Traction Battery Global Market Report 2024

A traction battery is a type of rechargeable battery specifically designed to power the electric motor in a hybrid electric vehicle (HEV) or battery electric vehicle (BEV). This battery serves as an assembly of accumulators, storing energy to be utilized by the traction motor. The design of a traction battery is critical to ensuring an extended and trouble-free service life in electric vehicles.

The main types of products in the traction battery market include lead acid-based batteries, Li-ion-based batteries, nickel-based batteries, and others. Li-ion-based batteries incorporate lithium-ion as a key component and are often used in industrial trucks that were originally designed to be powered by lead-acid batteries. These batteries come in various capacities, including less than 100 AH, 100 – 200 AH, 200 – 300 AH, 300 – 400 AH, and 400 AH and above. Traction batteries are applied in diverse applications such as electric vehicles (EV), hybrid electric vehicles (HEV), industrial equipment, forklifts, mechanical handling equipment, and others.

The traction battery market research report is one of a series of new reports that provides traction battery market statistics, including traction battery industry global market size, regional shares, competitors with a traction battery market share, detailed traction battery market segments, market trends and opportunities, and any further data you may need to thrive in the traction battery industry. This traction battery market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The traction battery market size has grown rapidly in recent years. It will grow from $36.14 billion in 2023 to $40.57 billion in 2024 at a compound annual growth rate (CAGR) of 12.2%. The growth observed during the historical period can be attributed to several factors, including the increasing trend toward the electrification of transportation, government incentives and regulations supporting the adoption of electric vehicles, growing environmental concerns, and heightened consumer awareness and demand for sustainable and eco-friendly transportation solutions.

The traction battery market size is expected to see rapid growth in the next few years. It will grow to $63.17 billion in 2028 at a compound annual growth rate (CAGR) of 11.7%. The anticipated growth in the forecast period can be attributed to several factors, including the expansion of the electric vehicle (EV) market, increased adoption of traction batteries in energy storage applications, a focus on battery recycling and sustainability practices, ongoing development of charging infrastructure for electric vehicles, and market diversification. Key trends expected during this period encompass the advancement of fast charging technology, exploration of second-life batteries for alternative applications, increased production capacity to meet growing demand, the implementation of advanced battery management systems, and efforts to enhance energy density in traction batteries.

The traction battery market is poised for growth due to the increasing demand for electric vehicles. Electric vehicles, known for their eco-friendly operation, rely on traction batteries to power their electric motors. The International Energy Agency reported a substantial surge in electric vehicle sales, nearly doubling from 3 million in 2020 to 6.6 million in 2021, accounting for nearly 9% of total sales. This growth trend contributed to a significant increase in the total number of electric vehicles on the road, reaching 16.5 million. The escalating demand for electric vehicles serves as a key driver for the traction battery market.

Another factor propelling the growth of the traction battery market is the heightened demand for high-energy storage. High-energy storage involves the capacity of a system or device to store a substantial amount of energy in a compact and lightweight package. Traction batteries play a crucial role in high-energy storage applications such as grid energy storage, uninterruptible power supply, and advancements in electric vehicle-to-grid applications. The Energy Information Administration reported that, as of 2022, the cumulative capacity of active utility-scale battery energy storage systems in the United States reached 8,842 MW, with a total energy capacity of 11,105 MWh. The year 2022 alone saw the installation of approximately 4,807 MW. This increased demand for high-energy storage is anticipated to drive the growth of the traction battery market.

Technological advancements are a prominent trend shaping the traction battery market. Key industry players are dedicating efforts to developing innovative technological solutions, aiming to deliver cost-effective batteries and solidify their market position. Sunlight Group Energy Storage Systems, based in Greece, introduced Sunlight ElectroLiFe in March 2022 - a semi-traction lithium-ion battery designed for manufacturing and light commercial vehicle applications. Its lightweight yet durable design allows for tool-free plug-and-play installation, meeting evolving customer needs. The battery can also connect to the GLocal cloud platform and boasts an extended lifespan of over 2,000 cycles.

Leading companies in the traction battery market are also focusing on product innovation, particularly in the realm of lithium-ion batteries. Lithium-ion batteries, recognized for their rechargeable nature and use of lithium ions in electrochemistry, are becoming increasingly popular. In March 2022, Flux Power Holdings Inc., a US-based company specializing in advanced lithium-ion batteries for industrial applications, unveiled a new lithium-ion battery pack for 3-wheel forklifts. This battery pack addresses operational performance issues, delivering superior performance, reliability, and efficiency compared to conventional lead-acid batteries.

In August 2021, Concentric LLC, a US-based leader in DC power management, acquired Stangco Industrial Equipment Inc. This strategic move is expected to enhance Concentric's presence in the Forklift (Motive) Power market across southern California and the west coast. Stangco Industrial Equipment Inc., a manufacturer of traction batteries and industrial equipment batteries, contributes to Concentric's goal of establishing a nationwide service organization for material handling customers.

Major companies operating in the traction battery market include Amara Raja Batteries Limited, BAE Batterien GmbH, Banner Batterien GmbH, BYD Company Limited, Coslight Technology International Group Co. Ltd., East Penn Manufacturing Company Inc., EnerSys, Exide Industries Limited, GS Yuasa International Ltd., HOPPECKE Carl Zoellner & Sohn GmbH, Mutlu Akü ve Malzemeleri Sanayi Ticaret A.S., Sunlight Systems S.A., C&D Technologies Inc., Chaowei Power Holdings Limited, Leoch International Technology Limited, Sebang Global Battery Co. Ltd., Tesla Inc., Panasonic Corporation, LG Chem Ltd., Samsung SDI Co. Ltd., Contemporary Amperex Technology Co. Limited (CATL), Johnson Controls International PLC, Saft Groupe S.A., Trojan Battery Company, A123 Systems LLC, Toshiba Corporation, Hitachi Chemical Co. Ltd., Narada Power Source Co. Ltd., NorthStar Battery Company LLC, Sumitomo Electric Industries Ltd., Crown Battery Manufacturing Company, Tadiran Batteries GmbH, Discover Battery, Manz AG, Sinopoly Battery Limited

North America was the largest region in the traction battery market in 2023. The regions covered in the global traction battery market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.

The countries covered in the traction battery market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, the UK, and the USA.

The traction battery market consists of sales of volt battery, and monobloc battery. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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