Traction Battery Market was valued at USD 40.01 Bn. in 2023. The Global Traction Battery Market size is estimated to grow at a CAGR of 8.2% over the forecast period.
Traction Battery Market Overview:
The report explores the Traction Battery market's segments (Product Type, Capacity, Application, End- and Region). Data has been provided by market participants and regions (North America, Asia Pacific, Europe, Middle East & Africa, and South America). This market report provides a thorough analysis of the rapid advances that are currently taking place across all industry sectors. Facts and figures, illustrations, and presentations are used to provide key data analysis for the historical period from 2018 to 2023. The report investigates the Traction Battery market's drivers, limitations, prospects, and barriers. This MMR report includes investor recommendations based on a thorough examination of the Traction Battery market's contemporary competitive scenario.To know about the Research Methodology :- Request Free Sample Report
Traction Battery Market Dynamics:
The traction battery market is expected to grow during the forecast period due to the large-scale deployment of traction batteries in electric and hybrid vehicles. They are in high demand in the automotive and manufacturing industries leading to global demand for traction batteries. In addition, the traction battery is recyclable and environmentally friendly. It is expected that the growth of the electric vehicle is due to the transportation electrification and rising investment which will increase demand during the forecast period.

Government regulations and laws supporting the manufacture and sale of electric vehicles, which is expected to drive the traction battery market across the globe. Additionally, due to the commitment to reducing gasoline emissions, the market is anticipated to rise as more people become aware of the dangerous effects of these pollutants. Because of their long service life, lightweight packs, and increasing power storage capacity, traction batteries are also ideal for industrial applications. Electric car sales topped 3 million for the first time in 2022, according to the International Energy Agency, a 40% increase over 2022. Over 10 million electric vehicles are already on the road, accounting for 1% of all vehicles on the road. By 2030, 300 million electric cars will be on the road, according to the Net Zero emissions by 2050 scenario.

Due to limitations and the high cost of alternatives to lead-acid batteries traditionally used in traction applications limited, the range of viable battery-powered traction applications. The increasing demand for electric vehicles and increasing application for forklifts is anticipated to have a positive impact on market growth. E-commerce penetration increases as a result of rapid industrialization, and developments in material handling technologies drive the traction battery market to grow. The rising demand for electric vehicles has spurred R &D efforts to improve battery efficiency by shortening charge cycles and reducing unit consumption per charge. The high energy density batteries are expected to increase the competition among the traction battery manufacturer, which are producing highly efficient traction batteries for electric and hybrid vehicles. All these factors offer an opportunity for market growth.

The construction of EV charging infrastructure is anticipated to be a major setback in many countries due to the factors such as lack of space, investment, and electrification. During the forecast period, this factor is expected to curb the growth of the traction battery market
Traction Battery Market Segment Analysis
Based on Product Type, the market is categorized into Lead acid-based, Nickel-based, Lithium-ion-based, and Others. The lead-acid battery-based segment is the largest contributor to revenue and is expected to grow at a CAGR of 7.2% over the forecast period. A higher life cycle, lower price, and better vibration resistance are some important attributes expecting these batteries to gain traction around the world. The growth of the industry is anticipated due to rapid cost savings and excellent charging efficiency. The growing population across the globe is accelerating the growth of the automotive and transportation sector, and lead-acid-based traction batteries are widely used in road vehicles, locomotives, industrial forklifts, scrubber dryers, and more.

Its high energy density and design quality are superior to lithium-ion batteries in electric vehicle applications. Compared to current alternatives, NiMh has a higher weight analysis and volumetric energy density, making it more suitable for HEVs. Approx. 70% of hybrid electric vehicles around the world are equipped with NiMh batteries, which promises the future of the traction battery business. For example, according to a report released by the Ministry of Trade and Industry of India, India’s transport sector is anticipated to grow at a CAGR of 5.9%, making it one of the fastest-growing sectors. This can actively drive the growth of the lead-acid battery traction battery market.

