Europe Lithium Ion Battery Market

Europe Market Study on Lithium Ion Batteries: High Preference for Phosphate Batteries to Be Witnessed

Market Snapshot

Newly released data from the Europe lithium ion battery market analysis by Persistence Market Research shows that demand enjoyed a robust year-on-year (YoY) growth of 8.4% in 2021 to reach a market valuation of US$ 10 Bn. Application in electric vehicles grew 11.5% to total a consumption of 20 GWh in 2021, while sales of pouch cell batteries were up 14.2% to 15 GWh.

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Companies

  • Panasonic Corporation
  • Samsung SDI Co., Ltd.
  • LG Chem Ltd
  • Enersys Inc.
  • SaftGroupe S.A.
  • CATL
  • Ultralife Corporation
  • Leclanché SA
  • Energizer Holdings, Inc.
  • Northvolt ABB
  • Excell Battery Co.
  • Triathlon Batteries Solutions, Inc.
  • KAYO Battery (Shenzhen) Company Limited
  • Duracell Inc.
  • Bestgo Battery Co., Ltd.

Key Points Covered in Europe Lithium Ion Battery Industry Survey:

  • Market Estimates and Forecasts (2016-2031)
  • Key Drivers and Restraints Shaping Market Growth
  • Segment-wise and Country-wise, Analysis
  • Competition Mapping and Benchmarking
  • Regional Intensity Mapping and Market Share Analysis
  • Key Product Innovations and Manufacturing Details
  • Demand Supply Scenario
  • COVID-19 Impact on Lithium Ion Battery Sales and How to Navigate
  • Recommendation on Key Winning Strategies

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Sales Analysis of Lithium Ion Batteries from 2016 to 2020 Vs Market Outlook for 2021 to 2031

From 2016 to2020, the Europe lithium ion battery market share expanded at a healthy CAGR of over 11% in terms of market size by value. Shift from fuel-based toward zero emission electric vehicles has caused a massive intake of lithium ion batteries by volume units in Europe.

Furthermore, in lieu of planned conformance to REACH norms and increased usage of electric bikes and scooters by individuals in the region has notably contributed to market growth in the last 5 years.

Initially, production and supply was confined to only a few enterprises, with the market primarily being reliant on imports. However, by gauging the prospective demand from end-use verticals and devising economies of scale based manufacturing, Europe is currently positioning itself into a major production hub with the influx of domestic companies venturing in the regional market as well as expansion of manufacturing by multinational enterprises in the region.

Persistence Market Research expects the market to expand at around 7.5% CAGR through 2031.

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What are the Opportunities for Lithium Ion Battery Suppliers in Europe?

Since a lot of countries in Europe are recovering from the COVID-19 pandemic, companies in these economies are vying for growth and plugging into advanced technologies to cater to standard configurations as well as valued-added proposition modules for specific needs.

To achieve this objective, direct production and supply to end users by battery manufacturers removing intermediary channels is being employed. This is done so as to gain prominence in terms of product positioning and brand image by bagging premium clientele as well as establishment of value chain consisting of design-to-engineering-to-pricing and supply to replacement process.

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What are the Roadblocks that Lithium Ion Battery Manufacturers Face in Europe?

Substitute technologies or energy sources available at lesser prices may prove as a deterrent to market growth. Nickel hydrogen batteries, fuel cells, and conventional lead acid batteries do pose as viable substitutes to lithium ion batteries.

Furthermore, China-based OEM’s capability of mass production at reduced manufacturing costs may affect the sales prospects of domestic companies, who, in order to match competitor offerings, will have to bring down their selling prices, thus affecting profits.

europe-lithium-ion-battery-market

To What Extent Will Pricing Influence the Growth Curve of the European Market for Lithium Ion Batteries Over the Coming Years?

As per the European Battery Manufacturers Association Consensus in 2019, on the consideration of lithium ion battery manufacturers in Europe, prices of li-ion batteries will decline above 50% by 2031. This is because specific OEMs patented or licensed manufacturing technology being delegitimized over the last 7-8 years for commercial mass production will attract new entrants with production capacities.

