Europe Battery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The market is segmented by Type (Primary, and Secondary Battery), Technology (Lead-Acid Battery, Lithium-Ion Battery, and Other Technologies), Application (Automotive (HEV, PHEV, EV), Industrial Batteries (Motive, Stationary (Telecom, UPS, Energy Storage Systems (ESS), etc.)), Consumer Electronics, and Others), and Geography (United Kingdom, Germany, France, and Rest of Europe).

Market Snapshot

europe battery market forecast
Study Period: 2019-2027
Base Year: 2021
CAGR: 7.15 %
europe battery market key players

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Market Overview

The Europe battery market is expected to grow at a CAGR of 7.15%, accounting from USD 14.5 billion in 2020 to USD 23 billion in 2027. In 2020, due to disruptions in supply chains of battery raw materials such as lithium and cobalt, the major battery manufacturers and end-users witnessed a significant slowdown in their businesses. For instance, in 2020, carmakers such as Daimler, Volkswagen, Volvo, and Tesla announced to shut down some of their factories for some time in response to the COVID-19 pandemic. 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 is likely to hinder the market growth during the forecast period.

  • The automotive battery segment is expected to hold a significant share in the European battery market, owing to the increasing demand from new vehicles produced in the region.
  • The dynamics of the logistics business, such as increasing cost pressure, tight timelines, and unpredictable order peaks, are changing the requirements placed on warehouse equipment and forklifts. Cranes and forklifts are the primary equipment that dominates the material handling industry. Electric forklifts typically use lead-acid batteries as a power source. Moreover, lithium-ion forklift batteries can be fast-charged and can maintain their capacity in cold temperatures better than their lead-acid counterparts. The increasing demand for the fast delivery of products pushed for improvements in the logistics and distribution business in the European region is likely to provide ample opportunities for the 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.

Scope of the report

The Europe battery market report includes:

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

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Key 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 growth.
  • A range of different vehicle types is 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).
  • Europe, being the initiator of Paris Climate Pact, promoted the shift from internal combustion vehicles to EV and has registered high growth over the recent period.
  • The current Norwegian government has decided to keep the incentives for zero-emission cars until the end of 2021. After 2021, the incentives is likely to be revised and adjusted parallel with the market development. The VAT exemption for zero-emission vehicles in Norway has been approved by the European Free Trade Association Surveillance Authority (EFTASA) until the end of 2022.​
  • In early December 2020, Britishvolt announced that they are planning to build the United Kingdom's first electric vehicle battery factory at Blyth, northeast England, with a total investment of USD 3.4 billion, creating 3,000 jobs at the site. The new plant will use renewable energy, including the potential to use hydropower generated in Norway and transmitted 447 miles under the North Sea via the North Sea Link project's inter-connector. Further, the plant aimed for more than 300,000 lithium-ion batteries per year, with the expected completion by the end of 2023 ​.
  • Further, electric vehicle battery manufacturing has also been gaining 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. In March 2021, the company also signed a ten-year, USD 14 billion electric vehicle battery supply deal with Volkswagen. The agreement between Northvolt and VW brings the Swedish battery maker’s total contracts to USD 27 billion since 2019.​
  • Therefore, owing to the above points, automotive segment is expected to dominate the European battery market during the forecast period.
europe battery market share

Germany to Witness Significant Growth

  • The automotive industry plays a vital role in the German economy. The automotive industry in Germany is witnessing growth in electric cars. Additionally, the electric car battery sales are expected to grow to USD 60 billion, by 2030. Thus, with the growth in adoption of electric cars, there exists significant growth potential for battery manufacturing.
  • Germany has been attracting investments from other countries across the world for the development of lithium-ion battery manufacturing facilities. For instance, in May 2019, a Chinese battery manufacturer, Farasis Energy, announced to invest USD 674 million for building a lithium-ion battery manufacturing plant in Germany.
  • In July 2020, the German government announced that it would invest more than EUR 1.5 billion in battery cell research and production, starting with a EUR 300 million grant awarded to battery company Varta. Along with Varta, four other companies with battery-cell projects in Germany will also be receiving grants from the Ministry of Economic Affairs and Energy, including BASF, BMW Group, Opel, and Umicore. Further, in November 2020, SVOLT Energy Technology intends to build its first European lithium-ion cell gigafactory in Saarlouis, Germany. The 24 GWh facility is expected to start production by the end of 2023​.
  • 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 automotive and renewable sector, the battery demand in Germany is likely to witness significant growth in the coming years.
europe battery market report

