"Actionable Insights to Fuel Your Growth"

Traction Battery Market Size, Share & Industry Analysis By Type (Lead-Acid, Lithium-Ion, Nickel Based, Others), By Capacity (Less than 100 Ah, 100 Ah - 200 Ah, 200 Ah - 300 Ah, 300 Ah - 400 Ah, 400 Ah & above), By Application (Battery Electric Vehicles (BEV), Locomotives, Others ) And Regional Forecast, 2024-2032

Region : Global | Report ID: FBI106365 | Status : Ongoing



A traction battery is a collection of accumulators that store energy to drive the vehicle's traction motor(s). A battery used to power the electric motors of a battery electric vehicle (BEV) or hybrid electric vehicle is an electric-vehicle battery (EVB), also known as a traction battery. Lead Acid batteries have traditionally been used in traction applications, but their limitations, along with the expensive cost of alternatives, have limited the range of viable battery-powered traction applications.

The worldwide traction battery market is expected to increase during the projected period due to the enormous usage of traction batteries in electric and hybrid vehicles. Furthermore, traction batteries are recyclable; they are in high demand in multiple industries, including the automotive and manufacturing industries, leading to the global demand for traction batteries.

The electrification of the transportation industry necessitates the use of traction batteries, which is likely to increase the demand for traction batteries over the forecast period. Government regulations and laws favoring the production and sale of electric vehicles are expected to propel the worldwide traction battery market. The traction battery market is predicted to rise due to rising demand for electric vehicles and increased application in forklifts, among other factors.

Growing demand for hybrid cars also positively influences the growth of the market. It's worth noting that traction batteries are both recyclable and environmentally beneficial, essential in the electrification of transportation systems, and are thus in high demand from the automotive and manufacturing industries. Furthermore, they have a lot of government assistance. It is mainly because efforts are being directed toward reducing gasoline emissions. As more people become aware of the hazardous effects of these pollutants, the market will only continue to rise.

Traction batteries are also excellent for industrial applications due to their long service life, lightweight packs, and growing power storage capacity. Rapid industrialization increased e-commerce penetration, and advancements in material handling technology will contribute to the traction battery market's growth.

  • According to International Energy Agency, in 2020, electric car sales surpassed 3 million for the first time, an increase of 40% over 2019. This outstanding performance contrasted sharply with worldwide car market sluggishness, with overall car sales down 16 percent due to the Covid-19 crisis. There are now over 10 million electric cars on the road, accounting for 1% of all vehicles on the road. According to the Net Zero Emissions by 2050 Scenario, 300 million electric automobiles will be on the road by 2030, accounting for more than 60% of new car sales, up from only 4.6 percent in 2020. Early sales data for 2021 predicts that critical markets will experience substantial growth.

The main factors hindering the growth of the global market are the high pricing, battery issues, and patchy charging infrastructure (BEVs). There are also concerns with a variety of power semiconductors and other devices.

As the constant need to electrify the transportation industry and federal laws, purchasing incentives, and goals relating to energy efficiency and carbon emissions, the North American traction battery market is expected to grow significantly. For example, the U.S. government established a USD 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 globally.

  • By 2030, the federal government wants E.V.s to account for half of all new passenger vehicles and light trucks sold in the U.S. At the same time, a handful of states have set more ambitious goals for themselves.

  • Canada stated in 2021 that all new light-duty cars and passenger trucks will be zero-emissions by 2035, up from its earlier aim of 100 percent sales by 2040.


The traction battery market is expected to take a significant amount of time before recovering from the impact of the COVID-19 pandemic. Despite this, the low adoption rate of the product coupled with the pandemic has hampered the market devastatingly. However, the easing restrictions, growing electric vehicles demand, increasing consumer conscience towards green energy are anticipated to help regain the market.


The report will cover the following key insights:

  • Recent Advancements in Traction Battery

  • Key Industry Trends

  • Regulatory Landscape for Traction Battery

  • Key Industry Developments (Mergers, Acquisitions, and Partnerships)

  • Impact of COVID-19 on the Market


Based on type, the global market is segmented into lead-acid, lithium-ion, nickel-based, and others. The lead-acid battery segment held a significant share of the global market and is expected to increase. Higher cyclability, lower price, and excellent vibration resistance are just a few essential qualities that will help these batteries gain traction globally. The rapid drop in costs and excellent charging efficiency are credited with the industry's success. Electric vehicles, forklifts, golf carts, floor scrubbers, and e-bikes all use lead-acid batteries as a stable and durable power source.

Furthermore, high energy density and design qualities will outperform lithium-ion batteries in electric car applications. Its increasing popularity in e-bikes outside of China and its excellent power-to-weight ratio, making it a good candidate for battery-electric cars.

