Lithium-Ion Industrial Traction Battery Market Size & Share 2024 - 2032
Market Size by Application (Forklift {Class 1, Class 2, Class 3}, Railroads), Growth Prospects, Regional Outlook & Forecast.
Report ID: GMI8067
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Published Date: February 2024
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Report Format: PDF
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Authors:
Ankit Gupta, Vinayak Shukla
Lithium-Ion Industrial Traction Battery Market Size
Lithium-Ion Industrial Traction Battery Market size was valued at USD 5 billion in 2023 and is projected to grow at a CAGR of 25.1% between 2024 and 2032. The electrification of the transportation sector is driving an increasing demand for traction batteries. These batteries are not only environmentally beneficial but also recyclable, which is promoting their wider adoption. Industries are prioritizing the integration of battery electric or hybrid models for industrial vehicles such as forklifts and excavators. Additionally, government laws and regulations mandating the production and sale of industrial electric vehicles to curb emissions from manufacturing and processing sites are expected to positively impact market growth.
Lithium-Ion Industrial Traction Battery Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
Increasing awareness and government initiatives aimed at reducing carbon emissions will serve as positive drivers for the business landscape. Additionally, the rise in e-commerce activities is fueling the adoption of electric forklifts, which are preferred for their ability to meet environmental, health, and safety standards. The continuous evolution of advanced technologies and the expansion of emerging markets will further enhance the business environment.
For instance, in 2022, industrial electric vehicle (EV) sales experienced over 60% growth, marking a substantial increase compared to 2021 and contributing to a notable rise in the overall number of electric vehicles throughout the country. This trend is further fueled by the growing electrification of the transportation sector, leading to a heightened demand for traction batteries.
COVID-19 Impact
The COVID- 19 pandemic has had a substantial impact on major economies across North America, Europe, the Middle East, and the Asia Pacific region, leading to ongoing disruptions in numerous commercial and industrial establishments. Nevertheless, the industrial traction battery market has experienced relatively minimal impact from the widespread pandemic. This is attributed to the introduction of various incentives and subsidies aimed at promoting the adoption of electric vehicles.
Lithium-Ion Industrial Traction Battery Market Trends
Battery technologies across a range of applications, such as electric forklifts, excavators, and lift trucks, are continually advancing to offer higher capacities and faster charging times. Numerous battery manufacturers are making substantial investments in the research and development of new technologies to improve efficiency and promote long-term sustainability. These efforts are creating diverse opportunities for the traction battery market.
Additionally, increasing investments in expanding manufacturing capacities to meet the rising demand for electric vehicles (EVs) are expected to stimulate growth in the lithium-ion industrial traction battery market. For instance, in 2022, the industrial sector contributed to 22% of the global emissions owing to which there has been an increased awareness in changing customer requirements for the adoption of electric forklifts.
Electric forklifts have a longer lifespan due to fewer moving components when compared to ICE. The decreasing costs of Li-ion batteries, coupled with their significant advantages in terms of larger capacity and slower discharge times, are driving industry expansion. The increasing adoption of industrial electric vehicles is expected to propel growth in the industrial traction battery market. Forklifts, in particular, have seen remarkable popularity growth in recent years due to their array of sustainable features.
Lithium-Ion Industrial Traction Battery Market Analysis
Based on application, the forklift segment has surpassed USD 3.7 billion in 2023. Electric forklifts demonstrate enhanced energy efficiency and operate without the need for combustion fuel, serving as versatile energy carriers and aligning with the transport industry's policy objectives. Electric vehicles (EVs) offer significant advantages over traditional internal combustion engines, including enhanced air quality, reduced noise pollution, improved energy security, and decreased greenhouse gas emissions.
The North America lithium-ion industrial traction battery market is forecasted to exceed USD 5.8 billion by 2032. The widespread adoption of electric vehicles is significantly influencing industry growth. Over the past few years, the U.S. federal government has implemented various incentive policies to encourage electric vehicle adoption, including purchase incentives and tax credits for charging infrastructure.
Moreover, state-level policies such as access to HOV lanes, registration incentives, sales tax exemptions, insurance discounts, and parking incentives have further bolstered industry expansion. Manufacturers across the region are investing heavily on R&D for the enhancement of their traction battery product lines. For instance, in January 2024, Panasonic Holdings Corp. announced its intentions to launch an enhanced version of electric vehicle battery cells, featuring improved capacity.
Lithium-Ion Industrial Traction Battery Market Share
EXIDE INDUSTRIES LTD holds a significant stake in the lithium-ion industrial traction battery industry, renowned for its extensive expertise in designing and manufacturing various types of battery technologies. These include lithium-ion batteries, lead acid batteries, and more. With a history deeply entrenched in the battery technology sector, the company has successfully provided traction battery solutions spanning a wide range of EV, industrial, and others.
Lithium-Ion Industrial Traction Battery Market Companies
Some of the key companies operating across the lithium-ion industrial traction battery industry are:
Lithium-Ion Industrial Traction Battery Industry News
The lithium-ion 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 Application
The above information has been provided for the following regions and countries:
Research methodology, data sources & validation process
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