Industry: Industrial Automation
Published Date: January-2023
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 235
Report ID: PMRREP32518
According to Persistence Market Research's most recent market report, the Europe market for lithium-ion batteries will reach US$ 12.6 Bn in 2024. The market for lithium-ion batteries is expected to reach US$ 23.7 Bn in value by 2033 with a steady growth rate of 7.3%.
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Attribute |
Details |
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Market Sales (2023A) |
US$ 11.7 Bn |
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Market Demand (2024E) |
US$ 12.6 Bn |
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Market Projections (2033F) |
US$ 23.7 Bn |
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Value CAGR (2024-2033) |
7.3% |
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Collective Value Share: Top 3 Countries (2024E) |
43.2% |
Lithium-ion batteries (LIBs) are a type of rechargeable battery with a high energy density that is frequently employed in energy storage devices, electric vehicles, and consumer electronics. A LIB uses an intercalated lithium compound as its electrode rather than metallic lithium as a disposable lithium primary battery does.
LIBs typically weigh substantially less than other sizes of rechargeable batteries. Mobile electronics frequently employ LIBs. Common uses for these batteries include electric cars, mobile phones, laptops, portable medical equipment, energy storage systems, etc.
According to the historical analysis, the market for lithium-ion batteries expanded at a compound annual growth rate (CAGR) of 6.8% from 2018 to 2023. A 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.
The market is predicted to expand at a CAGR of 7.3% over the forecast timeframe influenced by a number of factors, such as increasing demand for lithium-ion batteries from consumers, utilities, analytical, and medical electronics segments. The need for lithium ions is anticipated to increase significantly to meet end-user sector demands as a result of the shrinking of consumer electronics products, notable examples of which include smartphones, tablets, laptops, digital cameras/recording devices, etc. With the end-user industry clocking consistent double-digit figures since the last decade and with Li-Ion battery being the most favored material, the demand is expected to be unabated in the upcoming years
On the other hand, regulatory and policy frameworks developed at both the federal and European levels can have a considerable influence on the lithium-ion battery market. Technologies that enable sustainability as a differentiator for European-made batteries should be heavily pushed ahead. Further incentive schemes by national governments encouraging the implementation of EVs are also set to drive the market further up.
Burgeoning Demand from Electric Vehicles and Battery Powered Engines creates ample space for Lithium Ion Batteries.
Europe has been at the forefront of planning and implementing initiatives like the REACH policy by 2030 and has been recognised as the first adopter of electric-powered vehicles thanks to the regulatory framework to eradicate greenhouse gas emissions and ensure zero carbon footprint as generated by the automotive and industrial sectors. The primary driving and energy storage unit, the lithium battery, will be used in direct proportion to the growth of the fleet of electric vehicles. The market expansion of Li-Ion batteries in Europe will be greatly aided by strong demand from both private owners and public transportation systems.
Furthermore, the off-road vehicle and equipment manufacturers have also forayed into the field of battery-powered units e.g. compact utility vehicles, and industrial forklifts where the industry experts are of opinion that at least low to medium-power-rated engines will be entirely built upon battery-powered technology eventually phasing out internal combustion engines. The growth of battery-powered UPS and Remote / Off-Grid energy storage and distribution systems is also said to advocate the use of li-ion batteries by the end users.
Threats from Emerging Lightweight and Economical Alternatives Constraint the market growth for Lithium Ion Battery.
Despite the growing adoption of li-ion batteries in EVs and consumer electronics, these batteries can witness decay in hot conditions, which can further trickle down the performance level of the batteries. Heat-related operational drawbacks of li-ion batteries are likely to remain significant challenges for manufacturers, which can impede the growth of the Europe Lithium-Ion Battery market during the forecast period. In order to deal with this drawback, battery manufacturers across Europe are experimenting with various innovative approaches to manufacturing batteries.
Reducing Prices of Lithium Ion Battery is the new trend being witnessed in the market
Lithium-ion batteries are an important component of electric cars, which might play a significant role in lowering greenhouse gas emissions for road transportation. When there is no immediate need for power generated by renewable sources such as solar and wind, batteries are utilized to store it. A significant cost reduction trend has been observed over the last few years. Efforts by the European Commission have been crucial, encouraging local mining of raw materials. Further EU policies target mass adoption of lithium-ion batteries in mobility and energy storage application is set to result in a significant decline of Lithium-ion prices in the forecast period.
What is the Growth Outlook of the Europe Lithium-Ion Battery Market in Germany?
Germany holds a nearly 17% market share in the total European lithium-ion battery market as a result of the government's enforcement of its tough pollution regulations and subsidy policies. Germany, for instance, plans to have 7 to 10 million electric vehicles on its roads by 2030. To encourage the purchase of new EVs or hybrid vehicles, the government is offering discounts of up to €9,000. The market is expected to benefit from these initiatives and the expanding regulatory environment.
What is the Growth Outlook of the Lithium Ion Battery Market in the U.K.?
The market for Lithium-ion batteries in the U.K. is expected to witness a robust growth of 8.7% during the forecast period. Lithium-ion battery sales in the nation will be significantly boosted by promising investments made by governments, private businesses, and public-private partnership projects in civic infrastructure and public transit. The main uses for lithium-ion batteries in the United Kingdom are predicted to include transportation, energy storage, and consumer electronics.
What is the demand outlook of the Lithium Iron Phosphate segment in the Lithium Ion Battery market?
Based on Chemistry, the market is segmented into Lithium Iron Phosphate, Lithium Cobalt Oxide, Lithium Manganese Oxide, Lithium Nickel Cobalt Aluminium Oxide, Lithium Nickel Manganese Cobalt Oxide, and Lithium Titanate. The market for lithium-ion batteries is expected to be dominated by the lithium iron phosphate type with a value share of 32.9% in the Europe market. Lithium iron phosphate batteries are considered to be the preferred chemistry for manufacturing on the backdrop of several advantages such as high-duty cycles of up to 10,000 cycles, 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 of LiFePO4, owing to the aforementioned.
How does the Electric Vehicles segment fairing in the Lithium Ion Battery market?
The Electric Vehicles segment is estimated to utilize 44.9% of the Lithium Ion Batteries produced Europely. Growth of the market is been understood to have 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 vehicles as well as lithium-ion batteries.
Most of the leading manufacturers in the European Lithium-ion battery market have started or announced their plans to expand their production capacity, owing to which Europe is projected to observe a steep increase in gigafactories by 2025, and lithium-ion battery cell suppliers are collaborating with OEMs for customizing solutions. Further acquisitions by the emerging player are also seen as a prominent supply-side trend in the Europe Lithium-ion battery market.
For instance,
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Forecast Period |
2024-2033 |
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Historical Data Available for |
2018-2023 |
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Market Analysis |
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Key Companies Profiled |
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Report Coverage |
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Customization & Pricing |
Available Upon Request |
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The Europe market of Lithium Ion Battery is estimated to reach a valuation of US$ 11,709.8 Mn in 2023.
The Lithium Ion Battery demand is anticipated to witness a growth rate of 7.3% over the forecast period of 2023 and 2033 in terms of value.
According to PMR analysis, Panasonic Corporation, Samsung SDI Co., Ltd., LG Chem Ltd., Enersys Inc., Saft Groupe S.A., CATL, Draegerwerk AG & Co KGaA, and Others are identified as the key manufacturers in the Lithium Ion Battery market.
Key players in the Europe Lithium Ion Battery market are expected to account for about 60-65% of the overall market share.
The top countries driving the Europe Lithium Ion Battery demand are the Germany, the U.K., Nordics, and Italy.
