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Traction Battery Market Size

Report ID: GMI2888
Published Date: Dec 2024
Report Format: PDF

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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.

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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 Report Attributes
Report Attribute	Details
Base Year:	2024
Traction Battery Market Size in 2024:	USD 65.6 Billion
Forecast Period:	2025 to 2034
Forecast Period 2025 to 2034 CAGR:	22.6%
2034 Value Projection:	USD 485.7 Billion
Historical Data for:	2021 to 2024
No. of Pages:	80
Tables, Charts & Figures:	20
Segments covered:	Chemistry, Application
Growth Drivers:	Acceleration in EV Adoption Growing Demand for Electric Forklifts
Pitfalls & Challenges:	Safety Concerns

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Authors: Ankit Gupta, Vinayak Shukla

Frequently Asked Questions (FAQ) :

The global market for traction battery was reached USD 65.6 billion in 2024 and is expected to witness a CAGR of 22.6% from 2025 to 2034, driven by the acceleration in EV adoption

The lithium-ion segment is set to reach USD 356.2 billion through 2034, propelled by the increasing adoption of electric vehicles (EVs) and advancements in battery technologies.

The electric vehicles segment is expected to expand at a CAGR of more than 21.8% through 2034, fueled by rising consumer demand for sustainable transportation and government incentives.

The U.S. traction battery market is projected to exceed USD 65.7 billion by 2034, led by the increasing adoption of electric vehicles (EVs) and a strong push for sustainable transportation.

Key players in the traction battery market include 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, and Toshiba.