Military Battery Market

Market Definition

The market encompasses the development, production, and deployment of advanced battery technologies that power a wide range of defense and military applications. These batteries support mission critical systems such as communication devices, surveillance equipment, unmanned vehicles, weapon systems, and portable soldier gear. 

Military batteries are engineered to operate reliably in extreme environments and offer high energy density, extended lifecycles, and rugged design. The report highlights key market drivers, major trends, regulatory frameworks, and the competitive landscape shaping the market.

Military Battery Market Overview

The global military battery market size was valued at USD 1345.2 million in 2024 and is projected to grow from USD 1411.1 million in 2025 to USD 2069.8 million by 2032, exhibiting a CAGR of 5.63% during the forecast period. 

The market is driven by the increasing demand for portable and reliable power sources that support modern military systems such as unmanned vehicles and communication tools. Rising global defense spending is encouraging nations to modernize their military forces with advanced technologies and improve operational efficiency through energy-efficient power solutions.

Major companies operating in the military battery industry are EnerSys, Saft, Epsilor-Electric Fuel Ltd., EaglePicher Technologies, Ultralife Corporation, Bren-Tronics, Inc, BAE Systems, General Dynamics Mission Systems, Inc., GSYuasa Lithium Power, Mathews Associates Inc., Denchi Group, Concorde Battery Corporation, Lincad, Cell-Con, Inc and Teledyne Technologies.

Additionally, Significant investments in battery manufacturing infrastructure are driving the market by accelerating the development of high-performance, mission-ready batteries for defense applications. strong support from government to promote domestic production capabilities and ensuring a secure, reliable supply of advanced energy storage systems for military use are also supporting the millitary battery market expansion 

• In September 2024, EnerSys received USD 199 million in funding from the U.S. government to support the construction of a new lithium-ion battery manufacturing facility in South Carolina. The factory will produce specialized batteries primarily for defense applications. The project involves collaboration with battery technology experts and reflects the government’s commitment to strengthening domestic battery production capabilities for national security.

Key Highlights:

1. The military battery market size was recorded at USD 1345.2 million in 2024.
2. The market is projected to grow at a CAGR of 5.63% from 2025 to 2032.
3. North America held a market share of 45.91% in 2024, with a valuation of USD 617.6 million.
4. The ground segment garnered USD 807.1 million in revenue in 2024.
5. The lithium-ion segment is expected to reach USD 849.9 million by 2032.
6. The 12V – 24V segment is anticipated to grow at a CAGR of 6.92% over the forecast period.
7. The OEM (original equipment manufacturer) segment held a market share of 70.00% in 2024
8. Asia Pacific is anticipated to grow at a CAGR of 6.22% during the forecast period.

Market Driver

Rising Military Expenditure

Rising military expenditure is fueling the expansion of the market as defense forces worldwide are increasing investments in advanced technologies and modernizing their equipment. This is enabling the procurement of power-intensive systems such as advanced communication devices, surveillance tools, and unmanned vehicles, which require reliable and efficient battery solutions. 

Moreover, the growing focus on operational readiness, mobility, and energy resilience is creating greater demand for durable, lightweight, and high-capacity batteries tailored for modern military applications. These factors are driving the growth of the market.

• According to the Stockholm International Peace Research Institute (SIPRI), global military expenditure rose to USD 2.718 trillion in 2024, up 9.4% from 2023.

Market Challenge

High Development Costs

The military battery market is facing a significant challenge due to the high development costs involved in designing and manufacturing batteries that meet strict military standards for performance, durability, and safety. These requirements demand substantial investment in research, advanced materials, and testing. Additionally, lengthy approval processes and the need for customization across different platforms further increase the costs.

To address this challenge, companies in the market are adopting several strategic approaches. They are forming partnerships with defense agencies and technology firms to share R&D expenses and accelerate innovation. 

By developing modular, scalable battery designs, manufacturers are reducing the customization costs. They are leveraging commercial battery technologies for military use and investing in advanced simulation tools to streamline development.

Market Trend

Advancements in High-Capacity Lithium-Ion Batteries

The market is experiencing advancement in high-capacity lithium-ion batteries. These batteries provide higher energy density and better performance, resulting in longer operational life for military vehicles and equipment. 

Enhanced safety and durability in harsh environments are increasingly important for maintaining the performance and longevity of military batteries used in extreme operational settings. This reflects the industry’s focus on developing more efficient and reliable power solutions to meet the evolving needs of defense applications.

• In January 2025, Epsilor Electric Fuel Ltd. completed its new generation NATO 6T Li-Ion battery for military vehicles, delivering the highest energy capacity in the market at 4,400Wh/174Ah. The battery, named ELI-52526-GM, is designed to enhance performance and endurance for defense applications.

