Asia Pacific Traction Battery Market Size - By Winding (Two Winding, Auto Transformer), By Rating (≤ 5 MVA, > 5 MVA to ≤ 30 MVA, > 30 MVA), By Application (Industries, Inner-City Substations, Indoor/Underground Substations, Renewable Generation) & Forecast, 2023 – 2032

Asia Pacific Traction Battery Market Size

Asia Pacific Traction Battery Market was valued at USD 24.9 billion in 2022 and is set to observe more than 21% CAGR between 2023 and 2032, attributed to the increasing awareness of environmental sustainability and a heightened emphasis on infrastructure development, accompanied by a surge in Foreign Direct Investment (FDI). In 2021, Japan and China collectively dominated the market, accounting for more than 95% of the market share in the region. Furthermore, faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, which is expected to have a positive impact on the growth of traction batteries.

The growing shift toward electrifying the transportation sector is driving an increased demand for traction batteries. These batteries are not only environmentally friendly but also highly recyclable, which promotes their widespread adoption. Various industries are emphasizing the integration of battery electric or hybrid models in their industrial vehicles, such as forklifts and excavators. Additionally, government laws and regulations aimed at encouraging the production and sale of industrial electric vehicles to reduce emissions at manufacturing and processing sites are expected to have a positive impact on market.
 

Lead-acid batteries pose safety concerns due to their surplus of lead and sulfuric acid. The corrosive nature of the acid makes it a carrier for soluble lead and lead particulates, resulting in several countries categorizing lead-acid batteries as hazardous materials. Improper handling of these batteries can pose health hazards, as excessive lead exposure can lead to kidney and brain damage, hearing impairment, and various other associated health issues. Therefore, it is imperative to ensure the appropriate collection and environmentally friendly recycling of lead-acid batteries once they reach the end of their operational life.
 

COVID-19 Impact

The traction battery industry experienced a significant drop in demand in 2020, primarily due to the enforcement of lockdown protocols that restricted the operation of only essential services across many countries. The global pandemic outbreak had a notable impact on the production of industrial vehicles as their operations were halted, resulting in reduced demand. This, in turn, caused delays in the manufacturing of traction batteries.
 

Asia Pacific Traction Battery Market Trends

The inherent structural constraints of densely populated urban areas with a substantial presence of on-street and large commercial garage parking facilities will serve as key drivers for heightened demand in public electric vehicle charging infrastructure, particularly in the Asia Pacific region. China's commitment to strategic planning and the sustained implementation of policies to support the proliferation of new energy vehicles is significantly amplifying the expansion of charging stations on a grand scale. These policies encompass the extension of incentives for electric vehicle customers until 2023, the initiation of pilot projects, provision of tax incentives, subsidy programs, and the elevation of technological standards, all of which represent overarching strategies aimed at fostering the growth of the electric vehicle industry within the nation.
 

Asia Pacific Traction Battery Market Analysis

Based on chemistry, the nickel-based segment was worth more than USD 850 million in 2022. The utilization of lightweight, high-power nickel-metal hydride (NiMH) batteries is becoming increasingly relevant in Hybrid Electric Vehicles (HEVs) due to their superior energy and power density compared to conventional lead-acid batteries. Another notable advancement is the adoption of Sodium Nickel Chloride batteries, often referred to as Zebra batteries, which offer remarkable energy densities. However, these batteries have certain temperature limitations and are less suitable for traction applications, which has led to an upsurge in their adoption for various products.
 

Based on application, the industrial application is set to grow at a CAGR of over 22.1% through 2032. Traction batteries find significant utility in various industrial electric vehicles such as forklifts, skid loaders, dump trucks, and bulldozers. These vehicles are characterized by their enhanced energy efficiency and reliance on electricity instead of combustion-based fuels, making them versatile energy carriers that align with the transport industry's policy objectives. Electric vehicles (EVs) offer a range of compelling advantages when compared to conventional internal combustion engines. These benefits encompass improved air quality, reduced noise pollution, enhanced energy security, and a substantial decrease in greenhouse gas emissions.
 

Asia Pacific traction battery market across the China held about 89.5% share in 2022. China has been a global leader in the adoption of electric vehicles, and this trend was expected to continue. The Chinese government's policies and incentives to promote EVs, along with increasing environmental awareness, have driven the demand for traction batteries. With the growth in electric vehicle adoption, there has been a growing emphasis on battery recycling and sustainability. China was looking into regulations and initiatives to address the recycling and disposal of traction batteries to minimize their environmental impact.
 

Lithium-ion batteries continued to dominate the market due to their high energy density, improved performance, and a wide range of applications. They were commonly used in electric vehicles (EVs), from passenger cars to buses and commercial vehicles. China has been a major player in global battery manufacturing. Many international and domestic battery manufacturers have been expanding their production capacity in the country to meet the increasing demand for traction batteries.
 

Asia Pacific Traction Battery Market Share

ABB holds a significant presence in the Asia Pacific traction battery induatry, recognized for its extensive expertise in the design and manufacturing of various battery technologies, including EV battery, ESS battery, among others. The company boasts a long and storied history deeply embedded in the field of battery technologies. Over the years, ABB has provided battery solutions across a wide range of applications, encompassing various industries and electric vehicles.
 

Some of the key market players operating across the Asia Pacific traction battery industry are:

• Hitachi Energy Ltd.
• Toshiba Corporation
• Samsung SDI Co., Ltd.
• Panasonic Corporation
• LG Energy Solution
• Camel Group Co., Ltd
• Mutlu Corporation
• Amara Raja Batteries Ltd.
• HOPPECKE Batteries GmbH & Co. KG
• ENERSYS
• EXIDE INDUSTRIES LTD.

Asia Pacific Traction Battery Industry News

• In December 2022, Camel Group announced its plan to enhance the production capacity at its Malaysian base to meet the increasing demand for batteries. The upgrade aims to reach the production capacity of 5 million units per year in June 2023.
   

This Asia Pacific traction battery market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2019 to 2032, for the following segments:

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Market, By Chemistry

• Lead Acid
• Lithium-Ion
• Nickel-Based
• Others

Market, By Application

• Electric Vehicles
  • BEV
  • PHEV
• Industrial
  • Forklift
    • Class 1
    • Class 2
    • Class 3
  • Railroads
  • Others
• E-Bikes
  • E-Scooters
  • E-Motorcycles

The above information is provided for the following countries:

• China
• Japan
• South Korea
• Australia
• India
• Thailand