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Europe Electric Commercial Vehicle Battery Pack Market Size

The Europe Electric Commercial Vehicle Battery Pack Market is anticipated to experience substantial growth, driven by increasing demand for electric commercial vehicles and advancements in battery technology. The market's expansion is supported by regulatory incentives, environmental concerns, and the development of charging infrastructure. Despite the high cost of battery packs posing a challenge, improvements in battery density and range, along with expected cost reductions, are facilitating market growth. The focus on electrifying fleets and the transition to sustainable transportation further underscore the market's potential for continued expansion.

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Market Size of europe electric commercial vehicle battery pack Industry

Europe Electric Commercial Vehicle Battery Pack Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Size (2024) USD 1.49 Billion
svg icon Market Size (2029) USD 3.85 Billion
svg icon Largest Share by Propulsion Type BEV
svg icon CAGR (2024 - 2029) 20.91 %
svg icon Largest Share by Country Poland

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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Europe Electric Commercial Vehicle Battery Pack Market Analysis

The Europe Electric Commercial Vehicle Battery Pack Market size is estimated at 1.49 billion USD in 2024, and is expected to reach 3.85 billion USD by 2029, growing at a CAGR of 20.91% during the forecast period (2024-2029).

1.49 Billion

Market Size in 2024 (USD)

3.85 Billion

Market Size in 2029 (USD)

12.65 %

CAGR (2017-2023)

20.91 %

CAGR (2024-2029)

Largest Segment by Body Type

70.65 %

value share, LCV, 2023

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In Europe, the popularity of electric mobility and strict government regulations, battery electric light commercial vehicles are the category with the quickest growth.

Largest Segment by Propulsion Type

99.77 %

value share, BEV, 2023

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The increasing adoption of BEVs in the European commercial vehicle segment highlights the industry's shift towards greener and more sustainable mobility solutions.

Largest Segment by Battery Chemistry

43.28 %

value share, NCM, 2023

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NCM batteries dominate the market because of their high safety, long cycle life, and low cost in Europe electric commercial vehicle battery pack market.

Largest Segment by Battery Form

53.63 %

value share, Pouch, 2023

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Pouch batteries offer higher energy density and improved thermal management, making them suitable for demanding commercial applications.

Leading Market Player

33.42 %

market share, Contemporary Amperex Technology Co. Ltd. (CATL), 2022

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CATL dominates the market by providing advanced, high-energy density lithium-ion batteries that meet the stringent requirements of Europe's automotive sector and leveraging strategic partnerships with leading European automakers.

Cost decline and technological advancements drive demand for battery packs in the European electric commercial vehicle market

  • The European electric commercial vehicle battery pack market grew significantly from 2017 to 2022. According to a report, Europe witnessed a 57% increase in electric commercial vehicle sales in 2020, with over 36,000 units sold. LCVs and M&HDT were the most popular categories, representing over 80% of total sales. The adoption and penetration of electric commercial vehicles are expected to grow in the coming years, driven by regulations and incentives.
  • The growing demand for electric commercial vehicles has also increased the demand for battery packs. Battery density and range have been improving rapidly, with the average range of electric commercial vehicles increasing by over 20% in the past year alone. However, the cost of battery packs remains a significant barrier to adoption. The cost of battery packs for electric commercial vehicles is expected to decline by 56% by 2030, driven by economies of scale and technological advancements.
  • Looking toward the future, the pure electric battery pack market for commercial vehicles is expected to continue to grow in Europe. With increasing environmental regulations and a push toward a carbon-neutral economy, many companies are looking to electrify their fleets. There are also significant opportunities in the development of battery technology, including solid-state batteries and battery recycling. Additionally, the development of charging infrastructure will be critical to support the widespread adoption of electric commercial vehicles.
Europe Electric Commercial Vehicle Battery Pack Market