Competitive Landscape

The Europe battery market is fragmented with the presence of a number of players. Some of the major players include BYD Company Limited, Contemporary Amperex Technology Co. Limited, Saft Groupe S.A., Tesla Inc., and FIAMM SpA.

Recent Development

  • In December 2020, Spain’s gas and power company, Naturgy, connected the vanadium redox flow battery to its wind farms Vega I and II in Zamora, Spain. The battery was supplied by storage company E22 and is the first vanadium redox flow battery to be connected to a wind farm in Spain. The VCUBE250 battery storage system can be integrated with systems ranging between 250 kW to 330 kW and has a life exceeding 12,000 cycles at full power. Its storage capacity can be extended from 2.5 hours at maximum capacity to 10 hours.
  • In July 2021, Nissan Motor Co Ltd announced that the company would build a battery factory near its vehicle manufacturing plant in Sunderland, northeastern England.  Envision AESC, a Chinese-owned company that already provides Nissan with batteries at the assembly plant in Sunderland, will invest EUR 450 million in the new gigafactory to supply electric cars made at the site. ​

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions

  2. 2. EXECUTIVE SUMMARY

  3. 3. RESEARCH METHODOLOGY

  4. 4. MARKET OVERVIEW

    1. 4.1 Introduction

    2. 4.2 Market Size and Demand Forecast in USD billion, till 2027

    3. 4.3 Recent Trends and Developments

    4. 4.4 Government Policies and Regulations

    5. 4.5 Market Dynamics

      1. 4.5.1 Drivers

      2. 4.5.2 Restraints

    6. 4.6 Supply Chain Analysis

    7. 4.7 Porter's Five Forces Analysis

      1. 4.7.1 Bargaining Power of Suppliers

      2. 4.7.2 Bargaining Power of Consumers

      3. 4.7.3 Threat of New Entrants

      4. 4.7.4 Threat of Substitutes Products and Services

      5. 4.7.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION AND ANALYSIS

    1. 5.1 Type

      1. 5.1.1 Primary Battery

      2. 5.1.2 Secondary Battery

    2. 5.2 Technology

      1. 5.2.1 Lead-Acid Battery

      2. 5.2.2 Lithium-Ion Battery

      3. 5.2.3 Other Technologies

    3. 5.3 Application

      1. 5.3.1 Automotive (HEV, PHEV, and EV)

      2. 5.3.2 Industrial Batteries (Motive, Stationary (Telecom, UPS, Energy Storage Systems (ESS), etc.))

      3. 5.3.3 Consumer Electronics

      4. 5.3.4 Other Applications

    4. 5.4 Geography

      1. 5.4.1 United Kingdom

      2. 5.4.2 Germany

      3. 5.4.3 France

      4. 5.4.4 Rest of Europe

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 BYD Company Limited

      2. 6.3.2 Contemporary Amperex Technology Co. Limited

      3. 6.3.3 Saft Groupe S.A.

      4. 6.3.4 Tesla Inc.

      5. 6.3.5 FIAMM SpA

      6. 6.3.6 Duracell Inc.

      7. 6.3.7 GS Yuasa Corporation

      8. 6.3.8 LG Energy Solutions, Ltd.

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Europe Battery Market market is studied from 2019 - 2027.

The Europe Battery Market is growing at a CAGR of 7.15% over the next 5 years.

The Europe Battery Market is valued at 14 Billion USD in 2019.

The Europe Battery Market is valued at 23 Billion USD in 2027.

Saft Groupe SA, FIAMM SpA, BYD Co Ltd, Contemporary Amperex Technology Co. Ltd, Tesla Inc. are the major companies operating in Europe Battery Market.

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