Batteries

The global Batteries Market, a cornerstone of the energy and power industry and a key driver of the energy transition, was valued at around USD 138 billion in 2024 and is projected to grow at a strong CAGR of 15.6%, reaching nearly USD 440 billion by 2032. This expansion is propelled by surging demand for electric vehicles (EVs), energy storage systems (ESS), and rising electricity consumption supported by decarbonization targets, renewable energy integration, and government incentives. Asia-Pacific, led by China, dominates both production and consumption with more than half the global share, while North America and Europe are emerging as the fastest-growing regions due to heavy investments in gigafactories, grid modernization, and supportive regulations. Technology is evolving beyond lithium-ion toward solid-state and sodium-ion batteries, promising higher efficiency, safety, and reduced dependence on critical raw materials.

The supply chain of global batteries is highly structured, beginning with raw material providers such as Albemarle, Ganfeng Lithium, and Glencore, supplying lithium, cobalt, and nickel essential to renewable power generation and sustainable energy storage. These are processed by Tier-2 suppliers into battery components before Tier-1 manufacturers like CATL, LG Energy Solution, Samsung SDI, and Panasonic assemble cells and packs for automotive OEMs such as Tesla, Volkswagen, and Ford. Global trade further reflects this hierarchy: the U.S. led imports at USD 12.6B in 2024, followed by Germany (USD 9.8B) and India (USD 6.4B), while China dominated exports with a 44% share, trailed by Vietnam (23%) and the U.S. (12%), underscoring global supply chain dependence.

Regionally, China remains the most penetrated ecosystem, driven by strong domestic EV adoption, renewable energy deployment, and state-backed policies, while North America and Europe are accelerating efforts to localize supply chains, supported by the U.S. Inflation Reduction Act and EU green mandates. Latin America is strengthening its role as a lithium hub, and Africa is emerging as a new source of critical minerals vital for electricity demand growth and sustainable energy adoption. In the long run, the Batteries Market is expected to hinge on securing raw materials, advancing battery recycling for circularity, and scaling next-generation chemistries. However, risks from supply chain concentration, regulatory shifts, and environmental challenges persist, making sustainability, resilience, and innovation decisive levers of competitiveness in the global batteries market.

Global Manufacturing Capacity 2024

3 TWh

Top Batteries Producer

China

China Import Share

46%

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UPS Systems

The global UPS (Uninterruptible Power Supply) systems market was valued at USD 11.3 billion in 2024 and is projected to reach around USD 16.01 billion by 2032, expanding at a CAGR of 5.1%. Demand is fueled by the rising adoption of modular UPS systems, lithium-ion battery-based UPS, and energy-efficient UPS technologies that ensure reliability and minimize downtime. Asia-Pacific holds the largest share at nearly 35%, driven by rapid industrialisation and data center expansion in China, India, and Japan. North America shows strong growth due to high demand from enterprise data centers, BFSI, and telecom sectors, while Europe emphasizes energy-efficient, regulatory-compliant UPS systems. Emerging markets such as Latin America and the Middle East are investing in grid reliability and commercial infrastructure, indicating strong regional diversification.Global UPS system imports and exports are being reshaped by supply chain realignments and regional manufacturing hubs in the Asia-Pacific. Countries like China and India dominate UPS system production and exports, while North America and Europe rely on imports of UPS batteries and modular components. UPS installation costs, battery lifecycle management, and maintenance expenses (7–10% annually) are influencing procurement strategies, while favorable trade policies and government incentives for energy-efficient systems are driving adoption. Market expansion is supported by demand in healthcare, telecom, manufacturing, IT & ITES, BFSI, and education sectors. UPS system market key trends include IoT-enabled UPS systems, AI-driven load management, hybrid UPS with renewable integration, and cloud-based UPS monitoring, which are transforming operational efficiency and lifecycle cost optimization.The UPS market is highly competitive, with leading players including Eaton, Schneider Electric, ABB, Huawei, Delta Electronics, Toshiba, Vertiv, Mitsubishi Electric, and Riello UPS, alongside regional manufacturers offering cost-effective solutions. OEMs and specialized vendors are differentiating through predictive monitoring, modular scalability, and smart battery management systems. Strategic investments are rising, with mid-sized enterprise deployments ranging from USD 500,000 to USD 5 million, while ongoing investment is directed toward green and sustainable UPS systems. Venture funding and M&A activities are accelerating innovation in cloud-based UPS management and lithium-ion UPS solutions, positioning early adopters in data centers, BFSI, and telecom at a competitive advantage. The UPS system industry is transitioning toward intelligent, modular, and eco-efficient UPS solutions, aligning long-term investment with regulatory compliance and sustainable growth.

Industry definition

The global batteries market encompasses advanced energy storage solutions including lithium-ion, lead-acid, nickel-metal hydride, and emerging solid-state batteries, serving applications in electric vehicles, grid storage, and industrial power systems. Key market segments include automotive batteries, stationary energy storage, and portable power solutions, driven by the growth of renewable energy integration, EV adoption, and demand for reliable backup systems. Leading players include CATL, known for its high-capacity lithium-ion EV battery solutions; LG Energy Solution, offering advanced cylindrical and pouch cell batteries with enhanced lifespan; and Panasonic, recognized for prismatic lithium-ion batteries powering electric mobility and grid applications. Complementing their products with services such as battery management system (BMS) integration, maintenance, and recycling solutions, the market continues to enhance energy efficiency, sustainability, and operational reliability across global power networks.

Energy and Power