Vehicle Traction and Auxiliary Battery Market to Reach USD 319.7 Billion by 2031, Driven by EV Adoption, Electrified Fleets, and Advanced Energy Storage Technologies | TMR

The global Vehicle Traction and Auxiliary Battery Market is undergoing a transformative shift as the world accelerates toward sustainable mobility and advanced automotive electrification. According to the latest industry assessment, the market-valued at US$ 101.0 Bn in 2022-is projected to grow at a CAGR of 14.2% between 2023 and 2031, reaching an impressive US$ 319.7 Bn by 2031. This surge is fueled by the rising adoption of electric vehicles (EVs), increased electrification of vehicle subsystems, and ongoing advancements in battery technologies.

Access key findings and insights from our Report in this sample -

https://www.transparencymarketresearch.com/sample/sample.php?flag=S&rep_id=85975

Industry Analysts Highlight Rapid Adoption of EVs and Power-Hungry Vehicle Systems
Industry analysts observe that the global focus on sustainable transportation and carbon reduction is propelling the demand for high-performance traction and auxiliary batteries. As automotive manufacturers shift away from internal combustion engines toward electric and hybrid vehicles, traction batteries-predominantly lithium-ion, but increasingly solid-state-are emerging as essential components of next-generation propulsion systems.

Simultaneously, auxiliary batteries, essential for powering electronic systems such as infotainment, ADAS, telematics, lighting, HVAC, and emergency backup, are witnessing significant demand. Modern vehicles-ICE, hybrid, and electric alike-require dedicated auxiliary power solutions to ensure uninterrupted functioning of essential features, even when the traction battery is not fully engaged.

Market Introduction: Electrification Unlocks a New Era of Automotive Power Solutions
A vehicle battery serves as the electrical foundation of any automobile, delivering power to ignite engines or support electric propulsion systems. Modern vehicles rely heavily on a diverse range of battery chemistries-lithium-ion, lead-acid, nickel-metal hydride, nickel-cadmium, and sodium-ion-to support propulsion, system electronics, engine management units, safety systems, and digital interfaces.

The accelerating transition toward clean and efficient mobility is reshaping how traction and auxiliary batteries are manufactured, deployed, and integrated into vehicle architectures. Governments across the world are imposing stringent emission regulations, providing subsidies for EV purchases, and investing in EV infrastructure-all contributing to the widespread deployment of advanced battery systems.

Consumers are increasingly aware of the environmental impact of conventional vehicles, gravitating toward EVs that deliver lower emissions, superior fuel efficiency, and reduced operating costs. These dynamics provide a fertile ground for robust growth of both traction and auxiliary battery segments.

MARKET DRIVERS
1. Surge in Adoption of Electric Vehicles (EVs)
The global automotive sector is experiencing a paradigm shift toward electric mobility, driven by environmental pressures, energy security concerns, and technological breakthroughs.

Key factors accelerating EV adoption include:

Zero tailpipe emissions and climate-friendly credentials

Rapid charging advancements

Extended driving range due to improved battery energy density

Government subsidies, tax incentives, and EV-friendly regulations

Decreasing total cost of ownership compared to ICE vehicles

Lithium-ion traction batteries have become the gold standard due to:
✔ High energy density
✔ Long cycle life
✔ Lower weight and compact build
✔ Improved efficiency and lower degradation

Automakers are investing billions into EV and hybrid development pipelines. As manufacturers introduce more EV models across passenger cars, commercial fleets, buses, trucks, and off-road vehicles, demand for high-performance traction batteries will continue to skyrocket.

2. Electrification of Vehicles and Increasing Power Demand for Auxiliary Systems
Modern vehicles feature a complex suite of energy-intensive electronics:

Infotainment and digital displays

Electric power steering

Advanced Driver Assistance Systems (ADAS)

Real-time connectivity, IoT and telematics

Lighting, HVAC, safety control units

Autonomous driving sensors

Auxiliary batteries ensure stable, uninterrupted operation of these components-especially in electric vehicles where traction batteries cannot be solely burdened.

Additional growth factors include:

Electrification of steering, braking, and suspension systems

Increased integration of Li-ion auxiliary batteries in luxury and high-performance vehicles

Rising preference for advanced VRLA, AGM, and lithium auxiliary batteries in commercial fleets

Auxiliary batteries act as the backbone of automotive electronics, ensuring safety, reliability, and continuity of vehicle functions across all driving conditions.

