Global Traction Battery Market Size to Exceed USD 396.29 Billion by 2033: Market Statistics Report

Global Traction Battery Market Size to Exceed USD 396.29 Billion by 2033                 

According to a research report published by Spherical Insights & Consulting, The Global Traction Battery Market Size is Expected to Grow from USD 57.10 Billion in 2023 to USD 396.29 Billion by 2033, at a CAGR of 21.38% during the forecast period 2023-2033.                 

Browse 210 market data Tables and 45 Figures spread through 190 Pages and in-depth TOC on the Global Traction Battery Market Size, Share, and COVID-19 Impact Analysis, By Type (Lead Acid Based, Nickel Based, Lithium-Ion Based, and Others), By Application (Electric Vehicle (EV), Battery Electric Vehicle (BEV), Plug-in Hybrid Electric Vehicle (PHEV), Hybrid Electric Vehicle (HEV), Industrial, Forklift, Mechanical handling equipment, Locomotives, and Others), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2023 – 2033    

The traction battery market encompasses batteries used to power electric vehicles, buses, forklifts, and other types of electric transport. These often are lithium-ion or lead-acid batteries but are critical for reducing reliance on fossil fuels, saving energy, and promoting sustainable mobility. Moreover, the key driving factors for the traction battery market are the rising demand for electric vehicles, improved battery technology, and stringent environmental regulations that encourage cleaner transportation. The increasing fuel prices, the move towards sustainable energy, and government incentives for the adoption of electric vehicles also contribute to the growth of the market. These factors drive the widespread use of traction batteries in various industries and transportation sectors. However, the traction battery market is facing problems such as high production costs, short battery life, and concerns about raw material supply, especially lithium and cobalt. Moreover, slow charging times and infrastructure for electric vehicles may also be an obstacle to wide-scale adoption and market growth.

The lithium-ion-based segment accounted for the highest share in 2023 and is anticipated to grow at a remarkable CAGR during the projected timeframe.  

Based on the type, the global traction battery market is divided into lead acid-based, nickel-based, lithium-ion based and others. Among these, the lithium-ion-based segment accounted for the highest share in 2023 and is anticipated to grow at a remarkable CAGR during the projected timeframe.  This is because of their high energy density, longer lifespan, lightweight design, and higher performance in electric vehicles. Therefore, their high efficiencies, high charging rates, and decreasing costs establish them as the favourites across the world.

The electric vehicle (EV)segment dominated the market in 2023 and is projected to grow at a substantial CAGR during the forecast period.

Based on the application, the global traction battery market is divided into electric vehicle (EV), battery electric vehicle (BEV), plug-in hybrid electric vehicle (PHEV), hybrid electric vehicle (HEV), industrial, forklift, mechanical handling equipment, locomotives and others. Among these, the electric vehicle (EV) segment dominated the market in 2023 and is projected to grow at a substantial CAGR during the forecast period.  The demand for environmentally friendly transportation, government incentives for electric vehicle adoption, and improvements in battery technology are driving rapid growth in this segment. The shift towards EVs as a mainstream alternative to internal combustion engine vehicles contributes to this strong market expansion.

Asia Pacific is anticipated to hold the largest share of the global traction battery market over the predicted timeframe.

Asia Pacific is anticipated to hold the largest share of the global traction battery market over the predicted timeframe. Asia-Pacific is expected to hold the largest share in the forecast for the traction battery market, driven by the dominance of electric vehicle production in the region, particularly in China, Japan, and South Korea. The growth is driven by strong government support, technological advancements, and large manufacturing capacities.

Europe is expected to grow at a rapid CAGR of the global traction battery market during the forecast period. Due to the growth in electric vehicle adoption, tight environmental regulations, and strong incentives from the government, the region focuses on sustainable transportation and infrastructure development, creating a demand for traction batteries.  

Company Profiling

Major vendors in the global traction battery market are Panasonic Corporation, LG Chem Ltd., Samsung SDI Co., Ltd., BYD Company Limited, Contemporary Amperex Technology Co. Limited, Tesla, Inc., Johnson Controls International plc, Toshiba Corporation, Hitachi Chemical Co., Ltd., Mitsubishi Electric Corporation, and others.

 Market Players

• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Development

• In August 2022, Scientists at MIT developed a revolutionary pathway to developing low-cost batteries that are made from plentiful, low-cost materials. Researchers have demonstrated a battery design that features aluminium and sulfur in its electrodes, with the positive electrode paired with a molten salt electrolyte separating the two. This is currently the most economical option for backup energy storage in renewable energy systems.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the global traction battery market based on the below-mentioned segments: 

Global Traction Battery Market, By Type

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

Global Traction Battery Market, By Application

• Electric Vehicle (EV)
• Battery Electric Vehicle (BEV)
• Plug-in hybrid Electric Vehicle (PHEV)
• Hybrid Electric Vehicle (HEV)
• Industrial
• Forklift
• Mechanical handling equipment
• Locomotives
• Others

Global Traction Battery Market, By Regional

• North America  
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa