What Has Been the Growth Trajectory of the Traction Battery Market?
The traction battery market has seen considerable growth due to a variety of factors.
• The market size for the traction battery has been seeing a swift growth over the last few years. It is projected to increase from $39.91 billion in 2024 to $44.47 billion in 2025, at a compound annual growth rate (CAGR) of 11.4%.
This substantial growth in the historic period is as a result of numerous factors, such as the electrification of transportation, government incentives and regulations, environmental issues, as well as heightened consumer awareness and demand.
What Does the Future Hold for the Traction Battery Market?
The traction battery market is expected to maintain its strong growth trajectory in upcoming years.
• Anticipated to experience a swift expansion in the forthcoming years, the size of the traction battery market is projected to reach a valuation of $68.71 billion by 2029, growing at a compound annual growth rate (CAGR) of 11.5%.
This significant growth during the forecast period can be mainly attributed to the burgeoning EV market, as well as energy storage applications, battery recycling and sustainability, advancements in charging infrastructure, and market diversification. Noteworthy trends predicted for the forecast period encompass fast charging technology, reusable second-life batteries, augmented production capacity, state-of-the-art battery management systems, and enhanced energy density.
What Are The Leading Drivers Of Growth In The Traction Battery Market?
The traction battery market's expansion is anticipated to be driven by the growing demand for electric vehicles. These environmentally friendly vehicles run on electricity. Traction batteries are used in these vehicles to energize their battery electric motors. Sustainable Bus, a media company based in Italy specializing in sustainability and eco-friendly buses, reported a 53% rise in electric bus registrations across Europe in 2023 compared to 2022. It's clear, therefore, that the demand surge for electric vehicles is propelling the traction battery market's growth.
How Are The Segments Defined Within The Global Traction Battery Market?
The traction battery market covered in this report is segmented –
1) By Product Type: Lead Acid Based, Li-Ion Based, Nickel Based, Other Types
2) By Capacity: Less than 100 Ah, 100 – 200 Ah, 200 – 300 Ah, 300 – 400 Ah, 400 Ah And above
3) By Application: Electrical Vehicle (EV), Hybrid Electric Vehicles (HEV), Industrial, Forklift, Mechanical Handling Equipment, Other Applications
Subsegments:
1) By Lead Acid Based: Flooded Lead Acid Batteries, Absorbent Glass Mat (AGM) Batteries, Gel Lead Acid Batteries
2) By Li-Ion Based: Lithium Cobalt Oxide (LCO) Batteries, Lithium Iron Phosphate (LFP) Batteries, Lithium Nickel Manganese Cobalt (NMC) Batteries, Lithium Polymer (LiPo) Batteries
3) By Nickel Based: Nickel-Cadmium (NiCd) Batteries, Nickel-Metal Hydride (NiMH) Batteries
4) By Other Types: Sodium-Ion Batteries, Solid-State Batteries, Flow Batteries
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How Are New Trends Expected To Influence The Growth Of The Traction Battery Market?
The advancement of technology continues to be a major trend impacting the traction battery market. Companies in this sector strive to innovate new technology-based solutions for cost-effective batteries to reinforce their market presence. For example, Sunlight Group Energy Storage Systems, a Greek firm known for its integrated energy storage solutions, introduced its latest semi-traction lithium-ion battery, Sunlight ElectroLiFe, in March 2022. The groundbreaking design of ElectroLiFe, which is both lightweight and durable, enables a hassle-free, tool-free installation in manufacturing and light-duty commercial vehicles like AGVs and other material handling machines, aligning with the evolving requirements of consumers. Additionally, this battery can be linked to GLocal, a cloud-based platform operated by Sunlight Group, and boasts a prolonged life expectancy of over 2,000 cycles.
Who Are the Key Players in the Traction Battery Market?
Major companies operating in the traction battery market include:
• Amara Raja Batteries Limited
• BAE Batterien GmbH
• Banner Batterien GmbH
• BYD Company Limited
• Coslight Technology International Group Co. Ltd.
• East Penn Manufacturing Company Inc.
• EnerSys
• Exide Industries Limited
• GS Yuasa International Ltd.
• HOPPECKE Carl Zoellner & Sohn GmbH
• Mutlu Akü ve Malzemeleri Sanayi Ticaret A.S.
• Sunlight Systems S.A.
• C&D Technologies Inc.
• Chaowei Power Holdings Limited
• Leoch International Technology Limited
• Sebang Global Battery Co. Ltd.
• Tesla Inc.
• Panasonic Corporation
• LG Chem Ltd.
• Samsung SDI Co. Ltd.
• Contemporary Amperex Technology Co. Limited (CATL)
• Saft Groupe S.A.
• Trojan Battery Company
• A123 Systems LLC
• Toshiba Corporation
• Hitachi Chemical Co. Ltd.
• Narada Power Source Co. Ltd.
• NorthStar Battery Company LLC
• Sumitomo Electric Industries Ltd.
• Crown Battery Manufacturing Company
• Tadiran Batteries GmbH
• Discover Battery
• Sinopoly Battery Limited
What Is The Most Dominant Region In The Traction Battery Market?
North America was the largest region in the traction battery market in 2024. The regions covered in the traction battery market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
