Train Battery Market Size, Share and Trends 2024 to 2034

Train Battery Market Size and Forecast 2024 to 2034

The global train battery market size is worth around USD 296.37 million in 2024 and is anticipated to reach around USD 517.39 million by 2034, growing at a CAGR of 5.73% over the forecast period 2024 to 2034. The North America train battery market size reached USD 112.12 million in 2023. The rising adoption of electrification in the railway industry is the key factor driving the train battery market growth.

Train Battery Market Key Takeaways

• North America led the global train battery market with the largest market share of 40% in 2023.
• By type, the lithium-ion battery segment has held the highest market share of 48% in 2023.
• By type, nickel-cadmium batteries segment is expected to grow at the fastest rate in the market over the forecast period.
• By technology, the valve regulated lead acid battery segment recorded the biggest market share of 40% in 2023.
• By technology, the lithium titanate oxide batteries segment will show the fastest growth in the market over the projected period.
• By application, the metros segment contributed the highest market share of 41% in 2023.
• By application, the high-speed trains segment is projected to grow at a significant rate in the market during the studied period.

U.S. Train Battery Market Size and Growth 2024 to 2034

The U.S. train battery market size was exhibited at USD 84.09 million in 2023 and is expected to be worth around USD 158.20 million by 2034, poised to grow at a CAGR of 5.91% from 2024 to 2034.

North America contributed the biggest market share of 40% in 2023. The dominance of the region can be attributed to the growing adoption of electric and hybrid trains, along with the increasing demand for reliable energy storage systems. Furthermore, lithium-ion batteries are especially preferred due to their high energy density and enhanced safety compared to other technologies. These batteries are utilized to power numerous electrical components in trains, such as lights, HVAC units, and communication systems.

• In April 2024, Intramotev, an electric rail start-up based in the United States, announced the launch of its first battery-electric railcar for freight train applications. This was the first time that an electric railcar was used in a traditional freight train.

Asia Pacific is anticipated to showcase notable growth in the train battery market during the forecasted years. The growth of the segment is driven by wide railway networks in nations like India, Japan, China, and South Korea. Moreover, the region is experiencing rapid urbanization along with substantial investments by market players in high-speed train systems.

Top 10 largest railway network in the world

Market Overview

Train batteries are specialized energy storage systems utilized in a train to give auxiliary power for different onboard functions. These batteries act as a backup power source to continue the operation of critical systems such as ventilation, communication, lighting, and control systems. Even when the train is detached from the main power supply, they are manufactured to withstand the hard conditions of rail travel, like temperature fluctuations, vibrations, and prolonged usage. Hence, train batteries play an important role in improving reliability, safety, and passenger comfort by providing an authentic source of power to maintain crucial functions throughout a train's journey.

Role of AI in the train battery market

AI techniques, like machine learning models (MLMs), are changing the train battery market. R&D teams are now using AI techniques for battery material discovery, manufacturing, and characterization. Furthermore, AI-based algorithms provide many advantages for EV battery technology over conventional methods. However, not all ML techniques are created utilizing the same framework. Some use different approaches while assessing the manufacturing process.

• In August 2024, Electra Vehicles launched EVE-Ai, an AI software designed to enhance battery performance management, improve EV battery range accuracy, and enable predictive alerts for maintenance needs and failures in EV fleet vehicles, according to the company. The new software leverages advanced AI algorithms to provide real-time, personalized insights.

Train Battery Market Growth Factors

• The growing need for energy-efficient solutions to cut operational costs can propel market growth soon.
• A rise in the allocation of budget for the development of railways is expected to drive market growth soon.
• The increase in demand for secure, safer, and efficient rail transport can propel market growth over the forecast period.
• Improvements in railway infrastructure in developing nations will likely contribute to market expansion further.
• The government's increasing focus on reducing pollution is expected to fuel the train battery market growth further.

Market Scope

Market Dynamics

Driver

Growing sustainability and electrification

The train battery market is fueled by a strong global focus on sustainable transportation solutions, pushing the electrification of rail networks. Governments globally are rapidly investing in electric train systems powered by batteries to promote cleaner mobility and reduce carbon emissions. Additionally, battery-powered trains give flexibility in operations by discarding the need for overhead wires, which makes them adaptable to travel rail routes. The combination of train batteries with electrified rail systems promotes the sustainability trend for the market.

• In November 2023, Britain’s railway industry published its Sustainable Rail Blueprint under the leadership of the Rail and Safety Standards Board (RSSB) and commissioned by the government. Hailed as the first unified plan for improving rail sustainability, it outlines how the railway will implement the British government’s 2021 Rail Environment Policy Statement in practice.

Restraint

Limited operational range of batteries

Battery-operated trains have a short range, and it is necessary to recharge them regularly to extend their range, which can increase transit times and cause discomfort to passengers. This factor can also negatively affect the train battery market in the future. Moreover, installing batteries in trains can incur significant costs for railway companies, which is hard to manage for an organization with a limited budget.

