"The Global Traction Battery Market was valued at USD 40.95 billion in 2025 and is projected to reach USD 128.4 billion by 2034, growing at a CAGR of 13.54%."
The traction battery market is experiencing rapid growth as electric mobility and industrial electrification scale globally. These batteries—used in electric vehicles (EVs), lift trucks, automated guided vehicles (AGVs), mining equipment, and more—are critical energy storage components that power traction applications. The surge in EV adoption, rigorous emissions regulations, and the shift toward sustainable industrial operations are driving demand. Market expansion is also supported by improved battery chemistries, such as lithium-ion and advanced lead-acid formulations, offering higher energy density, longer cycle life, and enhanced reliability. Technological innovations in battery management systems, smart charging infrastructure, and module design are further advancing product capability and cost-efficiency.
Regionally, Asia‑Pacific dominates the market in both demand and manufacturing capacity, thanks to strong EV adoption and industrial growth in countries like China and India. North America and Europe are seeing accelerated uptake across automotive and industrial segments, aided by investments in clean-energy infrastructure and policy support. The market is forecasted to continue strong momentum over the next decade, with compound annual growth rates ranging from mid‑teens to over 20% in several scenarios. Growth is particularly strong in EV applications, which account for the majority of demand. Industrial traction batteries for material handling and mining are also expanding steadily. Challenges related to raw materials, supply chain constraints, and competition from emerging storage technologies persist. Nonetheless, strategic partnerships among automakers, battery manufacturers, and utilities are accelerating commercialization and regional capacity build-up.
Trade Intelligence traction battery market
| Global Lithium-ion accumulators (excl. spent) , Imports, USD million, 2020-24 | |||||
|
| 2020 | 2021 | 2022 | 2023 | 2024 |
| World | 40,239 | 61,894 | 89,059 | 1,16,551 | 1,12,499 |
| United States of America | 4,824 | 8,259 | 13,899 | 18,750 | 23,849 |
| Germany | 6,407 | 10,358 | 14,421 | 23,294 | 20,737 |
| Mexico | 816 | 1,803 | 2,684 | 3,899 | 5,663 |
| South Korea | 1,633 | 3,357 | 5,695 | 8,466 | 4,755 |
| Czech Republic | 784 | 1,708 | 3,680 | 5,221 | 3,684 |
| Source: OGAnalysis, International Trade Centre (ITC) | |||||
- United States of America , Germany , Mexico , South Korea and Czech Republic are the top five countries importing 52.2% of global Lithium-ion accumulators (excl. spent) in 2024
- Global Lithium-ion accumulators (excl. spent) Imports increased by 179.6% between 2020 and 2024
- United States of America accounts for 21.2% of global Lithium-ion accumulators (excl. spent) trade in 2024
- Germany accounts for 18.4% of global Lithium-ion accumulators (excl. spent) trade in 2024
- Mexico accounts for 5% of global Lithium-ion accumulators (excl. spent) trade in 2024
| Global Lithium-ion accumulators (excl. spent) Export Prices, USD/Ton, 2020-24 |
| |
| Source: OGAnalysis, International Trade Centre (ITC) |
Regional Insights
North America Traction Battery Market Analysis
The North America traction battery market is witnessing robust growth, primarily driven by the rising adoption of electric vehicles (EVs) and electrification initiatives across automotive, material handling, and industrial sectors. Market dynamics are shaped by increasing government incentives for EV adoption, stringent emission regulations, and advancements in battery technologies that offer improved range and performance. Companies have lucrative opportunities in the region as commercial fleets and public transportation systems transition to electric power, supported by expanding charging infrastructure and investments in gigafactories. Latest trends include partnerships between automakers and battery manufacturers, rapid technological innovations in battery chemistry, and the emergence of energy storage systems. Forecasts indicate sustained growth as consumer preference shifts towards sustainable mobility, while ongoing R&D and strategic collaborations continue to accelerate the market's development. Recent developments in North America focus on scaling production capacity, launching new EV models, and securing raw material supply chains for lithium, nickel, and cobalt.
Asia Pacific Traction Battery Market Analysis
Asia Pacific stands at the forefront of the global traction battery market, underpinned by its dominance in battery manufacturing and a high penetration of electric mobility, especially in China, Japan, and South Korea. Market dynamics are influenced by massive government support for new energy vehicles, ambitious electrification targets, and strong supply chain integration, making the region highly attractive for industry participants. Lucrative opportunities are present in expanding domestic manufacturing, joint ventures, and tapping into the surging demand for electric two-wheelers, buses, and commercial vehicles. The latest trends involve scaling up battery recycling efforts, developing solid-state battery technologies, and forming alliances for localized battery supply. The market is forecast to experience accelerated growth due to large-scale urbanization, government-backed incentives, and aggressive capacity expansion plans. Key recent developments include significant investments in gigafactories, launches of next-generation battery platforms, and strategic moves by leading players to secure technology leadership and global export capabilities.
