Commercial Vehicle Battery Market – Global Industry Size, Share, Trends Opportunity, and Forecast Segmented By Vehicle Type (LCV, M&HCV), By Battery Type (Lead Acid, Lithium-Ion, and Other), By Drive Type (IC Engines and Electric Vehicles), By Region and By Competition. 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 19.96 Billion
CAGR (2026-2031)	5.81%
Fastest Growing Segment	Lead Acid
Largest Market	Asia Pacific
Market Size (2031)	USD 28.01 Billion

Market Overview

The Global Commercial Vehicle Battery Market will grow from USD 19.96 Billion in 2025 to USD 28.01 Billion by 2031 at a 5.81% CAGR. Commercial vehicle batteries are high-performance electrochemical energy storage systems designed to power the propulsion motors and auxiliary equipment of electric trucks, buses, and vans used in logistics and public transport. The expansion of this market is primarily propelled by rigorous government emissions regulations aiming for decarbonization and the increasing economic viability of electric fleets due to a lower Total Cost of Ownership compared to internal combustion engines. Furthermore, the strategic commitment of major logistics corporations to achieve carbon neutrality is fostering a sustained demand for electrified commercial transport solutions across global supply chains.

However, the widespread adoption of these battery systems faces a significant challenge regarding the inadequate availability of high-power public charging infrastructure required to support long-haul and heavy-duty operations effectively. This infrastructure deficit limits operational range and creates logistical inefficiencies that can deter fleet managers from fully transitioning to electric platforms. According to the China Association of Automobile Manufacturers, in 2025, the sales of new energy commercial vehicles in the Chinese market reached 97,000 units in November alone, representing a significant 70.6% increase compared to the same period in the previous year.

Key Market Drivers

The implementation of stringent emission regulations and zero-emission vehicle mandates serves as the foremost catalyst for the Global Commercial Vehicle Battery Market. Governments worldwide are enforcing rigorous carbon dioxide reduction targets, compelling logistics providers to transition from diesel-powered fleets to electrified alternatives to avoid penalties and ensure compliance. For instance, according to the International Energy Agency, April 2025, in the 'Global EV Outlook 2025', the European Union’s ambitious policy targeting a 90% reduction in emissions from heavy-duty vehicles by 2040 is a primary driver accelerating fleet electrification. This regulatory pressure is directly translating into market adoption; according to the European Automobile Manufacturers' Association, in 2025, electrically-chargeable trucks secured 3.8% of the European Union market in the first three quarters, reflecting a tangible shift away from internal combustion engines.

Simultaneously, declining battery manufacturing costs are significantly improving the total cost of ownership (TCO) for commercial vehicles, further propelling market expansion. As production capabilities scale and manufacturers adopt cost-effective chemistries like Lithium Iron Phosphate (LFP), the upfront capital disparity between electric and diesel trucks is narrowing rapidly. According to the International Energy Agency, April 2025, in the 'Global EV Outlook 2025', battery prices for commercial vehicles have dropped by 30% since 2020, enabling OEMs to increase vehicle range without inflating costs. This reduction in component pricing, combined with lower operational expenses, is providing the financial justification required for fleet managers to commit to large-scale electrification programs.

Download Free Sample Report

Key Market Challenges

The inadequate availability of high-power public charging infrastructure stands as a significant barrier to the Global Commercial Vehicle Battery Market. Commercial trucks require substantial energy transfers to maintain rigorous schedules, yet the scarcity of megawatt-scale stations restricts electric fleets to short-range operations. This gap negates potential efficiencies since fleet managers cannot risk downtime in time-critical logistics networks. Consequently, the demand for high-capacity battery systems is suppressed because the necessary support ecosystem remains undeveloped and fails to instill confidence in long-haul operators.

This impact is substantiated by recent industry data regarding fleet adoption rates. According to the Society of Motor Manufacturers and Traders, in February 2025, the uptake of zero-emission trucks stagnated at just 0.5% of total market demand throughout 2024 due to the critical lack of dedicated heavy goods vehicle charging facilities. When logistics operators face such a reliable charging deficit, the adoption of electric platforms slows significantly regardless of vehicle performance improvements. Thus, the commercial vehicle battery market experiences restricted growth in the heavy-duty segment directly due to this infrastructure insufficiency.

Key Market Trends

The proliferation of Battery-as-a-Service (BaaS) and swapping models is rapidly transforming the sector by decoupling battery ownership from vehicle costs and eliminating long charging downtimes. This approach allows fleet operators to convert high capital expenditures into manageable operational costs while enabling heavy-duty trucks to replenish energy in minutes, effectively bypassing grid constraint issues. The model has gained substantial traction in major logistics hubs where maximizing vehicle uptime is critical for economic viability. According to Xinhua, May 2025, in the 'Next-generation battery swap ecosystem empowers China's heavy-duty truck sector' article, battery-swapping models accounted for 32.39% of the new energy heavy trucks sold in China from January to March 2025, demonstrating strong market acceptance of this technology over conventional fixed-charging solutions.

