Global Traction Batteries Market 2023-2030

Global Traction Batteries Market 2023-2030

Global Traction Batteries Market Size, Share & Trends Analysis Report by Type (Lithium-Ion Batteries, Nickel-Metal Hydride Batteries, Lead-Acid Batteries, Solid-State Batteries, and Flow Batteries), by Application (Electric Vehicles (EVs), Commercial Vehicles, Rail, and Forklifts), and by Capacity (Less than 100 AH, 100-200 AH, 200-300 AH, 300-400 AH, and 400 AH & Above) Forecast Period (2023-2030)

The global traction batteries market is anticipated to grow at a CAGR of 10.5% during the forecast period. The market's growth is attributed to factors such as increasing demand for electric vehicles, stringent emission regulations, technological advancements in battery technologies, and the shift towards sustainable transportation solutions. Additionally, factors such as government incentives and investments in charging infrastructure are expected to fuel the demand for traction batteries. For instance, several countries are implementing policies and offering subsidies to promote the adoption of electric vehicles, thereby driving the growth of the traction batteries market. For instance, the US government established a $7,500 tax credit for BEV and PHEV cars acquired in and after 2010. In addition, as consumer preferences shift toward electric forklifts across the material handling industry, product penetration will increase therefore escalating the demand for the traction battery across the global.

Segmental Outlook

The global traction batteries market is segmented based on its type, application, and capacity. Based on type, the market is segmented into lithium-ion batteries, nickel-metal hydride batteries, lead-acid batteries, solid-state batteries, and flow batteries. The application segment includes EVs which includes battery electric vehicles (BEVs), hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), commercial vehicles, rail, and forklifts. Furthermore, the market is categorized based on capacity, including less than 100 AH, 100-200 AH, 200-300 AH, 300-400 AH, and 400 AH & above. Among the application, the EVs sub-segment is anticipated to hold a prominent market share due to growing production and adoption of EVs around the globe.

The Lithium-Ion Batteries Sub-Segment is Expected to Register a Significant Growth during the Forecast Period

Among the type segment, the lithium-ion batteries sub-segment is expected to register significant growth during the forecast period. The growth of lithium-ion batteries is attributed to factors such as their superior performance, higher energy storage capacity, and increasing adoption in EVs. The demand for lithium-ion batteries is further driven by technological advancements aimed at improving their energy efficiency and reducing costs. For instance, in March 2023, Sunlight Group launched a new lithium-ion battery called Sunlight Li.ON FORCE Lite, designed for Class III industrial vehicles. The battery is part of the Sunlight Li.ON FORCE range, which delivers premium safety, high efficiency, and long life.

Regional Outlooks

The global traction batteries market is further segmented based on geography, including North America (the US and Canada), Europe (Italy, Spain, Germany, France, and others), Asia-Pacific (India, China, Japan, South Korea, and others), and the Rest of the World (the Middle East & Africa and Latin America). Among these regions, Europe is anticipated to witness prominent growth over the forecast period. The growth of the traction batteries market in Europe is driven by factors such as strict emission regulations, government incentives for electric vehicles, and increasing investments in charging infrastructure. However, the Asia-Pacific region is projected to experience a considerable growth in the traction batteries market due to the expanding EV industry, supportive government policies, and a large consumer base.

Global Traction Batteries Market Growth by Region 2023-2030

Source: OMR Analysis

North America is Poised to Hold a Substantial Share in the Global Traction Batteries Market

North America is poised to hold a substantial share in the global traction batteries market owing to factors such as the growing adoption of EVs, supportive government initiatives, and advancements in battery technology. The region's well-established infrastructure, favourable regulations, and thriving automotive industry are other factors contributing to the market dominance. With increasing investments in sustainable transportation, North America is expected to play a significant role in driving the demand for traction batteries over the forecast period. For instance, in February 2022, Ford partnered with CATL to build a $3.5 billion lithium iron phosphate (LFP) battery plant in Michigan. The plant, called BlueOval Battery Park Michigan, aims to produce 35 gigawatt-hours of LFP cells per year and will initially employ 2,500 people when production of LFP batteries begins in 2026. Ford plans to make 400,000 vehicles in 2026, and 20% of Ford’s global EVs will get batteries from the new plant. The partnership with CATL will allow Ford to take advantage of the company's battery technology and expertise.

Market Players Outlook

The major companies serving the global traction batteries market include Panasonic, Contemporary Amperex Technology Co. Ltd. (CATL), LG Chem., BYD Co. Ltd., and Samsung SDI Co. Ltd., among others. These market players are significantly contributing to market growth through the adoption of various strategies, including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. They focus on developing advanced and energy-efficient traction battery solutions to meet the evolving demands of the electric vehicle industry and enhance their market position. For instance, in July 2021, Contemporary Amperex Technology Co. Ltd. developed a new battery cell that uses sodium-ion technology instead of the more common lithium-ion technology. The company claims that the new battery has a longer lifespan and is more environmentally friendly compared to traditional lithium-ion batteries.

The Report Covers

Market value data analysis of 2022 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global traction batteries market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.