Government support and investments drive electric vehicle adoption in Europe

  • Between 2017 and 2021, the European electric commercial vehicle battery pack market experienced significant growth. This growth was driven by factors such as rising environmental concerns, government regulations promoting electric vehicle adoption, and advancements in battery technology, which improved the performance and reliability of electric commercial vehicles.
  • In 2022, the European electric commercial vehicle battery pack market continued its positive trajectory. This growth was influenced by factors such as increased awareness among businesses about long-term cost savings associated with electric commercial vehicles, the expansion of charging infrastructure, and ongoing advancements in battery technology, which enhanced the efficiency and appeal of battery packs.
  • During the forecast period of 2023-2029, the European electric commercial vehicle battery pack market is expected to exhibit strong growth. This growth is expected to increase due to factors such as government initiatives promoting the electrification of transportation, decreasing costs of battery packs, and ongoing research and development efforts to improve battery performance. Heightened consumer awareness and a strong focus on the environmental advantages of electric vehicles are propelling the transition toward sustainable transportation. As these factors continue to converge, the EV battery market is poised to see continued growth and advancements in the coming years, making electric vehicles attractive and accessible for consumers worldwide.

Europe Electric Commercial Vehicle Battery Pack Industry Segmentation

Bus, LCV, M&HDT 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.

  • The European electric commercial vehicle battery pack market grew significantly from 2017 to 2022. According to a report, Europe witnessed a 57% increase in electric commercial vehicle sales in 2020, with over 36,000 units sold. LCVs and M&HDT were the most popular categories, representing over 80% of total sales. The adoption and penetration of electric commercial vehicles are expected to grow in the coming years, driven by regulations and incentives.
  • The growing demand for electric commercial vehicles has also increased the demand for battery packs. Battery density and range have been improving rapidly, with the average range of electric commercial vehicles increasing by over 20% in the past year alone. However, the cost of battery packs remains a significant barrier to adoption. The cost of battery packs for electric commercial vehicles is expected to decline by 56% by 2030, driven by economies of scale and technological advancements.
  • Looking toward the future, the pure electric battery pack market for commercial vehicles is expected to continue to grow in Europe. With increasing environmental regulations and a push toward a carbon-neutral economy, many companies are looking to electrify their fleets. There are also significant opportunities in the development of battery technology, including solid-state batteries and battery recycling. Additionally, the development of charging infrastructure will be critical to support the widespread adoption of electric commercial vehicles.
Body Type
Bus
LCV
M&HDT
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 Electric Commercial Vehicle Battery Pack Market Size Summary

The European electric commercial vehicle battery pack market is experiencing robust growth, driven by increasing environmental regulations and a shift towards a carbon-neutral economy. The market has seen significant expansion from 2017 to 2022, with a notable rise in electric commercial vehicle sales. This growth is fueled by the demand for electric commercial vehicles, which in turn boosts the need for advanced battery packs. Improvements in battery density and range have enhanced the appeal of electric vehicles, although the high cost of battery packs remains a challenge. However, technological advancements and economies of scale are expected to reduce these costs significantly in the coming years. The market is also poised for further growth due to government initiatives promoting electrification, the development of charging infrastructure, and ongoing research in battery technology, including solid-state batteries and recycling.

The European electric commercial vehicle battery pack market is moderately consolidated, with major players like Akasol AG, BYD Company Ltd., Contemporary Amperex Technology Co. Ltd. (CATL), LG Energy Solution Ltd., and SAIC Volkswagen Power Battery Co. Ltd. holding significant market shares. These companies are actively expanding their production capacities and investing in sustainable battery technologies. The market is characterized by a strong focus on environmental benefits and long-term cost savings, which are driving the transition towards sustainable transportation. The demand for electric vehicles, particularly SUVs, is rising across Europe, with countries like Germany and the United Kingdom leading in sales. The market landscape is competitive, with several international brands offering a variety of electric SUVs and sedans, contributing to the growing prevalence of electric vehicles on European roads.

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Europe Electric Commercial Vehicle 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

    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 Electric Commercial Vehicle Battery Pack Market Size FAQs

The Europe Electric Commercial Vehicle Battery Pack Market size is expected to reach USD 1.49 billion in 2024 and grow at a CAGR of 20.91% to reach USD 3.85 billion by 2029.

In 2024, the Europe Electric Commercial Vehicle Battery Pack Market size is expected to reach USD 1.49 billion.

Europe Electric Commercial Vehicle Battery Pack Market Report Snapshots

Europe Electric Commercial Vehicle Battery Pack Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029