Europe EV Battery Pack Market Size

The European electric vehicle battery pack market is experiencing significant expansion, driven by the increasing adoption of electric vehicles and advancements in battery technology. The market's growth is supported by government incentives, stricter emissions regulations, and the declining cost of battery packs. Germany and France are leading the market due to strong governmental support and consumer demand, while Italy, although growing at a slower pace, is also witnessing an upward trend. The evolution of battery technology, including higher energy density and faster charging times, along with opportunities for recycling and reusing battery packs, are expected to further propel the market size in the coming years.

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Europe EV Battery Pack Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Size (2024) USD 24.95 Billion
svg icon Market Size (2029) USD 50.86 Billion
svg icon Largest Share by Propulsion Type BEV
svg icon CAGR (2024 - 2029) 15.31 %
svg icon Largest Share by Country Germany

Major Players

Europe EV Battery Pack Market Major Players

*Disclaimer: Major Players sorted in no particular order

Key Players

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Europe EV Battery Pack Market Analysis

The Europe EV Battery Pack Market size is estimated at 24.95 billion USD in 2024, and is expected to reach 50.86 billion USD by 2029, growing at a CAGR of 15.31% during the forecast period (2024-2029).

24.95 Billion

Market Size in 2024 (USD)

50.86 Billion

Market Size in 2029 (USD)

65.20 %

CAGR (2017-2023)

15.31 %

CAGR (2024-2029)

Largest Segment by Body Type

94 %

value share, Passenger Car, 2023

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Europe's focus on promoting electric vehicle adoption and developing charging infrastructure further drives the growth of passenger electric vehicles in the region.

Largest Segment by Propulsion Type

85.20 %

value share, BEV, 2023

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The Europe electric vehicle battery pack market is driven by the growing demand for BEV, reflecting the region's commitment to sustainable transportation.

Largest Segment by Battery Chemistry

41.34 %

value share, NMC, 2023

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NMC chemistry dominates Europe's electric vehicle battery pack market, offering high energy density and improved performance for sustainable transportation.

Largest Segment by Battery Form

52.28 %

value share, Pouch, 2023

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The pouch battery, which offers flexibility and effective space utilisation for improved performance and range, leads the market for electric car battery packs in Europe.

Leading Market Player

11.74 %

market share, SAIC Volkswagen Power Battery Co. Ltd., 2022

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SAIC Volkswagen has established strong ties with various automakers. These relationships ensure ongoing contracts and collaborations, securing a steady demand for their battery packs.

The European electric vehicle battery pack market poised to record 16.5% CAGR, fueled by increasing BEV demand

  • Europe has seen significant growth in the adoption of pure battery electric vehicles (BEVs) and electric buses driven by government incentives, stricter emissions regulations, and advancements in battery technology. According to a report by the European Alternative Fuels Observatory, the number of electric vehicles in Europe reached 1.4 million in 2020, with BEVs accounting for 74% of the total. The electric bus market in Europe also experienced growth, recording a CAGR of 16.2% from 2017 to 2022.
  • The growing demand for battery packs in the electric vehicle market is driven by the increasing battery density and range and the declining battery costs. Battery technology has been evolving rapidly, and the energy density of lithium-ion batteries has already doubled over the past decade, allowing for longer ranges on a single charge. Battery costs have also declined significantly, with the average cost of lithium-ion batteries for electric vehicles declining by 89% from 2010 to 2020. The cost is expected to further decline to USD 58/kWh by 2030. The trend of solid-state batteries is also increasing, with companies such as Toyota and Volkswagen investing heavily in the technology.
  • In the forecast period (2023-2029), the European market for electric vehicle battery packs is anticipated to expand significantly. It is anticipated to register a CAGR of 16.5% over the forecast period as a result of the rising demand for electric cars. Higher energy density, longer ranges, and quicker charging times are just a few of the battery technology developments that are anticipated to help the industry grow. Opportunities for recycling and reusing battery packs are also expected to abound in the future, further driving the battery pack market in Europe.
Europe EV Battery Pack Market

