The global traction battery market value was US$ 31.4 billion in 2020. The global traction battery market is forecast to reach US$ 69 billion by 2030, and the market will grow at a compound annual growth rate (CAGR) of 8% during the forecast period from 2021-2030.

Traction batteries are a type of electric vehicle battery that has a high capacity in terms of amperes. Battery applications include forklift trucks, locomotives, and mechanical handling equipment.

Factors Influencing the Market Growth

The use of traction batteries for driving electric motors in electric or hybrid vehicles has seen impressive growth as electric vehicle sales have surged. Hence, this may be one of the primary factors driving traction battery market growth.
Market dynamics such as recyclability, low cost, and eco-friendliness contribute to the growth of the electric vehicle segment, thus enhancing the market growth.
Developing charging infrastructure for electric vehicles is a significant setback in many countries because of a lack of space, investment, and electrification. During the forecast period, this factor is forecast to slow down the market growth.
Increasing demand for electric vehicles has led to increased activities in R&D aimed at improving battery efficiency by optimizing the charge cycle and reducing unit consumption per charge. In addition, the rise of high energy density batteries has increased the competition among traction battery manufacturers to produce highly efficient traction batteries for electric and hybrid vehicles. As a result of all these factors, the global traction battery market is likely to see future growth opportunities.
Impact Analysis of COVID-19

An incomparable global pandemic, the novel coronavirus has spread to several countries and caused huge losses of lives and money.
Due to its dependence on transportation, industrial manufacturing, and other sectors, the traction battery market has been adversely affected by the COVID-19 pandemic. The International Energy Agency reported that global road transport activity was almost 50% lower by March 2020 than March 2019.
Due to the risk of infections among the workforce, several companies have shut down or reduced their operations, lowering the production rates of traction batteries during COVID-19. Additionally, falling incomes and travel restrictions imposed by the government and local governments have decreased the sales of electric vehicles and e-bikes, which, in turn, has reduced the demand for traction batteries.
Due to COVID-19, many countries have temporarily stopped the trade of unnecessary products, hindering the supply chain for traction batteries. In addition, the shutdown of small and large-scale manufacturing industries utilizing traction batteries to power automotive industry systems has led to a decline in demand. A report published by the National Bureau of Statistics of China finds that manufacturing industry production declined by 20% in March 2020 compared to March 2019, and profits dropped by 66%.
Regional Insights

During the forecast period, the Asia-Pacific traction battery market is expected to grow at the highest CAGR. There has been an increase in consumer demand for traction batteries in countries like China, India, and others used to power industrial machinery systems. Asia-Pacific may experience traction battery market growth due to this. As a result, environmental concerns and increased government initiatives have led to an increase in electric vehicles. Traction batteries power electric motors in these vehicles. An article published by the Business Standard estimates that India's electric vehicle sales will increase by 26% from 2020 to 2023. The electric vehicle segment predicts to increase its sales of traction batteries, creating lucrative opportunities for the market.

Leading Competitors

The leading prominent companies profiled in the global traction battery market are:

BAE Batteries GmbH
Banner Batteries (GB) Ltd.
ECOVOLTA
Exide Industries Ltd.
GS Yuasa International Ltd.
HOPPECKE Carl Zoellner & Sohn GmbH
Inci GS Yuasa
INTILION GmbH
Leoch International Technology Limited Inc.
Toshiba Corporation
Other Prominent Players
Scope of the Report

The global traction battery market segmentation focuses on Product Type, Capacity, Application, and Region.

Segmentation based on Product Type

Lead Acid based
Nickel based
Lithium-ion based
Others
Segmentation based on Capacity

Less than 100 Ah
100 200 Ah
200 Ah 300 Ah
300 400 Ah
400 Ah & above
Segmentation based on Application

Electrical Vehicle (EV)
Battery Electrical Vehicles (BEV)
Plug-in Hybrid Electrical Vehicles (PHEV)
Hybrid Electric Vehicles (HEV)
Industrial
Forklift
Mechanical Handling Equipment
Locomotives
Others
Segmentation based on Region

North America
The U.S.
Canada
Mexico
Europe
Western Europe
The UK
Germany
France
Italy
Spain
Rest of Western Europe
Eastern Europe
Poland
Russia
Rest of Eastern Europe
Asia Pacific
China
India
Japan
Australia & New Zealand
ASEAN
Rest of Asia Pacific
Middle East & Africa (MEA)
UAE
Saudi Arabia
South Africa
Rest of MEA
South America
Brazil
Argentina
Rest of South America