The global traction batteries market is expected to create an incremental opportunity of USD 34 billion by the end of 2022, with demand projected to surpass USD 72 billion by 2032. This growth represents a remarkable compound annual growth rate (CAGR) of 12% over the forecast period from 2022 to 2032, driven by the growing shift toward electrification in the automotive industry.
Traction batteries, also known as electric vehicle (EV) batteries, are integral to powering traction motors in vehicles. These batteries have gained significant popularity due to their high tolerance to overcharging, large current capability, reliability, and rechargeability. Increasing adoption of electric and hybrid vehicles, driven by the growing emphasis on environmental sustainability, is one of the primary drivers for the traction batteries market.
Traction batteries are now used extensively across various vehicle types, including electric cars, motorcycles, and hybrid vehicles, as well as non-electric vehicles for powering essential systems like lighting, horns, and infotainment. The growing number of electric tractors, forklifts, and other heavy industrial vehicles also contributes to the increasing demand for these batteries.
The rise of advanced traction battery technologies, such as valve-regulated lead-acid (VRLA) batteries, is expected to further fuel market growth.
Prominent Market Drivers
- Electrification and Sustainability: The increasing adoption of electric and hybrid vehicles due to their eco-friendly benefits has created a surge in demand for traction batteries. Additionally, government initiatives, including tax exemptions, are driving the widespread acceptance of electric vehicles and accelerating sales across the globe.
- Rising Sales of Electric Vehicles: According to the International Energy Agency (IEA), electric vehicle sales rose by 40% in 2019, highlighting the growing shift towards electric mobility, which is expected to continue fueling traction battery demand.
- Industrial Adoption: The rapid growth of the manufacturing and e-commerce sectors, which utilize electric forklifts and other assistive equipment, is boosting the market for traction batteries in commercial and industrial applications.
Regional Outlook
- Western Europe: This region is expected to emerge as one of the most lucrative markets for traction batteries due to rising concerns about carbon emissions and increasing fuel prices. Countries such as Germany, the UK, France, and Italy are experiencing a surge in electric vehicle adoption, with automotive manufacturers launching new EV models to meet demand.
- Asia Pacific (Excluding Japan): The Asia Pacific region, including countries like China, India, and South Korea, is also witnessing a rapid rise in electric vehicle sales. Government incentives and policies promoting electric mobility are playing a crucial role in driving the growth of the traction batteries market in this region.
Key Companies Profiled
Banner Batteries (GB) Ltd.
ECOVOLTA
Leoch International Technology Ltd. Inc.
GS Yuasa International Ltd.
Exide Industries Ltd
HOPPECKE Carl Zoellner & Sohn GmbH
Toshiba Corporation
BAE Batteries GmbH
Inci GS Yuasa
INTILION GmbH
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Key Segments Profiled in the Traction Batteries Market Survey
By Product Type:
- Lead Acid
- Nickel Based
- Lithium-Ion
- Nickel Metal Hybrid
- NiCad
- Zebra
By Application:
- Electric Vehicle (EV)
- Heavy Industrial
- Light Industrial and Commercial
- Two Wheeler
- Hybrid Car
- Pure Electric Car
- Mobility for Disabled
- Goal Car
- Military
- Marine
- Others
By Region:
- North America
- Latin America
- Western Europe
- Eastern Europe
- APEJ
- Japan
- Middle East and Africa
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