Global Traction Battery Market Size By Product Type (Lead Acid-Based, Nickel Based), By Capacity (Less Than 100 Ah, 100 – 200 Ah), By Application (Electrical Vehicle, Industrial), By Geographic Scope And Forecast

Traction Battery Market Size And Forecast

Traction Battery Market size was valued at USD 33076 Million in 2021 and is projected to reach USD 65856 Million by 2030, growing at a CAGR of 7.96% from 2022 to 2030.

Electric vehicles are getting super popular, and that means traction batteries – the things that actually power those electric motors in your car or hybrid – are seeing a huge boost! This could be a major reason why the Traction Battery Market is expanding. Plus, the fact that these batteries are recyclable, affordable, and eco-friendly is really helping the electric vehicle market take off. Need a complete look at the market? The Global Traction Battery Market report dives deep, giving you the full picture. It breaks down the most important parts, identifies what's hot and what's not, and looks at who's competing and what's really making a difference.

Global Traction Battery Market Definition

A Traction Battery is a rechargeable battery that powers the electric motors of a battery electric vehicle (BEV) or a hybrid electric vehicle (HEV) (HEV). They are mostly made with lithium-ion batteries, which are designed to hold a lot of energy. Traction batteries are different from starting, lighting, and ignition (SLI) batteries because they are designed to give power for long periods and are deep-cycle batteries. traction batteries have a high power-to-weight ratio, high specific energy, and a high energy density. Smaller, lighter batteries are better because they make the vehicle lighter, which makes it go faster.

Batteries just don't have the same punch as gasoline when it comes to energy density. That's why your electric car might not go as far as a gas-powered one. Lithium-ion and lithium polymer batteries are usually the stars of the show in today's electric vehicles since they're pretty good at storing a lot of energy in a relatively small package. You'll also see other types kicking around, like lead-acid (think "flooded," "deep-cycle," and "valve-regulated lead-acid" versions), nickel-cadmium, nickel-metal hydride, and even sometimes zinc-air and sodium nickel chloride (or "zebra") batteries. We measure the amount of juice a battery holds in ampere-hours or coulombs, and the total energy it can deliver is usually measured in kilowatt-hours (kWh).

From the late '90s onward, things like portable electronics, laptops, cell phones, and even power tools have really driven innovation in lithium-ion battery tech. We've seen improvements in both how well they work and how much power they can store, which is awesome for the BEV and HEV markets. The cool thing about lithium-ion batteries? Unlike those old nickel-cadmium batteries, you can use and recharge them whenever you want, at any charge level! Now, let's be realthe battery pack is a significant chunk of what you pay for a BEV or HEV. But the good news is that, since 2010, the price per kilowatt-hour for electric vehicle batteries has plummeted by a whopping 87% (as of December 2019). And get thisas of 2018, you could finally buy all-electric cars with a range of over 250 miles (400 km) – think the Tesla Model S – and now they're available in all sorts of vehicle types.

Global Traction Battery Market Overview

What's fueling the market's growth? Well, it's a few things reallythe escalating demand for electric vehicles, those attractive government policies and tax incentives we keep hearing about, and all the increasing R&D activities happening behind the scenes. You see, more and more people are choosing electric vehicles, not just because they're becoming more aware of environmentally friendly options, but also because fuel prices are all over the place! Just think, according to the International Energy Agency’s (IEA) Global EV Outlook 2020 report, global sales of electric cars zoomed past 2.1 million in 2019 – a whopping 40% jump from the year before! Plus, with trends like transportation electrification and increasing investment, electric vehicles are only going to become more popular. And because everyone wants an electric car, the market for those traction batteries – the things that actually power the electric motors in these vehicles – is seeing some seriously significant growth.

The rising demand for electric vehicles has boosted research and development efforts aimed at improving battery efficiency by shortening the charge cycle and lowering unit consumption per charge. Furthermore, the introduction of high-energy-density batteries has increased competition among traction battery manufacturers for the development of highly efficient traction batteries for electric and hybrid vehicles. The Global Traction Battery Market is expected to benefit from all of these factors in the future. The restraints for the market growth are inadequate charging infrastructure. Whereas the opportunities are enhanced battery capacity and reduced costs.

Global Traction Battery MarketSegmentation Analysis

The Global Traction Battery Market is Segmented on the basis of Product Type, Capacity, Application, and Geography.

Traction Battery Market, By Product Type

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

Based on Product Type, the market is segmented into Lead Acid-Based, Nickel Based, Lithium-Ion Based, and Others. The lead acid-based segment generates the most revenue and is expected to grow at a rapid rate over the forecast period. The automotive and transportation sectors have seen rapid growth, with lead acid-based traction batteries being widely used to power road vehicles, locomotives, industrial forklift trucks, and other vehicles.

Traction Battery Market, By Capacity

• Less Than 100 Ah
• 100 – 200 Ah
• 200 – 300 Ah
• 300 – 400 Ah
• 400 Ah & Above

Based Capacity, the market is segmented into Less than 100 Ah, 100 – 200 Ah, 200 – 300 Ah, 300 – 400 Ah, and 400 Ah & Above. The segment with less than 100 Ah generates the most revenue and is expected to grow at a high CAGR over the forecast period. The growing demand for hybrid electric power devices in small-scale industries, where traction batteries with capacities of less than 100 Ah are commonly used to power small industrial machinery systems, could propel the market forward.

Traction Battery Market, By Application

• Electrical Vehicle
• Industrial
• Locomotives
• Others

Based on Application, the market is segmented into Electrical Vehicle, Industrial, Locomotives, and Others. The electrical vehicle segment has risen to the top of the global market by application and is expected to grow at a high CAGR over the forecast period. The growing concern about pollution has accelerated the adoption of electric vehicles, with traction batteries being widely used to power the electric motors in battery electric vehicles and hybrid electric vehicles.

Traction Battery Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the world

Looking at different regions, we can break down the Global Traction Battery Market into North America, Europe, Asia Pacific, and, well, the rest of the world. Now, get thisAsia-Pacific is poised for some serious growth! We're talking a healthy CAGR and potentially more than half of the entire Traction Battery Market during the forecast period. Think about it - in places like China and India, the demand for consumer goods is pushing the industrial sector, where traction batteries are essential for powering machinery. That's a big deal for the Asia-Pacific Traction Battery Market! Plus, with everyone getting more worried about the environment and governments pushing for change, electric vehicles are taking off. And you know what powers those electric motors? You guessed ittraction batteries!

Key Players

The “Global Traction Battery Market” study report will provide valuable insight with an emphasis on the global market. The major players in the market are Hitachi ABB, Samsung, Johnson Controls, Exide, BYD Company, L.G. Chem, Mutlu, Enersys, Panasonic, and Hoppecke Batteries. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Key Developments

• In June 2021, Hitachi ABB Power Grids and Teollisuuden Voima Oyj (TVO) have agreed to deliver one of Europe’s largest battery energy storage systems to the Olkiluoto nuclear power plant in Finland. At the Olkiluoto NPP’s Unit 3, the 90MW system will support the entire energy network, reducing the grid’s impact from power fluctuations. The turnkey system acts as a backup power source and has a quick start time.
• In October 2021, Stellantis and Samsung SDI Co Ltd of South Korea have agreed to create an electric vehicle (EV) battery cell and module joint venture in the United States.

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