Defense Battery Market Analysis | 2024-2030

Market Insights

The defense battery market was estimated at USD 2.6 billion in 2023 and is likely to grow at a CAGR of 3.1% during 2024-2030 to reach USD 3.3 billion in 2030.

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Market Dynamics

Introduction

A battery is an electrochemical device comprising one or more cells that generate a flow of electrons through chemical reactions. It supplies electrical energy to various devices and systems, playing a crucial role in powering equipment used by the Armed Forces globally. Defense batteries are utilized in numerous applications, including powering communication devices, electrical equipment, base camps, weapon systems, military vehicles, and submarines.

Market Drivers

The defense battery market is projected to experience a decent growth rate, with a CAGR of 3.1% over the forecast period, reaching an estimated value of USD 3.3 billion by 2030. Key drivers of this growth include rising military expenditures, heightened demand for portable equipment and mobile devices in combat zones, and an increasing preference for rechargeable lithium-ion batteries. Additionally, the growing use of UAVs (Unmanned Aerial Vehicles) and advanced military vehicles is anticipated to propel the market's expansion further.

Segment Analysis

By Application Type

“Night vision systems are expected to drive significant demand for batteries in the coming years, emerging as one of the key contributors to market growth”

• The market is segmented into base camps, weapon systems, armored vehicles/military vehicles, submarines, night vision systems, and other application types.
• Night vision systems are projected to remain the leading and fastest-growing application type, as they play a crucial role in defense, aiding soldiers in low-light or dark environments.
• Increased adoption of night vision systems in defense applications is a primary growth driver for this market segment.
• Innovations such as thermal imaging and digital signal processing are further propelling market growth.

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By Battery Type

“The lithium-ion battery is anticipated to lead the market and achieve the highest growth rate throughout the forecast period”

• The defense battery market is segmented into lead-acid batteries, lithium-ion batteries, nickel-cadmium batteries, and other battery types.
• Lithium-ion battery growth is driven by the increasing demand for power-intensive military devices and their ability to withstand harsh military environments. This battery offers several advantages, including high energy density, longer lifespan compared to nickel-cadmium batteries, and quick recharge capabilities, which are critical for time-sensitive military operations. Additionally, the new generation of lightweight lithium-ion batteries delivers more power than traditional lead-acid batteries, providing significant benefits to modern armed forces.

Regional Analysis

“North America is expected to remain the largest market whereas Asia-Pacific is anticipated to grow at the fastest rate during the forecast period”

• The market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World
• North America holds the largest defense market globally, with the USA alone accounting for more than 38% of global military expenditure in 2021. The presence of leading defense battery manufacturers, technological advancements, geopolitical threats, and military modernization are additional factors driving demand in the region.
• Asia-Pacific, on the other hand, is projected to be the fastest-growing region due to the modernization of armed forces and increased defense spending, particularly in emerging economies like China and India.

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Recent Market JVs and Acquisitions

A huge number of strategic alliances including M&As, JVs, etc., have been performed over the past few years:

• In 2024, GM Defense received a contract from the Department of Defense to prototype battery systems based on its Ultium Platform. This initiative aims to adapt commercial EV battery technologies for military platforms.
• In 2023, EnerSys acquired NorthStar Battery to expand its advanced lead-acid and lithium-based batteries portfolio. This acquisition strengthened its presence in the defense industry, particularly in communication and vehicle battery systems.

Key Players

The market is highly populated, with several regional and global players. Most of the major players compete on some of the governing factors, including price, product offerings, regional presence, etc. The following are the key players in the defense battery market. 

• EnerSys
• Saft Group S.A.
• Exide Technologies
• EaglePicher Technologies
• GS Yuasa International Ltd
• East Penn Manufacturing Co.
• Bae Systems PLC
• Toshiba Corporation
• C&D Technologies Inc.
• Contemporary Amperex Technology Co., Limited (CATL)

Note: The above list does not necessarily include all the top players in the market.

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Research Methodology

• This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s defense battery market realities and future market possibilities for the forecast period. 
• The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruits available in the market and formulating growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. 
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. 
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation

This report studies the market covering 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The defense battery market is segmented into the following categories:

By Application Type 

• Base Camps
• Weapon Systems
• Armored Vehicles/Military Vehicles
• Submarines
• Night Vision Systems
• Others

By Battery Type 

• Lead Acid
• Lithium-ion
• Nickel Cadmium
• Others 

By Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, The UK, Russia, and the Rest of Europe)
• Asia-Pacific (Country Analysis: China, India, Australia, South Korea, and the Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Saudi Arabia, Brazil, and Others)

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com