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Industrial Traction Battery Market Size - By Chemistry (Lead Acid, Lithium-Ion, Nickel-Based), By Application (Forklift {Class 1, Class 2, Class 3}, Railroads) & Forecast, 2023 – 2032

  • Report ID: GMI5786
  • Published Date: May 2023
  • Report Format: PDF

Industrial Traction Battery Industry Analysis

Industrial Traction Battery Market size surpassed USD 7 billion in 2022 and is projected to register 22.7% CAGR from 2023 to 2032. The electrification of the transportation sector is increasing the requirement for traction batteries. Government laws & regulations toward the production & sale of industrial electric vehicles to reduce the emissions from various manufacturing & processing sites will positively influence industry growth.

Industrial Traction Battery Market

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The growing awareness and government-led efforts to reduce the carbon emissions will positively drive the business landscape. Furthermore, electric forklifts are gaining traction attributed to the increasing e-commerce business activities and their ability to meet the environmental, health, and safety standards. The evolving advanced technologies and growth in emerging business will complement the industrial traction battery market outlook.

Lead-acid batteries have an excess of lead and sulfuric acid that cause safety concerns. The acid is highly corrosive and is a carrier for soluble lead & lead particulate. Several countries consider lead acid as hazardous material as it can be a health hazard if not properly handled. Lithium-ion batteries have a tendency of overheating and can be damaged at high voltages. These batteries not only ignite very easily but also result in fire, which can be difficult to contain. Li-ion batteries require efficient safety mechanisms to limit internal pressures and voltage, which result in the increase in weight and limit performance. These harmful environmental impacts of the technologies are likely to restrict the demand for this technology in industrial traction battery.

COVID-19 Impact

The global economy has been severely impacted by an unforeseen outbreak of the novel coronavirus, also known as COVID-19. This pandemic has significantly impacted major world economies of North America, Europe, Middle East and Asia Pacific where numerous commercial and industrial establishments & facilities continue to be impacted. However, the industrial traction battery market has witnessed limited impact of the widespread pandemic owing to the introduction of various incentives and subsidies toward the adoption of electric vehicles. In addition, the resumption of various industries has significantly increased the adoption of industrial electric vehicles, driving the product demand.

Industrial Traction Battery Industry Trends

The battery technologies across various applications, including electric forklifts, excavators, and lift trucks, continue to improvise in terms of higher capacities and faster charging times. Several battery manufacturers are investing heavily in the development of new technologies to enhance the overall efficiency and contribute to the long-term sustainability, creating various opportunities for the traction battery market. Increasing investments in the expansion of manufacturing capacities pertaining to the growing demand for EVs are set to stimulate the industry landscape. The reducing costs of Li-ion batteries, their significant benefits in terms of larger capacity and slower discharge times are propelling industry traction battery market growth.

Industrial Traction Battery Chemistry Segmentation

Industrial Traction Battery Market Size, By Chemistry, 2021 - 2032 (USD Billion)

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The nickel-based segment is anticipated to witness 19% growth during 2023-2032. Lightweight and high-power NiMH batteries are gaining applicability in Hybrid Electric Vehicles (HEVs) owing to their higher energy and power density than the traditional lead-acid battery. Sodium Nickel Chloride batteries, popularly known as Zebra, offer high energy densities with temperature limitations and lower traction applicability, leading to increased product adoption. Increasing deployment of electric industrial trucks owing to favorable policy mandates is encouraging manufacturers to establish new battery technologies, particularly for automotive applications, which is set to develop a favorable industrial traction battery market landscape.

Industrial Traction Battery Application Segmentation

Industrial Traction Battery Market Share, By Application, 2022

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The forklift application dominated 67% industrial traction battery industry share in 2022 and is expected to grow at a lucrative pace by 2032. Electric forklifts exhibit improved energy efficiency and require no fuel for combustion, making it a diversified carrier of energy and contributing to the policy goals of the transport industry. EVs showcase exceptional benefits when compared to the traditional internal combustion engines including improved air quality, less noise, energy security, and reduced greenhouse gas. The continuous support and obligations for the deployment of EVs from various policy institutions have led to increased sales volume. This has led to an increased competition with market players continuously involved in developing new technologies and enhanced product offerings, creating a positive business landscape.