Europe Traction Battery Market Analysis
Europe's traction battery market is expanding rapidly, propelled by the region's ambitious climate goals, rapid electrification of the automotive fleet, and strong regulatory mandates favoring zero-emission vehicles. Market dynamics are characterized by increasing R&D in battery technologies, widespread establishment of battery production facilities, and an emphasis on sustainability throughout the battery lifecycle. Companies in Europe can leverage lucrative opportunities in supplying batteries for electric cars, buses, and rail applications, driven by both consumer demand and policy support. Major trends shaping the market include accelerated development of localized gigafactories, circular economy initiatives for battery recycling, and innovative partnerships between automakers, energy companies, and technology providers. Forecasts suggest continued momentum as Europe seeks self-reliance in battery manufacturing and critical material sourcing. Recent developments focus on new capacity expansions, cross-border collaborations, and advancements in recycling infrastructure to support the market’s long-term sustainability and competitiveness.
Key Insights
- Traction batteries play a foundational role in powering EVs, industrial vehicles, mobile robotics, and mining equipment by delivering robust high‑ampere capacity suited to demanding discharge and charge cycles.
- EV applications represent the fastest‑growing segment, often capturing over three‑quarters of total traction battery demand due to soaring vehicle electrification policies and consumer adoption.
- Asia‑Pacific holds the lead regional position, spurred by major battery manufacturing hubs and strong EV market growth in China and India, while also driving industrial traction battery demand.
- Lead‑acid batteries currently dominate some industrial applications due to lower cost and proven reliability, though lithium‑ion variants are rapidly gaining share across both EV and industrial sectors.
- Battery types such as lithium‑ion based packs—particularly prismatic chemistries—are favored for their superior energy density, lighter weight, and longer cycle life in modern applications.
- Smaller capacity segments (under 100 Ah) remain significant in industrial settings like forklifts and AGVs, offering cost‑effective short‑life cycle performance in operations.
- Technological innovation—including advances in battery materials, smart thermal management, and predictive battery diagnostics—is enhancing safety and operational efficiency.
- Strong synergies with renewable energy and vehicle‑to‑grid (V2G) integration are emerging, allowing traction batteries to support grid services beyond mere mobility functions.
- High capital requirements and raw material supply constraints—particularly for lithium, cobalt, and nickel—pose ongoing challenges to scaling production amid global demand growth.
- Collaborations and partnerships among battery OEMs, automakers, utilities, and governments are accelerating innovation, gigafactory investments, and end‑to‑end traction battery ecosystem development.
Market Scope
| Parameter | traction battery market scope Detail |
| Base Year | 2024 |
| Estimated Year | 2025 |
| Forecast Period | 2026-2032 |
| Market Size-Units | USD billion |
| Market Splits Covered | By Product Type , By Application , By End User , By Technology , By Distribution Channel |
| Countries Covered | North America (USA, Canada, Mexico) |
| Analysis Covered | Latest Trends, Driving Factors, Challenges, Trade Analysis, Price Analysis, Supply-Chain Analysis, Competitive Landscape, Company Strategies |
| Customization | 10% free customization (up to 10 analyst hours) to modify segments, geographies, and companies analyzed |
| Post-Sale Support | 4 analyst hours, available up to 4 weeks |
| Delivery Format | The Latest Updated PDF and Excel Data file |
Traction Battery Market Segmentation
By Product Type
- Lead Acid
- Lithium-ion
- Nickel Metal Hydride
By Application
- Electric Vehicles
- Industrial Equipment
- Renewable Energy Storage
By End User
- Automotive
- Aerospace
- Marine
By Technology
- Flow Batteries
- Solid State Batteries
By Distribution Channel
- Online
- Offline
By Geography
- North America (USA, Canada, Mexico)
- Europe (Germany, UK, France, Spain, Italy, Rest of Europe)
- Asia-Pacific (China, India, Japan, Australia, Vietnam, Rest of APAC)
- The Middle East and Africa (Middle East, Africa)
- South and Central America (Brazil, Argentina, Rest of SCA)
Key Companies Covered
Panasonic Corporation, LG Chem/LG Energy Solution, Samsung SDI Co. Ltd., BYD Company Limited, Contemporary Amperex Technology Co., Ltd. (CATL), Tesla Inc., Johnson Controls International plc, Toshiba Corporation, Hitachi Chemical Co. Ltd., Mitsubishi Electric Corporation, GS Yuasa International Ltd., Exide Industries Ltd., ECOVOLTA, HOPPECKE Carl Zoellner & Sohn GmbH, Banner Batteries (GB) Ltd., BAE Batteries GmbH, Leoch International Technology Limited Inc., Leclanché S.A., WeLion New Energy Technology Co. Ltd.
