Global Traction Battery Supply, Demand and Key Producers, 2026-2032
Description
The global Traction Battery market size is expected to reach $ 157270 million by 2032, rising at a market growth of 13.3% CAGR during the forecast period (2026-2032).
Traction battery is a battery designed to power the electric motors of electric vehicles (such as electric cars, hybrid cars, e-bikes, etc.). These batteries have high energy density, long life and fast charging capabilities, allowing them to support vehicles traveling longer distances without the need for frequent recharging. Traction batteries typically use lithium-ion technology, but other chemistries such as nickel metal hydride (NiMH) or lead-acid batteries are also available, with each type having its own specific benefits, costs and application scenarios. The key feature of these batteries is their ability to provide high power output during charge and discharge processes, and they are designed to withstand thousands of charge and discharge cycles, ensuring that electric vehicles maintain good performance throughout their service life.
The global traction battery market has experienced rapid evolution over the past decade, primarily driven by the accelerating electrification of the transportation sector. Traction batteries are the core energy-storage components used in electric vehicles, electric buses, trucks, forklifts, AGVs, and other industrial or transportation applications requiring propulsion power. With governments worldwide tightening emission regulations and OEMs committing to aggressive zero-emission roadmaps, demand for high-energy density, safe, and long-cycle-life battery systems has surged. Asia remains the dominant hub of traction battery production, led by Chinese, South Korean, and Japanese battery manufacturers, while Europe and North America continue to ramp up localized capacity in response to supply-chain resilience concerns and national industrial strategies.
Lithium-ion chemistries—particularly lithium iron phosphate (LFP) and nickel manganese cobalt oxide (NMC)—currently account for more than 75% of global traction battery installations. LFP is favored for commercial and heavy-duty applications due to its thermal stability, longer lifespan, and lower cost profile, whereas high-nickel NMC is commonly deployed in premium passenger EVs where higher energy density and longer driving ranges are critical.
Market competition is intense and increasingly polarized. Global leaders such as CATL, BYD, LG Energy Solution, Panasonic, and Samsung SDI collectively control over 70% of worldwide traction battery shipments, supplying both established automakers and new energy vehicle manufacturers. At the same time, fast-growing players—including CALB, EVE Energy, SVOLT, Northvolt, AESC, and Envision AESC—are heavily expanding capacity and bidding for OEM-level partnerships to secure long-term supply agreements. Outside of EVs, there is a growing segment of industrial traction battery demand coming from sectors such as urban delivery, port and mining vehicles, agriculture, rail, and marine, where electrification addresses both operational efficiency and carbon-reduction goals. Many of these applications require customized, ruggedized battery systems with higher power capability and different form-factor requirements compared to passenger EVs.
Looking forward, the global traction battery market is projected to maintain a double-digit compound annual growth rate of 10–15% through 2031, supported by sustained regulatory incentives, expanding use-cases, and improving economics of battery packs. However, industry participants face several critical challenges, including securing raw material supply chains (lithium, nickel, cobalt), managing recycling/end-of-life logistics, improving safety performance, and overcoming cost barriers for mass adoption in heavy-duty transport. As battery technologies continue to advance and manufacturing scales rise, the sector is expected to move toward greater differentiation based on application-specific performance attributes, total cost of ownership, and sustainability credentials.
This report studies the global Traction Battery demand, key companies, and key regions.
This report is a detailed and comprehensive analysis of the world market for Traction Battery, and provides market size (US$ million) and Year-over-Year (YoY) growth, considering 2025 as the base year. This report explores demand trends and competition, as well as details the characteristics of Traction Battery that contribute to its increasing demand across many markets.
Highlights and key features of the study
Global Traction Battery total market, 2021-2032, (USD Million)
Global Traction Battery total market by region & country, CAGR, 2021-2032, (USD Million)
U.S. VS China: Traction Battery total market, key domestic companies, and share, (USD Million)
Global Traction Battery revenue by player, revenue and market share 2021-2026, (USD Million)
Global Traction Battery total market by Type, CAGR, 2021-2032, (USD Million)
Global Traction Battery total market by Application, CAGR, 2021-2032, (USD Million)
This report profiles major players in the global Traction Battery market based on the following parameters - company overview, revenue, gross margin, product portfolio, geographical presence, and key developments. Key companies covered as a part of this study include Panasonic, CATL, LG Energy Solution, BYD, GS Yuasa, Gotion High-tech, CSICP, Lishen, East Penn Manufacturing, Clarios, etc.