Opportunity

The increasing popularity of high-speed and autonomous railways

The railway sector, including metros and high-speed trains, consumes significant energy, which contributes to carbon emissions. To resolve these issues, energy storage systems like train batteries are installed using regenerative braking technology. Furthermore, developed nations are investing highly in the latest technology for the train battery market. Developing economies are following suit due to emission regulations and requirements for comfort and safety.

• In August 2023, the Swiss government and the European Commission awarded Hyperloop startup Swisspod Technologies a new grant worth € 3.5 million to develop energy-autonomous hyperloop vehicles. Swisspod Technologies is already working on creating mobility solutions that would rival high-speed railways and airplanes.

Type Insights

The lithium-ion battery segment dominated the train battery market in 2023. The dominance of the segment can be attributed to the increasing development of metros and high-speed trains along with the expansion of railway networks. Which is anticipated to increase the demand for energy storage systems like batteries. Additionally, these systems help deduct energy demand and operational costs.

• In September 2024, Green Cubes Technology, a provider of Li-ion battery solutions, announced its latest development, a GSE Li-ion battery specifically designed for ground support equipment. The Li-ion batteries are a sustainable alternative that uses LFP (Lithium Iron Phosphate) rather than lead acid to increase the battery’s life cycle and safety.

Nickel-cadmium batteries segment is expected to grow at the fastest rate in the train battery market over the forecast period. The growth is mainly driven by their high-temperature resistance, long service life, and capability to withstand excess charging and discharging. However, Ni-Cd batteries are extensively utilized in various railway applications, such as emergency braking systems, backup power systems, and HVAC systems. Also, the Rising implementation of these batteries in renewable energy projects coupled with the growing requirement for reliable energy storage systems in modern trains will likely impact segment growth positively.

Technology Insights

The valve regulated lead acid battery segment dominated the train battery market. VRLA batteries are extensively utilized in diesel locomotives to start engines and for auxiliary functions because of their ability to withstand different temperature changes and loads. The overall growth segment can be linked to their low maintenance requirements, reliability, and suitability for numerous railway applications.

The lithium titanate oxide batteries segment will show the fastest growth in the train battery market over the projected period. This is due to their unique high-power characteristics, which make them convenient for frequent and high-speed charging applications. Additionally, LTO batteries provide high power charging up to 20C, a life cycle of over 20,000 cycles, and low-temperature operation, which makes them suitable for intermittent catenary connections in several unit trains.

• In April 2024, Log9 Materials achieves BIS certification for its Lithium Titanate Oxide batteries. The company claims that these LTO batteries boast enhanced safety due to their inherent thermal and chemical stability, minimizing the risk of fire or explosion compared to conventional lithium-ion.

Application Insights

The metros segment led the global train battery market in 2023. The dominance of the segment can be credited to the rising adoption of high-capacity and high-speed metro systems. Lithium-ion batteries are particularly used in metro trains to power different electrical components such as lights, HVAC units, and communication systems. The countries in Asia Pacific, especially China, Japan, and South Korea, are estimated to drive the market growth because of the ongoing expansion of metro networks in the region.

The high-speed trains segment is projected to grow at a significant rate in the train battery market during the studied period. This is due to the growing adoption of these trains and the need for convenient energy storage systems. High-speed trains need substantial energy to operate, and batteries help reduce operational costs and energy consumption. Lithium-ion batteries are particularly preferred in high-speed trains due to their high energy density and enhanced safety compared to other batteries.

Train Battery Market Companies

• AEG Power Solutions
• Amara Raja Group
• East Penn Manufacturing Company
• ENERSYS.
• EXIDE INDUSTRIES LTD.
• FIRST NATIONAL BATTERY
• FURUKAWA ELECTRIC CO., LTD.
• GS Yuasa International Ltd.
• Hitachi Rail Limited
• HOPPECKE Carl Zoellner & Sohn GmbH
• FENGRI POWER & ELECTRIC CO., LIMITED.
• Power & Industrial Battery Systems GmbH
• Saft2022
• SEC Battery
• Shuangdeng Group Co, Ltd

Recent Developments

• In July 2024, Alstom announced plans to manufacture large batteries for railway components in India by 2025. The batteries can be utilized in hybrid trains such as Vande Bharat trains, metro rail, and others.
• In April 2024, Siemens Mobility, the railway division of Siemens Group, announced the start of regular operations of Mireo Plus B battery hybrid trains for SWEG. These trains replace previous diesel-powered locomotives that used to run on the same lines of the Ortenau region in Germany.
• In August 2023, Alstom and Verkehrsverbund Mittelsachsen announced the launch of a new battery-powered electric train in Chemnitz, Germany, which is expected to enter service by the end of 2024.

Segments Covered in the Report

By Type 

• Lead Acid Battery
• Nickel Cadmium Battery
• Lithium Ion Battery

By Technology 

• Conventional Lead Acid Battery
• Valve Regulated Lead Acid Battery
• Gel Tubular Lead Acid Battery
• Sinter/PNE Ni-Cd Battery
• Pocket Plate Ni-Cd Battery
• Fiber/PNE Ni-Cd Battery
• Lithium Iron Phosphate (IFP)
• Lithium Titanate Oxide (ITO)
• Others

By Application  

• Metros
• High-speed Trains
• Light Rails/Trams/Monorails
• Passenger Coaches

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa