Europe Battery Market Size Analysis and CAGR Value at 13.44% - Rising Investment Plans Forecast 2030

Mordor Intelligence has published a new report on the "Europe Battery Market" offering a comprehensive analysis of trends, growth drivers, and future projections.

Introduction

The Europe battery market reached an estimated value of USD XX billion in 2024 and is forecast to grow significantly through the remainder of the decade. Rising demand from electric vehicles (EVs), industrial electrification, and energy storage applications is driving this expansion. As environmental mandates tighten across the European Union, manufacturers and policymakers are working to build a domestic battery industry capable of supporting clean mobility and grid resilience.

Get expert-backed research and strategic insights-view the complete analysis here: https://www.mordorintelligence.com/industry-reports/europe-battery-market-industry?utm_source=openpr

Key Trends

Several important developments are shaping the Europe battery market:

Electric Vehicle Battery Demand
The move toward EV adoption is accelerating, supported by emissions regulations and fleet electrification targets. A number of European manufacturers are scaling production and sourcing batteries locally. Yet, competition from established Chinese and Korean suppliers like CATL and BYD remains intense

Caution Following Northvolt's Collapse
The March 2025 bankruptcy of Northvolt-after raising USD 15 billion-has caused industry actors to temper their plans. Companies such as Verkor, ACC, and PowerCo are focusing on smaller-scale, financially sound projects, often in partnership with Asian firms to manage risk and reduce capital burn . The EU's ambition is to produce over 90% of its batteries domestically by 2030, though production capacity remains behind leading global players

Government Incentives and Local Content Rules
The European Commission is proposing new measures to bolster EV adoption-such as fleet electrification mandates-and enforce local-content requirements for batteries sold within the EU. These efforts aim to support domestic producers and battery recycling infrastructure

Industrial & Energy Storage Demand
Growing uptake of grid-scale and behind‐the‐meter energy storage solutions is adding to battery demand. Europe's energy mandates, smart-meter roll-outs, and energy tariff volatility are pushing adoption of battery energy storage systems (BESS) across residential and commercial sectors . Similarly, the logistics and material handling sectors continue to deploy batteries in forklifts and automated vehicles.

Stay informed with expert-backed research - now including translations and local insights for Japan: https://www.mordorintelligence.com/ja/industry-reports/europe-battery-market-industry?utm_source=openpr

Market Segmentation

The Europe battery market can be segmented as follows:

By Battery Type

Lithium‐ion - Favoured for EVs, industrial applications, and energy storage due to high energy density and better performance.
Lead‐acid and other - Still used in starter batteries, backup power, and some industrial use cases; facing pressure from lithium‐ion alternatives
By End-Use Application

Automotive - EV battery demand is the dominant driver.
Energy Storage - Residential, commercial, and utility-scale BESS are adding notable volume.
Industrial - Forklifts and industrial equipment use increasingly rely on rechargeable batteries.
By Geography

Germany, France, Spain - Key battery manufacturing hubs, with rising investment and emerging gigafactories.
Other EU countries - Emerging players often in partnership with larger local or non‐European battery developers.
Forecast Outlook

The Europe hybrid electric vehicle battery market is expected to rise from USD 1.31 billion in 2024 to USD 1.64 billion in 2025, then to USD 4.12 billion by 2030 - representing a CAGR of around 20%
The broader Europe BESS segment is set to grow from USD 15.54 billion in 2025 to USD 32.71 billion by 2030, at a CAGR around 16%

Explore Our Full Library of Energy & Power Research Global Industry Reports: https://www.mordorintelligence.com/market-analysis/energy-power?utm_source=openpr

Key Players

Leading contributors to the Europe battery space span from pure‐play battery firms to manufacturers and energy storage solution providers:

Automotive battery ventures include joint efforts like ACC (a Stellantis‐Mercedes‐TotalEnergies venture), Verkor (backed by Renault), and PowerCo (Volkswagen‐owned). These firms are scaling backed production carefully after recent setbacks in the sector
Established industrial battery makers such as Exide Industries Ltd, GS Yuasa Corporation, Panasonic Corporation, and Saft Groupe SA have long held positions in Europe's industrial battery segments
Chinese investors expanding in Europe-most notably CATL-are partnering with local automakers and governments, including a large €4.1 billion gigafactory with Stellantis in Zaragoza, Spain by late 2026
Recycling and circular economy players are gaining prominence as battery reuse and mineral recovery emerge as priorities across Europe. European regulations and investment plans increasingly call for recycled content in EV batteries

Explore more about the Europe Battery Market Competitor Overview: https://www.mordorintelligence.com/industry-reports/europe-battery-market-industry/companies?utm_source=openpr

Conclusion

The Europe battery market is entering a critical phase. While ambitious goals exist-such as EU auto manufacturers sourcing 90% of battery needs domestically by 2030-the region faces a tough road ahead amidst faltering local ventures, fierce competition from Asian giants, and tight capital markets. Demand remains strong from the automotive, industrial, and energy storage sectors. Growth in hybrid EV battery revenues and energy storage systems is expected to accelerate sharply over the next five years.

Balancing ambition with caution has become essential strategy: many European firms are choosing incremental steps and selective partnerships rather than attempting rapid scale‐ups on their own. Supportive policies -from subsidies to local‐content rules and recycling mandates - will be crucial in shaping outcomes for Europe's battery ambitions. If sustained, these measures could help the region carve out a financial and technological footing in the global battery landscape.

As Europe moves forward, the interplay between local capability building, strategic alliances with foreign partners, and government support will determine whether the continent can become a reliable player in the global battery supply chain-or whether it remains largely dependent on external suppliers.

Explore Related Reports:

Europe Industrial Battery Market: The Europe Industrial Battery Market report segments the industry into Technology (Lithium-ion Battery, Lead-acid Battery, Other Technologies [Nickel Cadmium Battery, Nickel Metal Hydride, Zinc Carbon, etc.]), Application (Forklift, Telecom, UPS, Others), and Geography (United Kingdom, Germany, France, Rest of Europe). Get five years of historical data alongside five-year market forecasts.

Get More Insights: https://www.mordorintelligence.com/industry-reports/europe-industrial-battery-market?utm_source=openpr

Europe Rechargeable Battery Market: The Europe Rechargeable Battery Market report segments the industry into Battery Type (Lead Acid, Lithium-Ion, Others (NiMh, NiCd, etc.)), Applications (Automobiles, Industrial Batteries, Portable Batteries, Other Applications), and Geography (Germany, France, United Kingdom, Italy, Spain, NORDIC, Russia, Turkey, Rest of Europe). Get five years of historical data alongside five-year market forecasts.

Get More Insights: https://www.mordorintelligence.com/industry-reports/europe-rechargeable-battery-market?utm_source=openpr

Industrial Battery Market: The Industrial Battery Market Report is Segmented by Technology (Lithium-Ion, Lead-Acid, Nickel-Based, and Others), Application (Forklift and Motive Power, Telecom Backup, UPS/Data Centres, Grid-Scale ESS, and Others), End-User Industry (Power and Utilities, Oil and Gas, Manufacturing and Warehousing, Telecom, and Others), and Geography (North America, Europe, Asia-Pacific, South America, and Middle East and Africa).

Get More Insights: https://www.mordorintelligence.com/industry-reports/industrial-battery-market?utm_source=openpr

For any inquiries or to access the full report, please contact:
media@mordorintelligence.com
https://www.mordorintelligence.com/

Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals.

With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics.

This release was published on openPR.