Railway Li-ion Battery Market Size, Share, Growth, And Industry Analysis By Type (LFP Battery, Li-NMC Battery) By Application (Autonomous Railway, Hybrid Railway), Regional Insights, and Forecast To 2031

Updated On: 01 April 2024

Railway Li-ion Battery Market Report Overview

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global railway li-ion battery market size was USD 204.1 million in 2022  and market is projected to touch 1195.22 Million by 2031, exhibiting a CAGR of 21.7% during the forecast period.

The main uses of railway or rolling stock batteries are stationary ones. In fixed applications, such as emergency backup power for signal towers, railway crossings, and signaling systems, rolling stocks of the batteries are utilized for illumination, starting locomotive engines, and stationary uses. Demand for electric and low-maintenance trains is growing, which drives up train battery prices. Power supplies for door control, onboard computers, lighting, air conditioning, ventilation, brakes, communications, and engine starting are all offered by companies that make train batteries. For instance, EnerSys specializes in trains and produces batteries for industry. The market for train batteries is expanding as a consequence of the companies' expansion of their product lines.

Rail networks are expanding all over the world due to rapid urbanization and an increase in passengers. The high energy usage and pollution requirements continue to be significant obstacles for the train industry. Batteries and other energy storage devices are anticipated to lower energy consumption and, as a result, lower overall operational expenses.

COVID-19 Impact: COVID Pandemic's Negative Impact On the Market for Rail Transport Systems

An unparalleled economic, humanitarian, and healthcare challenge has been posed to the globe by COVID-19. Lockdowns have helped to stop the coronavirus from spreading, but they have taken a heavy financial toll. One of the most severely impacted business sectors is the railway industry. Lockdowns and other limitations have had an impact on the railway sector, following a trend seen in nations where COVID-19 has already expanded. Additionally, the railway industry now faces unanticipated difficulties as a result of the coronavirus. However, it is projected that the need for train batteries will increase significantly in the near future due to the easing of lockdown measures and the ensuing opening of markets throughout the world.  

Latest Trends

"Rising Auxiliary Battery Demand to Drive Market Growth"

Due to regional governments' growth of the railway network and the cost-effectiveness of railway transportation, the passenger network in the railroads has increased by a factor of four all over the world. The potential for metros, passenger coaches, and trams equipped with functional heating, ventilation, and air conditioning (HVAC) equipment to maintain a comfortable interior temperature is infused by the need to extend the railway network. In addition to introducing new railway coaches and modernizing the present fleet with more modern HVAC systems, important enterprises and the government are closing off initiatives. The passenger train is where the majority of the new modifications can be observed.

Railway Li-ion Battery Market Segmentation

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• By Type Analysis

According to type, the market can be segmented into LFP Battery, Li-NMC Battery. LFP Battery is anticipated to be the leading segment.

• By Application Analysis

Based on application, the market can be divided into Autonomous Railway, Hybrid Railway. Autonomous Railway will be dominating segment.

Driving Factors

"Railway Infrastructure Development in Emerging Nations"

The speed and effectiveness of rail lines for the transportation of goods and people both increase with improvements to the infrastructure. In addition, a large expenditure is required to support the deployment of an autonomous train. The market for train batteries is increasing as governments in developing nations make significant investments to satisfy the needs of the most up-to-date technological configuration necessary for autonomous trains.

"Rising Use of Autonomous and Fast Trains Driving Market Growth"

Power lines are typically used to power high-speed and driverless trains, and the transportation system as a whole is thought to be a significant energy user. As a result, several energy-saving and storage solutions are used to increase performance. For instance, braking energy is converted into electricity and stored onboard energy storage devices using regenerative braking techniques. By implementing regenerative braking technology, the Delhi metro system in India was able to stop the emission of around 90,04 tons of carbon dioxide. The JR Kyushu Series BEC819, a battery-powered train, was successfully commercialized by Hitachi in 2017. It can go on stretches of track that are not electrified thanks to energy stored in batteries that are charged by alternating current overhead wires. Hitachi has also created a system that enables hybrid locomotives to function as electric railcars by equipping them with low-capacity emergency batteries that can be utilized in the event that the main batteries are unavailable for the hybrid rolling stock that generates electricity using a diesel engine and batteries. Battery adaption for high-speed rail systems as well as partially and completely autonomous train systems can thereby save operational and capital costs. The money saved can be utilized to fund research and development projects and to mitigate the increased investment and operating expenses resulting from the project's execution.

Restraining Factors

"High Operational and Capital Expenditure Costs For The High-Speed Rail System"

High infrastructure costs and budgetary restrictions have made it difficult for rising economies like Mexico, Indonesia, and others to embrace high-speed train networks. It was revealed in October 2021 that the contractors constructing the California bullet train have requested cost hikes of at least another billion dollars. The $100 billion project's financial situation is becoming more precarious due to ongoing cost hikes and the potential that similar issues may arise in the next years. Malaysia settled with Singapore in March 2021 for the termination of the Kuala Lumpur-Singapore High-Speed Rail (HSR) project for about USD 76.30 million (S$102.8 million). Malaysia settled with Singapore in March 2021 for the termination of the Kuala Lumpur-Singapore High-Speed Rail (HSR) project for about USD 76.30 million (S$102.8 million). Due to the project's high cost and negative environmental impact, the UK's high-speed rail line's completion dates for the Manchester/Leeds and Birmingham branches have recently been pushed back to 2031 and 2040, respectively. The project's projected cost has also nearly doubled from its initial budget of USD 65 billion to USD 130 billion. A 150 km long high-speed rail project in Indonesia was similarly halted in 2016. Because of this, it is anticipated that the high cost of infrastructure would limit the expansion of the high-speed train network in emerging economies, which will have an impact on demand.

Railway Li-ion Battery Market Regional Insights

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"Asia Pacific Region Is Anticipated to Hold the Greatest Market Share"

In the Asia-Pacific region, the need for rolling stock power conversion systems has increased year over year. Due to its extensive rail network, rising urbanization, and government measures to promote the development of energy-efficient transportation, the area now leads the world in rolling stock production, and it is anticipated that it will continue to do so during the projected period. Furthermore, Asian nations like China intend to expand the network to 45,000 kilometers by 2030. Since China operates a large number of high-speed trains, suburban trains, and urban transit trains, it is anticipated that China will become the world's largest market for railway batteries. Additionally, the Indian Railways are undergoing a number of advancements and have set an objective. Additionally, the Indian Railways are undergoing a number of changes and have set a goal of electrifying 7,000 RKM by 2020–21. Additionally, by 2024, the Indian Railways hope to have all of their routes electrified. Manufacturers of train batteries will have a lot of chances as a result in the near future.

Key Industry Players

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

• Saft Batteries
• Hoppecke
• GS Yuasa
• Toshiba
• Hitachi
• Leclanché
• AKASOL AG
• Kokam

Report Coverage

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.