When compared to current alternatives, Ni-MH has a higher gravimetric and volumetric energy density, making it more suited for HEVs. Higher power density, design qualities, and the capacity to function at average ambient temperatures are just a few critical factors that will help the device gain traction. Around 70% of hybrid electric vehicles worldwide are fitted with Ni-MH batteries, indicating a promising future for the traction battery business.


Based on the application, the global market is segmented into battery electric vehicles, locomotives, and others. The battery electric vehicles (BEV) segment is leading the market led by government initiatives to increase awareness about reducing GHG emissions, which will boost the corporate outlook. The government-led tax incentives and aggressive targets established by electric automakers to promote E.V.s across developed countries are responsible for the business's growth. The industrial segment of the market will benefit from rapid industrialization and shifting consumer preferences toward electric forklifts. Increased e-commerce business activities and the unavoidable usage of electric forklifts to improve efficiency and sustainability of business operations contribute to the industry's rapid growth.


To gain extensive insights into the market, Request for Customization

In 2020 Europe's traction battery market was worth more than USD 6 billion, and it's expected to keep growing thanks to rising E.V. sales and severe aims to reduce the automotive sector's carbon emissions. The recent announcements in France and the United Kingdom to ban conventional gasoline and diesel cars by 2040 will boost regional growth rates, providing colossal development potential for the industry.

The Asia Pacific market is expected to increase significantly during the anticipated period. The Asia Pacific market outlook will be boosted by favorable policy adoptions and growing concerns about the automotive sector's contribution to emissions levels. The increase in investment across primary battery manufacturing countries such as China, Japan, and South Korea is credited for the region's prosperity. Government-led initiatives to promote e-mobility and suitable charging infrastructure in India will open new opportunities for industry players.


The report will include key players such as Hitachi ABB, Samsung, Johnson Controls, Exide, BYD Company, L.G. Chem, Mutlu, Enersys, Panasonic, Hoppecke Batteries, G.S. Yuasa,  Haze Batteries, Midac, etc.


By Type

By Capacity

By Application

By Geography

  • Lead-Acid

  • Lithium-Ion

  • Nickel Based

  • Others

  • Less than 100 Ah

  • 100 Ah - 200 Ah

  • 200 Ah - 300 Ah

  • 300 Ah - 400 Ah

  • 400 Ah & above

  • Battery Electric Vehicles (BEV) 

  • Locomotives

  • Others

  • North America (U.S. and Canada)

  • Europe (UK, Germany, France, Italy, Spain, Russia, and Rest of Europe)

  • Asia Pacific (China, Australia, India, Southeast Asia, and Rest of Asia Pacific)

  • Latin America (Brazil, Mexico, and Rest of Latin America)

  • Middle East and Africa (South Africa, GCC, and Rest of Middle East and Africa)


  • In June  2021, Hitachi ABB Power Grids and Teollisuuden Voima Oyj (TVO) had secured a deal to deliver one of Europe's largest 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. The turnkey system serves as a backup power supply with a quick start time. In 2022, the battery energy storage system will be operational.

  • In October  2021, Stellantis (STLA.MI) and Samsung SDI Co Ltd of South Korea have agreed to form a joint venture in the United States to create electric vehicle (E.V.) battery cells and modules.

  • Ongoing
  • 2023
  • 2019-2022

Personalize this Research

  • Granular Research on Specified Regions or Segments
  • Companies Profiled based on User Requirement
  • Broader Insights Pertaining to a Specific Segment or Region
  • Breaking Down Competitive Landscape as per Your Requirement
  • Other Specific Requirement on Customization
Request Customization Banner

Energy & Power Clients


Client Testimonials

“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”

- U.S.-based biotechnology company focussing on treatment of chronic pain.

“Kudos to your team. Thank you very much for your support and agility to answer our questions.”

- Europe-based provider of solutions to automate data centre operations.

“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”

- India-based manufacturer of industrial and specialty intermediates with a strong global presence.

“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”

- One of the largest cosmetics company in the world.

“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”

- U.S. based startup operating in the cultivated meat market.

“We received the below report on the U.S. market from you. We were very satisfied with the report.”

- Global hearing aids manufacturer.

“I just finished my first pass-through of the report. Great work! Thank you!”

- U.S. based solar racking solutions provider.

“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”

- World’s leading advisory firm.

“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”

- Germany based machine construction company.

“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”

- Japanese manufacturing company of stationery products.

“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”

- One of the Leading Food Companies in Germany

“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”

- Intuitive Surgical

“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”

- Major Food Company in Japan

“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”

- Ziering Medical

“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”

- Major Manufacturer of Precision Machine Parts in India

“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”

- Hewlett-Packard

“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”

- Global Management Consulting Firm

“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”

- UK-based Start-up in the Medical Devices Sector

“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”

- One of the Largest Companies in the Defence Industry
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . Privacy.