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Europe NMC Battery Pack Market Size

The Europe NMC Battery Pack Market is experiencing significant growth, driven by the increasing demand for electric vehicles, particularly battery electric vehicles, and the need for longer driving ranges. This expansion is supported by the adoption of stringent regulations aimed at reducing carbon emissions and promoting electric vehicle usage. Germany and France are leading the market due to government support and consumer demand, while Italy shows a positive trend despite slower growth. The market's expansion is further fueled by advancements in battery technology and the declining cost of battery packs, positioning it as a crucial component in the transition to sustainable mobility across Europe.

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Market Size of europe nmc battery pack Industry

Europe NMC Battery Pack Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Size (2024) USD 10.73 Billion
svg icon Market Size (2029) USD 19.87 Billion
svg icon Largest Share by Propulsion Type BEV
svg icon CAGR (2024 - 2029) 13.11 %
svg icon Largest Share by Country Germany
svg icon Market Concentration Low

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

Key Players

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Europe NMC Battery Pack Market Analysis

The Europe NMC Battery Pack Market size is estimated at 10.73 billion USD in 2024, and is expected to reach 19.87 billion USD by 2029, growing at a CAGR of 13.11% during the forecast period (2024-2029).

10.73 Billion

Market Size in 2024 (USD)

19.87 Billion

Market Size in 2029 (USD)

45.74 %

CAGR (2017-2023)

13.11 %

CAGR (2024-2029)

Largest Segment by Body Type

92.63 %

value share, Passenger Car, 2023

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NCM batteries offer increased range and faster charging capabilities, making them a suitable choice for electric passenger vehicles.

Largest Segment by Propulsion Type

87.16 %

value share, BEV, 2023

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The adoption of BEVs with NCM batteries is driven by the increasing demand for sustainable mobility solutions and government regulations promoting the transition to EVs.

Largest Segment by Battery Form

51.22 %

value share, Prismatic, 2023

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Prismatic batteries dominate the Europe NCM Battery Pack Market offering compact design, efficient space utilization, enhanced performance & cost-effectiveness.

Leading Market Player

7.05 %

market share, SAIC Volkswagen Power Battery Co. Ltd., 2022

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The company invests significantly in research and development to create advanced battery solutions that are specifically designed for commercial vehicles.

Largest Segment by Capacity

60.09 %

value share, 40 kWh to 80 kWh, 2023

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The 40 kWh to 80 kWh battery capacity range dominates the Europe NCM battery pack market, offering a balance between driving range and cost-efficiency.

Increasing demand for BEVs driving growth in the European NCM battery pack market

  • During the historical period (2017-2021), there was significant growth and development of the NCM (nickel cobalt manganese) battery pack market in Europe. This growth was driven by the increasing demand for electric vehicles, especially pure battery electric vehicles (BEVs), and the need for longer driving ranges. During this period, Europe emerged as one of the leading regions for the adoption of electric vehicles, with an 80% adoption rate.
  • The base year of the European NCM battery pack market has been considered as 2022. The demand for BEV and PHEV vehicles was expected to continue to increase in 2022, driving the demand for critical materials such as lithium, cobalt, and nickel. In 2022, lithium demand exceeded supply despite a 180% increase in production since 2017, with demand for 60% of lithium, 30% of cobalt, and 40% of nickel being generated by EV batteries. The trend is expected to continue with a 40% increase in supply and slower growth in demand, especially for EVs in China.
  • During the forecast period (2023-2029), the demand for BEVs and PHEVs is expected to continue to increase, driving the demand for critical materials such as lithium, cobalt, and nickel. The growth trends for the market are expected to be positive, with the market size projected to reach USD 8.5 billion by 2029, recording a CAGR of 16.2% from 2023 to 2029. This growth is primarily expected in line with the increase in electric passenger car sales, with new registrations expected to continue during the forecast period. The market is also expected to benefit from the increasing focus on reducing carbon emissions and the implementation of stringent regulations by governments to promote the adoption of electric vehicles.
Europe NMC Battery Pack Market

Production and raw material supply are driving the expansion of the battery pack industry in Europe

  • The European electric vehicle NCM battery pack market is a dynamic and growing market. The market is expected to grow in the coming years, driven by the increasing adoption of EVs and the declining cost of battery packs. In addition to the factors mentioned above, a number of other factors are expected to drive the growth of the European electric vehicle battery pack market in the coming years.
  • Germany is a leading player in the market, with a remarkable increase in value over the years. This growth can be attributed to various factors, such as government support for electric vehicles, rising consumer demand for EVs, and advancements in battery technology. Germany's robust automotive industry, combined with substantial investments by major automakers in electric vehicle production, has significantly contributed to the surge in demand for battery packs.
  • France, another prominent European country, has also witnessed notable growth in the battery pack market. France's commitment to promoting the adoption of electric vehicles through favorable policies and incentives has played a significant role in driving the growth of the battery pack market. While exhibiting slower growth compared to Germany and France, Italy has still experienced an upward trend in the battery pack market. Factors such as increasing consumer awareness of electric vehicles, government incentives, and technological advancements have contributed to the market's growth in Italy. As the demand for electric vehicles continues to rise, battery packs are expected to play a crucial role in supporting the transition toward sustainable mobility in Italy.