Concurrently, the strategic localization of battery manufacturing is accelerating as nations and OEMs seek to secure supply chains and comply with regional content regulations. This trend focuses on establishing domestic gigafactories to reduce reliance on foreign imports, mitigate geopolitical risks, and shorten logistics lead times for vehicle assembly. Major industrial economies are channeling unprecedented capital into this sector to build resilient, self-sufficient energy storage ecosystems that can support mass electrification. According to The Washington Post, June 2025, in the 'The U.S. invested in EV battery plants. Now they may be stranded' article, quarterly investment in United States battery manufacturing facilities reached $11 billion in 2024, highlighting the intense drive toward establishing robust regional production capabilities.

Segmental Insights

According to leading market research, the Lead Acid segment is currently recognized as the fastest-growing category within the Global Commercial Vehicle Battery Market. This rapid expansion is primarily driven by the burgeoning demand for cost-efficient Starting, Lighting, and Ignition (SLI) solutions across the expanding logistics and transportation sectors. Unlike alternative chemistries, lead-acid technology offers the durability and high surge currents required for heavy-duty commercial fleets. Furthermore, the increasing adoption of advanced Absorbent Glass Mat (AGM) batteries to support modern start-stop systems and auxiliary electrical loads is significantly accelerating the growth trajectory of this established segment.

Regional Insights

Asia Pacific dominates the Global Commercial Vehicle Battery Market, primarily driven by China's extensive manufacturing capabilities and aggressive fleet electrification targets. The region benefits from a consolidated supply chain housing major battery manufacturers, which significantly lowers production costs and ensures consistent availability. Government policies are instrumental in this leadership; for instance, China’s Ministry of Industry and Information Technology (MIIT) implements strict emission standards and subsidies that compel logistics and transport operators to adopt electric vehicles. Additionally, rising demand for electric public transport in emerging economies like India further reinforces the region's market supremacy.

Recent Developments

• In November 2024, CATL officially launched its Tectrans series of batteries specifically engineered for heavy-duty commercial vehicles. The new product line includes models capable of ultra-fast charging and long-range performance, with the flagship heavy-duty battery offering a capacity of up to 1,000 kilowatt-hours and a driving range of 800 kilometers. The company claims these batteries feature an industry-leading lifespan of up to 15 years or 3 million kilometers, significantly reducing the total cost of ownership for fleet operators. This development represents a major technological breakthrough in the sector, addressing critical challenges such as charging speed and durability for heavy transport applications.
• In October 2024, LG Energy Solution secured substantial supply agreements with Ford to provide battery modules for the automaker’s electric commercial vans in Europe. Under the terms of the contracts, the battery manufacturer will supply a total of 109 gigawatt-hours of batteries starting in 2026, with the partnership expected to last between four to six years. The batteries will be produced at the company's facility in Wroclaw, Poland, ensuring a stable local supply chain for the European market. The CEO of LG Energy Solution emphasized that these agreements demonstrate their expertise in delivering innovative battery technologies tailored for the rigorous demands of commercial transportation.
• In September 2024, Samsung SDI showcased a new lineup of battery solutions optimized for the commercial vehicle market at the IAA Transportation event in Hanover, Germany. The company introduced its LFP+ battery, which features a novel electrode technology that provides 10 percent higher energy density compared to previous lithium iron phosphate products. This advanced battery system supports rapid charging capabilities, allowing it to reach an 80 percent charge in just 20 minutes, and is designed with proprietary thermal safety technologies. The launch highlights the company's commitment to extending the driving range and operational lifespan of electric commercial vehicles.
• In June 2024, Daimler Truck, Accelera by Cummins, and PACCAR finalized the formation of their joint venture, Amplify Cell Technologies, to advance battery cell production for the commercial vehicle sector in the United States. The collaboration aims to localize the battery supply chain with a planned manufacturing facility in Marshall County, Mississippi, boasting an annual capacity of 21 gigawatt-hours. The new entity appointed a Chief Executive Officer and announced that it would focus on producing lithium-iron-phosphate cells specifically designed for commercial battery-electric trucks. This strategic initiative is expected to support the widespread adoption of zero-emission technologies in the logistics industry.

Key Market Players

• A123 Systems
• Panasonic Corporation
• Exide Technologies
• VARTA
• Clarios
• GS Yuasa Corporation
• Hitachi Group Ltd
• Robert Bosch GmbH
• China Aviation Lithium Battery Co. Ltd
• Contemporary Amperex Technology Co. Limited

By Vehicle Type	By Battery Type	By Drive Type	By Region
LCV M&HCV	Lead Acid Lithium-Ion and Other	IC Engines and Electric Vehicles	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Commercial Vehicle Battery Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Commercial Vehicle Battery Market, By Vehicle Type:

• LCV
• M&HCV

• Commercial Vehicle Battery Market, By Battery Type:

• Lead Acid
• Lithium-Ion
• and Other

• Commercial Vehicle Battery Market, By Drive Type:

• IC Engines and Electric Vehicles

• Commercial Vehicle Battery Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE