Military Battery Market Size to Surpass USD 2.5 Billion by 2031 | Demand, and Industry Insight

Rise in the adoption of UAVs, ground vehicles, increase in military expenditure, surge in the use of lithium-ion batteries over lead-acid batteries drive market

WILMINGTON, DE, UNITED STATES, July 2, 2025 /EINPresswire.com/ -- Military battery market size garnered $1.58 billion in 2021 and is estimated to generate $2.53 billion by 2031, manifesting a CAGR of 5.0% from 2022 to 2031.

The demand for lithium-ion batteries is rising rapidly due to their lightweight nature, high energy capacity, and significant reduction in cost over recent years. In contrast, traditional lead-acid batteries face limitations such as high self-discharge rates and lower charge/discharge cycles, making them less ideal for modern energy storage needs. These limitations have prompted military organizations worldwide to transition toward lithium-ion battery solutions.

Additionally, defense agencies in various countries are awarding contracts to companies for the development of advanced lithium-ion batteries tailored for military applications, further accelerating market growth. For example, in March 2022, U.S.-based NanoGraf secured a $1 million development contract from the Department of Defense to create a high-performance 4.3Ah lithium-ion battery. This next-generation battery is designed to offer U.S. military personnel extended run-times, enhancing the reliability and efficiency of mission-critical equipment.

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Key drivers of the lithium-ion battery market in defense include the growing deployment of unmanned aerial vehicles (UAVs) and military ground vehicles, increased global defense spending, and a clear shift away from lead-acid batteries. However, strict regulations surrounding lithium battery use remain a challenge for the market. Looking ahead, expanding defense markets in Southeast Asia and ongoing advancements in battery technology are expected to unlock substantial growth opportunities for the lithium-ion battery sector in military applications.

The research provides detailed segmentation of the global military battery market based on battery type, platform, voltage, application, and region. The report discusses segments and their sub-segments in detail with the help of tables and figures. Market players and investors can strategize according to the highest revenue-generating and fastest-growing segments mentioned in the report.

Based on region, North America held the largest share in 2021, contributing to nearly half of the global military battery market share, and is projected to maintain its dominant share in terms of revenue in 2031. In addition, the same region is expected to manifest the fastest CAGR of 5.9% during the forecast period.

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North America includes the U.S., Canada, and Mexico across which the military battery market has been studied. North America is one of the prominent markets for military batteries, owing to high adoption of advanced weapons and systems among government and military agencies. Furthermore, governments and military organizations are awarding contracts to several companies for the development of batteries for unmanned underwater vehicles (UUVs), and surveillance solutions, which propels the market growth. For instance, in October 2021, U.S. Army’s Rapid Capabilities and Critical Technologies Office (RCCTO) awarded a contract to Amprius Technologies to develop 100% silicon anode Li-ion batteries for unmanned aircraft system (UAS) applications such as drone systems used by the U.S. Army. This 18-month contract includes design, development, and validation of high-energy-density lithium-ion batteries to be utilized in UAS applications. Moreover, factors such as increased funding to strengthen naval forces, and presence of large number of key manufacturers, are some of the key contributors to the rapid growth of military battery market in this region.

Military battery manufacturers in North America have received numerous contracts from the U.S. government for the development and production of batteries for weapon system, which contribute in the growth of the market in the U.S. region. For instance, in April 2022, Lockheed Martin received a $74 million contract to produce the Terminal High Altitude Area Defense (THAAD) weapon system for the Missile Defense Agency (MDA). The contract also includes the production of an eighth THAAD battery for the U.S. government. With the addition of eighth battery THAAD weapon system will enhance readiness against existing and evolving ballistic missile threats.

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Leading market players of the global military battery market analyzed in the research include Bren-Tronics, Inc., Cell-Con, Inc., Denchi Group Limited, EaglePicher Technologies, LLC, Eco-bat Technologies Limited, Enersys, Exide Technologies, LLC, Lincad Limited, Saft, and Ultralife Corporation.

The report provides a detailed analysis of these key players in the global military battery industry. These players have adopted different strategies such as new product launches, collaborations, expansion, joint ventures, agreements, and others to increase their market share and maintain dominant shares in different regions. The report is valuable in highlighting business performance, operating segments, product portfolio, and strategic moves of market players to showcase the competitive scenario.

Similar Reports We Have on Military Industry:

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