Europe NMC Battery Pack Industry Segmentation

Bus, LCV, M&HDT, Passenger Car are covered as segments by Body Type. BEV, PHEV are covered as segments by Propulsion Type. 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.

  • During the historical period (2017-2021), there was significant growth and development of the NCM (nickel cobalt manganese) battery pack market in Europe. This growth was driven by the increasing demand for electric vehicles, especially pure battery electric vehicles (BEVs), and the need for longer driving ranges. During this period, Europe emerged as one of the leading regions for the adoption of electric vehicles, with an 80% adoption rate.
  • The base year of the European NCM battery pack market has been considered as 2022. The demand for BEV and PHEV vehicles was expected to continue to increase in 2022, driving the demand for critical materials such as lithium, cobalt, and nickel. In 2022, lithium demand exceeded supply despite a 180% increase in production since 2017, with demand for 60% of lithium, 30% of cobalt, and 40% of nickel being generated by EV batteries. The trend is expected to continue with a 40% increase in supply and slower growth in demand, especially for EVs in China.
  • During the forecast period (2023-2029), the demand for BEVs and PHEVs is expected to continue to increase, driving the demand for critical materials such as lithium, cobalt, and nickel. The growth trends for the market are expected to be positive, with the market size projected to reach USD 8.5 billion by 2029, recording a CAGR of 16.2% from 2023 to 2029. This growth is primarily expected in line with the increase in electric passenger car sales, with new registrations expected to continue during the forecast period. The market is also expected to benefit from the increasing focus on reducing carbon emissions and the implementation of stringent regulations by governments to promote the adoption of electric vehicles.
Body Type
Bus
LCV
M&HDT
Passenger Car
Propulsion Type
BEV
PHEV
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 NMC Battery Pack Market Size Summary

The European NMC battery pack market is experiencing robust growth, driven by the increasing adoption of electric vehicles (EVs) and the need for advanced battery technologies to support longer driving ranges. The market has seen significant development over the past few years, with Europe emerging as a leading region in EV adoption. This growth is fueled by the rising demand for pure battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), which in turn drives the demand for critical materials like lithium, cobalt, and nickel. The market is expected to continue its upward trajectory, supported by government regulations aimed at reducing carbon emissions and promoting sustainable mobility solutions.

Germany and France are at the forefront of this market expansion, with Germany benefiting from its strong automotive industry and substantial investments in EV production. France's supportive policies and incentives have also contributed to the market's growth. While Italy's growth is slower, it is still on an upward trend due to increasing consumer awareness and government support. The market is characterized by the presence of major players such as Toyota Group, Renault, Tesla, Kia, and Volkswagen, who collectively hold a significant share of the market. The demand for electric SUVs is particularly high, reflecting consumer preferences for spacious and comfortable vehicles. The market remains fragmented, with key companies like Contemporary Amperex Technology Co. Ltd. (CATL), LG Energy Solution Ltd., and Samsung SDI Co. Ltd. playing pivotal roles in shaping its future.

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Europe NMC 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

      4. 1.1.4 Passenger Car

    2. 1.2 Propulsion Type

      1. 1.2.1 BEV

      2. 1.2.2 PHEV

    3. 1.3 Capacity

      1. 1.3.1 15 kWh to 40 kWh

      2. 1.3.2 40 kWh to 80 kWh

      3. 1.3.3 Above 80 kWh

      4. 1.3.4 Less than 15 kWh

    4. 1.4 Battery Form

      1. 1.4.1 Cylindrical

      2. 1.4.2 Pouch

      3. 1.4.3 Prismatic

    5. 1.5 Method

      1. 1.5.1 Laser

      2. 1.5.2 Wire

    6. 1.6 Component

      1. 1.6.1 Anode

      2. 1.6.2 Cathode

      3. 1.6.3 Electrolyte

      4. 1.6.4 Separator

    7. 1.7 Material Type

      1. 1.7.1 Cobalt

      2. 1.7.2 Lithium

      3. 1.7.3 Manganese

      4. 1.7.4 Natural Graphite

      5. 1.7.5 Nickel

      6. 1.7.6 Other Materials

    8. 1.8 Country

      1. 1.8.1 France

      2. 1.8.2 Germany

      3. 1.8.3 Hungary

      4. 1.8.4 Italy

      5. 1.8.5 Poland

      6. 1.8.6 Sweden

      7. 1.8.7 UK

      8. 1.8.8 Rest-of-Europe

Europe NMC Battery Pack Market Size FAQs

The Europe NMC Battery Pack Market size is expected to reach USD 10.73 billion in 2024 and grow at a CAGR of 13.11% to reach USD 19.87 billion by 2029.

In 2024, the Europe NMC Battery Pack Market size is expected to reach USD 10.73 billion.

Europe NMC Battery Pack Market Report Snapshots

Europe NMC Battery Pack Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029