Asia Pacific Industrial Traction Battery Market Size & Share 2024 - 2032
Market Size by Chemistry (Lead Acid, Lithium-Ion, Nickel-Based), by Application (Forklift {Class 1, Class 2, Class 3}, Railroads, Others) & Forecast.
Report ID: GMI9362
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Published Date: May 2024
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Report Format: PDF
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Authors:
Ankit Gupta, Vinayak Shukla
Asia Pacific Industrial Traction Battery Market Size
Asia Pacific Industrial Traction Battery Market size was valued at USD 2.65 billion in 2023 and is projected to grow at a CAGR of 16.4% between 2024 and 2032. Factors including increasing demand for electric vehicles, government regulations supporting the adoption of eco-friendly technologies, and advancements in material handling technology are driving market's growth.
Asia Pacific Industrial Traction Battery Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
The region's rapid industrialization and e-commerce penetration have also created a significant demand for efficient and environmentally friendly power solutions, further boosting the adoption of traction batteries. For instance, in February 2022, Panasonic Corporation's Energy Company announced to build manufacturing facility at its Wakayama Factory in western Japan to produce innovative "4680" lithium-ion batteries for electric vehicles (EVs).
Additionally, market benefits from the long service life, lightweight design, and growing power storage capacity of traction batteries, making them ideal for various industrial applications. As the need for sustainable energy solutions continues to grow, market is expected to expand further, supported by government initiatives promoting electrification of transportation systems and the reduction of harmful emissions.
Asia Pacific Industrial Traction Battery Market Trends
The market is undergoing rapid transformation due to several key trends shaping its growth. High-energy-density batteries are in increasing demand, surged by need for improved efficiency and performance in various industrial applications. Lithium-ion batteries are gaining traction, due to their superior energy density, longer lifespan, and lower maintenance requirements. Safety remains a critical focus as battery manufacturers work to address potential hazards through innovative safety features. Collaborations between market players is also signifying the growth.
For instance, in January 2023, LG Energy Solution and Honda Motor Co. Ltd. to build a USD 4.4 billion lithium-ion battery plant in US. The collaboration aims to develop advanced battery technologies for electric vehicles, focusing on safety and performance.
Asia Pacific Industrial Traction Battery Market Analysis
Based on chemistry, market is divided between lead acid, lithium-ion and nickel-based, which is dominated by lithium-ion batteries, forecasted to grow over USD 7.65 billion by 2032, due to their numerous advantages over alternative battery chemistries. Key factors contributing to this market dominance include high energy density, ensuring greater power output and longer run times for industrial applications. These batteries also offer a longer lifespan than their counterparts, reducing maintenance and replacement costs for users. Moreover, government support for electric vehicles and renewable energy in region drives demand for these advanced batteries.
Based on its application, forklift sector influences the Asia Pacific industrial traction battery market, which is estimated to thrust over a CAGR of 15.4% through 2032. Rapid growth of e-commerce in the region has driven demand for efficient material handling equipment, with forklifts being a primary beneficiary. Also, rising demand for electric forklifts, spurred by environmental concerns and government regulations, further contributes to the need for industrial traction batteries. Moreover, expanding manufacturing industry in countries including China, India, and Japan has also increased use of forklifts and the corresponding demand for these batteries.
China industrial traction battery market size is projected to surpass USD 9.12 billion by 2032. Country's aggressive push towards electric vehicle adoption has created a vast demand for industrial traction batteries, while government support in form of policies and incentives further bolsters this demand. Chinese companies have also made considerable advancements in battery technology, enhancing their competitiveness in global market. For instance, in September 2021, CATL announced to build a new electric vehicle battery plant in Shanghai which will cost USD 3 billion. The plant aims to produce advanced lithium-ion batteries for electric vehicles, contributing to China's growing market share in the industrial traction battery sector.
Asia Pacific Industrial Traction Battery Market Share
Contemporary Amperex Technology Co. Limited (CATL) has emerged as leading player in the market. Company's success can be attributed to its high production capacity, commitment to technological advancements, strategic partnerships with major automotive manufacturers, and support from Chinese government's pro-electric vehicle policies. CATL's focus on innovation has allowed it to develop cutting-edge battery technologies that cater to growing demand for high-performance and eco-friendly power solutions.
Asia Pacific Industrial Traction Battery Market Companies
Some of the key market players operating across the Asia Pacific industrial traction battery industry are:
Asia Pacific Industrial Traction Battery Industry News
The Asia Pacific industrial traction battery market research report includes an in–depth coverage of the industry with estimates & forecast in terms of and revenue in USD Million from 2021 to 2032, for the following segments:
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Market, By Chemistry
Market, By Application
The above information has been provided for the following countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
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