Global Traction Battery Market by Product Type (Lead Acid Based, Nickel Based, Lithium-Ion Based, and Others), Capacity (Less than 100 Ah, 100-200 Ah, 200-300 Ah, 300-400 Ah, and 400 Ah & Above) and Application (Electric Vehicle (EV), Industrial, Locomotives, and Others) and by Region (North America, Europe, Asia-Pacific, South America, Middle East and Africa) Analysis and Forecast 2022-2028
KEY MARKET INSIGHTS
The traction battery market was valued at USD 1.5 Bn in 2021. The market is projected to grow USD 2.6 Bn in 2028, at a CAGR of 13.6%. A traction battery is a type of electric car battery with a large ampere-hour capacity. Forklift trucks, locomotives, and mechanical handling equipment are all examples of Applications for lead acid traction batteries.
The outbreak of COVID-19 impacted negatively on the growth of the global traction battery market. reliance on the automotive, railways, and industrial sectors, the traction battery business has been badly impacted by the COVID-19 pandemic. According to a data released by the International Energy Agency, global road transport activity was about 50% lower by the end of March 2020 than it was in March 2019.
Rising Demand of Autonomous Vehicles
The growing demand for hybrid cars has a beneficial impact on the market's growth. It's worth noting that traction batteries are both recyclable and environmentally friendly, and are therefore in high demand in the automotive and manufacturing industries. They're also necessary for the electrification of transportation systems. They also get a lot of help from the government. The reason for this is that attempts are being made to reduce fuel emissions. The market will only grow as more individuals become aware of the harmful impacts of these contaminants.
Electrification of the Transportation Industry
The utilisation of traction batteries is required for the electrification of the transportation industry, which is expected to raise demand for traction batteries over the projected period. The global traction battery market is likely to be propelled by government rules and laws supporting the manufacturing and sale of electric vehicles. The traction battery market is expected to grow as demand for electric vehicles grows, as well as growing use in forklifts, among other causes.
Concerns Pertaining Power Consumption and Technical Issues May Hinder the Market Growth
High maintenance cost of lead-acid battery is hindering the growth of the global traction battery market. The high power consumption and vulnerable to surface contaminants is limiting the growth of the global traction battery market.
The global traction battery market is segmented by Product Type (Lead Acid Based, Nickel Based, Lithium-Ion Based, and Others), by Capacity (Less than 100 Ah, 100-200 Ah, 200-300 Ah, 300-400 Ah, and 400 Ah & Above), by Application (Electric Vehicle, Industrial, Locomotives) and region. Based on the product type, the market is categorized into lead acid based & nickel based. Based on Capacity, the market is categorized into Less than 100 Ah & 100-200 Ah. Based on Application, the market is categorized into Electric Vehicle, Industrial, specialty store & xx. Based on the region, the market is categorized into North America, Europe, Asia-Pacific, South America, Middle East and Africa.
Product Type Insights
Based on the product type segment, the global traction battery market is categorized into lead acid based, nickel based, lithium-ion based, and others. The lead acid based segment has dominated the market share of the global traction battery market in 2020 owing to the The automotive & transportation sector has seen a boom in expansion, with lead acid-based traction batteries being widely employed to power road vehicles, trains, industrial forklift trucks, and other vehicles.
Based on the Application segment, the global traction battery market is categorized into Electric Vehicle, Industrial, Locomotives. The electric vehicle segment is dominated the market share in 2020 owing to the growing demand for electric vehicles has sparked R&D efforts to improve battery efficiency by shortening the charging cycle and lowering unit consumption per charge. Furthermore, the introduction of high-energy-density batteries has intensified competition among traction battery producers for the development of highly efficient traction batteries for electric and hybrid vehicles. The worldwide traction battery market is projected to benefit from all of these factors in the future. Initiatives by the government to raise awareness about decreasing GHG emissions, which will improve the corporate outlook. The business's growth is due to government-led tax incentives and strong targets set by electric automakers to promote E.V.s across developed countries.
The global traction battery market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa. Europe region is dominating the market share of global traction battery market owing to rising electric vehicle sales and strict targets to cut carbon emissions in the automobile sector. The recent announcements in France and the United Kingdom to phase out conventional gasoline and diesel cars by 2040 will improve regional growth rates, giving the industry enormous growth potential. However, Asia Pacific region is expected to witness highest growth rate during the forecast period of global traction battery market due to the nations like China, India, and others, where traction batteries are utilised to power industrial equipment systems, the increased demand for consumer products has boosted the growth of the industrial manufacturing sectors. This could help the traction battery market in Asia-Pacific flourish. Furthermore, rising environmental concerns and government measures have fueled the emergence of electric vehicles, which rely heavily on traction batteries to power electric motors. For example, according to a Business Standard article, India's electric vehicle sales are expected to climb by 26% between 2020 and 2023. This is expected to boost traction battery sales in the electric vehicle segment, opening up attractive potential for the industry.
· BAE Batteries GmbH
· Banner Batteries (GB) Ltd.
· Exide Industries Ltd.
· GS Yuasa International Ltd.
· HOPPECKE Carl Zoellner & Sohn GmbH
· Inci Aku
· INTILION GmbH
· Leoch International Technology Limited Inc
· Toshiba Corporation
KEY INDUSTRY DEVELOPMENTS:
October 2021- Stellantis and Samsung have agreed to form a joint venture in the United States to create electric vehicle (E.V.) battery cells and modules.
June 2021- Hitachi ABB Power Grids and Teollisuuden Voima Oyj (TVO) have collaborated to deliver battery energy storage systems to Finland's Olkiluoto nuclear power plant. The 90MW system will support the whole energy network at the Olkiluoto NPP's unit 3, reducing the grid's impact from power fluctuations.
By Product Type
- Lead Acid Based
- Nickel Based
- Lithium-Ion Based
- Less than 100 Ah
- 100-200 Ah
- 200 Ah-300 Ah
- 300-400 Ah
- 400 Ah & above
- Electric Vehicle
- North America- U.S., Mexico, Canada
- Europe- UK, France, Germany, Italy, Spain, Rest of Europe
- Asia-Pacific- China, Japan, India, South Korea, Rest of Asia Pacific
- South America- Brazil, Argentina, Colombia, Rest of South America
- The Middle East and Africa- GCC, South Africa, Rest of Middle East & Africa