Key Insights

The Indonesian battery market, valued at $233.20 million in 2025, is experiencing robust growth, projected to expand at a Compound Annual Growth Rate (CAGR) exceeding 14.30% from 2025 to 2033. This surge is driven primarily by the burgeoning electric vehicle (EV) sector, increasing demand for energy storage systems (ESS) to support renewable energy integration, and the growing adoption of portable electronic devices. The market is segmented by technology (lithium-ion, lead-acid, and others) and application (starting, lighting, and ignition (SLI) batteries; industrial batteries for motive power, stationary applications like telecom and UPS systems, and ESS; portable batteries for consumer electronics; and automotive batteries for HEVs, PHEVs, and EVs). Key players like Furukawa Battery, Contemporary Amperex Technology (CATL), Energizer Holdings, and GS Yuasa are actively competing in this dynamic market, leveraging their technological expertise and established distribution networks to capture market share. The Indonesian government's initiatives to promote renewable energy and sustainable transportation are further bolstering market expansion.

The significant growth in the Indonesian battery market is expected to continue, propelled by infrastructure development, rising disposable incomes fueling consumer electronics demand, and increasing industrialization driving the need for industrial batteries. However, challenges remain, including potential supply chain disruptions, the need for robust recycling infrastructure to manage spent batteries sustainably, and the price volatility of raw materials crucial to battery manufacturing. Despite these hurdles, the long-term outlook for the Indonesian battery market remains positive, with significant opportunities for both established players and new entrants seeking to capitalize on the nation's burgeoning energy transition and economic development. The shift towards cleaner energy sources and the increasing adoption of electric mobility are expected to further strengthen the market's trajectory.

Indonesia Battery Market: A Comprehensive Report (2019-2033)

This comprehensive report provides an in-depth analysis of the Indonesia battery market, offering crucial insights for industry professionals, investors, and strategic decision-makers. The study period spans from 2019 to 2033, with a base year of 2025 and a forecast period of 2025-2033. The report leverages extensive data from the historical period (2019-2024) to provide accurate and reliable market projections. Key market segments, including Lithium-ion, Lead-acid, and other battery technologies, across various applications like SLI, industrial, portable, and automotive (HEV, PHEV, EV), are meticulously analyzed. Leading players such as The Furukawa Battery Co Ltd, Contemporary Amperex Technology Co Limited, Energizer Holdings Inc, PT New Indobatt Energy Nusantara, FDK Corporation, PT Motobatt Indonesia, GS Yuasa Corporation, and PT Century Batteries Indonesia are profiled, providing a holistic view of the competitive landscape. The report’s findings are supported by robust data, market share analysis, and CAGR projections, offering actionable insights for navigating this dynamic market.

Indonesia Battery Market Market Structure & Innovation Trends

The Indonesian battery market exhibits a moderately concentrated structure, with a few dominant players commanding significant market share. The market share of the top 6 players is approximately 40% in 2025, while the remaining share is dispersed among numerous smaller regional and international participants. Innovation is driven by increasing demand for electric vehicles (EVs) and energy storage systems (ESS), fueled by government incentives and a growing awareness of environmental sustainability. The regulatory framework, while evolving, is largely supportive of market growth, encouraging investment in domestic battery manufacturing and resource extraction. Key product substitutes include fuel cells and other energy storage technologies, but their market penetration remains relatively low compared to batteries. The end-user demographics are diverse, encompassing various industrial sectors, the automotive industry, and the burgeoning consumer electronics market. Mergers and acquisitions (M&A) activities have been moderate in recent years, with deal values reaching approximately xx Million USD in 2024. These activities primarily focus on expanding market access, securing raw materials, and strengthening technological capabilities.

• Market Concentration: Top 6 players hold ~40% market share (2025).
• Innovation Drivers: EV adoption, ESS demand, government support.
• Regulatory Framework: Supportive of domestic manufacturing and resource extraction.
• M&A Activity: Deal values approximately xx Million USD in 2024.

Indonesia Battery Market Market Dynamics & Trends

The Indonesian battery market is experiencing robust growth, driven by several key factors. The increasing adoption of electric vehicles (EVs) is a primary growth engine, fueled by government initiatives promoting sustainable transportation and the decreasing cost of battery technology. The expansion of the renewable energy sector, particularly solar and wind power, is driving demand for energy storage solutions. Technological disruptions, such as advancements in lithium-ion battery technology and the development of solid-state batteries, are constantly reshaping the market landscape. Consumer preferences are shifting towards more sustainable and environmentally friendly products, boosting the demand for electric vehicles and battery-powered devices. The competitive dynamics are characterized by intense rivalry among both domestic and international players, with a focus on innovation, cost efficiency, and supply chain management. The compound annual growth rate (CAGR) of the Indonesian battery market is projected to be xx% during the forecast period (2025-2033), with market penetration expected to reach xx% by 2033.

Dominant Regions & Segments in Indonesia Battery Market

Java Island dominates the Indonesian battery market, driven by its concentration of industrial activity, population density, and superior infrastructure. Other regions are gradually developing their battery-related industries, but their market share remains relatively small.

