Europe Industrial Traction Battery Market Size & Share 2024 to 2032
Market Size by Chemistry (Lead Acid, Lithium-Ion, Nickel-Based), by Application (Forklift {Class 1, Class 2, Class 2}, Railroads).
Report ID: GMI9093
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Published Date: April 2024
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Report Format: PDF
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Authors:
Ankit Gupta, Vinayak Shukla
Europe Industrial Traction Battery Market Size
Europe Industrial Traction Battery Market size was valued at USD 378.9 million in 2023 and an anticipated CAGR of 14.4% from 2024 to 2032. Growth is primarily driven by increasing demand for electric vehicles (EVs) and the need for more sustainable energy solutions.
Europe Industrial Traction Battery Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
As EU sets ambitious targets for reducing greenhouse gas emissions, adoption of electric vehicles and development of advanced battery technologies are becoming crucial aspects of region's industrial landscape. Moreover, there is a rising demand for industrial traction batteries to power electric forklifts, material handling equipment, and other electric vehicles in industrial settings.
Major players in market are investing in research and development to drive innovation and address growing demand for cleaner, more efficient energy solutions. This has created opportunities for collaboration and strategic partnerships, further boosting growth potential. For instance, in March 2021, Northvolt receives a USD 14 billion order as primary supplier of premium battery cells for Volkswagen Group in Europe. Volkswagen will increase its stake in Northvolt and aims to optimize Northvolt's gigafactory in Sweden for greater efficiency and environmental sustainability.
Europe Industrial Traction Battery Market Trends
The market is witnessing several significant trends that are shaping its growth trajectory. Rapid adoption of electric vehicles (EVs) in region is driving demand for advanced battery technologies, with lithium-ion batteries gaining prominence due to their high energy density and efficiency. Market sees increased collaboration among industry players for innovative battery technologies amid rising demand for clean energy with government initiatives further propelling market trends. For instance, in July 2023, European Commission announced investment of USD 3.82 billion in 41 clean tech projects through EU Innovation Fund, focusing on REPowerEU Plan and reducing reliance on Russian fossil fuels. Projects include cement, steel, biofuels, aviation fuels, wind, solar, and renewable hydrogen. The aim is to decarbonize challenging sectors of the European economy.
Europe Industrial Traction Battery Market Analysis
Litum-ion batteries dominates the market share under chemistry segment which is expected to reach a valuation of over USD 850 million by 2032, driven by their high energy density, extended cycle life, and enhanced safety features. Increasing demand for electric vehicles (EVs), supported by European Union's commitment to reducing emissions, has further bolstered adoption of lithium-ion batteries. Moreover, continuous advancements in lithium-ion technology and supportive government policies have improved battery performance, safety, and cost-effectiveness. These factors collectively contribute to lithium-ion sector's substantial share in market, as industries increasingly embrace cleaner and more efficient energy solutions.
Based on application, Europe industrial traction battery market from forklift segment is forecasted to grow at a CAGR of more than 13.5% by 2032, poised by wide usage of forklifts across diverse industries, including manufacturing, warehousing, and logistics. Increasing transition from traditional internal combustion engine (ICE) forklifts to electric forklifts, fueled by lower operating costs, enhanced efficiency, and reduced emissions, is further propelling demand for industrial traction batteries.
Stricter government regulations to curtail carbon emissions from material handling equipment have also contributed to widespread adoption of electric forklifts. These factors collectively contribute to substantial share held by the forklift sector, which is expected to experience further growth as industries prioritize efficiency, sustainability, and regulatory compliance.
Germany holds the largest market share and is estimated to exceed USD 270 million by 2032, owing to several factors that contribute to its prominence. Germany is Europe's leading automotive market, with a strong emphasis on innovation and sustainability, driving demand for advanced battery technologies. Additionally, Germany has a robust renewable energy sector, with a significant focus on solar and wind power generation. Furthermore, governments are actively supporting clean energy adoption and implementing policies to promote electric vehicle usage, fostering a favourable environment. For instance, in April 2023, European Commission announced its plan to invest USD 3.40 billion in European Battery Innovation project, which aims to support development of innovative battery technologies and boost continent's competitiveness in the battery market.
Europe Industrial Traction Battery Company Market Share
Major companies including Volkswagen, Northvolt, and other key automotive manufacturers are driving growth through investments in battery technologies and electric vehicle development. While specific market share data is not readily available, these companies are making significant strides in advancing the market.
Europe Industrial Traction Battery Market Companies
Some of the key market players operating across the Europe industrial traction battery industry are:
Europe Industrial Traction Battery Industry News
Europe industrial traction battery market research report includes an in–depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2021 to 2032, for the following segments:
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Market, By Chemistry (USD Million)
Market, By Application (USD Million)
The above information has been provided for the following countries:
Research methodology, data sources & validation process
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