(MENAFN- GlobeNewsWire - Nasdaq) LFP adoption lowers ownership costs, while closed-loop recycling reduces supply risks; fleet electrification and grid storage drive demand.Dublin, Oct. 22, 2026 (GLOBE NEWSWIRE) -- "Commerical Lithium-ion Batteries Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031F" has been added to ResearchAndMarkets.com's offering.
The Global Commercial Lithium-ion Batteries Market is projected to grow from USD 16.23 billion in 2025 to USD 34.57 billion by 2031, registering a compound annual growth rate (CAGR) of 13.43%. Growth is being driven by fleet electrification, renewable energy integration, decarbonization regulations and the operating cost advantages of electric powertrains. According to the International Energy Agency, electric truck battery demand increased by more than 75 percent in 2024.
Commercial lithium-ion batteries support demanding applications such as electric commercial vehicles, public transportation, logistics fleets and stationary grid storage. These applications require high-performance energy storage systems capable of handling heavy payloads, intensive duty cycles and frequent charging while delivering dependable safety, durability and efficiency.
Market Drivers: The expanding adoption of electric and hybrid commercial vehicles is a major growth catalyst, particularly across public transportation and logistics. Fleet operators are investing in battery-electric powertrains to comply with zero-emission mandates and reduce long-term operating costs. Electric buses are experiencing particularly strong demand because predictable routes make centralized charging infrastructure practical. The European Automobile Manufacturers' Association reported in January 2025 that new EU electrically chargeable bus registrations rose by 26.8 percent in 2024 compared with the previous year.
Renewable energy grid storage is also creating significant opportunities for the commercial lithium-ion batteries market. As utility companies add intermittent solar and wind generation, they require large-scale storage systems to balance supply, maintain grid stability and manage peak loads. Lithium-ion technology remains a preferred solution because of its high energy density, rapid response and scalability. The Volta Foundation's March 2025 "Battery Report 2024" indicated that the Battery Energy Storage Systems sector recorded 55 percent year-on-year growth.
Manufacturing capacity is expanding to meet rising transportation and energy storage demand. The International Energy Agency reported that global battery manufacturing capacity grew by almost 30 percent in 2024, exceeding 3 terawatt-hours.
Market Challenges: Volatility across critical mineral supply chains remains a substantial barrier to market development. Heavy-duty electric trucks and utility-scale storage systems require consistent volumes of high-grade lithium, nickel and other battery materials. Geopolitical restrictions, logistical bottlenecks and production delays can cause shortages, unstable prices and uncertain delivery schedules, making it more difficult for fleet operators and energy providers to forecast their Total Cost of Ownership (TCO).
Supply chain concentration further increases procurement risk. According to the International Energy Agency, China controlled nearly 85 percent of global manufacturing capacity for cathode active materials in 2024. Dependence on one jurisdiction for a large share of midstream processing can disrupt manufacturing schedules, increase input costs and limit access to ethically sourced materials. Greater geographic diversification, responsible sourcing and investment in localized processing will therefore be essential to support sustainable commercial lithium-ion battery market growth.
Market Trends: Lithium Iron Phosphate (LFP) chemistry is gaining market share as manufacturers and commercial fleet operators prioritize safety, durability and cost efficiency. LFP cells offer strong thermal stability and extended cycle life, making them suitable for heavy-duty vehicles that require high uptime. Their cathodes also exclude expensive cobalt and nickel, helping lower production costs despite slightly reduced energy density. The International Energy Agency's May 2025 "Global EV Outlook 2025" reported that LFP batteries represented nearly 50 percent of the global electric vehicle battery market in 2024.
Closed-loop battery recycling is another important market trend. Manufacturers are recovering high-purity lithium, copper and other materials from end-of-life commercial battery packs to create localized secondary supply streams. This circular economy model can reduce exposure to mining disruptions, lower the carbon footprint of new battery production and support compliance with environmental regulations. Fraunhofer ISI projected that Europe's lithium-ion battery recycling capacity would reach 300,000 tonnes per year by the end of 2024.
Key Market Players:
Panasonic Corporation BYD Co. Ltd GS Yuasa International Ltd. TSECH Co. LG Chem ReLieVe Hitachi Chemical Company Ltd. Samsung SDI Exide Technologies Robert Bosch GmbH
Report Scope: The Global Commercial Lithium-ion Batteries Market report evaluates market size, growth drivers, challenges and emerging industry trends across the following segments:
Commercial Lithium-ion Batteries Market, by Type:
Commercial Lithium-ion Batteries Market, by End-Use Industry:
Automotive Consumer Electronics Power Tools Industrial Medical Others
Commercial Lithium-ion Batteries Market, by Region:
North America Europe Asia Pacific South America Middle East & Africa
Key Attributes:
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