Lithium-Ion Industrial Traction Battery Market Size

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.

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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.