Traction Battery Market to Reach $66.28 Billion by 2029 with 10.9% CAGR

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The Business Research Company’s Traction Battery Global Market Report 2025 - Market Size, Trends, And Global Forecast 2025-2034

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What Is The Traction Battery Market Size And Growth?
The market size for traction batteries has seen significant growth in the past few years. The market, which is projected to increase from $39.91 billion in 2024 to $43.78 billion in 2025, will have a compound annual growth rate (CAGR) of 9.7%. The growth observed over the historical period can be attributed to factors such as the electrification of transportation, government incentives and regulations, environmental concerns, and growing consumer awareness and demand.

The market size of traction batteries is predicted to witness swift expansion in the coming years. The size of the market is projected to reach $66.28 billion by 2029, increasing at a Compound Annual Growth Rate (CAGR) of 10.9%. Factors such as the growth of the electric vehicle market, energy storage applications, the development of battery recycling and sustainability, advancements in charging infrastructure, and the diversification of the market are contributing to this forecasted growth. Additionally, key trends for the forecast period encompass the acceleration of charging technology, the use of second-life batteries, an upsurge in production capacity, the evolution of advanced battery management systems, and enhanced energy density.

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What Are The Current Leading Growth Drivers For Traction Battery Market?
An upward trend in the need for electric vehicles is predicted to accelerate the expansion of the traction battery market. Electric vehicles, which are eco-friendly and powered by electricity, rely on traction batteries to drive their battery-electric motors. To illustrate this, Sustainable Bus, an Italian media organisation specializing in clean buses and sustainability, reported that the registration of electric buses in Europe surged by 53% in 2023, compared to 2022. Hence, the burgeoning demand for electric vehicles is steering the surge in the traction battery market.

Which Companies Are Currently Leading In The Traction Battery Market?
Major players in the Traction Battery include:

• Amara Raja Batteries Limited
• BAE Batterien GmbH
• Banner Batterien GmbH
• BYD Company Limited
• Coslight Technology International Group Co. Ltd.
• East Penn Manufacturing Company Inc.
• EnerSys
• Exide Industries Limited
• GS Yuasa International Ltd.
• HOPPECKE Carl Zoellner & Sohn GmbH

What Are The Main Trends, Positively Impacting The Growth Of Traction Battery Market?
Continuous technological advancements are a rising trend observed across the traction battery market. Top companies in this sector are bent on innovating new technology-based solutions to offer efficient batteries at lower costs and solidify their market position. Case in point, Sunlight Group Energy Storage Systems, a Greek integrated energy storage solutions manufacturer, released its latest semi-traction lithium-ion (Li-ion) battery named Sunlight ElectroLiFe in March 2022. This advanced battery has a unique and robust lightweight design making it perfectly suitable for manufacturing and light commercial vehicle uses such as AGVs (automated guided vehicles) and varied material handling equipment. Its design allows easy, tool-free, plug-and-play installation that adapts to evolving user requirements. Furthermore, ElectroLiFe can connect to GLocal, a cloud platform operated by Sunlight Group, extending its life span to over 2,000 cycles.

How Is The Traction Battery Market Segmented?
The traction batterymarket covered in this report is segmented –

1) By Product Type: Lead Acid Based, Li-Ion Based, Nickel Based, Other Types
2) By Capacity: Less than 100 Ah, 100 – 200 Ah, 200 – 300 Ah, 300 – 400 Ah, 400 Ah And above
3) By Application: Electrical Vehicle (EV), Hybrid Electric Vehicles (HEV), Industrial, Forklift, Mechanical Handling Equipment, Other Applications

Subsegments:
1) By Lead Acid Based: Flooded Lead Acid Batteries, Absorbent Glass Mat (AGM) Batteries, Gel Lead Acid Batteries
2) By Li-Ion Based: Lithium Cobalt Oxide (LCO) Batteries, Lithium Iron Phosphate (LFP) Batteries, Lithium Nickel Manganese Cobalt (NMC) Batteries, Lithium Polymer (LiPo) Batteries
3) By Nickel Based: Nickel-Cadmium (NiCd) Batteries, Nickel-Metal Hydride (NiMH) Batteries
4) By Other Types: Sodium-Ion Batteries, Solid-State Batteries, Flow Batteries

View the full traction battery market report:
https://www.thebusinessresearchcompany.com/report/traction-battery-global-market-report

Which Is The Dominating Region For The Traction Battery Market?
In 2024, North America led the market for traction batteries. The forecast anticipates its growth to continue steadily. The report encompassing the traction battery market reviews a range of locations, specifically: Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.

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