Global Outlook for Transportation Battery Market Growth, Analysis, and Projections until 2028
The transportation battery market, with a focus on electric vehicles (EVs), is experiencing a rapid growth phase and is projected to expand significantly over the coming decade. According to Renub Research, a market research and information analysis company with over 14 years of experience, the market was valued at approximately USD 97 billion in 2024 and is expected to reach around USD 300 billion by 2033, representing a compound annual growth rate (CAGR) of about 13.36% from 2025 to 2033.
Lithium-ion batteries dominate this market due to their high energy density, efficiency, and cycle life, making them the preferred choice for EVs and other electric transportation applications. The global lithium-ion battery market itself is anticipated to grow from roughly USD 195 billion in 2025 to USD 426 billion by 2033, at a CAGR of 10.3%, driven largely by EV demand among other uses like consumer electronics and energy storage.
The growth of the transportation battery market is being driven by several factors. The increasing adoption of electric vehicles worldwide, as governments and industries push for clean transportation to reduce carbon emissions and dependence on fossil fuels, is a significant factor. Advancements in battery technologies improving energy density, charging speed, longevity, and safety, expansion of EV charging infrastructure, and supportive policies and investments aimed at sustainable energy and decarbonization are also key growth drivers.
The market is highly competitive but dominated by a few giants such as CATL, Tesla, LG Energy Solution, Panasonic, Samsung SDI, VARTA, Hitachi, and Robert Bosch. CATL holds the largest global EV battery market share (~37% in 2023), benefiting from strong ties with major Chinese EV makers (BYD, NIO, Geely) and international automakers like Tesla and BMW. Tesla has heavily scaled up battery production through its Gigafactories, focusing on in-house manufacturing of advanced cells (4680 format) to improve cost efficiency and energy density.
Geographically, China is the largest and most influential market for transportation batteries and EV infrastructure owing to government mandates on new energy vehicle (NEV) quotas, extensive urban electrification, and dominant battery manufacturers like CATL and BYD. The United States is a major market with Tesla’s leadership and increasing investments in battery production and EV charging infrastructure. Europe (notably Germany and other Western EU countries) is seeing significant growth tied to stringent emissions regulations and supportive policies, as well as increasing EV adoption and charging infrastructure deployment. Emerging markets and other developed countries are progressively expanding their transportation battery usage fueled by growing environmental awareness and electrification efforts.
In summary, the transportation battery market is on a strong growth trajectory, largely propelled by the global surge in EV adoption, backed by technological advancements and supportive public policies. This positions transportation batteries as a cornerstone of the shift toward sustainable and electric transportation over the next decade.
Renub Research, a leading market research and information analysis company, has published more than 7000 syndicated reports and worked on over 500 custom research projects. They are supplying data to various companies for strategy, organization, operations, technology, mergers & acquisitions, etc. decisions. For more information, contact Rajat Gupta, Marketing Manager at +1-478-202-3244 or +91-120-421-9822 (IND), [email protected], 225 Kristie Ln, Roswell, GA 30076, LinkedIn: https://linkedin.com/company/renub-research.
[1] Renub Research Report: Transportation Battery Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2033 [2] Tesla Annual Report 2022 [3] Grand View Research Report: Global Lithium-ion Battery Market Size, Share & Trends Analysis Report By Type (Lithium-nickel-manganese-cobalt [Li-NMC], Lithium-nickel-cobalt-aluminium [Li-NCA], Lithium-iron-phosphate [LiFePO4], Lithium-titanate [Li4Ti5O12], Others), By Application (Electric Vehicles, Consumer Electronics, Energy Storage Systems, Others), By Region, and Segment Forecasts, 2021 - 2030 [4] International Energy Agency (IEA) Report: Global EV Outlook 2022
- The renewable-energy sector, particularly the finance industry, is increasingly investing in the expansion of the transportation battery market, due to the market's promising growth and the shift toward electric vehicles (EVs).
- Data-and-cloud-computing technology plays a crucial role in the infrastructure of electric vehicles, assisting in charging management, range optimization, and battery lifespan monitoring, aiding the growth of the renewable-energy industry.
- The increasing popularity of electric vehicles (EVs) is not only transforming the automotive industry but also influencing lifestyle choices, as people become more conscious about energy consumption and carbon footprint, pushing the renewable-energy industry forward.
- As the global transportation battery market matures, key players like CATL, Tesla, LG Energy Solution, and others are focusing on technological advancements to enhance energy density, charging speed, longevity, and safety, impacting the renewable-energy and technology industries.
- Governments and industries worldwide are collaborating to support the growth of the renewable-energy sector, particularly in transportation and EVs, by implementing regulations, investing in infrastructure, and offering incentives, ensuring a positive future for the renewable-energy industry.
