Traction Battery Market Size - By Chemistry, By Application, Analysis, Share, Growth Forecast 2025 – 2034

Traction Battery Market Size

The global traction battery market was valued at USD 65.6 billion in 2024 and is expected to witness a CAGR of 22.6% from 2025 to 2034. Traction batteries are becoming integral to renewable energy systems, particularly in vehicle-to-grid (V2G) applications. This integration allows EVs to function as mobile energy storage units, supporting grid stability and enhancing renewable energy utilization. With the global push toward clean energy, traction batteries are evolving to meet dual-use demands, powering vehicles and contributing to energy storage solutions. This trend is particularly significant in regions investing heavily in renewable energy infrastructure, where traction batteries play a pivotal role in energy management and sustainability efforts.
 

Technological advancements are reshaping the traction battery market, with innovations in materials and battery chemistries enhancing performance. Lithium-ion batteries dominate due to their superior energy density and longevity, while solid-state batteries are emerging as a promising alternative with improved safety and faster charging times. Additionally, manufacturers are exploring alternative materials like silicon anodes and cobalt-free cathodes to reduce costs and improve sustainability.
 

Traction Battery Market Trends

The traction battery industry is expanding rapidly, fueled by the increasing adoption of electric vehicles (EVs) worldwide. Governments are implementing stricter emission regulations and offering incentives to promote EV usage, boosting demand for efficient traction batteries. These batteries are critical for powering electric cars, buses, and trucks, with manufacturers focusing on enhancing energy density and extending driving range. As consumer preferences shift toward eco-friendly transportation, the market is witnessing significant growth, supported by advancements in lithium-ion battery technologies and expanding EV charging infrastructure globally.
 

Traction Battery Market Analysis

Based on chemistry, the lithium-ion segment is set to reach USD 356.2 billion through 2034, driven by the increasing adoption of electric vehicles (EVs) and advancements in battery technologies. Lithium-ion batteries are favored for their high energy density, longer lifespan, and faster charging capabilities, making them ideal for EV applications. As global demand for eco-friendly transportation rises, manufacturers are focusing on improving battery performance while reducing costs.
 

Based on application, the electric vehicles segment expected to expand at a CAGR of more than 21.8% through 2034, fueled by rising consumer demand for sustainable transportation. Government incentives, subsidies, and stricter emission regulations are pushing the adoption of EVs globally. Advances in battery technology, particularly lithium-ion, have led to improvements in energy density, faster charging, and longer driving ranges, enhancing the appeal of electric vehicles.
 

U.S. traction battery market is projected to exceed USD 65.7 billion by 2034, driven by the increasing adoption of electric vehicles (EVs) and a strong push for sustainable transportation. Government incentives, such as tax credits and stricter emissions regulations, are accelerating EV sales, boosting the demand for high-performance traction batteries. Advances in lithium-ion technology, with improvements in energy density and fast-charging capabilities, further support market expansion.
 

The Asia Pacific traction battery market is rapidly expanding, driven by the strong adoption of electric vehicles (EVs) in countries like China, Japan, and South Korea. China, as the largest EV market globally, plays a significant role in shaping regional trends, supported by government incentives, subsidies, and investments in EV infrastructure.
 

Traction Battery Market Share

Leading companies such as LG Energy, Samsung, and Panasonic dominate the traction battery industry, leveraging their advanced technologies, large-scale production capabilities, and substantial investments in research and development. These industry leaders continually innovate, delivering high-performance lithium-ion batteries with improved energy density, faster charging capabilities, and enhanced safety standards.
 

Traction Battery Market Companies

Some of the major key players operating across the traction battery industry are:

• Aliant Battery
• Amara Raja Batteries
• BYD
• Camel Group
• Ecovolta
• EnerSys
• Exide Industries
• Farasis Energy
• Guoxuan High-tech Power Energy
• Hitachi Energy
• Hoppecke Batteries
• LG Energy
• Midac
• Mutlu
• Panasonic
• Samsung
• Sunwoda Electronic
• Toshiba
   

Traction Battery Industry News:

• In May 2024, Hitachi Energy has unveiled Road Pak, a power semiconductor module engineered for various electric vehicle applications worldwide. Built with advanced silicon carbide (SiC) technology, Road Pak enhances vehicle durability, delivers superior power density to support faster charging, and reduces power losses to increase driving range.
   

This 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 regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • France
  • Germany
  • Italy
  • Russia
  • Spain
• Asia Pacific
  • China
  • Australia
  • India
  • Japan
  • South Korea
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Turkey
  • South Africa
  • Egypt
• Latin America
  • Brazil
  • Argentina