Industrial Traction Battery Regional Analysis

North America Industrial Traction Battery Market Size, 2021 – 2032 (USD Million)

The adoption of electric vehicles has a significant impact on the industry growth. In the last few years, the federal government of the U.S. has introduced certain incentive policies toward electric vehicles including purchase incentives and tax credit for charging infrastructure. In addition, state policies including the HOV lane, registration incentives, sales tax exemptions, insurance discounts, and parking incentives have further accompanied the industrial traction battery market statistics.

The growing industrial preference for electric forklifts and the increasing sales of e-bikes will substantially support the regional business outlook. Furthermore, the invariable need to electrify the transport sector along with federal mandates, purchase incentives, and objectives pertaining to energy efficiency & carbon emissions will stimulate the North America traction battery sector.

Industrial Traction Battery Industry Leaders

Some of the key manufacturers operating across the industrial traction battery industry are Hitachi Energy Ltd., Toshiba Corporation, Samsung SDI Co., Ltd., Panasonic Corporation, LG Energy Solution, ecovolta, Camel Group Co., Ltd., Mutlu Corporation, MIDAC S.p.A., Amara Raja Batteries Ltd., HOPPECKE Batteries GmbH & Co. KG, ENERSYS, and EXIDE INDUSTRIES LTD. These players focus on new product launch & commercialization through mergers and strategic partnerships. Moreover, these industry leaders are increasingly investing in research & development activities, which enable them to introduce innovative products and garner maximum revenue in the market.

Industrial Traction Battery Industry News:

  • In May 2022, Hitachi Energy launched RoadPak, a power semiconductor module for all types of electric vehicles, worldwide. The product uses silicon carbide (SiC) technology to attain lifetime consistency of the vehicle, unique power density for faster charging, and least power losses for the longest driving range. In addition, RoadPak permits low inductive connections so that the current rating can be scaled up with just one module type.
  • In September 2022, LG Energy Solution and Honda agreed to develop a joint venture to manufacture lithium-ion batteries in the U.S. to power Acura and Honda EV models. The two companies have planned to invest around USD 4.4 billion for the establishment of new manufacturing plant that will have a production capacity of 40 GWh batteries.

This 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 2019 to 2032, for the following segments:

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Market, By Chemistry

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

Market, By Application

  • Forklift
    • Class 1
    • Class 2
    • Class 3
  • Railroads
  • Others

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Netherlands
    • Norway
    • Austria
    • Belgium
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • Australia
    • India
    • Thailand
  • Middle East & Africa
    • UAE
    • Saudi Arabia
    • South Africa 
  • Latin America
    • Brazil
    • Argentina
    • Chile
Authors: Ankit Gupta, Vinayak Shukla

Frequently Asked Questions (FAQ) :

The market size of industrial traction battery exceeded USD 7 billion in 2022 and will register 22.7% CAGR during 2023-2032, with increased government laws & regulations to support the production & sale of industrial electric vehicles to reduce emissions.

The forklift segment captured 67% share of industrial traction battery industry during 2022 as a result of continuous government support and regulations for the deployment of EVs by various authorities.

Industry size of Nickel-based industrial traction battery anticipated to witness 19% growth from 2023 to 2032, owing to the increasing deployment of electric industrial trucks due to favorable policy mandates.

North America will dominate the industrial traction battery sector by 2032, on account of the growing industrial preference for electric forklifts and the increasing acceptance of EVs in the region.

Major manufacturers of industrial traction battery are Hitachi Energy Ltd., Toshiba Corporation, Samsung SDI Co., Ltd., Panasonic Corporation, LG Energy Solution, ecovolta, Camel Group Co., Ltd., Mutlu Corporation, among others.

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 13
  • Tables & Figures: 443
  • Countries covered: 24
  • Pages: 250
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