Recent Developments
Jul 29 2025 – Exide Industries (India)
At its AGM, Exide revealed plans to boost innovation and exports, investing ~₹3,700 crore in Phase‑I of its lithium‑ion cell plant in Bengaluru (6 GWh capacity), with ₹600–700 crore more planned for trial production by fiscal year end.
Jun 26 2025 – CATL (China)
CATL plans to launch its battery‑swap and recycling infrastructure in Europe, replicating its China model (targeting 1,000 swap stations in China this year, and 10,000 in three years) to drive sustainable EV supply chains.
Jul 2 2025 – Kalmar Corporation (Finland)
Kalmar introduced its second‑generation lithium‑ion traction batteries for electric counter‑balanced equipment like forklifts and container handlers, delivering enhanced energy capacity, thermal stability, and performance predictability.
Mar 2025 – Pulsetrain GmbH (Germany)
Pulsetrain secured €6.1 million in seed funding to further develop its AI‑driven integrated battery management systems aimed at extending EV traction battery life by up to 80%.
What You Receive
• Global Traction Battery market size and growth projections (CAGR), 2024- 2034
• Impact of recent changes in geopolitical, economic, and trade policies on the demand and supply chain of Traction Battery.
• Traction Battery market size, share, and outlook across 5 regions and 27 countries, 2025- 2034.
• Traction Battery market size, CAGR, and Market Share of key products, applications, and end-user verticals, 2025- 2034.
• Short and long-term Traction Battery market trends, drivers, restraints, and opportunities.
• Porter’s Five Forces analysis, Technological developments in the Traction Battery market, Traction Battery supply chain analysis.
• Traction Battery trade analysis, Traction Battery market price analysis, Traction Battery Value Chain Analysis.
• Profiles of 5 leading companies in the industry- overview, key strategies, financials, and products.
• Latest Traction Battery market news and developments.
The Traction Battery Market international scenario is well established in the report with separate chapters on North America Traction Battery Market, Europe Traction Battery Market, Asia-Pacific Traction Battery Market, Middle East and Africa Traction Battery Market, and South and Central America Traction Battery Markets. These sections further fragment the regional Traction Battery market by type, application, end-user, and country.
1. Table of Contents
1.1 List of Tables
1.2 List of Figures
2. Traction Battery Market Latest Trends, Drivers and Challenges, 2024- 2034
2.1 Traction Battery Market Overview
2.2 Market Strategies of Leading Traction Battery Companies
2.3 Traction Battery Market Insights, 2024- 2034
2.3.1 Leading Traction Battery Types, 2024- 2034
2.3.2 Leading Traction Battery End-User industries, 2024- 2034
2.3.3 Fast-Growing countries for Traction Battery sales, 2024- 2034
2.4 Traction Battery Market Drivers and Restraints
2.4.1 Traction Battery Demand Drivers to 2034
2.4.2 Traction Battery Challenges to 2034
2.5 Traction Battery Market- Five Forces Analysis
2.5.1 Traction Battery Industry Attractiveness Index, 2024
2.5.2 Threat of New Entrants
2.5.3 Bargaining Power of Suppliers
2.5.4 Bargaining Power of Buyers
2.5.5 Intensity of Competitive Rivalry
2.5.6 Threat of Substitutes
3. Global Traction Battery Market Value, Market Share, and Forecast to 2034
3.1 Global Traction Battery Market Overview, 2024
3.2 Global Traction Battery Market Revenue and Forecast, 2024- 2034 (US$ billion)
3.3 Global Traction Battery Market Size and Share Outlook By Product, 2024- 2034
3.4 Global Traction Battery Market Size and Share Outlook By Application, 2024- 2034
3.5 Global Traction Battery Market Size and Share Outlook By End User, 2024- 2034
3.6 Global Traction Battery Market Size and Share Outlook By Technology, 2024- 2034
3.7 Global Traction Battery Market Size and Share Outlook by Region, 2024- 2034
4. Asia Pacific Traction Battery Market Value, Market Share and Forecast to 2034
4.1 Asia Pacific Traction Battery Market Overview, 2024
4.2 Asia Pacific Traction Battery Market Revenue and Forecast, 2024- 2034 (US$ billion)
4.3 Asia Pacific Traction Battery Market Size and Share Outlook By Product, 2024- 2034
4.4 Asia Pacific Traction Battery Market Size and Share Outlook By Application, 2024- 2034
4.5 Asia Pacific Traction Battery Market Size and Share Outlook By End User, 2024- 2034
4.6 Asia Pacific Traction Battery Market Size and Share Outlook By Technology, 2024- 2034
4.7 Asia Pacific Traction Battery Market Size and Share Outlook by Country, 2024- 2034
5. Europe Traction Battery Market Value, Market Share, and Forecast to 2034
5.1 Europe Traction Battery Market Overview, 2024
