USD 32.21 Billion
Traction Battery Market Size, Share, Growth Analysis, By Product Type(Open Lead Acid Battery, Pure Lead Battery, Gel Battery, and Lithium-ion Battery), By End Users(Industrial Vehicles, Recreational Vehicles, Battery Electric Vehicle, and Electric Vehicle), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG25A2217 |
Region:
Global |
Published Date: April, 2024
Pages:
224
|Tables:
65
|Figures:
74
Traction Battery Market Insights
Global Traction Battery Market size was valued at USD 32.21 Billion in 2022 and is poised to grow from USD 36.14 Billion in 2023 to USD 101.84 Billion by 2031, growing at a CAGR of 12.2% in the forecast period (2024-2031).
The global traction battery market is characterized by dynamic changes with technological innovations, regulatory developments, consumer preferences, and market competition. Manufacturers and stakeholders with the challenge of balancing performance, cost and environmental considerations to meet the growing requirements for power transmission and energy storage applications and development, optimization of manufacturing processes, and research in battery.
Moreover, legislative frameworks and government policies play an important role by promoting clean transport technologies, setting standards, promoting emissions, market participants should adopt that this regulatory environment, anticipate future growth, and invest in R&D to remain competitive and take full advantage of emerging opportunities in the market.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Battery Electric Vehicle
Fastest Growth
Electric Vehicle
Growth Rate
12.2% CAGR
Global Traction Battery Market ($ Bn)
Country Share for North America Region (%)
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Traction Battery Market Segmental Analysis
Based on product type the market is segmented into open lead acid battery, pure lead battery, gel battery, lithium-ion battery. Based on the end users the market is segmented as industrial vehicles, recreational vehicles, battery electric vehicle, electric vehicle. Based on Region the market is segmented as, North America, U.S., Canada, Mexico, Europe, Germany, UK, Italy, France, Spain, Rest of Europe, Asia-Pacific, Japan, China, India, South Korea, Australia, Rest of Asia-Pacific, LAMEA, Brazil, Saudi Arabia, Rest of LAMEA.
Analysis by End-User
The battery electric vehicle (BEV) is the dominating segment in the market with government initiatives to realize GHG reductions, thus increasing industry attention. Government-led taxation and aggressive targets by electric car manufacturers to promote EVs in developed economies are driving rapid business growth and a shift in consumer preference to electricity vehicle lifts will benefit the industrial segment of the market. The rise in e-commerce business activities and the inevitable use of electric lifts to provide efficient and sustainable business activities are contributing to the rapid growth of the industry.
The electric vehicle segment is expected to grow at a CAGR of 8.5% during the forecast period. Increasing concerns about pollution Accelerating the growth of electric vehicles and battery traction. Battery-powered and hybrid electric vehicles are increasingly being used to power appliances. This is driven by government policies to improve the air as it reduces and leads to greenhouse gas emissions. The company’s growth is supported by government tax incentives and aggressive targets by electric vehicle manufacturers to promote EVs in developed countries. Increased business activity in e-commerce and the inevitable adoption of electric elevators to provide smooth and sustainable operations are contributing to the rapid growth of the industry.
Analysis by Type
Gel batteries segment is the fastest growing segment in the market which plays a massive function in the traction battery marketplace, mainly in applications requiring deep cycle performance, sturdiness, and preservation-unfastened operation. Gel batteries are designed to provide reliable electricity for deep cycle applications, making them well-desirable for traction functions inclusive of electric motors (EVs), golf carts, forklifts, and another commercial gadget. These batteries can withstand repeated charging and discharging cycles without experiencing vast degradation in overall performance, making sure constant power delivery over prolonged periods.
The lead-acid battery segment accounted for the largest share in the global market and is expected to grow. High cycle capacity, low price, and excellent vibration resistance are just a few of the important factors that will help this battery achieve worldwide attractiveness. The success of the business is attributed to the speed of cost and efficiency. Electric cars, forklifts, golf carts, floor washers, and e-bikes all use lead batteries as a stationary, long-life source of energy.
Additionally, the high capacity and design will outperform lithium-ion batteries in electric vehicle applications. Its growing popularity among e-bikes outside of China and a good power-to-weight ratio, making it a potential candidate for battery-powered electric vehicles.
Global Traction Battery Market By End-User (%)
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Traction Battery Market Regional Insights
North America is the dominating region in the market. The global traction battery market benefits from the strong focus on clean energy policies, environmental regulations and technological innovations in North America. The automotive industry in this region is also witnessing significant investment in battery research in electric vehicle manufacturing, especially in the US. and Canada And, North America is a hub for battery technology development, with leading companies and research institutes driving advances in battery chemistry, materials science and manufacturing to reduce greenhouse gas emissions a disposal and the region’s dependence on fossil fuels. The promise is accelerating the adoption of electric vehicles and energy storage solutions, which positioned North America as a leader in pull-out batteries of the market.
