The Europe Electric Vehicle Battery Market Is Estimated To Be Valued At US$ 10.3 Billion By 2032
Sales of electric vehicle batteries in Europe are valued at US$ 5.8 billion in 2022. The Europe electric vehicle battery market is predicted to rise at 5.9% CAGR to exceed a valuation of US$ 10.3 billion by end of 2032.
Rising interest amongst consumers to purchase electric vehicles owing to escalating environmental awareness will fuel electric vehicle battery market growth in Europe. The market is witnessing enhanced investments on the back of benefits offered by governments on electric vehicles. Also, the incorporation of product innovation in electric vehicle batteries will further supplement market growth over the coming years.
US$ 4.5 billion of absolute dollar opportunity (ABS) is likely to be generated by the market over the assessment period (2022-2032).
Europe Sales Analysis of Electric Vehicle Batteries
Several factors are playing a significant role in influencing the sales of electric vehicle batteries in Europe, such as rising fuel prices, increase in demand for zero-emission vehicles on the back of rising environmental awareness and protection needs, and stringent pollution norms, along with depleting fossil fuel reserves. Rise in the development of batteries with higher efficiency for electric cars will further supplement market growth in Europe over the coming years.
According to the European Battery Alliance (EBA), Europe is on the path to becoming the world’s biggest lithium-ion battery cell maker by the end of 2025.
The country is on a mission to create a battery value chain that is competitive, innovative, resilient, and sustainable at the same time. Along with this, the region is a hotspot for investments by major Asian players.
Competitive Landscape
Key electric vehicle battery manufacturers are investing in R&D to develop new technologies and make batteries that are easier to operate in vehicles. Market players are also undertaking efforts to offer new battery technologies by launching cobalt-free batteries, Wi-Fi-powered batteries, etc., to differentiate themselves from other competitors in the market.
For instance:
Panasonic Corporation, in collaboration with Japan Fine Ceramic Center (JFCC) and the Institute of Materials and Systems for Sustainability, Nagoya University, announced the development of a technique to visualize the dynamics in lithium-ion in all-solid-state on a nanometer scale.
LG Chem, in 2020, declared to reuse and recycle its batteries and would also research and develop technologies to predict the remaining battery life by collecting batteries that are imparted to customers.
Volkswagen Group is on the way to expand its electric vehicle business. The company is investing in start-ups. It signed a strategic partnership with 24M Technologies in 2022 to improve battery manufacturing.