Asia Pacific Traction Battery Market

Asia Pacific Traction Battery Market Size

The Asia Pacific traction battery market was valued at USD 34.5 billion in 2024 and is estimated to witness a CAGR of 22.6% from 2025 to 2034, driven primarily by the increasing adoption of electric vehicles (EVs) and the rapid industrialization in the region. China, being the largest EV market globally, is a major contributor to this growth, with robust government incentives promoting electric mobility. Moreover, the shift towards cleaner energy solutions has accelerated the demand for traction batteries, particularly lithium-ion batteries, which offer high energy density and long-lasting performance. This trend is expected to persist as countries in the region continue to push for stricter environmental regulations and clean energy goals.

In addition to the automotive sector, the industrial application of traction batteries is expanding across Asia Pacific. Industries such as logistics, warehousing, and material handling are increasingly adopting electric forklifts and automated guided vehicles (AGVs) powered by traction batteries. The growth of e-commerce, coupled with the need for efficient and sustainable logistics solutions, is further propelling this demand. These vehicles offer reduced operational costs, low emissions, and better efficiency, which are key advantages driving the market expansion.

Asia Pacific Traction Battery Market Trends

The Asia Pacific region is also witnessing significant advancements in battery technology, especially with the development of solid-state batteries. These batteries promise higher energy density, faster charging times, and improved safety over conventional lithium-ion batteries, offering an attractive solution for both the automotive and industrial sectors.

Manufacturers across Asia, particularly in Japan, South Korea, and China, are heavily investing in R&D to improve battery performance and reduce costs. This technological innovation is expected to support the ongoing expansion of the traction battery market in the coming years. Government policies in countries like China, India, and Japan continue to play a crucial role in shaping the traction battery market. In China, for instance, the government is offering substantial subsidies for the purchase of electric vehicles, driving the demand for electric vehicle batteries.

Asia Pacific Traction Battery Market Analysis

The lithium-ion segment is expected to surpass USD 186.2 billion by 2034, driven by the increasing demand for high-performance batteries in applications like electric vehicles and renewable energy storage. This growth is fueled by the advantages of lithium-ion technology, including higher energy density, longer life cycle, and faster charging capabilities compared to other battery types.

The electric vehicles segment is projected to grow at a CAGR of over 21.9% through 2034, driven by increasing demand for sustainable and energy-efficient transportation solutions. This expansion is attributed to the growing adoption of electric vehicles globally, supported by advancements in battery technology, government incentives, and rising environmental awareness.

China traction battery market is likely to exceed USD 225.7 billion by 2034, driven by the increasing adoption of electric vehicles (EVs) and the expansion of industrial applications. With government incentives and environmental policies supporting the shift to electric mobility, the demand for traction batteries is particularly high in the EV sector, including battery electric vehicles (BEVs), plug-in hybrid vehicles (PHEVs), and electric industrial equipment like forklifts and automated guided vehicles (AGVs). Additionally, advancements in battery technology, such as improved energy density and the development of solid-state batteries, are further propelling market growth.

Asia Pacific Traction Battery Market Share

Leading players in the Asia Pacific traction battery industry, such as LG Energy, Samsung, and Panasonic, continue to dominate the industry by capitalizing on their advanced technological expertise, extensive production capacities, and robust investments in research and development. These companies focus on constant innovation, delivering high-performance lithium-ion batteries that feature enhanced energy density, faster charging speeds, and improved safety standards, all of which meet the growing demand for more efficient and reliable traction battery solutions in electric vehicles and other applications.

Asia Pacific Traction Battery Market Companies

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

• Amara Raja Batteries
• Camel Group
• Enersys
• Exide Industries
• Hitachi Energy
• Hoppecke Batteries
• LG Energy Solution
• Mutlu
• Panasonic
• Samsung SDI
• Toshiba
  

Asia Pacific Traction Battery Industry News:

• In May 2024, Hitachi Energy has introduced the Road Pak power semiconductor module, designed for diverse electric vehicle applications. Featuring advanced silicon carbide (SiC) technology, the module offers enhanced vehicle durability, greater power density for faster charging, and reduced power losses, ultimately improving the driving range of electric vehicles. This innovation aims to address the growing demand for more efficient and sustainable EV technologies worldwide.
  

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 2021 to 2034, 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
  • Railroads
  • Others
• E-Bike
  • E-Scooters
  • E-Motorcycles

The above information has been provided for the following countries:

• China
• Japan
• South Korea
• Australia
• India