Battery Housing Market

Market Definition

The market encompasses the production and sale of protective enclosures for batteries used in various applications, including electric vehicles, consumer electronics, and energy storage systems. These housings ensure battery safety, structural integrity, and optimal performance.

Driven by demand for electric mobility, renewable energy, and portable electronics, the market is witnessing notable expansion, supported by technological advancements and increasing production.

Battery Housing Market Overview

Global battery housing market size was USD 5,250.0 million in 2023, which is estimated to be valued at USD 5,982.9 million in 2024 and reach USD 16,529.3 million by 2031, growing at a CAGR of 15.62% from 2024 to 2031.

Technological advancements in battery technologies, such as lithium-ion and solid-state batteries, are contributing significantly to this growth. These innovations demand specialized, high-performance housings to ensure safety, efficiency, and optimal functionality in various applications.

Major companies operating in the battery housing industry are Magna International Inc, Hindalco Industries Limited (Novelis), Panasonic Holdings Corporation, Constellium, SGL Carbon, INFAC Corporationin, GESTAMP SERVICIOS, S.A., GF Casting Solutions, thyssenkrupp AG, TRB, SABIC, TEIJIN LIMITED, Covestro AG, Evonik Industries AG, Nemak, and others.

Battery housing is essential for ensuring the safe and efficient operation of batteries across a wide range of applications. It focuses on providing durable, protective enclosures that maintain the structural integrity of batteries while enabling optimal performance. With the increasing complexity of battery technologies, the demand for high-quality, reliable housings is increasing.

Manufacturers are prioritizing innovation in materials, design, and manufacturing processes to meet the evolving needs of industries such as electric vehicles, consumer electronics, and energy storage systems.

• In September 2024, Asahi Kasei launched a new grade of LASTAN flame-retardant nonwoven fabric, designed to enhance EV battery safety. This material, offering superior resistance to flames and particle blasts, is optimized for EV battery covers and thermal runaway protection.

Key Highlights:

1. The battery housing industry size was recorded at USD 5,250.0 million in 2023.
2. The market is projected to grow at a CAGR of 62% from 2024 to 2031.
3. Asia-Pacific held a share of 36.55% in 2023, valued at USD 1,918.9 million.
4. The lithium-ion batteries segment garnered USD 2,426.6 million in revenue in 2023.
5. The aluminum segment is expected to reach USD 8,730.6 million by 2031.
6. The Electric Vehicles (EVs) segment is anticipated to witness the fastest CAGR of 16.85% over the forecast period
7. North America is anticipated to grow at a CAGR of 15.38% through the projection period.

Market Driver

“Increasing Adoption of Electric Vehicles (EVs)”

The rise in electric vehicle (EV) adoption significantly boosts the demand for advanced, secure battery housings. As EVs continue to gain popularity, the need for high-quality, durable battery enclosures becomes essential to ensure optimal performance, safety, and protection of battery packs, fueling the growth of the battery housing market.

• According to the Global EV Outlook 2024 by the IEA, electric car sales neared 14 million in 2023, with 95% concentrated in China, Europe, and the United States. This surge brings the total number of electric cars on the road to 40 million.

Battery housings must effectively safeguard batteries from environmental factors, prevent thermal runaway, and support efficient energy storage, fostering market growth amid the automotive industry’s shift toward sustainable transportation.

• In February 2023, Magna announced plans to produce battery enclosures for the 2024 Chevrolet Silverado EV at its state-of-the-art facility in St. Clair, Michigan. This expansion builds on its existing production for the GMC HUMMER EV, with operations began later in 2023.

Market Challenge

“Balancing Material Selection and Cost in Battery Housing Production”

A key challenge impeding the growth of the battery housing market is selecting materials that balance durability, weight, and cost. With growing demand for lightweight, cost-effective solutions, manufacturers struggle to find materials that meet performance standards while remaining affordable.

To address this challenge, companies can explore advanced composite materials, which offer both strength and lightness, while optimizing production techniques to reduce costs. Collaboration with material suppliers to innovate cost-efficient and durable options is expected to be crucial for overcoming this challenge and ensuring market competitiveness.

• In June 2024, Evonik expanded its TEGO Therm range to offer fire-resistant coatings for EV battery housings. These coatings provide lightweight, durable, and cost-effective solutions, enhancing safety, thermal management, and compliance with stringent industry standards.

Market Trend

“Shift Toward Lightweight Materials in Battery Housing”

The battery housing market is witnessing a growing trend toward the use of lightweight materials. This shift is propelled by the increasing need to reduce vehicle weight, enhance battery efficiency, and improve overall performance.

By incorporating these materials, manufacturers can optimize the structural integrity of battery enclosures while contributing to energy savings and extending battery life. This trend is particularly significant in the electric vehicle sector, where weight reduction directly enhances range and efficiency.

