NEW YORK, July 5, 2021 /PRNewswire/ -- The market size of lithium ion batteries in Europe is estimated to record 12.9% growth in 2021 with a market value of US$ 10.2 Bn. Persistence Market Research foresees the market to grow on a robust rate, albeit the product pricing to be slashed by 50% over the coming years on the backdrop of mass production as against customized manufacturing on selective order quantity basis by OEMs with patented technology during the previous 8-10 years.
A critical factor driving the sales of lithium ion batteries in Europe is burgeoning demand for use in electric vehicles and battery-powered engines/ drives. Another crucial demand driver has been growing smartphone subscriber base incorporating portable, rechargeable, and higher duty cycles.
Major factor favoring use of lithium ion batteries is that the product has emerged as a viable alternative source of energy addressing zero carbon emissions, and is lightweight, space saving, and high efficiency rate of operation and maintenance, due to which, majority of end users have warmly adopted the technology.
Persistence Market Research's analysis projects the Europe lithium ion battery market to expand at a healthy CAGR of around 7.5% over the forecast period of 2021-2031.
The European market for batteries is expanding at an exponential rate, driven by both, social and governmental ambitions to execute green energy transition. Only the most cost-effective and long-term solutions can get market approval in this highly competitive sector with enormous development potential.
It is widely understood that cost reduction and higher performance are required to drive down prices, which requires extensive R&D. Furthermore, there are a range of emerging applications for which lithium ion batteries have been recognized as a viable option.
Europe has been at the forefront of planning and implementation of initiatives such as the REACH policy by 2030, and has been acknowledged as the initial adopter of electric-powered vehicles. Lithium batteries, being the principal driving/ energy storage unit, will be in direct proportion to that of electric vehicles fleet expansion.
With the miniaturization of consumer electronics devices, demand for lithium ions batteries is expected to growth manifold to cater to end-user sector demands.
End users such as mobility, heavy duty, and stationary energy storage industries, as well as battery industry stakeholders, will build synergies and capitalize on new pioneering discoveries in battery technology with lithium ion battery OEMs, which will ensure futuristic opportunities for the European market for lithium ion batteries.
EU-5 countries are estimated to collectively account for 80% of regional demand, with Germany and the U.K. leading the race, on a robust growth in battery energy consumption of 65 GWh by 2031.
"REACH initiatives and emphasis of zero carbon emissions/ conventional fuel-free solutions will continue to drive demand for lithium ion batteries in Europe. With mass commercialization of the product, Europe will establish itself as a prominent production hub with pricing at reduced levels. In terms of application, demand will be fueled primarily by the transportation sector," says a Persistence Market Research analyst.
Key Highlights of Market Evolution
Though their fast charging and lower self-discharge rate has retained the popularity of li ion batteries as compared to other rechargeable batteries, manufacturers are constantly improving performance their characteristics amidst rising emergence of economical alternatives.
Incorporating innovative materials for the manufacturing of li ion batteries to slash production cost is emerging as a popular trend among manufacturers. Thereby, customization achieved by reducing the quantity of cobalt proportionally inside the cathode is likely to become an integral part of business strategies of most manufacturers.
The regional market will cease to be dependent on imports, as not only domestic companies but also multinational companies will look to invest and establish manufacturing facilities in the region, aided with subsidies and tax benefits for stakeholders.
Related mergers and acquisitions are also expected to be witnessed in the interim
According to the Persistence Market Research's analysis, Panasonic Corporation, Samsung SDI Co. Ltd., LG Chem Ltd. Saft Groupe S.A., CATL, Northvolt AB, Enersys Inc., and Duracell Inc. are identified as key manufacturers of lithium ion batteries in Europe.
The market is identified primarily as a consolidated space with the top players holding nearly 60-65% of the regional market. Direct supply and technology design partnerships between OEMs and end users to devise standardized and customized applications is a key trend observed in the market. Key strategic acquisitions and collaboration initiatives are observed by many players.
Explore More Valuable Insights
Persistence Market Research, in its new report, offers an impartial analysis of the Europe lithium ion battery market, presenting estimation statistics for the period of 2021-2031. The study offers compelling insights on the market based on celltype, chemistry, voltage, application, and country.
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