France and Italy experience growth in European electric vehicle battery pack market, fueled by government incentives and rising consumer awareness

  • The European electric vehicle battery pack market is a dynamic and growing market. The market is expected to continue to grow in the coming years, driven by the increasing adoption of EVs and the declining cost of battery packs. In addition to the factors mentioned above, a number of other factors are expected to drive the growth of the European electric vehicle battery pack market in the coming years.
  • Germany is a leading player in the market, having registered a remarkable increase in value over the years. This growth can be attributed to various factors, such as government support for electric vehicles, rising consumer demand for EVs, and advancements in battery technology. Germany's robust automotive industry, combined with substantial investments by major automakers in electric vehicle production, has significantly contributed to the surge in demand for battery packs.
  • France, another prominent European country, has also witnessed notable growth in the battery pack market. France's commitment to promoting the adoption of electric vehicles through favorable policies and incentives has played a significant role in driving the growth of the battery pack market. While exhibiting slower growth compared to Germany and France, Italy has still experienced an upward trend in the battery pack market. Factors such as increasing consumer awareness of electric vehicles, government incentives, and technological advancements have contributed to the market's growth in Italy. As the demand for electric vehicles continues to rise, battery packs are expected to play a crucial role in supporting the transition toward sustainable mobility in Italy.

Europe EV Battery Pack Industry Segmentation

Bus, LCV, M&HDT, Passenger Car are covered as segments by Body Type. BEV, PHEV are covered as segments by Propulsion Type. LFP, NCA, NCM, NMC, Others are covered as segments by Battery Chemistry. 15 kWh to 40 kWh, 40 kWh to 80 kWh, Above 80 kWh, Less than 15 kWh are covered as segments by Capacity. Cylindrical, Pouch, Prismatic are covered as segments by Battery Form. Laser, Wire are covered as segments by Method. Anode, Cathode, Electrolyte, Separator are covered as segments by Component. Cobalt, Lithium, Manganese, Natural Graphite, Nickel are covered as segments by Material Type. France, Germany, Hungary, Italy, Poland, Sweden, UK, Rest-of-Europe are covered as segments by Country.

  • Europe has seen significant growth in the adoption of pure battery electric vehicles (BEVs) and electric buses driven by government incentives, stricter emissions regulations, and advancements in battery technology. According to a report by the European Alternative Fuels Observatory, the number of electric vehicles in Europe reached 1.4 million in 2020, with BEVs accounting for 74% of the total. The electric bus market in Europe also experienced growth, recording a CAGR of 16.2% from 2017 to 2022.
  • The growing demand for battery packs in the electric vehicle market is driven by the increasing battery density and range and the declining battery costs. Battery technology has been evolving rapidly, and the energy density of lithium-ion batteries has already doubled over the past decade, allowing for longer ranges on a single charge. Battery costs have also declined significantly, with the average cost of lithium-ion batteries for electric vehicles declining by 89% from 2010 to 2020. The cost is expected to further decline to USD 58/kWh by 2030. The trend of solid-state batteries is also increasing, with companies such as Toyota and Volkswagen investing heavily in the technology.
  • In the forecast period (2023-2029), the European market for electric vehicle battery packs is anticipated to expand significantly. It is anticipated to register a CAGR of 16.5% over the forecast period as a result of the rising demand for electric cars. Higher energy density, longer ranges, and quicker charging times are just a few of the battery technology developments that are anticipated to help the industry grow. Opportunities for recycling and reusing battery packs are also expected to abound in the future, further driving the battery pack market in Europe.
Body Type
Bus
LCV
M&HDT
Passenger Car
Propulsion Type
BEV
PHEV
Battery Chemistry
LFP
NCA
NCM
NMC
Others
Capacity
15 kWh to 40 kWh
40 kWh to 80 kWh
Above 80 kWh
Less than 15 kWh
Battery Form
Cylindrical
Pouch
Prismatic
Method
Laser
Wire
Component
Anode
Cathode
Electrolyte
Separator
Material Type
Cobalt
Lithium
Manganese
Natural Graphite
Nickel
Other Materials
Country
France
Germany
Hungary
Italy
Poland
Sweden
UK
Rest-of-Europe
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Europe EV Battery Pack Market Size Summary