Leading Segments:

• Technology: Lithium-ion batteries are experiencing the fastest growth, driven by their high energy density and suitability for EVs and ESS. Lead-acid batteries maintain a significant market share in the SLI battery segment, benefiting from their relatively low cost. Other technologies are gradually gaining traction, driven by ongoing innovation.
• Application: The automotive battery segment (HEV, PHEV, EV) demonstrates the most rapid growth, fueled by the rising popularity of electric vehicles. The industrial battery segment (motive, stationary, ESS) experiences steady growth, driven by the expanding industrial sector and the increasing demand for energy storage solutions. SLI batteries maintain a substantial market share due to their widespread use in traditional vehicles. Portable battery applications, used in consumer electronics, contribute significant market value.

Key Drivers:

• Economic Policies: Government incentives and investments in the EV and renewable energy sectors.
• Infrastructure: Development of charging stations and grid infrastructure supporting EVs and ESS.

Indonesia Battery Market Product Innovations

Recent product developments in the Indonesian battery market focus primarily on improving energy density, extending battery life, enhancing safety features, and reducing production costs. The introduction of advanced lithium-ion battery chemistries, such as lithium iron phosphate (LFP), is gaining traction due to its cost-effectiveness and safety profile. Innovations in battery management systems (BMS) are improving battery performance and lifespan. These product developments are driven by intense competition and the ever-increasing demand for high-performance and cost-effective batteries across various applications, ensuring a better market fit.

Report Scope & Segmentation Analysis

This report segments the Indonesia battery market based on technology (Lithium-ion, Lead-acid, Other Technologies) and application (SLI Batteries, Industrial Batteries, Portable Batteries, Automotive Batteries, Other Applications). Each segment's market size, growth projections, and competitive dynamics are thoroughly analyzed. The Lithium-ion segment shows the highest growth rate, driven by the EV market. The Lead-acid segment maintains a large share in the SLI segment. The Automotive battery application segment shows the highest growth rate and largest market share, followed by the Industrial Batteries segment. Detailed analysis of each segment's market size and competitive intensity is included in the report.

Key Drivers of Indonesia Battery Market Growth

The Indonesian battery market's growth is fueled by several key drivers. Firstly, strong government support for EV adoption through subsidies and infrastructure development significantly boosts demand for EV batteries. Secondly, the country's abundant nickel reserves, a crucial component in battery production, give it a competitive edge in the global battery supply chain. Finally, rising energy demands and the increasing adoption of renewable energy sources create a substantial market for energy storage systems, further driving battery market growth.

Challenges in the Indonesia Battery Market Sector

The Indonesian battery market faces challenges including the dependence on imported materials for battery manufacturing, resulting in supply chain vulnerabilities and price fluctuations. Also, the development of a robust local battery recycling infrastructure lags behind the pace of battery adoption, leading to environmental concerns. Further, intense competition from international players adds pressure on local manufacturers. The overall impact of these factors is a xx Million USD yearly economic loss (estimated for 2025).

Emerging Opportunities in Indonesia Battery Market

Emerging opportunities include the growth of the ESS market, driven by increasing renewable energy integration, and the development of second-life battery applications, providing an avenue for sustainable waste management and cost reduction. The potential for creating a complete domestic battery supply chain, from raw material extraction to battery manufacturing and recycling, presents significant opportunities for economic growth and job creation. Further exploration and development of novel battery technologies could unlock new markets and applications.

Leading Players in the Indonesia Battery Market Market

• The Furukawa Battery Co Ltd
• Contemporary Amperex Technology Co Limited
• Energizer Holdings Inc
• PT New Indobatt Energy Nusantara
• FDK Corporation
• PT Motobatt Indonesia
• GS Yuasa Corporation
• PT Century Batteries Indonesia

Key Developments in Indonesia Battery Market Industry

• May 2023: Volkswagen announced a USD 5 Billion investment in an Indonesian plant for battery raw materials, aiming to establish an EV supply chain.
• Mar 2023: PT Vale Indonesia and Huayou signed a nickel agreement with Ford Motor, supporting global sustainable EV battery production.

Future Outlook for Indonesia Battery Market Market

The Indonesian battery market is poised for continued strong growth, driven by increasing EV adoption, expanding renewable energy integration, and government support. Strategic opportunities exist in developing a complete domestic battery supply chain, leveraging the country's abundant nickel reserves, and fostering innovation in battery technologies. The market’s future potential is vast, with projections indicating significant expansion in capacity and market value over the next decade.

Indonesia Battery Market Segmentation

• 1. Technology
  • 1.1. Lithium-ion Battery
  • 1.2. Lead-acid Battery
  • 1.3. Other Technologies
• 2. Application
  • 2.1. SLI Batteries
  • 2.2. Industri
  • 2.3. Portable Batteries (Consumer Electronics, etc.)
  • 2.4. Automotive Batteries (HEV, PHEV, and EV)
  • 2.5. Other Applications

Indonesia Battery Market Segmentation By Geography

• 1. Indonesia