The growing demand for electric vehicles attributed to favorable government policies is a significant factor propelling traction battery market growth. The changing consumer preferences toward electric forklifts to improve industrial operations in tandem with plunging battery costs are also estimated to have a commendable impact on the industry growth. For example, as per the International Energy Agency, the global sales of electric cars exceeded 1 million units in 2017, and as a result, depicted a growth rate of nearly 54% compared to the previous year.
Which is one of the most prominent applications of traction batteries?
The deployment of traction batteries for forklifts is anticipated to garner commendable momentum in the years ahead, claims a report by Global Market Insights, Inc. Traction battery market share from forklifts will experience growth on account of rising industrialization fueled by the material handling industry and the rising penetration of e-commerce. Additionally, in a bid to minimize greenhouse gas emissions, electric forklifts will gain its prominence and will spark industry growth in the coming years. Moreover, the capacity to ensure minimum emissions for lower operational costs as compared to internal combustion models will continue to complement the traction battery industry size from forklifts.
How is the China traction battery market expected to excel in the coming years?
China traction battery market is anticipated to register a growth rate of more than 11% over 2018-2024. The growth of the regional industry can be majorly credited to the policies as well as tax incentives in the nation, undertaken to encourage the sale of electric vehicles. Case in point, back in 2009, the national government published nearly 39 policies out of which almost 50% were related to electric vehicles, thereby facilitating product deployment.
Another example worth mentioning is the RNB 100 billion grant by the Ministry of Finance to back the development of new electric vehicles between the timeline 2011 to 2020. Owing to such developments, it comes as no surprise the China traction battery market is estimated to witness substantial double digit growth rate in the ensuing years.
Which are the most prominent factors that will drive the growth of the U.S. traction battery market?
In 2017, the U.S. traction battery market had amassed a valuation of more than $3 billion. In the ensuing years, the federal policies including purchase incentives as well a tax credits for owning electric vehicles will augment the growth of this regional industry. Moreover, the benefits associated with forklifts like reduced emissions and operational benefits will accelerate the deployment of these batteries in industrial applications. An example to validate the point is the fact that electric forklifts accounted for more than 60% of the total lift truck in the United States in 2017.
The global competitive landscape of traction battery market includes notable industrial players like Johnson Controls, Excide, BYD, LG Chem, Samsung, East Penn Manufacturing and Haze Batteries, amongst others. Growing concerns to reduce emissions and favorable policy implementations, contributed by the transport sector present a huge opportunity to these participants to attain competitive positions in the industry.
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