Traction Battery Market Analysis

Traction Battery Market Analysis

In terms of application, the traction battery market size from electric vehicles segment held a valuation of over USD 36.5 billion in 2022, on account of the consistent government support electric vehicles are receiving for their adoption. Apart from creating a favorable regulatory scenario, mang governments are also making strong investments in the field through R&D and fleet upgradation initiatives. Back in December 2022, the US Postal Service unveiled a historic investment of over USD 9.6 billion for the electrification of its delivery fleet over the coming five years. The market for industrial traction battery is likely to cross USD 53 billion by 2032.
 

Based on chemistry, the traction battery market from nickel-based battery segment is expected to register approximately 24.5% growth rate through 2032, driven by their higher energy and power density in comparison to conventional lead-acid batteries. They also offer a greater storage capacity at a much lower cost than their counterparts. Consequently, high-power, lightweight NiMH batteries have found immense traction in hybrid electric vehicles industry. They also offer good resistance to electrical use and perform well in ambient temperatures, making them that much more ideal for the job. 
 

Asia Pacific traction battery market revenue is anticipated to reach nearly USD 150 billion by 2032, fueled by the sifting emphasis of automobile manufacturers towards EVs leadership in the region. Back in January 2022, Toshiba Infrastructure Systems & Solutions Corporation, a leading Japanese traction battery supplier launched a 20Ah-HP SCiB™ Rechargeable Lithium-ion Battery Cell for hybrid electric vehicles and other applications. The regional growth can also be credited to tax credits on EVs coupled with government support. Moreover, India’s EV industry is the third largest in terms of number of companies, which may increase the demand for traction batteries.