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Global Traction Battery Market Size to grow USD 2.6 Bn in 2028

The Global Traction Battery Market Size was valued at USD 1.5 Bn in 2021. The market is projected to grow USD 2.6 Bn in 2028, at a CAGR of 13.6%.

Global Traction Battery Market Size to grow USD 2.6 Bn in 2028

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A traction battery is a type of electric car battery with a large ampere-hour capacity. Forklift trucks, locomotives, and mechanical handling equipment are all examples of Applications for lead acid traction batteries.


COVID-19 ANALYSIS

The outbreak of COVID-19 impacted negatively on the growth of the global traction battery market. reliance on the automotive, railways, and industrial sectors, the traction battery business has been badly impacted by the COVID-19 pandemic. According to a data released by the International Energy Agency, global road transport activity was about 50% lower by the end of March 2020 than it was in March 2019.

Global Traction Battery Market Size to grow USD 2.6 Bn in 2028

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The demand for electric vehicles has risen as people become more aware of environmentally friendly automobiles and as fuel prices have become more volatile. According to the International Energy Agency's (IEA) Global EV Outlook 2020 study, global sales of electric cars surpassed 2.1 million in 2019, representing a 40% increase year-over-year. Furthermore, factors such as transportation electrification and increased investment will accelerate the use of electric vehicles. Due to rising demand for electric vehicles, the number of traction batteries needed to power electric motors in electric or hybrid vehicles has increased dramatically. This could be one of the primary drivers of the traction battery market's expansion. Furthermore, attributes such as recyclability, low cost, and environmental friendliness are providing an extra impetus.


The lead acid based segment has dominated the market share of the global traction battery market in 2020 owing to the The automotive & transportation sector has seen a boom in expansion, with lead acid-based traction batteries being widely employed to power road vehicles, trains, industrial forklift trucks, and other vehicles. The electric vehicle segment is dominated the market share in 2020 owing to the growing demand for electric vehicles has sparked R&D efforts to improve battery efficiency by shortening the charging cycle and lowering unit consumption per charge. Furthermore, the introduction of high-energy-density batteries has intensified competition among traction battery producers for the development of highly efficient traction batteries for electric and hybrid vehicles.


The worldwide traction battery market is projected to benefit from all of these factors in the future. Europe region is dominating the market share of global traction battery market owing to rising electric vehicle sales and strict targets to cut carbon emissions in the automobile sector. The recent announcements in France and the United Kingdom to phase out conventional gasoline and diesel cars by 2040 will improve regional growth rates, giving the industry enormous growth potential.

Global Traction Battery Market Size to grow USD 2.6 Bn in 2028

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However, Asia Pacific region is expected to witness highest growth rate during the forecast period of global traction battery market due to the nations like China, India, and others, where traction batteries are utilised to power industrial equipment systems, the increased demand for consumer products has boosted the growth of the industrial manufacturing sectors. This could help the traction battery market in Asia-Pacific flourish. Furthermore, rising environmental concerns and government measures have fueled the emergence of electric vehicles, which rely heavily on traction batteries to power electric motors. For example, according to a Business Standard article, India's electric vehicle sales are expected to climb by 26% between 2020 and 2023. This is expected to boost traction battery sales in the electric vehicle segment, opening up attractive potential for the industry.


KEY INDUSTRY DEVELOPMENTS:


October 2021- Stellantis and Samsung have agreed to form a joint venture in the United States to create electric vehicle (E.V.) battery cells and modules.


June 2021- Hitachi ABB Power Grids and Teollisuuden Voima Oyj (TVO) have collaborated to deliver battery energy storage systems to Finland's Olkiluoto nuclear power plant. The 90MW system will support the whole energy network at the Olkiluoto NPP's unit 3, reducing the grid's impact from power fluctuations.


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https://extrapolate.com/Energy-and-Power/traction-battery-market/25704

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