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

The Europe Battery Systems Market is segmented by Battery Type (Li-ion, Lead-acid), Vehicle Type (Passenger Vehicles and Commercial Vehicles), and Countries (Germany, United Kingdom, Norway, Sweden, France, the Netherlands, and the Rest of Europe). The report offers the market size in value (USD Billion) and forecasts for all the above segments.

Market Snapshot

Europe Battery Systems for Electric Vehicles Market_Overview
Study Period: 2018-2027
Base Year: 2021
Fastest Growing Market: Europe
Largest Market: Europe
CAGR: >15 %

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Market Overview

The Europe Battery Systems Market was valued at USD 10.11 Billion in 2021 and is expected to reach USD 23.12 Billion by 2027, registering a CAGR of 15.01% during the forecast period , 2022-2027.

The COVID-19 had a very adverse impact on the Europe battery systems market caused by manufacturing shutdowns, lockdowns, and trade restrictions. Furthermore, the fall in automotive production, reduction in automobile sales due to travel restrictions, and lack of labor adversely impacted the market. Since automotive manufacturers have resumed operations due to steadily rising automobile sales in countries with a limited number of COVID-19 cases, the market is likely to recover during the forecast market. 

Furthermore, the manufacturers are implementing contingency plans to mitigate future business uncertainties to retain continuity with clients in the critical sectors of the automobile industry. For instance, in 2021 Europe saw 2.27 million electric vehicle sales up from 1.36 million in 2020, registering a growth of 66.91% on a Year on Year basis.

Over the long term, increasing investments in R&D by major industry players, setting up of new battery manufacturing plants and a rise in sales of electric and hybrid vehicles as well as strong incentives from the government for promoting elctromobility are creating demand in the automotive and transportation industry with a surge in sales of battery systems for electric vehcies. High cost of battery electric vehicles and heavy investment needed to set up battery gigafactories are some of the major

Key players in the market are expanding their production capacity to cater to the increased demand for battery systems. For instance, in May 2022 BMW Group announced to start the production of battery cells at their Parsdorf plant in Germany , by late 2022. In July 2022, Daimler SE said thet it will set up eight new battery manufacturing plants in the world, including four in Europe as a part of its USD 47 billion plan to go all electric by 2030.

Germany and Sweden are the next two largest markets for battery systems for electric vehicles due to the rapidly rising electric vehicle sales and major investments by battery manufacturers to set up battery gigafactories in these countries.Norway is the largest market by value because 86% of the new vehicles sold in Norway in 2021 were battery electric vehicles. Government incentives to elcetric vehicles are further expected to support market growth. 

Scope of the Report

A battery for an electric vehicle is a type of rechargeable battery used to power an electric vehicle. Batteries are used to power all three kinds of electric vehicles battery electric vehicles, hybrid vehicles, and plug-in hybrid vehicles.

The Europe battery systems for electric vehicles market has been segmented by battery type, vehicle type, component type, and country. By Battery type, the market is segmented into Li-ion, and Lead-acid. By Vehicle type, the market is segmented into Passenger Vehicles and Commercial Vehicles.

By Country, the market is segmented into Germany, the United Kingdom, Norway, Sweden, France, the Netherlands, and the Rest of Europe. For each segment market sizing and forecast have been done on basis of value (USD billion).

Vehicle Type
Passenger Vehicles
Commercial Vehicles
Battery Type
Li-ion
Lead Acid
Geography
Germany
United Kingdom
Italy
France
Spain
Rest of Europe

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Key Market Trends

Demand for Electric Vehicles Vehicles will Drive Demand in the Region

The electric vehicle market in Europe is expanding rapidly in sales as consumers are seeking environmentally friendly vehicles which offer very low running costs. For instance, Europe saw 2.27 million electric vehicle sales in 2021 up from 1.36 million in 2020, registering a growth of 66.91% on a Year on Year basis. This potential shift in the consumer preferences driven by stringent automotive emission norms, government incentives to promote electromobility, and very high levels of environmental consciousness amongst vehicle buyers in markets like Scandinavian countries, Germany, the Netherlands, France, and the U.K. have been responsible for this phenomenal rise in the popularity of electric vehicles. 

Li-ion battery likely to be dominated the market during the forecast period. Li-ion batteries are more eco-friendly, last longer and offer good driving range for EVs than lead acid batteries. For instance, 90% of battery electric vehicles sold in Europe in 2021 were powered by Li-ion batteries. Thus new innovations in the elctromobilty, adoption of stringent automotive emission norms and fuel efficiency standards, government incentives for the sales of electric vehicles and setting up of many new gigafactories in the region the market for electric vehicle battery systems is expected to grow over the forecast period. For instance,

  • In September 2022, Chinese battery manufacturer SVOLT announced to setup its second battery gigafctory in Europe at Brandenburg, Germany with an annual capacity of 16 GWh. The gigafatory is expected to be operational by early 2025.
  • In March 2022, European Commission approved an aid of USD 230 million for the construction of an electric vehicle battery plant of SK Innovation in Kozep-Duantul region in Hungary. The plant will have an annual capacity of 30 GWh and SK innovation will invest USD 1.6 billion in the plant.
Europe Battery Systems for Electric Vehicles Market_Li-Ion Battery to dominate the market

Germany is Expected to Dominate the Market During the Forecast Period

Germany segment of the market studied expected to hold significant share in the market during the forecast period. Various German automotive companies have made huge investments in electric vehicle technology, which includes batteries and related components which is expected to drive the country’s EV battery management system market in the forecast period.