This report also provides key insights about market drivers, restraints, opportunities, new product launches or approvals.
Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the world Traction Battery market
Detailed Segmentation:
Each section contains quantitative market data including market by value (US$ Millions), by player, by regions, by Type, and by Application. Data is given for the years 2021-2032 by year with 2025 as the base year, 2026 as the estimate year, and 2027-2032 as the forecast year.
Global Traction Battery Market, By Region:
United States
China
Europe
Japan
South Korea
ASEAN
India
Rest of World
Global Traction Battery Market, Segmentation by Type:
Open Lead Acid Battery
Lithium-Ion Battery
Others
Global Traction Battery Market, Segmentation by Application:
Passenger Electric Vehicles (EVs)
Commercial & Heavy‐duty Vehicles
Industrial Traction
Companies Profiled:
Panasonic
CATL
LG Energy Solution
BYD
GS Yuasa
Gotion High-tech
CSICP
Lishen
East Penn Manufacturing
Clarios
Enersys
Samsung SDI
CALB
EVE Energy
Sunwoda
SVOLT
Farasis Energy
REPT Battero
AESC
Envision AESC
LECLANCHÉ
Northvolt
Romeo Power (Nikola)
Key Questions Answered
1. How big is the global Traction Battery market?
2. What is the demand of the global Traction Battery market?
3. What is the year over year growth of the global Traction Battery market?
4. What is the total value of the global Traction Battery market?
5. Who are the Major Players in the global Traction Battery market?
6. What are the growth factors driving the market demand?
Traction battery is a battery designed to power the electric motors of electric vehicles (such as electric cars, hybrid cars, e-bikes, etc.). These batteries have high energy density, long life and fast charging capabilities, allowing them to support vehicles traveling longer distances without the need for frequent recharging. Traction batteries typically use lithium-ion technology, but other chemistries such as nickel metal hydride (NiMH) or lead-acid batteries are also available, with each type having its own specific benefits, costs and application scenarios. The key feature of these batteries is their ability to provide high power output during charge and discharge processes, and they are designed to withstand thousands of charge and discharge cycles, ensuring that electric vehicles maintain good performance throughout their service life.
The global traction battery market has experienced rapid evolution over the past decade, primarily driven by the accelerating electrification of the transportation sector. Traction batteries are the core energy-storage components used in electric vehicles, electric buses, trucks, forklifts, AGVs, and other industrial or transportation applications requiring propulsion power. With governments worldwide tightening emission regulations and OEMs committing to aggressive zero-emission roadmaps, demand for high-energy density, safe, and long-cycle-life battery systems has surged. Asia remains the dominant hub of traction battery production, led by Chinese, South Korean, and Japanese battery manufacturers, while Europe and North America continue to ramp up localized capacity in response to supply-chain resilience concerns and national industrial strategies.
Lithium-ion chemistries—particularly lithium iron phosphate (LFP) and nickel manganese cobalt oxide (NMC)—currently account for more than 75% of global traction battery installations. LFP is favored for commercial and heavy-duty applications due to its thermal stability, longer lifespan, and lower cost profile, whereas high-nickel NMC is commonly deployed in premium passenger EVs where higher energy density and longer driving ranges are critical.
Market competition is intense and increasingly polarized. Global leaders such as CATL, BYD, LG Energy Solution, Panasonic, and Samsung SDI collectively control over 70% of worldwide traction battery shipments, supplying both established automakers and new energy vehicle manufacturers. At the same time, fast-growing players—including CALB, EVE Energy, SVOLT, Northvolt, AESC, and Envision AESC—are heavily expanding capacity and bidding for OEM-level partnerships to secure long-term supply agreements. Outside of EVs, there is a growing segment of industrial traction battery demand coming from sectors such as urban delivery, port and mining vehicles, agriculture, rail, and marine, where electrification addresses both operational efficiency and carbon-reduction goals. Many of these applications require customized, ruggedized battery systems with higher power capability and different form-factor requirements compared to passenger EVs.