Military Battery Market Report Snapshot

Segmentation	Details
By Platform	Ground, Airborne, Marine, Space
By Type	Lithium-ion, Lead Acid, Nickel-based, Thermal
By Voltage	Less than 12V, 12V – 24V, More than 24V
By End-User Industry	OEM (Original Equipment Manufacturer), Aftermarket
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation:

• By Platform (Ground, Airborne, Marine, Space): The ground segment earned USD 807.1 million in 2024 due to the high demand for advanced batteries in military land vehicles and equipment.
• By Type (Lithium-ion, Lead Acid, Nickel-based, and Thermal): The lithium-ion segment held 45.00% of the market in 2024, due to superior energy density, lightweight design, and longer operational life.
• By Voltage (Less than 12V, 12V – 24V, More than 24V): The less than 12v segment is projected to reach USD 931.4 million by 2032, owing to rising use in compact and portable military devices.
• By End-User Industry (OEM (Original Equipment Manufacturer), Aftermarket): The OEM (original equipment manufacturer) segment held a market share of 70.00% in 2024 owing to growing integration of custom battery solutions in new defense platforms.

Military Battery Market Regional Analysis

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

The North America military battery market accounted for a share of around 45.91% in 2024, with a valuation of USD 617.6 million. This dominance is driven by the strong presence of established battery manufacturers specializing in advanced lithium-ion battery technologies. 

The market benefits from continuous investments in research and development, strategic partnerships, and acquisitions that enhance product innovation. Additionally, the high demand within the defense sector for energy-efficient and cost-effective power solutions is driving the growth of the market in North America.

• In February 2025, EnerSys acquired a controlling interest in Modular Energy Devices, Inc. (ModEnergy), a company specializing in large format lithium-ion rechargeable batteries for aerospace, defense, and commercial applications. The investment expands EnerSys’ footprint in the emerging lithium-ion segment, complementing its existing lead-acid and nickel-based product lines.

The Asia Pacific military battery industry is set to grow at a robust CAGR of 6.22% over the forecast period. This growth is fueled by rising defense budgets in this region, along with the increasing demand for advanced military equipment. Moreover, the ongoing modernization of armed forces across key countries is increasing the adoption of advanced battery solutions. 

The growing need for lightweight, high-performance batteries in unmanned systems, communication devices, and armored vehicles is further contributing to the market growth in this region.

• In March 2025, the Press Information Bureau India reported that the Indian defense budget increased from approximately USD 29.20 billion in 2013–14 to around USD 78.60 billion in 2025–26.

Regulatory Frameworks

• In the U.S., the Department of Defense (DoD) sets stringent requirements for military batteries, including energy density, power output, weight, and operating temperature range. These standards ensure that batteries meet the demanding performance needs of military equipment.
• In China, the Chinese State Administration for Market Regulation (SAMR) is the key regulatory authority overseeing the lithium-ion battery market. SAMR implements mandatory certification for lithium-ion batteries and related products, ensuring safety and quality
• In India, the Centre for Military Airworthiness and Certification (CEMILAC) approves the type of batteries used in military aircraft, ensuring they meet airworthiness standards.

Competitive Landscape

Major players in the military battery market are expanding their presence through strategic acquisitions to strengthen capabilities in portability and lithium-based solutions. 

They are integrating specialized defense technologies such as advanced battery management systems to enhance products, streamline operations, and diversify offerings across mission-critical applications. Additionally, they are focusing on aligning their product portfolios with evolving defense requirements to meet the growing demand for efficient, high-performance energy solutions.

• In July 2024, EnerSys acquired Bren-Tronics, a leading manufacturer of portable power solutions for military and defense applications, valued at USD 208 million. The acquisition supports EnerSys’ strategic expansion into the defense sector and strengthens its lithium battery offerings.

List of Key Companies in Military Battery Market:

• EnerSys
• Saft
• Epsilor-Electric Fuel Ltd.
• EaglePicher Technologies
• Ultralife Corporation
• Bren-Tronics, Inc
• BAE Systems
• General Dynamics Mission Systems, Inc.
• GSYuasa Lithium Power
• Mathews Associates Inc.
• Denchi Group
• Concorde Battery Corporation
• Lincad
• Cell-Con, Inc
• Teledyne Technologies.

Recent Developments (M&A/Partnerships/Product Launches)

• In February 2025, BAE Systems expanded its facility in Endicott, New York, adding 150,000 square feet dedicated to the development and production of high-voltage energy storage systems (ESS) for aircraft electrification programs. The new facility includes pilot production lines, automated manufacturing, and advanced testing labs to support sustainable aviation technology.
• In November 2024, Ultralife Corporation acquired Electrochem Solutions, Inc. for USD 50 million in cash. Electrochem, based in Raynham, Massachusetts, specializes in primary lithium metal and ultracapacitor cells and battery packs for the military, energy, industrial, and utility sectors. The acquisition aims to enhance Ultralife’s manufacturing efficiencies and cross-selling opportunities, strengthening its competitive position.
• In August 2024, Epsilor Electric Fuel Ltd. launched its advanced military high voltage battery system based on NATO standard 6T batteries, capable of stacking up to 1,000V. The new system targets military applications requiring high-performance energy storage.