5.2 Europe Traction Battery Market Revenue and Forecast, 2024- 2034 (US$ billion)
5.3 Europe Traction Battery Market Size and Share Outlook By Product, 2024- 2034
5.4 Europe Traction Battery Market Size and Share Outlook By Application, 2024- 2034
5.5 Europe Traction Battery Market Size and Share Outlook By End User, 2024- 2034
5.6 Europe Traction Battery Market Size and Share Outlook By Technology, 2024- 2034
5.7 Europe Traction Battery Market Size and Share Outlook by Country, 2024- 2034
6. North America Traction Battery Market Value, Market Share and Forecast to 2034
6.1 North America Traction Battery Market Overview, 2024
6.2 North America Traction Battery Market Revenue and Forecast, 2024- 2034 (US$ billion)
6.3 North America Traction Battery Market Size and Share Outlook By Product, 2024- 2034
6.4 North America Traction Battery Market Size and Share Outlook By Application, 2024- 2034
6.5 North America Traction Battery Market Size and Share Outlook By End User, 2024- 2034
6.6 North America Traction Battery Market Size and Share Outlook By Technology, 2024- 2034
6.7 North America Traction Battery Market Size and Share Outlook by Country, 2024- 2034
7. South and Central America Traction Battery Market Value, Market Share and Forecast to 2034
7.1 South and Central America Traction Battery Market Overview, 2024
7.2 South and Central America Traction Battery Market Revenue and Forecast, 2024- 2034 (US$ billion)
7.3 South and Central America Traction Battery Market Size and Share Outlook By Product, 2024- 2034
7.4 South and Central America Traction Battery Market Size and Share Outlook By Application, 2024- 2034
7.5 South and Central America Traction Battery Market Size and Share Outlook By End User, 2024- 2034
7.6 South and Central America Traction Battery Market Size and Share Outlook By Technology, 2024- 2034
7.7 South and Central America Traction Battery Market Size and Share Outlook by Country, 2024- 2034
8. Middle East Africa Traction Battery Market Value, Market Share and Forecast to 2034
8.1 Middle East Africa Traction Battery Market Overview, 2024
8.2 Middle East and Africa Traction Battery Market Revenue and Forecast, 2024- 2034 (US$ billion)
8.3 Middle East Africa Traction Battery Market Size and Share Outlook By Product, 2024- 2034
8.4 Middle East Africa Traction Battery Market Size and Share Outlook By Application, 2024- 2034
8.5 Middle East Africa Traction Battery Market Size and Share Outlook By End User, 2024- 2034
8.6 Middle East Africa Traction Battery Market Size and Share Outlook By Technology, 2024- 2034
8.7 Middle East Africa Traction Battery Market Size and Share Outlook by Country, 2024- 2034
9. Traction Battery Market Structure
9.1 Key Players
9.2 Traction Battery Companies - Key Strategies and Financial Analysis
9.2.1 Snapshot
9.2.3 Business Description
9.2.4 Products and Services
9.2.5 Financial Analysis
10. Traction Battery Industry Recent Developments
11 Appendix
11.1 Publisher Expertise
11.2 Research Methodology
11.3 Annual Subscription Plans
11.4 Contact Information
Get Free Sample
At OG Analysis, we understand the importance of informed decision-making in today's dynamic business landscape. To help you experience the depth and quality of our market research reports, we offer complimentary samples tailored to your specific needs.
Start Now! Please fill the form below for your free sample.
Why Request a Free Sample?
Evaluate Our Expertise: Our reports are crafted by industry experts and seasoned analysts. Requesting a sample allows you to assess the depth of research and the caliber of insights we provide.
Tailored to Your Needs: Let us know your industry, market segment, or specific topic of interest. Our free samples are customized to ensure relevance to your business objectives.
Witness Actionable Insights: See firsthand how our reports go beyond data, offering actionable insights and strategic recommendations that can drive your business forward.
Embark on your journey towards strategic decision-making by requesting a free sample from OG Analysis. Experience the caliber of insights that can transform the way you approach your business challenges.
FAQ's
The Global Traction Battery Market is estimated to generate USD 40.95 billion in revenue in 2025.
The Global Traction Battery Market is expected to grow at a Compound Annual Growth Rate (CAGR) of 13.54% during the forecast period from 2025 to 2034.
The Traction Battery Market is estimated to reach USD 128.4 billion by 2034.
$3950- 30%
$6450- 40%
$8450- 50%
$2850- 20%
Didn’t find what you’re looking for? TALK TO OUR ANALYST TEAM
Need something within your budget? NO WORRIES! WE GOT YOU COVERED!