Which Countries in Europe are Deemed to Offer a Lion’s Share of Absolute $ Opportunity for Sales of Lithium Ion Batteries?

With an absolute dollar opportunity of around US$ 10.5 Bn, Germany and the U.K. are expected to be the most lucrative markets for lithium ion battery suppliers in Europe, accounting for over 30% of the regional market share.

Germany and the U.K. are each expected to account for 20-22% of the absolute dollar opportunity in Europe during the forecast period.

Country-wise Insights

Which is the Most Lucrative Market for Lithium Ion Batteries in Europe?

With the regional market expected to create an absolute dollar opportunity of US$ 2 Bn from 2021-2031, Germany is foreseen to record healthy growth during the forecast period. Electric vehicles market trend will be the lucrative segment owing to strict emission norms and subsidy policies enforced by the government.

The transportation segment is projected to account over 50% of overall sales, followed by consumer electronics. The market size in the nation is projected to expand at a CAGR of 8% through 2031 and expand more than 2X.

Which Other Countries in Europe are Anticipated to Exhibit Robust Growth Potential for Lithium Ion Battery Manufacturers?

The U.K., Italy, and Norway are other countries expected to experience robust growth over the coming years. Projected growth rates by volume are in the high range of 14-16%.

Transportation, energy storage, and consumer electronics are expected to grow multifold over the coming years. Promising investments by governments, private enterprises, as well as public-private partnership projects in civic infrastructure and public transportation will immensely push lithium ion battery sales in these countries.

Category-wise Insights

Which Cell Type Drives Most Demand for Lithium Ion Batteries?

The market value share of prismatic lithium ion batteries is said to account for 45% of the overall market by 2031. This is due to their design and architecture facilitating stacking of cells in series or parallel in electric vehicles and energy storage units, which saves considerable installation and storage space of energy units.

Also being lightweight, this characteristic has provided traction in their use in medium- to high-rated power supply units. The burgeoning scope of applications in heavy duty UPS, portable appliances, and powertrain units will continue to enhance demand for prismatic cells.

Which Chemistry will Influences Product Design and Demand for Lithium Ion Batteries?

The lithium iron phosphate batteries segment is expected to create an absolute dollar opportunity of US$ 3.9 Bn by 2031.

Lithium iron phosphate batteries are considered to be the preferred chemistry for manufacturing on the backdrop of several advantages such as high duty cycles up to 10,000 cycle, handling of high temperatures with minimal corrosion, and faster charging rate.

Use in moderate to high capacity energy storage systems is expected to imbibe a greater proportion to LiFePO4,owing to the aforementioned.

Which Application of Lithium Ion Batteries is Most Popular?

Electric vehicles are expected to account for over 40% of overall market value share, and create an absolute dollar opportunity of US$ 5.5 Bn from 2021-2031, the largest by any individual segment. Passenger cars are understood to account for bulk of the installation of lithium ion batteries over the next ten years.

Growth of the market is been understood to have been primarily benefited from the advent of electric vehicles across the globe, with Europe being no exception. Moreover, the region is acknowledged as the early adopter of zero carbon emission-based energy storage and transportation systems, which has enabled the establishment of the market for lithium ion batteries to a great extent.

Growing awareness of carbon-free emission systems, increasing awareness of natural fuel resource conservation programs, and economic benefits in vehicle operation and maintenance have proven to be a win-win situation for both, electric vehicle as well as lithium ion battery.

Lithium Ion Battery Industry Research on Competitive Landscape in Europe

This is a fairly consolidated marketspace with tier-1 players holding nearly 60-65% share of the regional market. Prominence of tailored options by tier-1 manufacturers, whereas integration/ assembly of components at inexpensive prices from China by tier-2 and lower-scale manufacturers, are major strategies employed by market players in Europe.

