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Europe Traction Battery Market Size - By Chemistry (Lead Acid, Lithium-Ion, Nickel-Based), By Application (Electric Vehicles, Industrial, E Bike), Country Outlook, Growth Potential, Competitive Market Share & Forecast, 2024 - 2032

  • Report ID: GMI8826
  • Published Date: Apr 2024
  • Report Format: PDF

Europe Traction Battery Market Size

Europe Traction Battery Market was valued at USD 18.7 billion in 2023 and is anticipated to grow at a CAGR of 18.1% from 2024 to 2032. There is a surge in demand for electric vehicles (EVs) with increasingly stringent emissions regulations and a growing awareness of environmental concerns. As EV sales rise, so does the demand for traction batteries, which are essential components powering these vehicles.
 

Europe Traction Battery Market

Ongoing government incentives and subsidies promoting the adoption of EVs, and its infrastructure are further fuelling market growth. For instance, in October 2022, in a move toward achieving net zero emissions, the German government has given the green light to a USD 6.1 billion initiative spanning three years. The objective is to realize a 14-fold surge in charging infrastructure, escalating from the current 70,000 to 1 million by 2030. Moreover, technological advancements along with improved energy density and longer battery life, are also making electric vehicles more attractive to consumers. Therefore, these factors will create a favourable environment for the expansion of the traction battery market in Europe.
 

Europe Traction Battery Market Trends

In Europe, the latest trends in traction batteries are majorly centered around enhancing energy density, extending range, and improving sustainability. Lithium-ion remains a crucial technology, with advancements focused on increasing energy density to enable longer driving ranges per charge. Additionally, there's a rising focus on sustainability, with efforts to reduce the environmental impact of battery production and disposal. This includes exploring recycling technologies and utilizing more eco-friendly materials in battery construction.
 

Furthermore, there's a push towards standardization and interoperability to facilitate battery swapping and charging infrastructure development, fostering greater adoption of electric vehicles. Thus, the trajectory of traction battery technology in Europe is towards higher performance, improved sustainability, and greater accessibility to support the continent's transition towards electrified transportation.
 

Europe Traction Battery Market Analysis

Europe Traction Battery Market Size, By Chemistry, 2022-2032 (USD Billion)

Based on chemistry, the lithium-ion segment is anticipated to exceed USD 56.5 billion by 2032 owing to its properties such as higher energy density, longer lifespan, and lighter weight compared to traditional lead-acid batteries. Ongoing advancements in lithium-ion technology, coupled with supportive government policies and incentives, will further drive their traction battery market growth in Europe.
 

Europe Traction Battery Market Revenue Share, By Application, 2023

Based on application, the electric vehicle application is likely to register 17.2% CAGR from 2024 to 2032, owing to increasing environmental concerns and stringent emissions regulations that are driving EV adoption as a cleaner alternative to traditional IC engine vehicles. Additionally, government incentives and subsidies further incentivize the purchase of electric vehicles, contributing to their rapid adoption and driving growth in the traction battery market.
 

Germany Traction Battery Market Size, 2022-2032, (USD Billion)

Germany traction battery market is anticipated to surpass USD 19.5 billion by 2032 since the region has a robust research and development infrastructure, with significant investment in battery technology. Institutions such as the Fraunhofer Society and the Helmholtz Association conduct cutting-edge research in battery materials, manufacturing processes, and energy storage technologies, contributing to advancements in traction batteries. Additionally, Germany is home to some of the world's leading automotive companies, including Volkswagen, BMW, and Mercedes-Benz. These companies have been investing heavily in electric vehicle (EV) technology, driving the demand for traction batteries.
 

Europe Traction Battery Market Share

Europe Traction Battery Company Market Share Analysis, 2023

Hitachi, Toshiba and Panasonic are prominent players in this sector, offering a wide array of products to meet diverse application needs. Their dedication to innovation ensures the creation of high-quality, cutting-edge products that meet industry standards. Their emphasis on providing customized solutions and excellent service to ensure customer satisfaction reinforces their position in the traction battery market.
 

Europe Traction Battery Market Companies

Major companies operating in the Europe traction battery industry are:

  • Hitachi Energy Ltd.
  • Toshiba Corporation
  • Samsung SDI Co., Ltd.
  • Panasonic Corporation
  • LG Energy Solution
  • Ecovolta
  • Camel Group Co., Ltd
  • Mutlu Corporation
  • MIDAC S.p.A.
  • Amara Raja Batteries Ltd.
  • HOPPECKE Batteries GmbH & Co. KG
  • ENERSYS
  • EXIDE INDUSTRIES LTD.
     

Europe Traction Battery Industry News

  • In February 2022, Panasonic Corporation revealed its plan for the Energy Company to inaugurate a production plant within its Wakayama Factory situated in western Japan. This facility will focus on manufacturing cutting-edge, larger 4680 cylindrical traction batteries designed for electric vehicles (EVs).
     
  • In January 2022, Orbia has introduced notable improvements to its customized electrolyte solutions designed for critical applications in non-electric vehicles (non-EVs). This expansion follows a highly successful beta launch in 2023, which played a pivotal role in promoting the adoption of clean energy through the utilization of locally sourced battery materials.
     

This Europe traction battery market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million” from 2019 to 2032, for the following segments:

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Market, By Chemistry

  • Lead Acid
  • Lithium-Ion
  • Nickel Based
  • Others

Market, By Application

  • Electric Vehicles
    • BEV
    • PHEV 
  • Industrial
    • Forklifts
      • Class 1
      • Class 2
      • Class 3
    • Railroads
    • Others
  • E-Bike
    • E-scooters
    • E-motorcycles

The above information has been provided for the following countries across the regions:

  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Netherlands
  • Norway
  • Austria
  • Belgium

 

Authors: Ankit Gupta, Vinayak Shukla

Frequently Asked Questions (FAQ) :

The market size of Europe traction battery was reached USD 18.7 billion in 2023 and is set to grow at 18.1% CAGR up to 2032, driven by a surge in demand for electric vehicles (EVs).

Europe traction battery market from the lithium-ion battery chemistry segment is set to exceed USD 56.5 billion by 2032, owing to its properties such as higher energy density and longer lifespan.

Germany traction battery market is set to surpass USD 19.5 billion by 2032, owing to a robust R&D infrastructure, with significant investments in battery technology.

Hitachi Energy Ltd., Toshiba Corporation, Samsung SDI Co., Ltd., Panasonic Corporation, LG Energy Solution, Ecovolta, Camel Group Co., Ltd, Mutlu Corporation and MIDAC S.p.A among others.

Europe Traction Battery Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 12
  • Tables & Figures: 105
  • Countries covered: 9
  • Pages: 315
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