Germany and Sweden are also major markets for elctric vehicle battery systems due to strong government incentives provided for purchasing electric vehicles, major investments into battery manufacturing and presence of startups entering the electric vehicle battery systems market. Thus, with companies coming up with new investments in this segment, the market for
battery systems for electric vehicles is expected to grow over the forecast period for the market. For instance,

  • In May 2022, Norwegian startup Morrow Batteries raised 100 million euros from ABB and Siemens to start local production of electric vehicle batteries in Norway by next year.
  • In February 2022, Freyr Battery announced to setup a manufacturing plant for electric batteries with an annual output of 25 GWh which will be operational in 2023.

Although Germany was a slow bloomer in its pro-electric plans, initially, it is introducing strategies to match the stricter emission standards. Electric mobility plays a central role in the federal government's climate protection program, which aims to achieve its 2030 climate targets mainly through transportation innovation. The country is introducing incentives and investments, like purchase grant, ownership tax, and company car tax, to promote clean cars.​ Such developments and trends in the market anticipated to enhance overall growth of German market during the forecast period. 

Europe Battery Systems for Electric Vehicles Market_Norway is the dominant market

Competitive Landscape

The Europe battery systems for an electric vehicle are moderately consolidated. The market is characterized by the presence of large players who have secured long-term supply contracts with major automotive OEMs as well as some startups which have secured fresh funding to set up battery manufacturing plants. These players also engage in joint ventures, mergers and acquisitions, new product launches, and product development to expand their brand portfolios and cement their market positions.

Some of the major players dominating the European market are LG Energy Solution, Samsung SDI, CATL, Panasonic Corp., and Northvolt AB. Key players are expanding their production capacity and entering into long-term contracts with EV manufacturers to secure their market position and stay ahead of the market curve. For instance,

  • In March 2022, Stellantis N.V. and LG Energy Solutions' joint venture Automotive Cells Company (ACC) announced to convert Stellantis' existing plant at Termoli, Italy into a battery gigafactory with an annual output of 120 GWh by 2030.
  • In March 2022, Swedish battery manufacturer Northvolt AB announced a new gigafctory at Schleswig-Holstein in Germany with an annual output of 60 GWh. The gigafactory will be operational by 2025.

Major Players

  1. LG Energy Solution

  2. Samsung SDI Europe GmbH

  3. Panasonic Industry Europe Gmbh

  4. Northvolt AB

  5. Contemporary Amperex Technology Ltd. (CATL)

Europe Battery Systems for Electric Vehicle Market- Market Concentration.jpg

Recent Developments

  • In August 2022, CATL (Contemporary Amperex Technology Ltd.) announced to set up its second European gigafactory at Debrecen, Hungary with an investment of USD 7.34 billion and an annual output of 100 GWh. the plant is expected to start operations by the middle of next year and will supply both cells and modules to leading European car manufacturers like Daimler SE, Stellantis N. V.and BMW Group. The gigafactory is CATL's second manufacturing facility in Europe.
  • In July 2022, Samsung SDI announced to set up its first R&D center in Europe in Munich, Germany. The R&D center will work together with local universities and startups that are working on next-generation battery technologies.
  • In July 2022, SK On an SK Innovation subsidiary secured financing of USD 2 billion from Euler Hermes, a trade credit insurance institution in Germany, Korea Trade Insurance Corporation, and Export-Import Bank of Korea for investments in a battery plant at Ivansca, Hungary.
  • In August 2022, Norwegian battery startup Morrow Batteries announced a joint venture with government agency Siva to build the first phase of its gigafactory in Norway. Siva will provide 67% of the planned investment of NOK 480 million for the plant at Arendal, Norway which will start construction in September. The plant will manufacture cost effective and sustainable battery cells.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION (Market Size in Value USD billion)

    1. 5.1 Vehicle Type

      1. 5.1.1 Passenger Vehicles

      2. 5.1.2 Commercial Vehicles

    2. 5.2 Battery Type

      1. 5.2.1 Li-ion

      2. 5.2.2 Lead Acid

    3. 5.3 Geography

      1. 5.3.1 Germany

      2. 5.3.2 United Kingdom

      3. 5.3.3 Italy

      4. 5.3.4 France

      5. 5.3.5 Spain

      6. 5.3.6 Rest of Europe

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Contemporary Amperex Technology

      2. 6.2.2 LG Chemicals

      3. 6.2.3 BYD Auto Co., Ltd.

      4. 6.2.4 Samsung SDI

      5. 6.2.5 Toshiba Corporation

      6. 6.2.6 Hitachi, Ltd.

      7. 6.2.7 Banner batteries

      8. 6.2.8 Northvolt AB

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

**Subject to Availability
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Frequently Asked Questions

The Europe Battery Systems for Electric Vehicles Market market is studied from 2018 - 2027.

The Europe Battery Systems for Electric Vehicles Market is growing at a CAGR of >15% over the next 5 years.

The Europe Battery Systems for Electric Vehicles Market is valued at 10 Billion USD in 2018.

The Europe Battery Systems for Electric Vehicles Market is valued at 23 Billion USD in 2027.

Europe is growing at the highest CAGR over 2021- 2026.

Europe holds highest share in 2021.

LG Energy Solution, Samsung SDI Europe GmbH, Panasonic Industry Europe Gmbh, Northvolt AB, Contemporary Amperex Technology Ltd. (CATL) are the major companies operating in Europe Battery Systems for Electric Vehicles Market.

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