Malaysia Battery - Market Share Analysis, Industry Trends, Statistics, And Growth Forecasts (2026-2031) Market To Reach USD 1.33 Billion By 2031 As Energy Storage And EV Demand Accelerate
Dublin, Oct. 06, 2026 (GLOBE NEWSWIRE) -- "Malaysia Battery - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.
The Malaysia battery market is projected to grow from USD 0.87 billion in 2025 and USD 0.93 billion in 2026 to USD 1.33 billion by 2031, registering a CAGR of 7.48% between 2026 and 2031. Market expansion is being supported by declining lithium-ion battery prices, increasing electric vehicle adoption, renewable energy integration, data-centre development, and government-backed energy storage initiatives.
Declining Lithium-Ion Battery Prices Expand Commercial Opportunities
Global lithium-ion battery pack prices averaged USD 108 per kWh in 2025, representing an 8% year-on-year decline despite volatility in raw-material costs. Stationary storage pack prices fell to USD 70 per kWh, improving the commercial viability of solar-plus-storage projects across Malaysia's commercial and industrial sector.
Lower battery prices are expanding opportunities in off-grid telecom towers, industrial microgrids, behind-the-meter storage systems, and renewable energy projects. However, they are also placing pressure on domestic battery assemblers. Average battery prices in China reached USD 84 per kWh, approximately 48% below European levels, intensifying competition for Malaysian manufacturers that have yet to achieve comparable production scale.
Global battery prices are expected to decline further through 2030. As cell costs fall, participants in the Malaysia battery market are likely to place greater emphasis on system integration, energy management software, technical services, and customized storage solutions to strengthen competitiveness.
Energy Transition Policies Support Battery Energy Storage
Malaysia's National Energy Transition Roadmap targets 70% renewable energy capacity by 2050 and supports the deployment of 500 MW of battery energy storage systems by 2030. The Solar ATAP framework, introduced in January 2026, requires energy storage integration for large-scale solar and community projects. SELCO guidelines also require batteries for rooftop solar systems exceeding 72 kWp.
Tenaga Nasional Berhad's MyBEST tender for 400 MW/1,600 MWh demonstrates the market's progression from pilot projects to larger, commercially structured procurement. Early grid storage developments in Sarawak and Sabah have helped validate technical feasibility. Nevertheless, uncertainty surrounding capacity-payment mechanisms continues to affect private investment, while some projects remain dependent on multilateral financing.
Raw-Material Constraints Present Supply-Chain Risks
Malaysia has limited domestic access to battery-grade lithium, cobalt, and nickel refining capacity. Manufacturers consequently depend on precursor material imports from China, Australia, and Indonesia. This exposure to international commodity price fluctuations, logistics disruptions, and rising ESG compliance costs affects production economics and limits the competitiveness of locally assembled batteries against lower-cost imports.
Secondary lead is more widely available, but much of the domestic supply does not meet the purity requirements needed for advanced valve-regulated lead-acid battery applications. Strengthening local processing, recycling, and material recovery capabilities could help reduce import dependence and improve long-term supply-chain resilience.
Secondary Batteries Lead Malaysia Battery Market Growth
Secondary batteries accounted for 88.1% of Malaysia's battery market share in 2025 and are forecast to expand at a CAGR of 7.9%. Growth is being driven by electric vehicles, grid-scale storage mandates, renewable energy systems, industrial equipment, telecom infrastructure, and motive power replacement demand.
Primary batteries retained an 11.9% market share, with demand concentrated in remote sensors, medical devices, and applications requiring extended shelf-life. Innovation in this segment remains focused on longer operating life and environmentally improved chemistries, while the broader market continues shifting toward rechargeable battery technologies.
Investment activity is also reinforcing Malaysia's role in regional battery manufacturing and energy storage. EVE Energy's CNY 8.654 billion Phase 2 energy storage system investment highlights the scale of manufacturing capacity required to serve both domestic and export markets.
Additional growth drivers include expansion of Malaysia's data-centre industry and residential storage demand associated with Net Energy Metering 4.0. However, high upfront costs for household stationary storage remain a significant barrier. Continued price reductions, supportive financing, clearer market mechanisms, and stronger domestic supply chains will be central to sustaining Malaysia battery market growth through 2031.
Key Topics Covered:
1 Introduction
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study
2 Research Methodology
3 Executive Summary
4 Market Landscape
4.1 Market Overview
4.2 Market Drivers
4.2.1 Declining lithium-ion battery prices
4.2.2 National Energy Transition Roadmap incentives for ESS
4.2.3 Expansion of Malaysia's data-centre industry
4.2.4 Net Energy Metering 4.0 boosting residential storage
4.2.5 Rapid growth of e-moped & e-scooter market
4.2.6 SEA battery-manufacturing FDI inflows
4.3 Market Restraints
4.3.1 Limited domestic raw-material supply chain
4.3.2 High upfront cost of stationary storage for households
4.3.3 Policy-continuity uncertainty in EV incentives
4.3.4 Influx of low-cost Chinese battery imports
4.4 Supply-Chain Analysis
4.5 Regulatory Landscape
4.6 Technological Outlook
4.7 Porter's Five Forces
4.7.1 Threat of New Entrants
4.7.2 Bargaining Power of Suppliers
4.7.3 Bargaining Power of Buyers
4.7.4 Threat of Substitutes
4.7.5 Intensity of Competitive Rivalry
4.8 PESTLE Analysis
5 Market Size & Growth Forecasts
5.1 By Battery Type
5.1.1 Primary Batteries
5.1.2 Secondary Batteries
5.2 By Technology
5.2.1 Lead-acid
5.2.2 Li-ion
5.2.3 Nickel-metal hydride
5.2.4 Nickel-cadmium
5.2.5 Sodium-sulfur
5.2.6 Solid-state
5.2.7 Flow Battery
5.2.8 Emerging chemistries
5.3 By Application
5.3.1 Automotive (HEV, PHEV, and EV)
5.3.2 Industrial (Motive, Stationary (Telecom, UPS, ESS), etc.)
5.3.3 Portable (Consumer Electronics, etc.)
5.3.4 Power Tools
5.3.5 SLI
5.3.6 Other Applications
6 Competitive Landscape
6.1 Market Concentration
6.2 Strategic Moves (M&A, Partnerships, PPAs)
6.3 Market Share Analysis (Market Rank/Share for key companies)
6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Products & Services, and Recent Developments)
6.4.1 Panasonic Energy Malaysia Sdn Bhd
6.4.2 Samsung SDI Energy Malaysia Sdn Bhd
6.4.3 GS Yuasa Corporation
6.4.4 FIAMM Energy Technology SpA
6.4.5 Yokohama Batteries Sdn Bhd
6.4.6 GP Batteries (Malaysia) Sdn Bhd
6.4.7 Leoch Battery Corporation
6.4.8 Amaron Quanta Malaysia
6.4.9 EnerSys
6.4.10 Camel Group Co. Ltd
6.4.11 Eclimo Sdn Bhd
6.4.12 Century Motolite Battery Sdn Bhd
6.4.13 ABM Fujiya Berhad
6.4.14 GPA Holdings Berhad
6.4.15 BYD Co. Ltd (Malaysia)
6.4.16 CATL (Malaysian distributor network)
6.4.17 Sunwoda Electronic Co. Ltd
6.4.18 Lithium Werks Malaysia
6.4.19 Duracell Malaysia Sdn Bhd
6.4.20 Toshiba T&D Systems Asia
7 Market Opportunities & Future Outlook
7.1 White-space & Unmet-Need Assessment
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