Next-Gen Batteries Set for 28.5% CAGR Through 2029

Boston, July 28, 2025 (GLOBE NEWSWIRE) — According to the latest study from BCC Research, “Next-Generation Advanced Batteries: Global Markets” is projected to grow from $1.5 billion in 2024 to $5.3 billion by the end of 2029, at a compound annual growth rate (CAGR) of 28.5% from 2024 through 2029.

This report provides a comprehensive analysis of the global market for next-generation advanced batteries, focusing on their applications in various industries. It explores emerging technologies, upcoming trends, the competitive landscape, market dynamics and patent activity. The study also highlights ESG developments and macro-economic factors. It covers four regions: North America, Europe, Asia-Pacific, and the Rest of the World. The report concludes with detailed profiles of leading companies in the industry.

This report is especially relevant today as next-generation advanced batteries are rapidly transforming key industries with their superior energy density, longer lifespan, lightweight design, and fast-charging capabilities. These features make them ideal for powering electric vehicles (EV), portable electronics, and grid energy storage systems. Recent advances have also significantly improved safety by reducing the risks of overheating and combustion. With ongoing research driving further gains in performance and reliability, these batteries are becoming increasingly essential for a sustainable energy future.

The factors driving the market’s growth include:

Need for a cost-effective alternative to LIBs: Lithium-ion batteries are expensive due to their use of rare and costly materials. This has created a push for more affordable alternatives that use abundant or recyclable components, making energy storage more accessible and sustainable.

Preference for flow batteries over conventional batteries: Flow batteries are gaining popularity, especially for large-scale energy storage, because they offer longer life, better safety, and scalability. Their ability to decouple energy and power capacity makes them ideal for grid applications.

Increasing demand for solar energy: As solar power adoption rises globally, there is a growing need for efficient energy storage systems to manage intermittent generation. Advanced batteries help store excess solar energy and ensure a stable power supply.

Demand for higher battery energy density: The Ev, aerospace, and consumer electronics industries require batteries that store more energy in smaller, lighter packages. This demand is pushing innovation in next-gen batteries like solid-state and lithium-sulfur technologies.

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Report Synopsis

Report Metric	Details
Base year considered	2023
Forecast period considered	2024-2029
Base year market size	$1.2 billion
Market size forecast	$5.3 billion
Growth rate	CAGR of 28.5% from 2024 to 2029
Segments covered	Battery Type, End Use, and Region
Regions covered	North America, Europe, Asia-Pacific and the Rest of the World (South America, the Middle East and Africa)
Market drivers	Need for a cost-effective alternative to LIBs. Preference for flow batteries over conventional batteries. Increasing demand for solar energy, facilitating the deployment of next-generation advanced batteries. Demand for higher battery energy density.

Interesting facts:

• According to the International Energy Agency (IEA), global battery manufacturing reached 2.5 terawatt-hours (TWh) in 2023, an increase of 780 gigawatt-hours (GWh) in capacity compared to 2022. This represents a growth of over 25% from the previous year.

• The IEA reported that EV sales worldwide hit 14 million units in 2023, accounting for 18% of all vehicle sales. This marks a rise from 14% in 2022, with 3.5 million more EVs sold in 2023, a 35% year-on-year increase.

• The U.S., China, and Europe continued to dominate the next-generation advanced battery market in 2023, collectively accounting for more than 90% of the global market share.

Emerging startups

• Benan Energy Technology (Shanghai) Co., Ltd.: This company researches, develops, and manufactures high-safety SIBs, and is committed to advancing the industrialization of sodium-ion energy storage solutions, which offer safety and environmentally friendly features.

• QuantumScape Battery, Inc.: QuantumScape, based in San Jose, Calif., develops solid-state rechargeable lithium metal batteries for Evs. Its R&D is focused on two innovations: a codeless architecture and a proprietary solid ceramic separator that improves energy density, charging speeds, and safety.

• Allegro Energy: The company has developed water-based redox flow batteries to store renewable energy and is looking to build an 800 KWh pilot storage facility in New South Wales, Australia.

The report addresses the following questions:

1. What is the market’s projected size and growth rate?

• The global market for next-generation advanced batteries was valued at $1.2 billion in 2023 and is projected to reach $5.3 billion by the end of 2029, with a CAGR of 28.5%.

2. Which factors are driving the growth of the market?

• Key drivers include:

• Need for a cost-effective alternative to lithium-ion batteries (LIBs).
• Preference for flow batteries over conventional batteries.
• Increasing demand for solar energy facilitating next-generation advanced battery deployment.
• Demand for higher battery energy density.

3. Which market segments are covered in the report?

• The next-generation advanced batteries market is segmented based on battery type, end-use, and region.

4. Which battey type segment will be dominant through 2029?

• Solid state batteries (SSBs) will be the dominant market segment through 2029.

5. Which region has the largest market share?

• Asia-Pacific holds the largest share of the global market.

Market leaders include:

• BLUE SOLUTIONS S.A.S.
• CONTEMPORARY AMPEREX TECHNOLOGY CO. LTD.
• ESS TECH INC.
• FARADION
• HINA BATTERY TECHNOLOGY CO. LTD.
• ILIKA
• INVINITY ENERGY SYSTEMS
• LG ENERGY SOLUTION
• NATRON ENERGY INC.
• NGK INSULATORS LTD.
• PANASONIC ENERGY CO. LTD.
• PRIMUS POWER SOLUTIONS
• QUANTUMSCAPE BATTERY INC.
• SK ON CO. LTD.
• SUMITOMO ELECTRIC INDUSTRIES LTD.

Related reports:

Global EV Battery Swapping Market: This report reviews the global EV battery swapping market, covering battery types such as lithium-ion, nickel-metal hydride, and lead-acid. It examines manual and automatic swapping stations, service models like subscription and pay-per-use, and applications across passenger cars, commercial vehicles, two-wheelers, and three-wheelers. The report also highlights emerging technologies and developments, competitive dynamics, ESG trends, and the impact of geopolitical events. It includes regional insights and profiles of leading companies, with market values presented in millions of dollars.

Flow Batteries: Global Markets: This report provides an analysis of the global flow battery market, focusing on battery types, materials, deployment, and applications, excluding the automotive sector. It explores trends, patent activity, and regional insights, while also addressing the impact of COVID-19 and ESG. The report concludes with profiles of major manufacturers and presents market values in millions of dollars.

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