3. Technological Breakthroughs in Lithium-Ion and Solid-State Batteries
Lithium-ion batteries dominate the traction battery market, thanks to:

Superior power delivery

High energy-per-unit mass

Scalability across vehicle classes

Declining production costs

Meanwhile, solid-state batteries are poised to revolutionize the industry with:

Double the energy density of Li-ion

Faster charging

Improved safety

Longer lifespan

Recent notable development:

SAIC Motor & Qingtao Energy surpassed energy density of 368 Wh/kg, more than double that of traditional LFP batteries-signaling a breakthrough for the next generation of EVs.

These advancements will drive exponential growth for both traction and auxiliary battery segments through 2031.

Explore our report to uncover in-depth insights -

https://www.transparencymarketresearch.com/vehicle-traction-and-auxiliary-battery-market.html

MARKET TRENDS AND OPPORTUNITIES
Rise of 31 kWh to 50 kWh Battery Capacity Segment
This capacity range has become the sweet spot for urban and suburban EVs as it offers:

Sufficient daily driving range

Cost-effectiveness

Optimal weight and space utilization

Compatibility with compact EV architectures

Commercial Fleet Electrification
Electric buses, delivery vans, last-mile logistics vehicles, and heavy-duty trucks are adopting traction batteries for:

Reduced operational costs

Lower emissions

Compliance with green logistics targets

Fleet electrification presents a multi-billion-dollar opportunity for battery manufacturers.

Shift Toward Cylindrical, Prismatic, and Pouch Battery Cell Formats
Each format addresses specific OEM needs for performance, safety, thermal management, and vehicle architecture optimization.

Growing Focus on Battery Materials and Mining
Demand is rising for materials such as:

Cobalt

Lithium

Natural graphite

Manganese

This has prompted supply chain expansions and vertical integration by key players.

REGIONAL OUTLOOK
Asia Pacific Leads the Global Market
Asia Pacific remains the world's largest and fastest-growing market, driven by:

Dominance of China, Japan, and South Korea in EV and battery manufacturing

Leadership of companies such as BYD, CATL, Panasonic, Samsung SDI, LG Chem

Government-backed EV adoption programs

Large-scale EV production and export capabilities

Rapid deployment of EV charging infrastructure

China's massive production capacity, coupled with aggressive R&D in next-gen batteries, positions it at the forefront of global electrification.

COMPETITIVE LANDSCAPE
The market is highly competitive, with major companies investing in R&D, global capacity expansion, and strategic partnerships.

Key Players Include:
BYD Company Limited
Tesla, Inc.
CATL-SAIC Motor Power Battery
Samsung SDI Co., Ltd.
EnerSys
GS Yuasa Corporation
Panasonic Corporation
Hitachi, Ltd.
Amara Raja Batteries Ltd
Exide Industries Limited
Sunwoda Electronic
Furukawa Electric
Robert Bosch GmbH
Cummins, Inc.
Chaowel Power Holdings
Leoch International Technology
STL
Battrix (Kabra Extrusiontechnik)
And numerous global and regional manufacturers

KEY DEVELOPMENTS
LG Chem's U.S. Cathode Plant Expansion (2023)
LG Chem initiated construction of a major NCMA cathode manufacturing facility in Clarksville, Tennessee. The plant will support North American EV battery demand and is scheduled to commence mass production by 2026.

SAIC Motor's Solid-State Battery Breakthrough (2023)
SAIC and Qingtao Energy Development achieved engineering milestones for next-gen solid-state traction batteries, offering:

368 Wh/kg energy density

Enhanced charging speeds

Reduced production costs

This breakthrough positions the JV at the cutting edge of next-generation battery technologies.

MARKET SEGMENTATION
The market spans a wide range of segments including:

Traction Battery Segmentation by Battery Type
Lithium-ion

Nickel-cadmium

Nickel Metal Hydride

Solid-state

Ultra-capacitors

Traction Battery by Capacity

About Transparency Market Research

Transparency Market Research, a global market research company registered at Wilmington, Delaware, United States, provides custom research and consulting services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insights for thousands of decision makers. Our experienced team of Analysts, Researchers, and Consultants use proprietary data sources and various tools & techniques to gather and analyses information.

Our data repository is continuously updated and revised by a team of research experts, so that it always reflects the latest trends and information. With a broad research and analysis capability, Transparency Market Research employs rigorous primary and secondary research techniques in developing distinctive data sets and research material for business reports.

Contact:

Transparency Market Research Inc.
CORPORATE HEADQUARTER DOWNTOWN,
1000 N. West Street,
Suite 1200, Wilmington, Delaware 19801 USA
Tel: +1-518-618-1030
USA - Canada Toll Free: 866-552-3453
Website: https://www.transparencymarketresearch.com
Email: sales@transparencymarketresearch.com
Follow Us: LinkedIn| Twitter| Blog | YouTube

This release was published on openPR.