Europe Battery Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 13.44 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Europe Battery Market Analysis
Europe battery market is estimated to be at USD 23.34 billion by the end of this year and is projected to reach USD 43.84 billion in the next five years, registering a CAGR of 13.44% during the forecast period.
- Over the medium term, major factors driving the market include declining lithium-ion battery prices, rapid adoption of electric vehicles, growing renewable sector, and increased sale of consumer electronics.
- On the other hand, the demand-supply mismatch of raw materials will likely hinder market growth during the forecast period.
- Nevertheless, the increasing demand for the fast delivery of products pushed for improvements in the logistics and distribution business in the European region will likely provide ample opportunities for Li-ion batteries in the material handling industry in the coming years.
- Germany is expected to witness significant growth during the forecast years due to the increasing automotive industry during forecast period.
Europe Battery Market Trends
Automotive Segment Expected to Hold Significant Share
- The automotive sector is expected to be one of the major end-user segments for lithium-ion batteries in the near future. The penetration of electric vehicles is anticipated to provide a massive impetus for the lithium-ion battery industry's growth.
- Various vehicle types are now available globally, featuring increasing degrees of hybridization and electrification. There are various types of vehicles, including hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles, and electric vehicles (EVs).
- As the initiator of the Paris Climate Pact, Europe promoted the shift from internal combustion vehicles to EVs and has registered high growth over the recent period.
- In May 2023, France announced to launch its first battery factory for electric cars. Construction of the battery industry is under the reindustrialisation' plan for France. The 'gigafactory' opening in Billy-Berclau is owned by Automotive Cells Company, a partnership between energy giant TotalEnergies, Mercedes-Benz and Stellantis, which produces a range of brands including Fiat, Peugeot, and Chrysler.
- Further, electric vehicle battery manufacturing has also gained momentum in Sweden in recent years. The Swedish lithium-ion battery manufacturer, Northvolt, raised around USD 2.75 billion in June 2021 to expand its factory in Northern Sweden to keep up with the growing demand for electric cars.
- According to the Ministry of Ecological Transition and Territorial Cohesion, approximately 402,700 battery electric vehicles were part of the French fleet of private cars in 2022, an increase of 64.4% over 2021.
- Therefore, owing to the above points, the automotive segment is expected to dominate the European battery market during the forecast period.
Germany to Witness Significant Growth
- Moreover, the automobile industry in Germany is one of the country's largest and most significant industries. German car manufacturers are known for producing high-quality, innovative, popular vehicles worldwide. The German government has played an important role in supporting the automobile industry, providing financial incentives for research and development, and promoting policies encouraging electric vehicle adoption.
- According to Federal Motor Transport Authority, Germany has seen a significant increase in the number of new electric cars registered in recent years. So far, in 2022, 470,559 new electric cars have been registered, representing a growth of 32.19% compared with the previous year's figures.
- Germany has been attracting investments from other countries worldwide to develop lithium-ion battery manufacturing facilities. For instance, in March 2023, Mercedes-Benz announced to set up green battery recycling factory in Germany. The plant will have an annual capacity of 2500 tonnes and will contribute to the production of more than 50,000 battery modules for new electric vehicles of the company.
- The country is expected to have fourteen million electric cars on the road by 2030, which is 40% higher than the country's previous target set for 2030, mainly due to attempts to comply with increasingly stringent emissions rules, leading to a rise in electric vehicle sales. Moreover, the country's government's target of reaching one million electric vehicles by 2020 was met in July 2021.
- Moreover, there has been large-scale adoption of solar power in the country. According to Germany's Renewable Energy Act (EEG), the country has set a target of achieving a share of 40-45% of renewable energy sources out of the total energy consumption in the country by 2025. As a result, there has been significant growth in solar installed capacity, as seen in the chart beside.
- As a result, owing to the increasing demand from the automotive and renewable sectors, the battery demand in Germany will likely witness significant growth in the coming years.
Europe Battery Industry Overview
The Europe battery market is fragmented with the presence of a number of players. Some of the major players (not in particular order) include BYD Company Limited, Contemporary Amperex Technology Co. Limited, Saft Groupe S.A., Tesla Inc., and FIAMM SpA., among others.