The European electric vehicle (EV) battery pack market is experiencing robust growth, driven by the increasing adoption of battery electric vehicles (BEVs) and electric buses. This surge is fueled by government incentives, stringent emissions regulations, and significant advancements in battery technology. The market is characterized by rapid evolution in battery technology, with improvements in energy density and reductions in costs playing a pivotal role. The trend towards solid-state batteries is gaining momentum, with major automotive players investing heavily in this technology. The market is expected to expand significantly over the forecast period, supported by innovations in battery performance, such as higher energy density, longer ranges, and faster charging times. Additionally, opportunities in battery recycling and reuse are anticipated to further bolster market growth.

Germany and France are leading the charge in the European EV battery pack market, with substantial government support and consumer demand driving growth. Germany's strong automotive industry and investments by major automakers have significantly contributed to the demand for battery packs. France's favorable policies and incentives have similarly supported market expansion. While Italy's growth is slower, it is still on an upward trajectory due to increased consumer awareness and technological advancements. The market is fragmented, with major players like BYD, CATL, LG Energy Solution, SAIC Volkswagen Power Battery, and Samsung SDI holding significant shares. The demand for electric vehicles, particularly SUVs, is rising across Europe, with models like the Tesla Model Y and Renault Arkana gaining popularity. The market's competitive landscape is marked by the presence of international brands offering a variety of electric SUVs and sedans, further driving the growth of the EV battery pack market in Europe.

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Europe EV Battery Pack Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2029 and analysis of growth prospects)

    1. 1.1 Body Type

      1. 1.1.1 Bus

      2. 1.1.2 LCV

      3. 1.1.3 M&HDT

      4. 1.1.4 Passenger Car

    2. 1.2 Propulsion Type

      1. 1.2.1 BEV

      2. 1.2.2 PHEV

    3. 1.3 Battery Chemistry

      1. 1.3.1 LFP

      2. 1.3.2 NCA

      3. 1.3.3 NCM

      4. 1.3.4 NMC

      5. 1.3.5 Others

    4. 1.4 Capacity

      1. 1.4.1 15 kWh to 40 kWh

      2. 1.4.2 40 kWh to 80 kWh

      3. 1.4.3 Above 80 kWh

      4. 1.4.4 Less than 15 kWh

    5. 1.5 Battery Form

      1. 1.5.1 Cylindrical

      2. 1.5.2 Pouch

      3. 1.5.3 Prismatic

    6. 1.6 Method

      1. 1.6.1 Laser

      2. 1.6.2 Wire

    7. 1.7 Component

      1. 1.7.1 Anode

      2. 1.7.2 Cathode

      3. 1.7.3 Electrolyte

      4. 1.7.4 Separator

    8. 1.8 Material Type

      1. 1.8.1 Cobalt

      2. 1.8.2 Lithium

      3. 1.8.3 Manganese

      4. 1.8.4 Natural Graphite

      5. 1.8.5 Nickel

      6. 1.8.6 Other Materials

    9. 1.9 Country

      1. 1.9.1 France

      2. 1.9.2 Germany

      3. 1.9.3 Hungary

      4. 1.9.4 Italy

      5. 1.9.5 Poland

      6. 1.9.6 Sweden

      7. 1.9.7 UK

      8. 1.9.8 Rest-of-Europe

Europe EV Battery Pack Market Size FAQs

The Europe EV Battery Pack Market size is expected to reach USD 24.95 billion in 2024 and grow at a CAGR of 15.31% to reach USD 50.86 billion by 2029.

In 2024, the Europe EV Battery Pack Market size is expected to reach USD 24.95 billion.

Europe EV Battery Market Report Snapshots

Europe EV Battery Pack Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029