of 18.66%, driven by rapid vehicle electrification, increasing implementation of ADAS technologies, and stricter vehicle safety and emission regulations. Growing production of connected and smart vehicles is further accelerating market expansion.

Get more insights: https://www.mordorintelligence.com/industry-reports/india-automotive-sensors-market-industry?utm_source=openpr

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