India’s Battery Boom: Market Set to Reach $18.28 Billion by 2030
India’s industrial battery market is experiencing unprecedented growth, fueled by the nation’s aggressive push for renewable energy, EV adoption, and industrial electrification. According to industry reports, the market is projected to hit $8.41 billion in 2025 and expand at a CAGR of 16.80%, reaching $18.28 billion by 2030. This surge is driven by growing energy storage demands, increased industrial automation, and government-backed policies aimed at reducing reliance on fossil fuels.
A significant move in this space is Eternity Technologies’ acquisition of Enersys India’s battery production facility in Vijayawada, a step aimed at boosting local manufacturing and reducing dependency on imports. This aligns with India’s push for self-reliance in energy storage solutions, especially as demand for industrial batteries in grid storage, telecom, and backup power applications skyrockets.
Lead-Acid vs. Lithium-Ion: Market Shifting Towards Advanced Battery Tech
For decades, lead-acid batteries have dominated India’s industrial sector due to their affordability and widespread availability. However, with the rapid rise of lithium-ion (Li-ion) batteries, industries are now shifting toward more efficient and high-performance energy storage solutions.
- Li-ion batteries offer superior energy density, faster charging, and longer lifespans, making them the preferred choice for EVs, data centers, and telecom backup systems.
- Despite their advantages, lead-acid batteries still hold a strong market share in sectors requiring cost-effective and reliable power backup, such as manufacturing, healthcare, and power distribution.
- However, with government incentives and global battery tech advancements, India is witnessing a shift towards next-gen battery solutions, including sodium-ion and solid-state batteries.
Challenges Hindering Market Growth
Despite the rapid expansion, India’s industrial battery market faces multiple challenges:
- Import Dependency: India still imports nearly 75% of its lithium-ion battery components from China, creating supply chain risks.
- Raw Material Shortages: Limited local availability of key materials like lithium, nickel, and cobalt raises production costs.
- Recycling Infrastructure Gaps: The country lacks a strong battery recycling ecosystem, which is crucial for sustainable growth.
The Road Ahead: India’s Strategy for Battery Industry Growth
To strengthen India’s battery market and make it globally competitive, policymakers and industry leaders are focusing on:
- Scaling Up Domestic Battery Manufacturing – The PLI scheme for battery production is expected to drive significant investments.
- Advancing Battery Recycling Capabilities – New policies are in the works to encourage recycling and raw material recovery.
- Investing in Next-Gen Technologies – India is exploring sodium-ion and solid-state batteries as alternatives to lithium-ion solutions.
With these developments, India’s industrial battery sector is at a turning point, poised to become a global powerhouse in energy storage and green technology.
