Europe Battery Market: Forecast Analysis 2024-2032

Europe Battery Market: Forecast Analysis 2024-2032

Triton Market Research’s report suggests that the Europe battery market is expected to register growth at a CAGR of 15.52% during the forecast period 2024-2032.

As the initiator of the Paris Climate Agreement, Europe has led the shift from internal combustion vehicles to electric vehicles, widening the scope for battery technology in the automotive industry. A variety of vehicles now feature increased hybridization and electrification, including plug-in hybrid electric vehicles, hybrid electric vehicles, and electric vehicles. For instance, as noted by IEA, new electric car registrations in the region reached nearly 3.2 million in 2023, marking a 20% increase from 2022. In the European Union, sales totaled 2.4 million, reflecting similar growth. Hence, the expanding automotive industry in the region is expected to drive the battery market growth in the coming years.

The countries evaluated in this region include UK, Germany, Belgium, Spain, France, and Rest of Europe.

Germany leads the regional battery market, attaining $7966.35 million in 2023

- Germany is a leading producer of electric vehicles in Europe, accounting for nearly 50% of the region’s EV production in 2023, as per IEA. The country produced a substantial share of Europe’s EV batteries, mainly driven by the increasing demand for electric cars and other applications like stationary storage systems.

- The market for energy storage systems in Germany has been expanding significantly as part of the country’s energy transition strategy. According to the German Energy Storage System Association (BVES), in 2023, the ESS industry recorded an overall growth of 46% compared to 2022, registering sales of EUR 15.7 billion.

- This growth is driven by the need to store surplus energy produced during off-peak hours for use during peak demand, balancing supply and demand in the renewable energy sector. Integrating battery storage systems is essential to manage the variability of renewable energy sources, ensuring a stable and reliable energy supply.

Market Forecast for France

The battery market in France is witnessing significant growth, boosted by substantial government investments and policy support. The nation is focused on enhancing its electric vehicle (EV) production capabilities, contributing to nearly 10% of Europe’s EV production in 2023. The government has implemented various measures to support this growth, including investments in renewable energy and energy storage systems as part of its broader energy transition goals. For instance, France aims to achieve a substantial increase in the share of renewable energy in its total energy consumption, targeting around 50% by 2030.

The market report is branched into end-use, technology, and battery type. The end-use section includes automotive, portable, industrial, power tools, SLI, and other end-uses.

Various types of batteries are now extensively utilized in the automotive sector, including those for hybrid and electric vehicles. Automotive batteries provide power to a vehicle’s electrical systems when the engine is not running. They also play a crucial role in starting the engine by supplying current to the electric starter motor and ignition system. Additionally, the starting, lighting, and ignition (SLI) applications in the automotive industry have significantly increased the demand for batteries in vehicles.

Contender Analysis in the Battery Market:

Exide Technologies manufactures a diverse range of lead and electric storage batteries, catering to various industries, including automotive, aviation, power generation, transportation, and telecommunications. The company is a leader in secondary recycling, offering Total Battery Management (or “closed loop recycling”), a service that relieves customers from managing spent batteries independently. Founded in 1888 and headquartered in France, Exide operates extensively across multiple regions, including Europe.

In July 2024, Exide Technologies introduced the Solition Mega Three at ees Europe. This advanced energy storage system features a compact design, 3.4 MWh capacity, and liquid-cooled components, suitable for front-of-the-meter and behind-the-meter usages.

The other well-known companies in the battery market include BYD Company Limited, Saft Groupe SA, Enersys, and C&D Technologies Inc.