  • Bestgo Battery Co., Ltd. is providing customize battery packs by opening the mold for the plastic case and re-engineering the BMS with Bluetooth function. The company is using LG 18650 Li-NCM cells that can offer high peak power output to make the desired battery pack.
  • In January 2020, lithium battery manufacturer SAFT launched a pilot plant to manufacture batteries specifically for electric vehicles in Europe.

Scope of Lithium Ion Battery Market Report

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

  • US$ Million for Value
  • MWh for Volume Unit

Key Countries Covered

  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • BENELUX
  • Europe

Key Market Segments Covered

  • Cell Type
  • Chemistry
  • Voltage
  • Application
  • Country

Key Companies Profiled

  • Panasonic Corporation
  • Samsung SDI Co., Ltd.
  • LG Chem Ltd
  • Enersys Inc.
  • Saft Groupe S.A.
  • CATL
  • Draegerwerk AG & Co KGaA

Pricing

Available upon Request

Key Segments Covered in Lithium Ion Battery Market Study

By Cell Type

  • Cylindrical Lithium Ion Batteries
  • Prismatic Lithium Ion Batteries
  • Pouch Lithium Ion Batteries

By Chemistry

  • Lithium Cobalt Oxide
  • Lithium Manganese Oxide
  • Lithium Iron Phosphate
  • Lithium Nickel Manganese Cobalt Oxide
  • Lithium Nickel Cobalt Aluminium Oxide
  • Lithium Titanate

By Voltage

  • Less than 4.5V Lithium Ion Batteries
  • 4.6V to 12V Lithium Ion Batteries
  • 13V to 18V Lithium Ion Batteries
  • 19V to 24V Lithium Ion Batteries
  • 25V to 36V Lithium Ion Batteries
  • 37V to 48V Lithium Ion Batteries
  • Above 48V Lithium Ion Batteries

By Application

  • Lithium Ion Batteries for Electric Bikes
  • Lithium Ion Batteries for Electric Scooters
  • Lithium Ion Batteries for Electric Vehicles
    • Passenger Cars
    • Light Commercial Vehicles
    • Heavy Commercial Vehicles
  • Lithium Ion Batteries for Energy Storage Systems
  • Lithium Ion Batteries for Railway Systems
  • Lithium Ion Batteries for Marine Systems
  • Lithium Ion Batteries for Military
  • Lithium Ion Batteries for Telecommunications
  • Lithium Ion Batteries for Industrial Vehicles (Forklifts, etc.)
  • Lithium Ion Batteries for Aerospace & Aviation
  • Lithium Ion Batteries for Consumer Electronics
  • Others

FAQs Answered in Market Research

  • How much is the lithium ion battery market worth in Europe?

    The Europe lithium ion battery market is valued at over US$ 10 Bn at present.

  • What will be the demand outlook forlithium ion batteries in Europe?

    Sales of lithium ion batteries in Europe are projected to increase at around 7.5% CAGR to top a value of US$ 20.5 Bn by 2031.

  • At what rate did the market for lithium ion batteries in Europe grow over the past 5 years?

    From 2016 to 2020, demand for lithium ion batteries across Europe increased at a CAGR of 11.2%.

  • What are the key trends shaping the lithium ion battery industry in Europe?

    Direct manufacturer to end user supply chain and establishment of manufacturing facilities against battery imports by suppliers are key trends in the continent.

  • What is majorly driving demand for lithium ion batteries in Europe?

    Burgeoning sales of electric vehicles and battery-powered engines/ drives and portable electronic devices are driving demand for lithium ion batteries.

  • What is the market share of the top 5 players supplying lithium ion batteries in Europe?

    Top 5 players supplying lithium ion batteries across Europe are Samsung SDI Co., Ltd., LG Chem Ltd., CATL, Panasonic Corporation, and Saft Groupe S.A., who together account for around 55% market share.

  • Which are the top 5 countries in Europe driving demand for lithium ion batteries?

    The U.K., Germany, France, Italy, and NORDIC countries are driving most of the demand for lithium ion batteries in Europe.

  • Who are the key lithium ion battery producing countries in Europe?

    France, Sweden, and Norway are major producers of lithium ion batteries in Europe.

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