Train Battery Market Report (2024 - 2030) - Size and Share Analysis, Industry Trends, and Growth Forecasts

Train Battery Market Analysis

The train battery market achieved revenue of USD 267.6 million in 2023, which is expected to grow at a rate of 7.0% during 2024–2030, to reach USD 429.5 million by 2030. The surging need for high-speed trains and metros, advancements in energy storage systems, and increasing funding for railway-electrified network projects are some main reasons for the growth of this market. Furthermore, government support and encouragement also play a significant role in the increment of this industry.

To reuse the kinetic energy, high-speed trains, rapid rail, and metros use the regenerative braking system. When the brake is applied, instead of just dissipating the energy in the form of heat, it stores this energy in the battery for later use, which can be used again for power acceleration or backup systems. This action improves the overall energy efficiency and reduces operational costs.

As funding for railway electrification increases, the expansion and the upgradation of networks also rise. For example, attaching new links between cities, spreading current routes, and improving the overall network arrangement.

As the key source for trains is electricity, train battery also be used to provide power in sections where the use of wire is not workable. So, as the number of station links increases, there is a high demand for such batteries.

Many governments around the globe are creating new policies and encouraging the adaptation of eco-friendly energy and electric transportation by providing financial resources to promote companies and focusing on battery development and manufacturing, which directly boosts the market growth.

For example, in April 2023, the Industrial Battery and Charger Services Limited (IBCS), located in the U.K., was purchased by EnerSys. This helps EnerSys to increase the services for electric vehicles and to focus on eco-friendly energy in the country.

In addition, Wabtec Corporation introduced FLXdrive in September 2021. It is the first long-lasting train engine that works using battery-powered electricity.

Train Battery Market Trends & Drivers

Development of Urban Railway Networks

• As cities expand and more people live in urban areas, the need for better transportation also increases to fulfill this demand. Thus, cities are expanding their train networks.
• Where space is limited due to many buildings and hindrances, setting up a wired system is very difficult and costly, so using trains with batteries is very simple and more cost-effective because such networks do not need to build a wired system. This makes it simpler to build connectivity between cities in crowded areas.
• Train with batteries are able to work with or without an electric network due to which they can go anywhere, like inside tunnels and on bridges where building infrastructure for electricity is very difficult.

Increase in Acceptance of Self-Operated and High-Speed Trains

• The increasing acceptance of independent and high-speed railways is a significant driver in the enlargement of this market.
• The major source of energy for high-speed trains is electricity, which is provided by building an electric infrastructure.
• High-speed trains are known as the fastest ground-based modes of transportation. According to the US Department of Energy, in comparison to roadways, rail systems are able to transport more passengers per hour per meter. This factor is the main reason for the high-speed rail network expansion globally.
• In order to increase performance with minimal wasted resources, multiple energy-saving and storage devices are being implemented.
• Furthermore, the addition of good announcement and signaling systems increases the safety and dependability of self-operated trains.
• Regular monitoring and active control systems ensure unbroken operations and enable quick responses to possible risks or breaks.
• Additionally, investments in upgrading infrastructure and innovation efforts continue to boost the progress and growth of high-speed rail networks globally, due to which the demand for train batteries is rising constantly. 

Technical Challenges Faced by Market Players

• Lead-acid and lithium-ion batteries are primarily used in train systems with the aim of improving eco-friendly environments. But both batteries have some technical challenges in terms of longevity, charging capabilities, and disposal due to the presence of poisonous components.
• Both these batteries have a very short lifetime and the charging of these batteries is also slow due to which their use may decrease in the coming years.
• Ni-Cd batteries are commonly used in railway applications, but these batteries face a charge memory problem, due to which these batteries reduce their overall efficiency.
• Additionally, these batteries can have a very short number of charge cycles, which creates a negative effect on their dependability and lifetime.

In-Depth Segmentation Analysis

Battery Type Analysis

• Lithium-ion battery is the fastest-growing category, advancing at a CAGR of 8% from 2024 to 2030. Also, the category dominates the market.
• These batteries are able to store a lot of energy in a small space and are lightweight, which makes them ideal in those applications where space and weight are major factors.
• The lifecycle of a lithium-ion battery is the highest in comparison to other batteries, which means it is able to charge and discharge many times before suffering through any major failure.
• Thus, these batteries are more profitable and long-lasting, particularly in applications where charging and discharging of battery is frequently done, for example, trains.
• Additionally, the demand for lithium-ion batteries in trains has risen since Alstom and VMS revealed a train that runs completely on batteries and can travel up to 120 km without needing to recharge.

Below are the various types of batteries, which are studied in this report:

• Lead-Acid
• Nickel-Cadmium
• Lithium-Ion (Fastest-Growing and Largest Category)
• Others

Application Analysis

• Based on battery application, the train lighting category held the largest market share, of 55%, in 2023. It is also expected to witness the fastest growth in the coming years.
• Train lighting is the main component of a train because it helps travelers see inside the train and makes them feel harmless and relaxed while traveling.

Below are the applications that are studied in this report:    

• Train Lighting (Largest and Fastest-Growing Market)
• Train Air Conditioning
• Engine Starting
• Railway Signaling and Telecommunications
• Others

Battery Technology Analysis

• The valve regulated lead acid (VRLA) category holds the largest share in the market. This is because VRLA batteries are more effective due to their capacity to prevent leakage of hydrogen and oxygen gases during charging and discharging.
• VRLA batteries are widely used by original equipment manufacturers (OEMs) because of their lower cost and stable working.
• They are commonly used for the replacement of older rolling stock fleets, as these batteries have wide-ranging suitability for a variety of railway sector usages. These operations make them a good choice for OEMs seeking efficient power solutions.

Below are the battery technologies that are studied in this report:

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

Train Batteries - Region and Country Analysis

• Geographically, the APAC train battery market held the largest revenue share, of 40%, in 2023. This is mainly due to the increasing railway network in most Asian countries.
• For instance, in China, the high-speed railway track length is more than 43,700 km, as of 30 November 2023.
• India has the fourth largest railway network with a running track length of 104,647 km.
• The length of the railway track in Japan is 27,600 km.
• Additionally, rail networks are continuously expanding. To reach new locations or handle more traffic, new tracks are being laid down and old ones are being expanded. Moreover, there is a high development in the direction of electrifying these railway lines.
• There are various advantages of using electric trains, such as they are generally less noisy, generate less harmful substances, and use energy more efficiently than trains powered by diesel.

Further, regions and countries analyzed for this report include:

• North America
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe (Fastest-Growing Regional Market)
  • Germany (Largest Country Market)
  • U.K. (Fastest-Growing Country Market)
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Largest Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia
  • South Africa (Largest Country Market)
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

Competitive Analysis

The market is fragmented in nature, owing to the presence of many domestic and international players. The continual appearance of new entrants is impacting the established and new service providers. Railway authorities have the choice to select from a variety of train battery solutions to fulfill their requirements, as they get various options from numerous suppliers.

Train Battery Manufacturing Companies News

• To improve motive power services to strengthen its position within the U.K. market, EnerSys acquired Industrial Battery and Charger Services Limited (IBCS), in April 2023.
• In the U.S., for establishing a lithium battery giga factory, two companies EnerSys and Verkor SAS signed an MOU to provide a bright opportunity for both companies and allow EnerSys to improve cell size in the battery solution for the customers, in January 2023.
• An industrial partnership was formed by Exide Industries Ltd. with SVOLT Technology Ltd., China, in March 2022. This helped grow India’s lithium-ion battery manufacturing.