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.

COVID-19 ANALYSIS

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.

LATEST TREND

Rising Demand for 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.

DRIVING FACTORS

Electrification of the Transportation Industry

The utilization 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.

RESTRAINTS

Concerns Pertaining to Power Consumption and Technical Issues May Hinder the Market Growth

High maintenance cost of lead-acid batteries is hindering the growth of the global traction battery market. The high power consumption and vulnerability to surface contaminants is limiting the growth of the global traction battery market.

SEGMENTATION

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, the 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 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.

Application Insights

Based on the Application segment, the global traction battery market is categorized into Electric Vehicles, Industrial, and Locomotives. The electric vehicle segment 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 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.

REGIONAL INSIGHTS

The global traction battery market is categorized into North America, Europe, Asia-Pacific, Latin America, the Middle East, and Africa. Europe region is dominating the market share of the 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, the Asia Pacific region is expected to witness the highest growth rate during the forecast period of the global traction battery market due to the nations like China, India, and others, where traction batteries are utilized 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 the attractive potential for the industry.

INDUSTRY PLAYERS

· BAE Batteries GmbH

· Banner Batteries (GB) Ltd.

· ECOVOLTA

· Exide Industries Ltd.

· GS Yuasa International Ltd.

· HOPPECKE Carl Zoellner & Sohn GmbH

· Inci Aku

· INTILION GmbH

· Leoch International Technology Limited Inc

· Toshiba Corporation

· Others

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.

SEGMENTATION 

By Product Type

• Lead Acid Based
• Nickel Based
• Lithium-Ion Based
• Others

By Capacity

• Less than 100 Ah
• 100-200 Ah
• 200 Ah-300 Ah
• 300-400 Ah
• 400 Ah & above

By Application

• Electric Vehicle
• Industrial
• Locomotives

By Region

• 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