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Europe Battery Market - Growth, Trends and Forecasts (2020-2025)

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  • 120 Pages
  • May 2020
  • Region: Europe
  • Mordor Intelligence
  • ID: 5025468
UP TO OFF until Sep 30th 2023
he market for battery in Europe is expected to grow approximately at a CAGR of 15.52% during the forecast period of 2020-2025. 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.
  • The automotive battery segment is expected to hold significant share in the Europe battery market owing to the increasing demand from new vehicles produced in the region, and the segment is expected to be the leading end-user for lithium-ion battery in upcoming years.
  • 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 major equipment that dominate 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 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 increasing automotive industry during the forecast period.

Key Market Trends

Automotive Battery Segment is 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.
  • Norway is the largest electric vehicles market in Europe. The total EV demand in Norway accounted for 72.69 thousand units in 2018 and witnessed a CAGR of 53.53% over the period, 2013-2018.
  • The other major nations in Europe experiencing strong growth of EVs are Germany, the United Kingdom, the Netherlands, Portugal, Sweden, Finland, and France, amongst others.
  • Policy support enables market growth by making vehicles appealing to consumers, reducing risks for investors, and encouraging manufacturers to develop electric vehicle on a large scale.
  • Falling battery prices and improving technology are expected to bring price-competitive electric vehicles to the market, creating demand for battery technologies.

Germany is Expected 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, as can be seen in the chart beside. 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. Additionally, in July 2018, CATL announced the plans of building its first battery manufacturing facility in Germany. In order to further fast track battery manufacturing, European Battery Alliance was established in 2017, with an aim of creating a competitive manufacturing value chain in the European region. The Alliance expects that Europe will be able to capture a battery market of up to EUR 250 billion annually, from 2025.
  • 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.
  • Moreover, in February 2019, EnBW announced plans of building one of the largest solar parks in Germany, in the northeastern region of Brandenburg, thereby, enabling the country to achieve its 2025 target. Hence, such developments are expected to create demand for lithium-ion batteries as ESS.
  • Additionally, being the largest economy in the European Union, the country has a relatively robust internet ecosystem. Furthermore, the demand for batteries is expected to benefit from the developments in the country's telecommunication sector. The total revenue of the telecommunications industry in Germany was estimated to be almost EUR 57 billion, in 2018.
  • As a result, owing to the increasing demand from automotive, telecommunications and renewable sector, the battery demand in Germany is likely to witness significant growth in the coming years.

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., FIAMM SpA, Duracell Inc., GS Yuasa Corporation, LG Chem Ltd.

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Table of Contents

1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2025
4.3 Recent Trends and Developments
4.4 Battery/Raw Material Price Trends and Forecast, by Major Technology Type (in USD per kWh or USD per tonne)
4.5 International Trade Statistics (Import/Export Data), by Major Technology Type, By Major Countries, in USD
4.6 Government Policies and Regulations
4.7 Market Dynamics
4.7.1 Drivers
4.7.2 Restraints
4.8 Supply Chain Analysis
4.9 Porter's Five Forces Analysis
4.9.1 Bargaining Power of Suppliers
4.9.2 Bargaining Power of Consumers
4.9.3 Threat of New Entrants
4.9.4 Threat of Substitutes Products and Services
4.9.5 Intensity of Competitive Rivalry
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 Batteries (HEV, PHEV, and EV)
5.3.2 Industrial Batteries (Motive, Stationary (Telecom, UPS, Energy Storage Systems (ESS), etc.))
5.3.3 Portable Batteries (Consumer Electronics, etc.)
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
6.1 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 Chem Ltd

Companies Mentioned

A selection of companies mentioned in this report includes:

  • BYD Company Limited
  • Contemporary Amperex Technology Co. Limited
  • Saft Groupe S.A.
  • Tesla Inc.
  • Duracell Inc.
  • GS Yuasa Corporation
  • LG Chem Ltd