Europe Battery Market Leaders
Saft Groupe SA
FIAMM SpA
BYD Co Ltd
Contemporary Amperex Technology Co. Ltd
Tesla Inc.
*Disclaimer: Major Players sorted in no particular order
Europe Battery Market News
- May 2023: Two electric vehicle battery manufacturers announced plans to spend around EUR 10 billion on factories in Europe. Both plants are expected to start production in after two years and supply batteries to European car producers.
- May 2023: Li-Cycle Holdings Corp. and Glencore International AG announced signing a letter of intent to jointly study the feasibility of a hub facility in Italy. The Portovesme Hub would produce critical battery materials, including nickel, cobalt and lithium, from recycled battery content.
Europe Battery Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2028
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.1.1 Declining Lithium-ion Battery Prices
4.5.1.2 Rapid Adoption of Electric Vehicles
4.5.2 Restraints
4.5.2.1 The Demand-Supply Mismatch of Raw Materials
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION AND ANALYSIS
5.1 Type
5.1.1 Primary Battery
5.1.2 Secondary Battery
5.2 Technology
5.2.1 Lead-Acid Battery
5.2.2 Lithium-Ion Battery
5.2.3 Other Technologies
5.3 Application
5.3.1 Automotive (HEV, PHEV, and EV)
5.3.2 Industrial Batteries (Motive, Stationary (Telecom, UPS, Energy Storage Systems (ESS), etc.))
5.3.3 Consumer Electronics
5.3.4 Other Applications
5.4 Geography
5.4.1 United Kingdom
5.4.2 Germany
5.4.3 France
5.4.4 Rest of Europe
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 BYD Company Limited
6.3.2 Contemporary Amperex Technology Co. Limited
6.3.3 Saft Groupe S.A.
6.3.4 Tesla Inc.
6.3.5 FIAMM SpA
6.3.6 Duracell Inc.
6.3.7 GS Yuasa Corporation
6.3.8 LG Energy Solutions, Ltd.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Increasing Demand for the Fast Delivery of Products Pushed for Improvements in the Logistics and Distribution Business
Europe Battery Industry Segmentation
A battery is a device that converts chemical energy contained within its active materials directly into electric energy by means of an electrochemical oxidation-reduction (redox) reaction.
European battery market is segmented by type, technology, application, and geography. By type, the market is segmented into primary batteries and secondary batteries. By technology, the market is segmented into lead-acid batteries, lithium-ion batteries, and other technologies. By application, the market is segmented into automotive batteries (HEV, PHEV, and EV), industrial batteries (motive, stationary (telecom, UPS, energy storage systems (ESS)), etc.), consumer electronics, and others. The report also covers the market size and forecasts for the battery market across major countries such as United Kingdom, Germany, France and Rest of Europe in the region. For each segment, the market sizing and forecasts have been done based on revenue (USD billion).
| Type | |
| Primary Battery | |
| Secondary Battery |
| Technology | |
| Lead-Acid Battery | |
| Lithium-Ion Battery | |
| Other Technologies |
| Application | |
| Automotive (HEV, PHEV, and EV) | |
| Industrial Batteries (Motive, Stationary (Telecom, UPS, Energy Storage Systems (ESS), etc.)) | |
| Consumer Electronics | |
| Other Applications |
| Geography | |
| United Kingdom | |
| Germany | |
| France | |
| Rest of Europe |
Europe Battery Market Research FAQs
What is the current Europe Battery Market size?
The Europe Battery Market is projected to register a CAGR of 13.44% during the forecast period (2024-2029)
Who are the key players in Europe Battery Market?
Saft Groupe SA, FIAMM SpA, BYD Co Ltd, Contemporary Amperex Technology Co. Ltd and Tesla Inc. are the major companies operating in the Europe Battery Market.
What years does this Europe Battery Market cover?
The report covers the Europe Battery Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Europe Battery Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Europe Battery Industry Report
Statistics for the 2024 Europe Battery market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Battery analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
