This Traction Battery report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.
The traction battery market size has grown rapidly in recent years. It will grow from $39.91 billion in 2024 to $44.47 billion in 2025 at a compound annual growth rate (CAGR) of 11.4%. The growth in the historic period can be attributed to electrification of transportation, government incentives and regulations, environmental concerns, consumer awareness and demand.
The traction battery market size is expected to see rapid growth in the next few years. It will grow to $68.71 billion in 2029 at a compound annual growth rate (CAGR) of 11.5%. The growth in the forecast period can be attributed to ev market expansion, energy storage applications, battery recycling and sustainability, charging infrastructure development, market diversification. Major trends in the forecast period include fast charging technology, second-life batteries, increased production capacity, advanced battery management systems, increased energy density.
The increasing demand for electric vehicles is anticipated to drive the growth of the traction battery market in the coming years. Electric vehicles, which are environmentally friendly, operate using electric power. Traction batteries are essential for powering the electric motors in battery electric vehicles. For example, Sustainable Bus, an Italy-based media company specializing in clean buses and sustainability, reported a 53% rise in electric bus registrations in Europe in 2023 compared to 2022. Thus, the growing demand for electric vehicles is propelling the expansion of 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 November 2022, Electriq Power, a US-based company focused on home battery storage solutions, merged with TLG Acquisition One Corp., a special purpose acquisition company, for an undisclosed sum. This merger aims to enable Electriq to expand its portfolio of energy storage and management solutions, particularly within the renewable energy sector.
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), 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, Sinopoly Battery Limited.
North America was the largest region in the traction battery market in 2024. 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.
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 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.
This product will be delivered within 3-5 business days.
The traction battery market size has grown rapidly in recent years. It will grow from $39.91 billion in 2024 to $44.47 billion in 2025 at a compound annual growth rate (CAGR) of 11.4%. The growth in the historic period can be attributed to electrification of transportation, government incentives and regulations, environmental concerns, consumer awareness and demand.
The traction battery market size is expected to see rapid growth in the next few years. It will grow to $68.71 billion in 2029 at a compound annual growth rate (CAGR) of 11.5%. The growth in the forecast period can be attributed to ev market expansion, energy storage applications, battery recycling and sustainability, charging infrastructure development, market diversification. Major trends in the forecast period include fast charging technology, second-life batteries, increased production capacity, advanced battery management systems, increased energy density.
The increasing demand for electric vehicles is anticipated to drive the growth of the traction battery market in the coming years. Electric vehicles, which are environmentally friendly, operate using electric power. Traction batteries are essential for powering the electric motors in battery electric vehicles. For example, Sustainable Bus, an Italy-based media company specializing in clean buses and sustainability, reported a 53% rise in electric bus registrations in Europe in 2023 compared to 2022. Thus, the growing demand for electric vehicles is propelling the expansion of 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 November 2022, Electriq Power, a US-based company focused on home battery storage solutions, merged with TLG Acquisition One Corp., a special purpose acquisition company, for an undisclosed sum. This merger aims to enable Electriq to expand its portfolio of energy storage and management solutions, particularly within the renewable energy sector.
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), 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, Sinopoly Battery Limited.
North America was the largest region in the traction battery market in 2024. 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.
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 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.
This product will be delivered within 3-5 business days.
Table of Contents
1. Executive Summary2. Traction Battery Market Characteristics3. Traction Battery Market Trends and Strategies4. Traction Battery Market - Macro Economic Scenario Including the Impact of Interest Rates, Inflation, Geopolitics, and the Recovery from COVID-19 on the Market100 - 200 Ah200 - 300 Ah300 - 400 Ah32. Global Traction Battery Market Competitive Benchmarking and Dashboard33. Key Mergers and Acquisitions in the Traction Battery Market34. Recent Developments in the Traction Battery Market
5. Global Traction Battery Growth Analysis and Strategic Analysis Framework
6. Traction Battery Market Segmentation
400 Ah and Above
7. Traction Battery Market Regional and Country Analysis
8. Asia-Pacific Traction Battery Market
9. China Traction Battery Market
10. India Traction Battery Market
11. Japan Traction Battery Market
12. Australia Traction Battery Market
13. Indonesia Traction Battery Market
14. South Korea Traction Battery Market
15. Western Europe Traction Battery Market
16. UK Traction Battery Market
17. Germany Traction Battery Market
18. France Traction Battery Market
19. Italy Traction Battery Market
20. Spain Traction Battery Market
21. Eastern Europe Traction Battery Market
22. Russia Traction Battery Market
23. North America Traction Battery Market
24. USA Traction Battery Market
25. Canada Traction Battery Market
26. South America Traction Battery Market
27. Brazil Traction Battery Market
28. Middle East Traction Battery Market
29. Africa Traction Battery Market
30. Traction Battery Market Competitive Landscape and Company Profiles
31. Traction Battery Market Other Major and Innovative Companies
35. Traction Battery Market High Potential Countries, Segments and Strategies
36. Appendix
Executive Summary
Traction Battery Global Market Report 2025 provides strategists, marketers and senior management with the critical information they need to assess the market.This report focuses on traction battery market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
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Description
Where is the largest and fastest growing market for traction battery? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The traction battery market global report answers all these questions and many more.The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.
- The market characteristics section of the report defines and explains the market.
- The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
- The forecasts are made after considering the major factors currently impacting the market. These include:
- The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.
- Market segmentations break down the market into sub markets.
- The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
- The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
- The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.
Scope
Markets Covered:
1) by Product Type: Lead Acid Based; Li-Ion Based; Nickel Based; Other Types2) by Capacity: Less than 100 Ah; 100 - 200 Ah; 200 - 300 Ah; 300 - 400 Ah; 400 Ah and above
3) by Application: Electrical Vehicle (EV); Hybrid Electric Vehicles (HEV); Industrial; Forklift; Mechanical Handling Equipment; Other Applications
Subsegments:
1) by Lead Acid Based: Flooded Lead Acid Batteries; Absorbent Glass Mat (AGM) Batteries; Gel Lead Acid Batteries2) by Li-Ion Based: Lithium Cobalt Oxide (LCO) Batteries; Lithium Iron Phosphate (LFP) Batteries; Lithium Nickel Manganese Cobalt (NMC) Batteries; Lithium Polymer (LiPo) Batteries
3) by Nickel Based: Nickel-Cadmium (NiCd) Batteries; Nickel-Metal Hydride (NiMH) Batteries
4) by Other Types: Sodium-Ion Batteries; Solid-State Batteries; Flow Batteries
Key Companies Mentioned: Amara Raja Batteries Limited; BAE Batterien GmbH; Banner Batterien GmbH; BYD Company Limited; Coslight Technology International Group Co. Ltd.
Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time Series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita.
Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments.
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
Delivery Format: PDF, Word and Excel Data Dashboard.
Companies Mentioned
Some of the major companies featured in this Traction Battery market report 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)
- 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
- Sinopoly Battery Limited
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 200 |
| Published | February 2025 |
| Forecast Period | 2025 - 2029 |
| Estimated Market Value ( USD | $ 44.47 Billion |
| Forecasted Market Value ( USD | $ 68.71 Billion |
| Compound Annual Growth Rate | 11.5% |
| Regions Covered | Global |
| No. of Companies Mentioned | 34 |
