In the first half of 2025, CATL and BYD dominate China's battery installation market with a collective share of 66.6%
The power battery market in China is undergoing a significant transformation, with a gradual decline in market concentration and an increase in the presence of new entrants and specialized firms.
In the first half of 2025, the top two players, CATL and BYD, held a combined 66.6% market share, a slight decrease from the previous year. CATL maintained its leading position with an installation volume of 128.6 GWh, capturing 43.05% of the market, while BYD followed closely with an installation volume of 70.37 GWh, accounting for 23.55% of the market [1][3].
However, the overall top ten companies collectively controlled 93.6% of the market, a decrease of 2.5 percentage points year-on-year. This decline reflects an emerging trend of new entrants and specialized firms gaining footholds in the market, contributing to a more diversified and competitive industrial ecosystem [3].
Beyond the dominant battery giants, companies like CALB, Gotion Tech, EVE Energy, and Sunwoda are becoming more prominent within the top ten, demonstrating the market's increasing breadth [1].
In addition to market share shifts, Chinese battery manufacturers are actively advancing new and specialized battery technologies. Innovations such as solid-state batteries, high-voltage sodium batteries, silicon carbon anodes, polymer-based solid-state batteries, and lithium-sulfur chemistries are helping smaller players differentiate and strengthen their market positions [2].
CATL, despite its dominance, is not immune to competition. The data suggests a gradual reduction in market concentration for power battery market leaders, with CATL maintaining absolute dominance in NCM batteries but performing less strongly in LFP batteries, a market traditionally held by BYD [3].
More automakers are reducing their dependence on CATL and BYD due to cost considerations, further fueling the trend towards diversification in the power battery market [3]. The trend suggests that while the leading companies still hold significant market power, new entrants and specialized firms are gradually finding their footing, leading to a more diversified industrial ecosystem.
In conclusion, while CATL and BYD remain dominant forces, the power battery market concentration is showing signs of modest erosion due to the entrance and growth of niche specialists and innovators. This evolving landscape balances scale advantages held by incumbents with technological diversification driven by emerging firms, contributing to a more complex and dynamic market environment.
References:
[1] China's Power Battery Market in H1 2025: CATL, BYD Lead, but Market Shares Slip
[2] China's Power Battery Market: A Look at the Innovations Driving Competition
[3] China's Power Battery Market: A Shift Towards Diversification
In the rapidly evolving power battery market in China, new entrants and specialized firms such as CALB, Gotion Tech, EVE Energy, and Sunwoda are increasingly making their presence felt, leading to a more competitive and diverse industrial ecosystem [1].
Sports and technology sectors may witness a similar trajectory as innovation, such as solid-state batteries and lithium-sulfur chemistries, are helping smaller players differentiate and strengthen their positions in the power battery market [2].
