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Based on chemistry, the nickel-based segment was worth more than USD 850 million in 2022. The utilization of lightweight, high-power nickel-metal hydride (NiMH) batteries is becoming increasingly relevant in Hybrid Electric Vehicles (HEVs) due to their superior energy and power density compared to conventional lead-acid batteries. Another notable advancement is the adoption of Sodium Nickel Chloride batteries, often referred to as Zebra batteries, which offer remarkable energy densities. However, these batteries have certain temperature limitations and are less suitable for traction applications, which has led to an upsurge in their adoption for various products.
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Based on application, the industrial application is set to grow at a CAGR of over 22.1% through 2032. Traction batteries find significant utility in various industrial electric vehicles such as forklifts, skid loaders, dump trucks, and bulldozers. These vehicles are characterized by their enhanced energy efficiency and reliance on electricity instead of combustion-based fuels, making them versatile energy carriers that align with the transport industry's policy objectives. Electric vehicles (EVs) offer a range of compelling advantages when compared to conventional internal combustion engines. These benefits encompass improved air quality, reduced noise pollution, enhanced energy security, and a substantial decrease in greenhouse gas emissions.
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Asia Pacific traction battery market across the China held about 89.5% share in 2022. China has been a global leader in the adoption of electric vehicles, and this trend was expected to continue. The Chinese government's policies and incentives to promote EVs, along with increasing environmental awareness, have driven the demand for traction batteries. With the growth in electric vehicle adoption, there has been a growing emphasis on battery recycling and sustainability. China was looking into regulations and initiatives to address the recycling and disposal of traction batteries to minimize their environmental impact.
Lithium-ion batteries continued to dominate the market due to their high energy density, improved performance, and a wide range of applications. They were commonly used in electric vehicles (EVs), from passenger cars to buses and commercial vehicles. China has been a major player in global battery manufacturing. Many international and domestic battery manufacturers have been expanding their production capacity in the country to meet the increasing demand for traction batteries.