Automotive Traction Battery Market by Capacity (High Capacity, Low Capacity, Medium Capacity), Battery Type (Lead Acid, Lithium-Ion-based, Nickel- based), Vehicle Type - Global Forecast 2024-2030

Automotive Traction Battery Market by Capacity (High Capacity, Low Capacity, Medium Capacity), Battery Type (Lead Acid, Lithium-Ion-based, Nickel- based), Vehicle Type - Global Forecast 2024-2030

The Automotive Traction Battery Market size was estimated at USD 13.89 billion in 2023 and expected to reach USD 15.14 billion in 2024, at a CAGR 9.39% to reach USD 26.05 billion by 2030.

An automotive traction battery, commonly known in the context of electric vehicles (EVs) and hybrid electric vehicles (HEVs), serves as the principal power source propelling the vehicle's electric motor. Unlike conventional automotive batteries primarily used to start an internal combustion engine, traction batteries are designed for deep cyclability and can provide power over extended periods. These batteries are critical for the performance, range, and efficiency of EVs and HEVs, and they come in various types, including lithium-ion, nickel-metal, and lead-acid batteries, each offering distinct advantages in terms of energy density, life span, and cost. The increasing sales and production of EVs worldwide is a primary catalyst for the automotive traction battery market. With growing environmental concerns and regulatory policies to reduce carbon emissions, consumers are increasingly pivoting towards EVs, boosting the demand for high-capacity traction batteries. The lack of widespread and accessible charging infrastructure and the long charging times of current battery technology pose a significant barrier for manufacturers and end users. Moreover, the technological advancements in traction batteries present a potential avenue for manufacturers. Developing battery recycling and second-life applications also holds vast potential to sustain long-term market growth.

Regional Insights

The United States represents a significant portion of the Americas' market share for automotive traction batteries, energized by consumer enthusiasm for electric vehicles (EVs), technological advancements, and substantial government incentives. Recent initiatives, such as increased federal funding for EV infrastructure and buyer tax incentives, further propel market growth. Canada is witnessing robust growth in the adoption of electric vehicles, supported by government incentives, environmental awareness, and investments in charging infrastructure. The Canadian government's commitment to reducing carbon emissions propels the demand for automotive traction batteries. The automotive traction battery market in the Europe, Middle East, and Africa (EMEA) region is experiencing a significant upward trajectory, driven largely by stringent environmental regulations and a shift towards electric mobility. European nations, being at the forefront, are investing heavily in electric vehicle (EV) infrastructure and incentives, propelling demand for high-capacity traction batteries. Moreover, the Asia-Pacific region, a pivotal market for the automotive industry, has been experiencing a significant surge in demand for EVs, directly influencing the growth of the automotive traction battery market. The increasing awareness of environmental concerns largely fuels this burgeoning demand, government policies incentivizing EV adoption, and advancements in battery technology, reducing costs and improving efficiency.

Market Insights

Market Dynamics

The market dynamics represent an ever-changing landscape of the Automotive Traction Battery Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers

• Rising production and sales of electric vehicles globally
• Favorable government policies and incentives to encourage the adoption of EVs

Market Restraints

• Lack of charging infrastructure for EV traction batteries

Market Opportunities

• Technological advancements in Li-ion batteries for electric vehicles
• Rising investments & fundings to develop EV sector worldwide

Market Challenges

• Charging-related issues and environmental hazards associated with disposal of automotive traction batteries

Market Segmentation Analysis

• Capacity: Utilization of high and medium capacity traction batteries as per their need in heavy-duty and lightweight vehicles
• Vehicle Type: Advancements in traction batteries in HEVs to enhance the function of internal combustion engines and electric propulsion

Market Disruption Analysis

• Porter’s Five Forces Analysis
• Value Chain & Critical Path Analysis
• Pricing Analysis
• Technology Analysis
• Patent Analysis
• Trade Analysis
• Regulatory Framework Analysis

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Automotive Traction Battery Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Automotive Traction Battery Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments

Hofer Powertrain Develops Fast Recharging Battery Technology for EVs

Hofer Powertrain introduced an innovative fast-charging battery technology, redefining standards for efficiency and reliability in EV applications. This cutting-edge technology dramatically reduces charging times, akin to the convenience of refueling traditional vehicles, and ensures an enhanced lifespan for traction batteries. By integrating superior energy management systems, hofer powertrain's technology promises to elevate the user experience, offering a seamless transition to electric vehicles without compromising performance or convenience.

Kia Australia and Infinitev Forge Partnership to Transform the Landscape of EV Battery

Infinite, a player in EV battery technology, partnered with Kia Australia to introduce solutions in battery reuse, repurposing, and recycling. This partnership merges Infinitev's sustainable technology with Kia's global mobility solution, aiming to establish scalable and environmentally friendly EV battery management practices. Central to its approach is the SafetyCheck protocol, an in-depth process involving physical and electrochemical evaluations to ensure the safety of EV batteries before repurposing grade A modules for EV traction.

Mahle And Midtronics Join Forces for Battery Service

MAHLE and Midtronics, Inc. unveiled a strategic partnership to revolutionize the aftermarket service realm for battery electric vehicles (BEVs). This partnership promises to equip workshops with unparalleled capabilities in handling the complexities of Li-ion battery service, from advanced diagnostics to comprehensive maintenance, irrespective of the battery or vehicle brand. This partnership is poised to redefine how the automotive service industry adapts to the burgeoning needs of the e-mobility era, ensuring safe, user-friendly, and effective battery management throughout the lifecycle of electric vehicles.

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Automotive Traction Battery Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the Automotive Traction Battery Market, highlighting leading vendors and their innovative profiles. These include Amara Raja Energy & Mobility Limited, Chaowel Power Holdings Limited, Clarios, LLC, Contemporary Amperex Technology Co., Limited, Deutsche Accumotive GmbH & Company KG, DYVINITY, East Penn Manufacturing Company, Ecovolta AG, EnerSys Ltd., Foxtron Vehicle Technologies, Gotion High-tech Co., Ltd., GS Yuasa Corporation, Hofer Powertrain GmbH, Leoch International Technology Ltd., LG Chem Ltd., MAHLE GmbH, Mutlu Incorporated, Panasonic Corporation, Rico Storage Energy, The Electric Storage Battery Company, Tianneng Group, and Yuki Electric India Pvt Ltd..

Market Segmentation & Coverage

This research report categorizes the Automotive Traction Battery Market to forecast the revenues and analyze trends in each of the following sub-markets:

• Capacity
• High Capacity
• Low Capacity
• Medium Capacity
• Battery Type
• Lead Acid
• Lithium-Ion-based
• Nickel- based
• Vehicle Type
• EV
• HEV

Region

• Americas
• Argentina
• Brazil
• Canada
• Mexico
• United States
• California
• Florida
• Illinois
• New York
• Ohio
• Pennsylvania
• Texas
• Asia-Pacific
• Australia
• China
• India
• Indonesia
• Japan
• Malaysia
• Philippines
• Singapore
• South Korea
• Taiwan
• Thailand
• Vietnam
• Europe, Middle East & Africa
• Denmark
• Egypt
• Finland
• France
• Germany
• Israel
• Italy
• Netherlands
• Nigeria
• Norway
• Poland
• Qatar
• Russia
• Saudi Arabia
• South Africa
• Spain
• Sweden
• Switzerland
• Turkey
• United Arab Emirates
• United Kingdom

Please Note: PDF & Excel + Online Access - 1 Year