West Europe Battery Market - Growth, Trends and Forecasts (2023-2028)

The West Europe Battery Market is expected to register a CAGR of over 5% during the forecast period.

COVID-19 negatively impacted the market in 2020. Presently the market is likely to reach pre-pandemic levels.

Key Highlights

• Over the medium term, increasing the adoption of electric vehicles in the region and the future outlook toward cleaner energy sources are expected to drive the market's growth.
• On the other hand, variations in the prices of battery raw materials due to a mismatch in demand and supply are expected to hamper the West Europe Battery Market growth during the forecast period.
• Nevertheless, increasing manufacturing facilities across the West Europe region is likely to create lucrative growth opportunities for the West Europe Battery Market in the forecast period.
• Germany dominates the market and is likely to witness the highest CAGR during the forecast period. This growth is attributed to the increasing renewable energy installations and phasing from conventional fuel to cleaner energy sources.

West Europe Battery Market Trends

Lithium-ion Batteries are Expected to Dominate the Market

• Lithium-ion batteries are a rechargeable type of battery that is commonly used in electronic devices and energy vehicles. These batteries also store energy from renewable energy sources such as solar and wind.
• Europe's demand for lithium-ion batteries for electric vehicles is expected to amount to 325 gigawatt-hours in 2030. This represents almost the major of the global demand for electric vehicle lithium-ion batteries. Many European countries committed to combustion engine phase-out will substantially increase battery demand in this time frame.
• Moreover, the countries in the region are wanted domestic investment and manufacturers. Countries such as Germany and France have planned to decrease the dominance of Asia-Pacific companies in the European region, affecting local companies' involvement in the area.
• In August 2022, Eurocell confirmed that it is in advanced discussions to build its first European Gigafactory in the Netherlands, supplying battery cells to the energy storage and e-mobility ecosystem across the continent. Eurocell intends to construct its new Gigafactory in two phases reaching total capacity as early as 2025. The first phase will produce advanced battery cells at scale by early 2023 for existing European customers. The second phase, potentially on the same site, will produce more than 40 million cells annually by 2025.
• Hence, owing to the above points, the lithium-ion segment is expected to dominate in the West Europe Battery Market during the forecast period.

Germany Expected to Dominate the Market

• Germany being the largest economy in the European Union has been attracting investments from other countries across the globe for the development of the batteries manufacturing facilities.
• Moreover, the government has targeted increasing the installed renewable energy capacity and has planned to generate 40% to 45% of the total energy consumption from renewable energy by 2025. This will likely drive the battery market as batteries can be used to store extra renewable energy. In 2021, Germany's total installed solar capacity was 58.461 gigawatts (GW), compared to 53.721 gigawatts (GW) in 2020,
• The automotive industry in Germany is witnessing rapid growth in the electric vehicles market, thus driving the country's battery market. Moreover, in February 2020 government of Germany officially announced to increase in environmental bonuses on electric vehicles (EV) with its publication in the German Federal Gazette. The new subsidy rates apply to all vehicles registered after 4th November 2019, and the directive will expire on 31 December 2025 or when the budget is exhausted. This step by the government is expected to attract consumers and is likely to attract investment by major players.
• In March 2022, Battery manufacturing startup Northvolt announced plans to build a new battery cell gigafactory in Germany. The factory was expected to open in 2025 with an annual production capacity of 60 gigawatt-hours and enough to supply around one million cars annually.
• Hence, owing to the above points, Germany is expected to dominate the West Europe battery market during the forecast period.

West Europe Battery Market Competitor Analysis

The West Europe Battery Market is fragmented in nature. Some of the major players in the market (not in particular order) include Toshiba Corp, Contemporary Amperex Technology Co. Limited, BYD Company Ltd., Panasonic Corporation, and Duracell Inc.

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• The market estimate (ME) sheet in Excel format
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