Europe Battery Systems for Electric Vehicles Market Size

Europe EV Battery Systems Market Analysis

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.