Based on Capacity, the global traction market is segmented into less than 100Ah, 100-200Ah, 200-300Ah, 300-400Ah, and 400Ah & above. The segment below 100Ah is the largest revenue contributor and is expected to grow at a CAGR of 8.5% over the forecast period. Increasing demand for hybrid-electric propulsion devices in small industries where traction batteries with capacities less than 100Ah are widely used to power small industrial mechanical systems boosts the market growth. In addition, factors such as long life and maximum charge cycle make it very suitable for use as a secondary rechargeable battery in non-plug-in hybrid vehicles such as Honda-Civic Hybrid. This has the potential to drive the growth of the traction battery market with capacities less than 100Ah.

Based on the Application, the Traction Battery Market is divided into the Electrical vehicle, Industrial, Locomotives, and Others. The electric vehicle segment is anticipated to grow at a CAGR of 8.5% over the forecast period. Increasing concerns about pollution and accelerating the growth of electric vehicles and traction batteries are widely used to power the electric motors of battery-powered and hybrid electric vehicles. It is led by government initiatives to reduce greenhouse gas emissions. The company’s growth has been supported by government tax incentives and the aggressive goal of electric vehicle manufacturers to promote EVs in developed countries. The industrial sector of the market is expected to benefit from rapid industrialization and the shift of consumer preferences to electric forklifts. The increased business activity of e-commerce and the inevitable use of electric forklifts to improve the efficiency and sustainability of business operations are contributing to the rapid growth of the industry.
Regional Insights:
The Asia-Pacific traction battery market is anticipated to grow at a CAGR of 8.9% during the forecast period, accounting for 54.5% of the traction battery market share in 2023. Increasing demand for consumer goods is driving the growth of industrial manufacturing sectors in countries such as China and India, where traction batteries are used to power industrial machinery systems. This has the potential to boost the growth of the Asia Pacific traction battery market. In addition, growing environmental initiatives are driving the growth of electric vehicles, and traction batteries are widely used for electric power motors. The government-led initiatives to promote e-mobility and suitable charging infrastructure in India open new opportunities for industry players. The European traction battery market was valued at more than USD 6 billion in 2022, and it’s predicted to keep increasing because of rising electric vehicle sales and strict targets to cut carbon emissions in the automotive sector.

The objective of the report is to present a comprehensive analysis of the global Traction Battery Market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear, futuristic view of the industry to the decision-makers.

The reports also help in understanding the Traction Battery Market dynamic and structure by analyzing the market segments and projecting the Traction Battery Market size. Clear representation of competitive analysis of key players by Design, price, financial position, product portfolio, growth strategies, and regional presence in the Traction Battery Market make the report investor’s guide.
Traction Battery Market Scope: Inquiry Before Buying



Traction Battery Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
USD 40.01 Bn.


Forecast Period 2024 to 2030 CAGR:
8.2%
Market Size in 2030:
USD 69.46 Bn.


 Segments Covered:
by Product Type
Lead acid-based
Nickel-based
Lithium-ion-based
Others


by Application
Electrical vehicle
Industrial
Locomotives
Others


by Capacity
less than 100Ah
100-200Ah
200-300Ah
300-400Ah
400Ah & above



Slate Minerals Market Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Key Players:
1. BAE Batteries GmbH
2. Banner Batteries Ltd.
3. ECOVOLTA
4. Exide Industries Ltd
5. GS Yuasa International Ltd
6. LG Chem
7. Inci Aku
8. INTILION GmbH
9. Leoch International Technology Limited Inc
10. Toshiba Corporation
11. Samsung
12. Hitachi
13. BYD Company
14. Exide
Frequently asked questions:
1. What is the market growth of the Traction Battery Market?
Ans. Traction Battery Market was valued at USD 40.01 Bn. in 2023. The Global Traction Battery Market size is estimated to grow at a CAGR of 8.2% over the forecast period.

2. Which are the major key players in the Traction Battery Market?
Ans. The key players in this market include Hitachi, Samsung, Exide, BYD Company, LG Chem, and GS Yuasa.

3. Which region is anticipated to account for the largest market share?
Ans. The Asia-Pacific is anticipated to dominate the traction Battery Market,

4. what is the forecast period for the Traction Battery Market?
Ans. The forecast period for the Traction Battery Market is from 2024 to 2030.

5. what is the segment in which the Traction Battery Market is divided?
Ans. The Traction Battery Market is fragmented based on Product Type, Capacity, and Application. It is also divided on the basis of different regions.