Inverter Battery Market is forecasted to rise at a 5.97% CAGR, reaching USD 29.343 billion by 2030 from USD 21.958 billion in 2025.
Inverter batteries, also known as deep cycle batteries, are designed to store electrical energy as direct current (DC) and supply alternating current (AC) through inverters for powering appliances during outages or in off-grid settings. These batteries are critical for backup power, renewable energy systems, and electric vehicle (EV) applications due to their ability to deliver consistent power over extended periods. The market is driven by rapid urbanization, frequent power outages, renewable energy adoption, and technological advancements in battery efficiency. Despite challenges like high initial costs and environmental concerns, the market is poised for steady growth, particularly in the Asia-Pacific, North America, and Europe.
Inverter batteries come in a variety of sizes and capacities, and selecting the right battery depends on factors such as the power requirements of the inverter, the amount of time the battery needs to provide power, and the charging system used to recharge the battery. The market for inverter batteries is influenced by various factors, such as the rising need for backup power, increased uptake of renewable energy, advancements in technology, greater utilization of electric vehicles, and government-led initiatives.
Inverter batteries are an essential part of the construction industry, as they are used to power elevators and machines that are required during the initial phases of construction. Therefore, the rise in construction activities will boost the growth of the inverter battery market. For instance, data from the U.S. Census Bureau indicates that there has been a 1% increase in new residential constructions in the United States of America between 2022 and 2023. Around 1,247 residential buildings were constructed in 2022, and this number increased to 1,406 in 2023, as per the same source. Data from Eurostat indicate that around 5.5% of the overall GDP in Europe was generated from the residential construction sector in 2021. Inverter batteries are also commonly used in residential buildings, particularly in areas with unreliable or intermittent power supply.
Inverter batteries can provide backup power in the event of a power outage, allowing homeowners to maintain essential appliances and electronics such as lights, refrigerators, and medical equipment. The increasing number of power outage incidents will increase the demand for inverter batteries. For instance, in December 2022, a winter storm caused power outages in the eastern half of the United States and Texas, affecting approximately 500,000 homes and businesses, as reported by PowerOutage.us. Similarly, in May 2022, around 3 in 5 Indian homes faced power outages due to extreme heatwaves and high temperatures across the nation. Thus, these factors combine to boost the growth of the inverter battery market.
The tubular battery segment holds a 40% market share in 2024, driven by its durability and long lifespan (up to 8 years). Tubular batteries are ideal for deep-cycle applications in residential and commercial settings, especially in regions with frequent outages like India and South Korea. Their low maintenance and high efficiency make them popular for solar energy storage, with demand growing at a 6.5% CAGR through 2030.
The lithium-ion battery segment, accounting for 35% of the market in 2024, is the fastest-growing due to its high energy density (150–200 Wh/kg) and long cycle life (2,000+ cycles). AI-integrated systems, like those from Luminous (2024), enhance efficiency. Lithium-ion batteries dominate EV and renewable energy applications, with global demand projected to reach USD 10.7 billion by 2032, driven by Asia-Pacific and North America.
The growth of the inverter battery market in this region can be attributed to factors such as rapid industrialization and urbanization in countries such as China and India, along with increasing investments in the renewable energy sector. Inverter batteries are essential for the efficient functioning of renewable energy systems such as solar panels and wind turbines. With the increasing adoption of renewable energy sources, the demand for inverter batteries has also been on the rise. For instance, data from the International Energy Agency shows that 10.6% of the total energy generated in China in 2019 was from renewable energy sources. This number was 7.7% in Japan, 15.9% in India, and 3.4% in Korea in 2019, as per the same source.
Moreover, inverter batteries are also essential components of electric vehicles (EVs). With the growing adoption of EVs in the countries of this region, the demand for inverter batteries has also been increasing. For instance, the electronic vehicle stock in China increased from 2.6 million in 2019 to 6.8 million in 2021, according to data from IEA. In 2021, the Japan Automobile Dealers Association (JADA) reported the sale of 3,675,650 new cars, of which 40.5% were electric vehicles. Vahan Dashboard data reveals that in 2022, the total sales of electric vehicles (EVs) in India amounted to 10,54,938 units, which is more than three times the 3,44,495 units sold in 2021.
In addition to this, inverter batteries are also widely used during power outages as a backup or emergency power source. For instance, in July 2022, around 10,000 homes and businesses faced a power outage, and it took around an hour for the power to be restored. In September 2022, typhoon Hinnamnor caused a massive power outage in South Korea. Thus, these factors combine to boost the growth of the inverter battery market in this region.
Inverter Battery Market Segmentation: