Traction Battery Market - By Lithium-Ion Chemistry, By Application (Electric Vehicles, Industrial Forklifts, Railroad, Electric Scooters, Electric Motorcycles), Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2023 - 2032

Traction Battery Market - By Lithium-Ion Chemistry, By Application (Electric Vehicles, Industrial Forklifts, Railroad, Electric Scooters, Electric Motorcycles), Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2023 - 2032

Global Traction Battery Market is set to expand significantly between 2023 to 2032, credited to the surging consumer preference toward electric vehicles given the introduction of myriad initiatives around carbon reduction. Moreover, the recent depositions to restrict the use of combustible engines have also helped bolster segmental growth.

Leading traction battery conglomerates in the industry are concentrating on making more investments toward enhancing output capacities owing to the increasing demand for passenger vehicles as well as electric forklifts. For instance, in April 2022, Panasonic invested approximately USD 4.9 billion in supply chain software, cyber-physical systems, and EV batteries. From the financial year 2023 to 2025, the company intended to make investments in both growth markets and technology pillars.

The traction battery market has been bifurcated in terms of chemistry, application, and region.

Based on chemistry, the lead acid segment held over 14% market share in 2022. Lead-acid batteries are gaining immense traction off late owing to their lower costs and durability compared to other technologies. With regards to their affordability, these batteries are frequently used in different applications, such as bikes and forklifts, which will in turn help foster segmental growth over the forthcoming years.

With respect to application, the e-bike segment is expected to capture more than 8% market share by 2032. Growing competition from market players who are constantly developing novel technologies and improving product offerings is creating a favorable business environment.

Meanwhile, the industrial segment is anticipated to accelerate robustly over the analysis timeframe. Given that they have fewer moving parts than ICE forklifts, electric forklifts last longer, which is causing traction batteries to become more prevalent in the manufacturing sector.

From the regional perspective, the Middle East & Africa traction battery market is estimated to grow substantially through 2032. The regional market is expanding primarily due to factors including rising consumer knowledge of the need to reduce air pollution. Moreover, the adoption of international standards for emissions, monetary incentives, and a high potential for renewable energy sources in the MEA region will also help boost industrial expansion.

In the meantime, the Latin America traction battery industry is projected to grow considerably over the forthcoming years. Increasing public-private collaborations for the construction of charging stations in nations including Argentina and Chile are encouraging the EV traction battery market.