PUBLISHER: The Business Research Company | PRODUCT CODE: 1872810
PUBLISHER: The Business Research Company | PRODUCT CODE: 1872810
A battery performance warranty guarantees that an electric vehicle (EV) or energy storage battery will maintain a specified percentage of its original capacity or performance over a defined period or mileage. It provides consumers with assurance of long-term reliability, protects against premature degradation, and holds manufacturers accountable for battery quality and durability.
The primary battery types covered under a battery performance warranty include lead-acid, lithium-ion, nickel metal hydride, solid-state, and others. A lead-acid battery performance warranty ensures that the battery's capacity, reliability, and service life remain within specified limits over a defined usage period. Coverage types include capacity retention, cycle life, product replacement, and others, with applications in automotive, consumer electronics, industrial, energy storage systems, and more, serving end-users such as original equipment manufacturers (OEMs), aftermarket providers, utilities, and others.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The rapid rise in U.S. tariffs and the subsequent trade frictions in spring 2025 are having a major impact on the electrical and electronics sector, with semiconductors, display panels, and rare-earth metals (essential for batteries and motors) subject to steep duties. Consumer electronics brands face profit erosion, as competitive markets limit their ability to pass costs to buyers. Industrial electronics manufacturers, meanwhile, grapple with delayed projects due to shortages of tariff-impacted components like printed circuit boards. Companies are responding by relocating assembly to tariff-exempt countries, increasing inventory buffers, and redesigning products to reduce dependency on restricted materials.
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The battery performance warranty market size has grown rapidly in recent years. It will grow from $2.87 billion in 2024 to $3.25 billion in 2025 at a compound annual growth rate (CAGR) of 13.2%. The growth during the historic period can be attributed to increasing adoption of electric vehicles, rising demand for energy storage systems, growing consumer awareness about battery longevity, stringent government regulations on battery standards, emphasis on sustainable and clean energy, and expansion of renewable energy infrastructure.
The battery performance warranty market size is expected to see rapid growth in the next few years. It will grow to $5.25 billion in 2029 at a compound annual growth rate (CAGR) of 12.8%. The growth in the forecast period can be attributed to rising government incentives for electric vehicle adoption, growing consumer preference for long-lasting batteries, expansion of smart grid infrastructure, demand for reliable and low-maintenance energy solutions, and stricter global regulations on battery performance and safety. Major trends in the forecast period include advancements in solid-state batteries, integration of predictive analytics for battery health, wireless battery monitoring technologies, use of artificial intelligence for performance optimization, and adoption of blockchain for warranty tracking and verification.
The growing demand for electric vehicles (EVs) is expected to drive the expansion of the battery performance warranty market. Electric vehicles are cars that use electric motors powered by rechargeable batteries or fuel cells instead of internal combustion engines, offering reduced emissions, improved energy efficiency, and less reliance on fossil fuels. The rising adoption of EVs is largely due to increasing environmental concerns, as EVs produce fewer emissions and help mitigate air pollution and climate change. Battery performance warranties support the adoption of electric vehicles by offering long-term reliability, making EVs more attractive to consumers and alleviating concerns about range anxiety. These warranties protect against battery degradation and replacement costs, boosting consumer confidence and encouraging wider adoption of sustainable transportation. For example, in 2024, the International Energy Agency reported that global electric car sales reached 3.5 million in 2023, marking a 35% year-on-year increase from 2022. As a result, the increasing demand for electric vehicles is fueling the growth of the battery performance warranty market.
Major players in the battery performance warranty market are developing policies like lifetime coverage, which provide long-term value and address concerns about ownership costs and battery degradation. Lifetime coverage is a warranty that ensures protection for the entire usable life of the product or the duration of ownership, including repairs or replacements as necessary. For instance, in July 2025, Tata Motors Ltd., an India-based automotive manufacturer, introduced a lifetime battery warranty for its electric vehicles, such as the Curvv EV and Nexon EV 45kWh. This warranty covers unlimited kilometers for 15 years for both new and existing owners. It reassures customers about battery longevity, tackles replacement cost concerns, and could save owners approximately 8-9 lakh over ten years. The warranty also covers manufacturing defects in the battery pack and ensures that it will retain at least 70% of its State of Health (SoH) throughout the ownership period, providing peace of mind and safeguarding the vehicle's resale value.
In May 2023, Lohum Cleantech Private Limited, an India-based lithium-ion battery recycling company, teamed up with ACKO General Insurance Limited in a partnership aimed at recycling and repurposing EV batteries covered by extended battery warranty insurance. This collaboration ensures smooth warranty claims, minimizes environmental impact, and supplies sustainable materials for new batteries. ACKO General Insurance Limited is a digital-first insurance company offering extended battery warranties for EVs.
Major players in the battery performance warranty market are General Motors Company, Bayerische Motoren Werke AG, Hyundai Motor Company Limited, Tesla Inc., BYD Company Limited, Nissan Motor Corporation, Panasonic Corporation, TVS Motor Company Limited, GS Yuasa Corporation, EnerSys, Volkswagen Group of America Inc., East Penn Manufacturing Company Inc., Exide Industries Limited, Leoch International Technology Limited, Luminous Power Technologies Pvt. Ltd., Saft Groupe S.A., ACKO General Insurance Limited, FIAMM Energy Technology S.p.A., Ola Electric Mobility Pvt. Ltd., and Okaya Power Private Limited.
North America was the largest region in the battery performance warranty market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in battery performance warranty report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the battery performance warranty market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The battery performance warranty market includes revenues earned by entities through after-sales services that ensure battery reliability, performance assurance, maintenance, and replacement support. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Battery Performance Warranty Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on battery performance warranty market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for battery performance warranty ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The battery performance warranty market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.