Train Battery Market Size 2024-2028

The train battery market size is forecast to increase by USD 185.5 million, at a CAGR of 5.4% between 2023 and 2028. The market is experiencing significant growth, driven by the increasing adoption of high-speed and autonomous railways. These advanced railway systems require efficient and reliable energy storage solutions, which is leading to a surge in demand for train batteries. Moreover, the integration of IoT and big data in the railway industry is enabling operators to optimize their operations, reduce downtime, and enhance passenger experience. Additionally, substantial investments in initial infrastructure for railway electrification and the shift towards sustainable transportation are further fueling the market growth. The implementation of IoT, AI, deep learning,  cloud computing, and DAS in high-speed train networks enhances passenger experience and requires electricity and power backup. Such factors will increase the demand for train batteries, which, in turn, will drive the growth of the market during the forecast period. Despite these opportunities, challenges such as high upfront costs, limited battery life, and safety concerns persist, requiring continuous innovation and technological advancements to address them. In summary, the train battery market is poised for robust growth, fueled by the adoption of advanced railway systems, integration of IoT and big data, and significant investments in railway infrastructure. However, challenges related to cost, battery life, and safety must be addressed to fully realize the market's potential.

What will be the size of the Market During the Forecast Period?

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Market Dynamics and Customer Landscape

In the rail sector, developed countries have been investing heavily in high-speed train networks to reduce travel time and improve comfort and safety. However, the high investment costs associated with these projects, including the infrastructure cost and operational costs, have been a concern. Moreover, emission regulations and energy consumption have become crucial considerations in the rail sector. To address these challenges, energy storage systems have emerged as a viable solution for high-speed trains. These systems help in energy efficiency and reducing carbon emissions. The train battery market is witnessing significant growth due to the increasing demand for energy storage systems in high-speed trains and metros. Developing countries are also investing in rail networks, and high-speed train projects are underway in emerging economies. However, cost increases due to contractors and government budget constraints have been a challenge in these projects. Environmental considerations are also a significant factor in the market, as the use of renewable energy sources and energy storage systems can help reduce the overall carbon footprint of the rail sector. In specific projects, such as the Manchester/Leeds branch in Birmingham, the projected cost has seen elevated costs due to various factors, including the implementation of energy storage systems. The initial budget for such projects can be substantial, but the long-term benefits in terms of energy efficiency, reduced operational costs, and environmental considerations make it a worthwhile investment.

Key Market Driver

The increasing popularity of high-speed and autonomous railways is notably driving market growth. The rail sector, including high-speed trains and metros, consumes significant energy and contributes to carbon emissions. To mitigate these issues, energy storage systems, such as train batteries, are employed using regenerative braking technology. This practice has helped the Delhi metro system reduce carbon emissions by approximately 90,040 tonnes of CO2. Developed countries are investing heavily in the latest technology for autonomous trains, while developing countries are following suit due to emission regulations and the need for comfort and safety. The increasing demand for train batteries will drive the growth of the global train battery market.

Moreover, infrastructure costs, government budget constraints, and settlements in projects, such as the Birmingham and Manchester/Leeds branch high-speed train projects, contribute to the high investment costs. Developing economies face cost increases due to their financial situation.

Significant Market Trend

Implementation of technologies such as IoT and big data to drive efficiency is the primary trend shaping the market. In the rail sector, high-speed trains and metros in developed and developing countries generate substantial data through interconnected systems. This data is vital for improving passenger safety, efficiency, and operational costs in railway networks. Emission regulations and energy consumption drive the adoption of energy storage systems, such as batteries, in the rail industry.

Further, high-speed train networks in Birmingham and Manchester/Leeds branch, for instance, invest heavily in energy efficiency and comfort and safety features, leading to high investment costs. Infrastructure costs and government budget constraints in emerging economies necessitate the use of IoT, AI, deep learning, DAS, and electricity backup solutions. Contractors face cost increases due to financial situation settlements, making energy storage systems a crucial consideration for rail projects. Environmental considerations also play a role in the adoption of energy storage systems for railways. Thus, with the development of the railway industry, the market is also likely to grow during the forecast period.

Major Market Challenge

High investments in initial infrastructure are the major challenge impeding market growth. In the rail sector, the implementation of high-speed trains and metro systems relies on advanced technologies such as train batteries, which come with high initial investment costs. Developed countries and emerging economies alike are expanding their high-speed train networks to improve travel time, energy efficiency, and reduce carbon emissions. However, these projects face significant financial hurdles due to the long payback periods and substantial infrastructure costs. Government-owned railway companies, often in partnership with private entities, must carefully evaluate these projects given budgetary constraints. High-speed train projects require substantial investment in energy storage systems for power backup during non-electrified sections and IoT, AI, and deep learning technologies for operational efficiency. Infrastructure costs, including the deployment of DAS for enhanced passenger experience, add to the elevated costs.

