Traction Battery Market is predicted to reach USD 284.29 billion at a CAGR of 22.30% during the forecast period 2023-2032

Market Research Future (MRFR) has published on the “Global Traction Battery Market”.

The Traction Battery market is estimated to register a CAGR of 22.30% during the forecast period of 2024 to 2032.

MRFR recognizes the following companies as the key players in the global Traction Battery market— Panasonic Corporation, LG Chem Ltd, Samsung SDI Co., Ltd., BYD Company Limited, Contemporary Amperex Technology Co. Limited, Tesla, Inc., Johnson Controls International plc, Toshiba Corporation, Hitachi Chemical Co., Ltd., Mitsubishi Electric Corporation and others.

Market Highlights

The global Traction Battery market is accounted to register a CAGR of 22.30% during the forecast period and is estimated to reach USD 284.29 billion by 2032.

The Traction Battery market is experiencing growth due to the increasing adoption of electric vehicles (EVs) and hybrid electric vehicles (HEVs). Traction batteries are essential components in these vehicles, providing the energy needed for propulsion. Additionally, government incentives, environmental regulations promoting clean energy transportation, and advancements in battery technology are driving market growth. Moreover, the expanding infrastructure for electric vehicle charging stations further supports the demand for traction batteries.

Segment Analysis

The global Traction Battery market has been segmented based on Type, Capacity and Application.

On the basis of Type, the market is segmented into Lead Acid Based, Nickel Based, Lithium-Ion Based and Others. The Lead Acid Based Type dominated the Traction Battery Market in 2023 due to its long-standing presence, established infrastructure, and low cost compared to alternative technologies. Moreover, lead-acid batteries offer proven reliability and performance, making them a preferred choice for various traction applications in industries such as automotive, forklifts, and stationary storage.

Based on Capacity, the global Traction Battery market has been segmented into Less than 100 Ah, 100 Ah-200 Ah, 200 Ah-300 Ah, 300 Ah-400 Ah and 400 Ah & above. The Less than 100 Ah Capacity led the Traction Battery Market in 2023 due to its suitability for a wide range of applications, including electric bicycles, scooters, and light-duty electric vehicles. These batteries offer compact size, lighter weight, and cost-effectiveness, meeting the demands of various traction applications in urban mobility and personal transportation.

Based on Application, the global Traction Battery market has been segmented into Electric Vehicle (EV), Battery Electric Vehicle (BEV), Plug-in hybrid Electric Vehicle (PHEV), Hybrid Electric Vehicle (HEV), Industrial, Forklift, Mechanical handling equipment, Locomotives and Others. The Electric Vehicle Application led the Traction Battery Market in 2023 due to the rapid adoption of electric vehicles (EVs) worldwide. Traction batteries are essential for EVs, providing the energy required for propulsion. With the global shift towards cleaner transportation, the demand for traction batteries for electric vehicles continues to surge, driving market dominance.

Regional Analysis

The global Traction Battery market, based on region, has been divided into North America, Europe, Asia-Pacific, and Rest of the World. North America consists of the US and Canada. The Europe Traction Battery market comprises of Germany, France, the UK, Italy, Spain, and the rest of Europe. The Traction Battery market in Asia-Pacific has been segmented into China, India, Japan, Australia, South Korea, and the rest of Asia-Pacific. The Rest of the World Traction Battery market comprises the Middle East, Africa, and Latin America.

North America secured the largest market share in the Traction Battery Market due to several factors. These include the region's significant adoption of electric vehicles (EVs) and hybrid electric vehicles (HEVs), favorable government incentives supporting clean energy transportation, and a robust infrastructure for EV charging stations. Additionally, technological advancements in battery technology and increasing environmental awareness further contribute to North America's market dominance.

Europe secured the second-largest market share in the Traction Battery Market due to its strong focus on sustainable transportation solutions, including electric vehicles (EVs) and hybrid electric vehicles (HEVs). The region's stringent emissions regulations, government incentives promoting clean energy vehicles, and robust automotive manufacturing base contribute to the widespread adoption of traction batteries, driving Europe's significant presence in the market.

Asia Pacific experiences the highest compound annual growth rate (CAGR) in the Traction Battery Market due to several factors. These include the region's rapid urbanization, increasing adoption of electric vehicles (EVs), supportive government policies promoting clean energy transportation and expanding automotive manufacturing activities. Additionally, rising consumer awareness of environmental issues and the need for sustainable mobility solutions further drive market growth in Asia Pacific.

Furthermore, the rest of the world's Traction Battery market is divided into the Middle East, Africa, and Latin America. The rest of the world is experiencing growth in the Traction Battery market due to increasing investment in infrastructure for electric vehicles (EVs) and hybrid electric vehicles (HEVs), rising consumer demand for cleaner transportation options, and government initiatives promoting the adoption of electric mobility in regions outside of North America, Europe, and Asia Pacific.

Key Findings of the Study

• The global Traction Battery market is expected to reach USD 284.29 billion by 2032, at a CAGR of 22.30% during the forecast period.


• The Asia Pacific region experiences the highest growth in the Traction Battery market due to rapid urbanization, increasing adoption of electric vehicles (EVs), supportive government policies, expanding automotive manufacturing, and rising consumer awareness of environmental sustainability.


• Based on Application, the Electric Vehicle segment was attributed to holding the largest market in 2023, with an approximate market share of 15–35%.


• Panasonic Corporation, LG Chem Ltd, Samsung SDI Co., Ltd., BYD Company Limited, Contemporary Amperex Technology Co. Limited, Tesla, Inc., Johnson Controls International plc, Toshiba Corporation, Hitachi Chemical Co., Ltd., Mitsubishi Electric Corporation and others are the key market players.