Asia-Pacific is emerging as the leading region in the global traction battery market, with a strong presence of large manufacturing area, technological innovation and fast-growing global traction battery market. Countries such as China, Japan and South Korea in battery manufacturing and EV adoption through Asia Pacific also acts as a key consumer market for traction batteries, driven by urbanization, air quality concerns and pressure towards sustainable transportation solutions.
Global Traction Battery Market By Geography
- Largest
- Fastest
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Traction Battery Market Dynamics
Drivers
Increasing Adoption of Electric Vehicles
- The increasing adoption of electric vehicles (EVs) across the globe is a major driver of the global traction battery market as government and consumers consume sustainability first and forecasting alternatives for the development of in-house hybrid vehicles, which power electric cars, buses, trucks and other EVs. Factors such as environmental regulations, government incentives. advances in battery technology, and the increasing advantages of electricity transmission in EV deployment increase this demand.
Expanding Renewable Energy Integration
- Effective energy storage solutions are needed to expand renewable energy sources such as solar and wind power, which satisfy the need for battery a used for traction batteries are mainly used in energy storage systems (ESS) to achieve excess renewable energy produced during peak production. This combination of renewable energy with an absorbing battery that stores and delivers energy during high demand or when renewables are unavailable provides grid stability, reducing dependency on fossil fuels and supports the transition to sustainable energy.
Restraints
Cost Constraints
- One of the major constraints in the traction battery market is the cost associated with battery manufacturing, which affects all affordable electric vehicles and energy storage systems. Holders and high economies face challenges to reach about, optimizing production processes, effectively managing cost constraints and sourcing cost-effective raw materials.
Limited Energy Levels and Areas of Concern
- Despite improvements in energy levels and performance, traction batteries face limitations in terms of energy storage and driving range, causing range problems among consumers to enhance technology. It is necessary to continue research and development efforts to increase energy density, meet the evolving needs of customers, and extend the driving range to support the deployment of electric mobility greater.
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Traction Battery Market Competitive Landscape
The competitive environment of the Global Traction Battery Market is dynamic and characterized by the presence of a mix of well-established brands, emerging players, and niche producers. Key players competing in the global Traction Battery market are AEG Powertools; ALCAD; Cantec Systems; Cell Pack Solutions Ltd; ENERSYS; GS Yuasa Battery Sales UK Ltd; J&A Electronics; Panasonic Life Solutions India Pvt. Ltd; Power Sonic; and Zeus Battery Products.
Top Player’s Company Profiles
- Johnson Controls
- East Penn Manufacturing
- Exide
- Samsung
- Hitachi
- BYD Company
- LG Chem
- Panasonic
- Mutlu
- Enersys
- Systems Sunlight
- GS Yuasa
- Amara Raja Batteries
- Hoppecke Batteries
- Haze Batteries
- Banner Batterien
- Midac
- NorthStar Battery Company
- BAE Batterien
Recent Developments
- In June 2021, Hitachi ABB Power Grids had secured a contract with Teolisuden Voima Oyj (TVO) to deliver one of Europe’s largest battery energy storage systems to the Olkiluoto nuclear power plant in Finland 90MW system will support the entire power grid at Unit 3 of the Olkiluoto NPP Impact and Mitigation. The turnkey system acts as a backup power supply with a fast start-up time.
- In October 2021, South Korea's Stelantis (STLA.MI) and Samsung SDI Co Ltd agreed to a joint venture to manufacture electric vehicle (E.V.) battery cells and modules.
- In May 2022, Hitachi Energy launched the Power Semiconductor Module Road Pack for all electric vehicles worldwide. The product uses silicon carbide (SiC) technology to achieve robust vehicle lifetime stability, exceptional durability for fast charging, long driving ranges and minimal power loss in addition to RoadPak allowing inductive connectivity a lower occurs so that only one current ratings of the size module can be made.
Traction Battery Key Market Trends
- Advances in Solid-State Battery: The major factor shaping the traction battery market is the ongoing research and development in solid-state battery technology. Solid-state batteries offer significant advantages over conventional lithium-ion batteries, including high energy. density, faster charging rates, enhanced safety, and longevity. As solid-state battery technology matures and becomes commercially viable, electric vehicle power meets significant performance limitations associated with current battery chemistry. It has the potential to transform the storage industry. Solid-state battery adoption is expected to increase rapidly in the coming years, spurring innovation and competition in the traction battery market.
Traction Battery Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
The global traction battery market is driven by increasing adoption of electric vehicles, expansion of renewable energy integration and advancements in battery technology but challenges such as cost, limited capacity and range are concerns restricts the growth of the market. A major trend in the market is the development of robust batteries, which offer superior performance and safety benefits. Asia Pacific and North America play an important role in the continued growth of the market, with product development, innovation and regulatory support contributing significantly. Overall, the traction battery market is poised for further expansion as stakeholders jointly overcome challenges and take advantage of opportunities in the evolving landscape of power transmission of people and new energy storage.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 32.21 Billion |
| Market size value in 2031 | USD 101.84 Billion |
| Growth Rate | 12.2% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Traction Battery Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Traction Battery Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Traction Battery Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Traction Battery Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Traction Battery Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Traction Battery Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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