Military Battery Market Analysis Europe,North America,APAC,South America,Middle East and Africa - US,China,India,Russia,France - Size and Forecast 2023-2027

Military Battery Market Forecast 2023-2027

The military battery market size is estimated to grow by USD 423.21 million at a CAGR of 4.32% between 2022 and 2027. The growth of the battery market is influenced by several key factors. Increasing military spending, driven by geopolitical tensions and modernization efforts. Additionally, the growing use of batteries for backup power, particularly in industries such as telecommunications, data centers, and healthcare, is contributing to market expansion. Moreover, the development of efficient battery technologies, such as lithium-ion batteries with higher energy densities and longer lifespans, is also fueling market growth. These factors combined create a favorable environment for the growth of the battery market.

What will be the Size of the Market During the Forecast Period?

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Market Segmentation

This market report extensively covers market segmentation by end-user (OEM and aftermarket), technology (non-rechargeable batteries and rechargeable batteries), and geography (Europe, North America, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

By End-User

The market share growth by the OEM segment will be significant during the forecast period. Due to the increasing production of military equipment such as UAVs, vehicles, and weapons systems around the world, the adoption of original equipment manufacturers (OEMs) is increasing. The defense industry has expanded significantly over the past decade and is expected to continue increasing during the forecast period. Increasing military spending has been identified as a key factor driving the growth of the segment during the forecast period.

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The OEM segment was valued at USD 1.26 billion in 2017. The OEM segment is showing significant growth in various developing countries due to increased operations and spending. The outlook for the segment looks promising as military battery sales continue to grow with no signs of slowing down. Also, the low life cycle cost of batteries will increase OEM demand during the forecast period. Economic growth in the countries of Brazil, Russia, India, and China has driven the growth of the UAV industry in recent years. Intense competition and market saturation have led most manufacturers to shift their focus to these countries. This creates an opportunity for various battery suppliers to promote their products and solutions in emerging markets. Therefore, based on the above factors, the OEM segment is expected to witness growth, which is expected to drive the growth of the market during the forecast period. 

By Region

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Europe is estimated to contribute 35% to the growth of the market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

The regional market has been largely dominated by the UK, which is increasing its military investments and using advanced technology to improve its military superiority. The UK plans to provide its soldiers with enhanced digital combat capabilities. This will drive the adoption in Europe during the forecast period. Also, state-sponsored terrorism and militarized annexation increase the need for counterinsurgency operations and lead to the modernization of armed forces.  Additionally, rising security threats are driving increased military spending in Europe. All NATO allies are increasing their defense spending. Therefore, increased defense investment will increase the demand for military batteries, driving the growth of the market during the forecast period. 

Market Dynamics and Customer Landscape

The market is critical for defense forces worldwide, powering a variety of applications from communication equipment to ground vehicles and submarines. Al-air batteries and auxiliary power units serve as reliable backup sources in emergency situations, ensuring uninterrupted communication and operations. Efficient battery supply chains are essential, considering the durability and design constraints of batteries used in defense applications. Enersys and other key players in the market focus on developing durable batteries that can withstand harsh conditions and provide reliable power in hazardous situations. Electrolyte leakage and hazardous gases are major concerns addressed by regulations and security protocols. The market for military batteries is influenced by advancements in communication systems, such as SquadNet batteries, which enhance surveillance and communication capabilities for defense forces. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The increasing military spending is notably driving the market growth. Military expenditures worldwide are on the upswing due to various factors such as escalating tensions between major powers like the US and China, as well as internal conflicts. The top spenders in 2021 were the US, China, India, Russia, and Saudi Arabia, collectively accounting for about 60% to 65% of the total global military spending, which reached USD 2,113 billion, a 0.7% increase from 2020. China and India ranked second and third, respectively, with China's expenditure rising by 4.7% to over USD 293 billion and India's by 0.9% to about USD 76.6 billion. The US retained its position as the biggest spender, contributing 39% of the global military expenditure in 2021. This surge in spending is anticipated to propel market growth in the forecast period. Additionally, there is a growing reliance on batteries as backup power sources, with lead-acid and lithium-ion batteries being the most prevalent types. Lead-acid batteries are cost-effective and durable, requiring minimal maintenance, which is expected to drive their sales for backup power applications.

Design constraints and efficiency considerations play a crucial role in selecting the appropriate battery type for backup power, especially for communication equipment and systems that require reliable power sources. Efficient battery supply chains are essential for ensuring the availability of backup batteries when needed. On the other hand, lithium-ion batteries offer high energy density, discharge depth, charge rate, storage capacity, and shelf life, making them ideal for emergency power needs. Technological advancements and declining prices due to increased production and government incentives have made lithium-ion batteries increasingly popular for backup power, further stimulating market growth.