Looking forward, the global traction battery market is projected to maintain a double-digit compound annual growth rate of 10–15% through 2031, supported by sustained regulatory incentives, expanding use-cases, and improving economics of battery packs. However, industry participants face several critical challenges, including securing raw material supply chains (lithium, nickel, cobalt), managing recycling/end-of-life logistics, improving safety performance, and overcoming cost barriers for mass adoption in heavy-duty transport. As battery technologies continue to advance and manufacturing scales rise, the sector is expected to move toward greater differentiation based on application-specific performance attributes, total cost of ownership, and sustainability credentials.
This report studies the global Traction Battery demand, key companies, and key regions.
This report is a detailed and comprehensive analysis of the world market for Traction Battery, and provides market size (US$ million) and Year-over-Year (YoY) growth, considering 2025 as the base year. This report explores demand trends and competition, as well as details the characteristics of Traction Battery that contribute to its increasing demand across many markets.
Highlights and key features of the study
Global Traction Battery total market, 2021-2032, (USD Million)
Global Traction Battery total market by region & country, CAGR, 2021-2032, (USD Million)
U.S. VS China: Traction Battery total market, key domestic companies, and share, (USD Million)
Global Traction Battery revenue by player, revenue and market share 2021-2026, (USD Million)
Global Traction Battery total market by Type, CAGR, 2021-2032, (USD Million)
Global Traction Battery total market by Application, CAGR, 2021-2032, (USD Million)
This report profiles major players in the global Traction Battery market based on the following parameters - company overview, revenue, gross margin, product portfolio, geographical presence, and key developments. Key companies covered as a part of this study include Panasonic, CATL, LG Energy Solution, BYD, GS Yuasa, Gotion High-tech, CSICP, Lishen, East Penn Manufacturing, Clarios, etc.
This report also provides key insights about market drivers, restraints, opportunities, new product launches or approvals.
Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the world Traction Battery market
Detailed Segmentation:
Each section contains quantitative market data including market by value (US$ Millions), by player, by regions, by Type, and by Application. Data is given for the years 2021-2032 by year with 2025 as the base year, 2026 as the estimate year, and 2027-2032 as the forecast year.
Global Traction Battery Market, By Region:
United States
China
Europe
Japan
South Korea
ASEAN
India
Rest of World
Global Traction Battery Market, Segmentation by Type:
Open Lead Acid Battery
Lithium-Ion Battery
Others
Global Traction Battery Market, Segmentation by Application:
Passenger Electric Vehicles (EVs)
Commercial & Heavy‐duty Vehicles
Industrial Traction
Companies Profiled:
Panasonic
CATL
LG Energy Solution
BYD
GS Yuasa
Gotion High-tech
CSICP
Lishen
East Penn Manufacturing
Clarios
Enersys
Samsung SDI
CALB
EVE Energy
Sunwoda
SVOLT
Farasis Energy
REPT Battero
AESC
Envision AESC
LECLANCHÉ
Northvolt
Romeo Power (Nikola)
Key Questions Answered
1. How big is the global Traction Battery market?
2. What is the demand of the global Traction Battery market?
3. What is the year over year growth of the global Traction Battery market?
4. What is the total value of the global Traction Battery market?
5. Who are the Major Players in the global Traction Battery market?
6. What are the growth factors driving the market demand?
Table of Contents
152 Pages
- 1 Supply Summary
- 2 Demand Summary
- 3 World Traction Battery Companies Competitive Analysis
- 4 United States VS China VS Rest of World (by Headquarter Location)
- 5 Market Analysis by Type
- 6 Market Analysis by Application
- 7 Company Profiles
- 8 Industry Chain Analysis
- 9 Research Findings and Conclusion
- 10 Appendix
Pricing
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