Asia Pacific Traction Battery Market Size - By Winding (Two Winding, Auto Transformer), By Rating (≤ 5 MVA, > 5 MVA to ≤ 30 MVA, > 30 MVA), By Application (Industries, Inner-City Substations, Indoor/Underground Substations, Renewable Generatio

Asia Pacific Traction Battery Market Size - By Winding (Two Winding, Auto Transformer), By Rating (≤ 5 MVA, > 5 MVA to ≤ 30 MVA, > 30 MVA), By Application (Industries, Inner-City Substations, Indoor/Underground Substations, Renewable Generation) & Forecast, 2023 - 2032

Asia Pacific traction battery market size is projected to expand at 21% CAGR from 2023 to 2032, driven by the rising government initiatives for promoting clean energy and the presence of stringent emission regulations. The rapid electrification of transportation, including electric vehicles (EVs) and hybrid vehicles is fueling the demand for traction batteries across the region.

Of late, there has been increasing adoption of electric forklifts and material handling equipment by the manufacturing sector. The rising advancements in battery technologies is making way for increasing investments in R&D activities to enhance the efficiency and performance of traction batteries for driving adoption in diverse applications. The well-established automotive sector in APAC and the growing awareness of sustainable energy solutions will also push the industry expansion.

The Asia Pacific traction battery industry is segregated into chemistry, application, and country.

With respect to chemistry, the market value from the lithium-ion segment is estimated to depict substantial CAGR from 2023 to 2032. The growth can be attributed to the rising popularity of EVs, significant advancements in lithium-ion technology, and the increasing government support for clean energy initiatives. The higher energy density, longer lifespan, and enhanced performance offered by lithium-ion batteries is helping to serve the sirging demands of the expanding electric transportation and energy storage sectors across the region.

APAC traction battery system industry share from the e-bikes application segment is projected to rise at appreciable CAGR through 2032. This is owing to the increasing adoption of electric bikes for sustainable urban mobility. The rising awareness of environmental concerns coupled with the surging government incentives are driving the need for reliable and efficient traction batteries. Moreover, the growing advancements in battery technology will also boost the segment growth.

Regionally, the Japan traction battery industry is projected to depict substantial CAGR between 2023 and 2032, ascribed to the strong focus on environmental sustainability and the promotion of electric mobility across the country. The rising government incentives, increasing technological advancements, and thriving automotive sector will further outline the regional market growth.