Significant Market Trends

The growing adoption of military drones is a key trend influencing the market growth. The use of UAVs in military operations is increasing, and these vehicles are primarily used for surveillance. The vendor is focused on developing batteries for UAVs for both military and commercial purposes. Military drones are used to provide real-time imagery in combat damage control applications. As countries focus on information warfare, the demand for intelligence, surveillance, and reconnaissance operations is growing. They are essential devices used to carry out these activities. As such, the demand for military drones is growing all over the world. The adoption of lithium-ion batteries in military drones is growing rapidly due to their high energy density and lightweight, making these drones suitable for a variety of functions.

The falling price of lithium-ion batteries is one of the main reasons why they are becoming more popular compared to others. The introduction of these batteries for backup and propulsion power applications has prompted major lithium-ion battery suppliers to invest in research and development to improve battery technology and bring down prices. Technological advances especially for air operations and missions, will boost the growth of the market during the forecast period.  

Major Market Challenge

The performance risk in energy storage is challenging the market growth. Lead, lithium, sodium, nickel, and flow batteries are some of the battery technologies widely used in military applications. Among these technologies, lead-based and lithium-based batteries have been widely accepted and adopted for energy storage applications. However, these technologies come with performance risks that can reduce efficiency and impact adoption rates. Battery manufacturers are focused on solving these performance issues. Lead-based batteries require regular maintenance and have low energy density. Additionally, these batteries contain hazardous components that can pollute the environment and must be disposed of properly once they are obsolete. Lithium-based batteries have the highest adoption rate in the energy storage market due to their high energy density and low maintenance requirements. However, fluctuations in temperature can lead to performance issues and thermal runaway can affect performance and permanently damage the battery. 

The battery performance deterioration occurs when the battery gets old. Battery manufacturers try to solve the performance problem by reducing the discharge rate and adjusting the maximum charge level. Such performance risks hinder the acceptance of battery technology for military energy storage applications as the batteries are exposed to harsh environmental conditions. Such issues are expected to hamper the growth of the market during the forecast period.  

Key Market Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Who are the Major Military Battery Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Arotech: The company provides and develops different sophisticated portable energy solutions for vehicle power, power distribution and management, military field equipment, and others.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• BAE Systems Plc
• Bren-Tronics Inc.
• BST Systems Inc.
• Cell-Con Inc.
• Concorde Battery Corp.
• Denchi Group Ltd.
• EaglePicher Technologies LLC
• East Penn Manufacturing Co. Inc.
• EnerSys
• Exide Industries Ltd.
• General Dynamics Corp.
• GS Yuasa Corp.
• Kokam Co. Ltd.
• Lincad Ltd.
• Mathews Associates Inc.
• Teledyne Technologies Inc.
• TotalEnergies SE
• Ultralife Corp.
• BYD Co. Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• End-user Outlook 
  • OEM
  • Aftermarket

• Technology Outlook 
  • Non-rechargeable batteries
  • Rechargeable batteries

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is driven by the need for reliable power solutions in military electronic equipment and vehicles. High-power density and long-endurance capability UAVs require advanced rechargeable batteries. Security concerns and intelligence missions emphasize the importance of backup power and portable equipment. Trade barriers and operating bases influence power storage device procurement strategies.

The market thrives on innovations for lightweight and rechargeable military batteries, crucial for military vehicles, UAVs, and navigation systems. Backup generators and battery management systems ensure power continuity during power outages, vital for air defense missile systems and land warfighter systems.

Market Scope
Report Coverage	Details
Page number	162
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 4.32%
Market growth 2023-2027	USD 423.21 million
Market structure	Fragmented
YoY growth 2022-2023(%)	3.5
Regional analysis	Europe, North America, APAC, South America, and Middle East and Africa
Performing market contribution	Europe at 35%
Key countries	US, China, India, Russia, and France
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	Arotech, BAE Systems Plc, Bren-Tronics Inc., BST Systems Inc., Cell-Con Inc., Concorde Battery Corp., Denchi Group Ltd., EaglePicher Technologies LLC, East Penn Manufacturing Co. Inc., EnerSys, Exide Industries Ltd., General Dynamics Corp., GS Yuasa Corp., Kokam Co. Ltd., Lincad Ltd., Mathews Associates Inc., Teledyne Technologies Inc., TotalEnergies SE, Ultralife Corp., and BYD Co. Ltd.
Market dynamics	Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
  Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
  Precise estimation of the size of the market size and its contribution to the parent market
  Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
  Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
  Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
  Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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