• In April 2023, EDAG Group, Mitsubishi Chemical, and Kreisel Electric introduced a lightweight battery housing concept for electric vehicles, using functional composites to reduce weight while ensuring safety, durability, and heat dissipation.

Battery Housing Market Report Snapshot

Segmentation	Details
By Battery Type	Lithium-ion Batteries, Solid-State Batteries, Others
By Material Type	Aluminum, Steel, Others
By Application	Electric Vehicles (EVs), Energy Storage Systems (ESS), Consumer Electronics, Industrial
By Region	North America: U.S., Canada, Mexico
	Europe: France, U.K., Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, UAE, Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation:

• By Battery Type (Lithium-ion Batteries, Solid-State Batteries, and Others): The lithium-ion batteries segment garnered USD 2,426.6 million in revenue in 2023, aided by increased demand for portable energy storage solutions.
• By Material Type (Aluminum, Steel, and Others): The aluminum segment held a share of 48.62% in 2023, largely due to its lightweight and cost-efficient properties for battery housing.
• By Application (Electric Vehicles (EVs), Energy Storage Systems (ESS), Consumer Electronics, Industrial): The electric vehicles (EVs) segment is projected to reach USD 6,797.8 million by 2031, fueled by expanding electric vehicle adoption and infrastructure development.

Battery Housing Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.

Asia Pacific battery housing market captured a share of around 36.55% in 2023, valued at USD 1,918.9 million. This dominance is reinforced by rapid industrialization and technological advancements in countries such as China, Japan, and South Korea. 

These nations lead in the production and adoption of lithium-ion batteries, particularly for electric vehicles and energy storage systems. The region’s extensive manufacturing capabilities, coupled with government incentives for electric vehicle adoption and renewable energy integration, contribute significantly to regional market growth, positioning Asia Pacific as a key hub for battery housing solutions.

• In May 2024, UL Solutions opened a new Battery Enclosure Material Screening (BEMS) laboratory in Ise, Japan, to support automotive manufacturers in enhancing electric vehicle (EV) battery safety, accelerating material testing, and improving occupant protection against thermal runaway events.

North America battery housing industry is set to grow at a robust CAGR of 15.38% over the forecast period. This growth is bolstered by increasing demand for electric vehicles and clean energy solutions. The U.S. and Canada have been investing heavily in infrastructure and research for energy storage systems, making them key markets for battery housing. 

The region's strong emphasis on sustainability, coupled with supportive government policies, has spurred innovation in battery technologies. This rapid growth, along with increased consumer awareness, positions North America as the fastest-growing region in the global market.

Regulatory Frameworks:

• The EU Battery Directive 2006/66/EC establishes limits for certain types of metals and chemicals contained in batteries, sets targets for waste battery collection rates, and assigns financial responsibility for waste collection and management.
• The EU’s RoHS Directive restricts hazardous substances in electrical and electronic equipment.

Competitive Landscape

The battery housing market is characterized by a large number of participants, including both established corporations and emerging players. In the growing market, several companies have introduced innovative solutions to enhance electric vehicle safety and performance. 

These include advancements in materials and technologies aimed at improving thermal management, crash protection, and overall durability. By focusing on heat-resistant composites and energy-absorbing structures, competitors are expanding production capabilities to meet the increasing demand from global automotive manufacturers, strengthening their market position.

• In January 2023, Gestamp unveiled its fourth hot stamping line in India at Auto Expo 2023-Components, showcasing innovations such as Battery Boxes and Cell-to-Pack Concepts. This highlights its commitment to the growing market.

List of Key Companies in Battery Housing Market:

• Magna International Inc
• Hindalco Industries Limited (Novelis)
• Panasonic Holdings Corporation
• Constellium
• SGL Carbon
• INFAC Corporationin
• GESTAMP SERVICIOS, S.A.
• GF Casting Solutions
• thyssenkrupp AG
• TRB
• SABIC
• TEIJIN LIMITED
• Covestro AG
• Evonik Industries AG
• Nemak

Recent Developments (Launch/Project/Partnership)

• In January 2024, E-Works Mobility, a Munich-based company, advanced the development of its E-Works HEERO by replacing its aluminum battery box with a glass fiber-reinforced plastic solution from SGL Carbon, enhancing energy efficiency, safety, and durability in electric vehicle battery housings.
• In January 2025, Recyclus successfully completed a project to recycle fire-damaged lithium-ion (Li-ion) battery packs for an EV OEM. The project, handled at their Wolverhampton facility, highlights Recyclus’ expertise in safely processing compromised batteries and contributing to the electrification supply chain.
• In May 2023, FEV and Impression Technologies (ITL) unveiled a battery housing concept for electric vehicles using HFQ Technology, optimizing energy storage space and enhancing structural performance. The innovative design integrates the housing into the vehicle, offering a solution for increased range or reduced installation space, with a demonstrator to be presented soon.