China Industrial Batteries Market Forecast 2025–2035
China's industrial batteries market, driven by rapid expansion of manufacturing, renewable integration, and smart energy solutions, is experiencing accelerated growth. Rising demand for high-density, environmentally friendly batteries across sectors such as transportation, energy, and telecom is propelling market size, supported by robust government policies for sustainable energy and local technological innovations. Leading manufacturers like CATL, BYD, and CALB are investing heavily in R&D and capacity expansions, fostering intense competition. As electrification and automation gather pace, the adoption of lithium-ion, flow, and sodium-based batteries is expected to rise, catering to diverse industrial applications and enabling China’s leadership in the global battery landscape.
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Latest Market Dynamics
Key Drivers
- Rising demand for energy storage solutions in manufacturing and grid applications, supported by new government incentives for renewables and industrial upgrades. A June 2024 initiative by BYD, for instance, boosted energy storage battery deployments in multiple industrial parks.
- Rapid expansion of the electric vehicle (EV) and transportation sector is fueling lithium-ion battery production, with CATL unveiling next-gen, high-capacity industrial battery lines in July 2024.
Key Trends
- Integration of smart and IoT-enabled batteries, evidenced by CALB’s August 2024 launch of AI-powered battery management systems for industrial fleets.
- Growth in renewable-integrated battery technologies, as seen in Narada Power’s June 2024 collaboration with solar developers to deploy large-scale energy storage projects.
Key Opportunities
- Expansion of advanced battery recycling infrastructure following stringent environmental policies; Leoch International’s July 2024 facility is a leading example.
- Increasing demand for backup power in data centers and telecoms, with Sacred Sun Power launching high-reliability battery systems in July 2024.
Key Challenges
- Intensifying price competition and cost pressures as state-backed players and startups enter the space, shown by fierce bidding reported in June 2024 OEM contracts.
- Raw material supply chain volatility, highlighted when Tianjin Lishen reported procurement bottlenecks for lithium compounds in July 2024.
Key Restraints
- Environmental and safety regulations tightening in 2024 have increased compliance costs and delayed rollouts, impacting smaller vendors.
- Dependence on imported battery raw materials exposes market to geopolitical and supply risks, as seen during disruptions in Q3 2024.
China Industrial Batteries Market Share by Type, 2025
In 2025, lithium-ion batteries command the largest share of the industrial batteries market in China due to their high energy density, fast charging, and long lifecycle, making them ideal for emerging applications in EVs, energy storage, and factory automation. Lead-acid batteries, owing to their cost-effectiveness and established infrastructure, continue to serve traditional sectors like telecom and backup power, while emerging technologies such as flow and sodium-based batteries are gradually capturing market share, supported by pilot deployments and policy incentives. As R&D investment grows, advanced battery types are poised to see accelerated penetration, driven by evolving industrial requirements for higher capacities and safety.
China Industrial Batteries Market Share by Applications, 2025
Manufacturing remains the dominant application for industrial batteries in China, accounting for 38% of the market in 2025, reflecting robust demand for automation, backup power, and production line electrification. Energy & utilities follow at 24%, driven by large-scale grid energy storage and renewable integration projects, while transportation comprises 19%, supported by EV and rail transit electrification. Telecom and data communication, increasingly reliant on secure battery systems for network resilience, also contribute significantly. The evolving application mix underscores the shift toward greener, technology-driven industrial ecosystems.
China Industrial Batteries Market Revenue (USD Million), 2020–2035
The revenue of China’s industrial batteries market is on a significant upward trajectory, rising from USD 8,800 million in 2020 to an anticipated USD 31,200 million by 2035. The market’s robust performance is fueled by increased adoption in cutting-edge sectors, proactive government support, and continuous product innovation. Each phase of market maturity—from basic backup applications to advanced smart and renewable-integrated batteries—is driving higher investment, with leading manufacturers expanding production capacity and diversifying product offerings to capture emerging opportunities.
China Industrial Batteries Market Year-on-Year (%) Growth, 2020–2035
China’s industrial batteries market has experienced dynamic year-on-year growth, peaking at 12.5% in 2025, as policy momentum and key investments accelerated large-scale battery manufacturing and deployment. Growth tapers gradually as the market matures and technology penetration broadens, reaching 7% by 2035. Ongoing R&D breakthroughs, supply chain optimization, and new application areas ensure that the market continues to offer strong prospects, even as incremental growth stabilizes in the forecast horizon.
China Industrial Batteries Market Share by Region, 2025
Eastern China leads the industrial batteries market in 2025, driven by dense industrial clusters and advanced manufacturing hubs. The region holds a 44% market share, leveraging proximity to leading battery suppliers and robust infrastructure. South China follows with 29%, benefiting from a strong EV supply chain, while Northern China constitutes 17%, supported by its energy storage deployments and heavy industry demand. Regional strategies focus on attracting investment, enhancing grid reliability, and supporting innovation clusters to sustain growth.
China Industrial Batteries Market Players Share, 2025
The competitive landscape in 2025 is characterized by market leadership of CATL (22%), driven by its scale and innovation, followed by BYD (17%), and China Aviation Lithium Battery (CALB) (12%). Other tier-1 and emerging players collectively account for the remaining share, intensifying competition and accelerating product cycles. Strategic partnerships, vertical integration, and expansive distribution networks are core to higher market shares as suppliers race to meet complex industrial demands.
China Industrial Batteries Market Buyers Share, 2025
Industrial manufacturers are the primary buyers of batteries in 2025, holding 36% share, owing to their need for reliable backup and energy storage during automation upgrades. The energy & utilities sector accounts for 28%, driven by grid modernization projects, while OEMs, such as EV and equipment producers, account for 20%. This diversified buyer mix reflects the widespread adoption of industrial batteries across value chains and the growing awareness of storage as a critical operational asset.
Study Coverage
| Metrics | Details |
|---|
| Years | 2020-2035 |
| Base Year | 2025 |
| Market Size | Revenue (USD Million) |
| Regions | Eastern China, South China, Northern China, Others |
| Segments | By Type (Lead-acid, Lithium-ion, Nickel-based, Flow Batteries, Sodium-based, Others); By Application (Manufacturing, Energy & Utilities, Transportation, Telecom & Data Communication, Mining, Others); By Distribution Channels (Direct Sales, Distributors/Wholesalers, Online, Retail, OEMs, Others); By Technology (Traditional Batteries, Advanced Batteries, Renewable Integrated Batteries, Smart Batteries, High Capacity Batteries, Others); By Organization Size (Small, Medium, Large) |
| Players | Contemporary Amperex Technology Co., Limited (CATL), BYD Company Limited, China Aviation Lithium Battery Co., Ltd. (CALB), Narada Power Source Co., Ltd., Sacred Sun Power Sources Co., Ltd., Shenzhen BAK Power Battery Co., Ltd., Tianjin Lishen Battery Joint-Stock Co., Ltd., Exide Technologies, Shuangdeng Group (Shoto Group), Camel Group Co., Ltd., Johnson Controls-Hitachi, CSIC Energy New Power Technology Co., Ltd., Leoch International Technology Ltd, Zhuoneng New Energy, Guangzhou Great Power Energy & Technology Co., Ltd. |
Key Recent Developments
- BYD launched a new 500MW energy storage battery plant in Jiangsu province, July 2024.
- CATL unveiled its next-generation smart industrial battery platform, July 2024.
- Leoch International opened China's largest battery recycling facility, July 2024.
- CALB introduced AI-enabled intelligent battery management systems for industrial use, August 2024.
- Narada Power partnered with a solar developer to deploy 200MWh storage project, June 2024.