Further, developing countries, in particular, may face challenges due to their financial situation. Emission regulations and the need for energy consumption reduction further increase costs. As rail networks expand, governments and contractors must consider the environmental implications and the potential burden on government budgets. For instance, the projected cost for the Birmingham to Manchester/Leeds branch high-speed train project is estimated to be substantial, with initial budgets subject to cost increases. Therefore, it is estimated that the high initial cost of deployment will hinder the growth of the market during the forecast period.

Market Customer Landscape

The market research report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis and forecasting strategies.

Customer Landscape

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

AEG Power Solutions BV - The company offers train batteries that start from 120Ah to 1100Ah capacity - both Low Maintenance (LMLA) and Maintenance-Free (VRLA) types. Under this segment, the company manufactures power systems and produces UPS, rectifiers, chargers, and DC systems.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Exide Industries Ltd.
• First National Battery
• Furukawa Electric Co. Ltd.
• HBL Power Systems Ltd.
• Hitachi Ltd.
• JFM Engineering Inc.
• Leclanche SA
• Microtex Energy Pvt. Ltd.
• Saft Groupe SAS
• Schaltbau Holding AG
• Star Battery Ltd.
• Stryten Energy
• Toshiba Corp.
• Wisdom Industrial Power Co. Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Segmentation

By Application

The market share growth of the auxiliary segment will be significant during the forecast period. Auxiliary batteries provide backup to all important train systems, such as ventilation systems and emergency lighting. These batteries also offer safety to the train in the absence of output failure and train separation incidents. Furthermore, the rise in the demand for high-speed trains is leading to the high demand for advanced features such as emergency braking and tilting systems. It also provides traction for hybrid trains such as tram systems, electric multiple units (EMU), or diesel multiple units (DMU).

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The auxiliary battery segment was valued at USD 320.70 million in 2018. In the case of fully battery-operated trains, lithium-ion batteries are expected to drive the growth of the market owing to their lightweight, compact design and superior performance. Thus, Europe and Asia Pacific are expected to propel the growth of the auxiliary battery segment in the global train battery market during the forecast period due to the high-speed rail network in these regions.

By Region

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APAC is estimated to contribute 37% to the growth of the global market during the forecast period. Another region offering significant growth opportunities to companies is Europe. Technavio’s analysts have elaborately explained the regional market trends and drivers that shape the market during the forecast period. The market in Europe faces technical challenges due to the increased use of electrical components in battery-operated trains. These components, including cooling pumps, lighting, power windows, ECUs, and peripheral systems, can lead to parasitic draws, reducing battery life. The market's growth is closely linked to the advancements in the European automotive industry. Lead-acid and lithium-ion batteries are commonly used in train applications. Disposal and self-discharge rate are significant concerns for lead-acid batteries, while lithium-ion batteries offer higher energy density and better performance.

Further, charge cycle, memory effect, and temperature variations impact cell performance. Electrochemical battery technology, such as lithium batteries, is gaining popularity due to its ability to perform well in cold temperatures. Wabtec Corporation, FLXdrive, Alstom, VMS, and Siemens are key players in the lithium battery segment. Metro trains and high-speed railway applications require high battery capacity. NiCd batteries were previously used for traction purposes but have been replaced by lithium batteries for improved operational performance and shorter travel times. Self-propulsion battery technology is essential for rolling stock manufacturers to meet the growing demand for energy-efficient and environmentally friendly trains.

Segment Overview

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Application Outlook  
  • Auxiliary battery
  • Starter battery

• Battery Type Outlook  
  • Lead-acid
  • Lithium-ion
  • Nickel cadmium

• Region Outlook  
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • North America
    • The U.S.
    • Canada
  • South America
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is a significant segment of the developed and emerging transport sectors. The Consumption of trains in various countries, especially in Asia, is on the rise, leading to an increased demand for train batteries. The Railway sector requires a large number of batteries to power the electric locomotives and metro trains. The Market for train batteries is driven by factors such as the growing demand for energy-efficient and eco-friendly transportation, the increasing electrification of railways, and the expansion of metro networks in various cities.

Furthermore, the market for train batteries is expected to grow at a significant rate in the coming years, with key players focusing on developing high-capacity and long-lasting batteries. The market is competitive, with major players such as Caterpillar, Enel X, and Siemens leading the charge. The use of advanced technologies such as lithium-ion batteries and fuel cells is also gaining popularity in the train battery market. The market for train batteries is expected to continue its growth trajectory, driven by the increasing demand for sustainable and efficient transportation solutions.

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What are the Key Data Covered in this Market Forecasting Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the train battery market size and its contribution to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the industry across Europe, APAC, North America, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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