France Hybrid Electric Vehicle Battery Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.22 Billion |
| Market Size (2029) | USD 0.48 Billion |
| CAGR (2024 - 2029) | 17.06 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
France Hybrid Electric Vehicle Battery Market Analysis
The France Hybrid Electric Vehicle Battery Market size is estimated at USD 0.22 billion in 2024, and is expected to reach USD 0.48 billion by 2029, at a CAGR of 17.06% during the forecast period (2024-2029).
- Over the medium term, factors such as rising growth in hybrid vehicle fleets and the declining cost of lithium-ion batteries are expected to be among the most significant drivers for the France hybrid Electric Vehicle Battery Market during the forecast period.
- On the other hand, increasing adoption of alternate electric vehicle technology like plug-in hybrid electric vehicles is likely to have a negative impact on the market studied.
- Nevertheless, continued efforts are being made to develop new battery chemistries that provide more energy and an extended drive range. This factor is expected to create several opportunities for the market in the future.
France Hybrid Electric Vehicle Battery Market Trends
Lithium-ion Battery to Dominate the Market
- As the demand for efficient and eco-friendly transportation solutions rises, hybrid vehicle manufacturers increasingly favor lithium-ion batteries. This trend is primarily attributed to lithium-ion batteries' superior energy density, extended lifespan, and quicker charging capabilities compared to alternative battery chemistries.
- Over the past decade, significant advancements in battery technology and manufacturing processes have accelerated the adoption of lithium-ion batteries in France's hybrid electric vehicle market. These advancements have not only reduced costs but also enhanced performance and reliability, making lithium-ion batteries more appealing to both manufacturers and consumers.
- In recent years, the prices of lithium-ion batteries and cell packs have been declining, enhancing their appeal to end-user industries. After a brief uptick in 2022, battery prices resumed their downward trend in 2023. Notably, the cost of lithium-ion battery packs plummeted by 14%, hitting a historic low of USD 139/kWh.
- French automotive leaders are reaping the rewards of heightened energy efficiency and lighter vehicle weights. This momentum is bolstered by extensive R&D efforts in France and Europe, focusing on battery technology enhancements, energy density improvements, and battery lifespan extensions. These advancements significantly elevate the global competitiveness of French-made hybrid vehicles.
- For example, in July 2024, Stellantis, a key player in automotive research, joined forces with CEA, a top-tier French research institution, to announce a collaborative venture spanning five years. Their joint endeavor centers on the in-house design of next-gen lithium-ion battery cells, tailored for the transportation industry. The collaboration aims to produce state-of-the-art cells that promise enhanced performance, longevity, and a smaller carbon footprint, all while keeping costs competitive.
- Moreover, government policies and incentives play a crucial role in propelling the growth of lithium-ion batteries in France's hybrid electric vehicle market. The French government has introduced measures such as consumer subsidies, tax incentives for manufacturers, and investments in charging infrastructure. These initiatives not only stimulate innovation and investment in the sector but also align with laws like the "Mobility Orientation Law" and the "Climate Plan." These laws prioritize reducing CO2 emissions and phasing out traditional combustion engine vehicles, thereby amplifying the demand for hybrid electric vehicles powered by advanced lithium-ion batteries.
- Given the aforementioned factors, the lithium-ion battery segment is poised to lead the market during the forecast period.
Rising Hybrid Vehicle Fleet to Drive the Market
- France's expanding fleet of hybrid vehicles is poised to significantly boost the hybrid electric vehicle (HEV) battery market. This trend mirrors both consumer preferences and industry movements towards sustainable transportation. With France's ongoing commitment to environmental sustainability, the automotive sector has seen a notable uptick in hybrid vehicle adoption, striking a balance between traditional internal combustion engines and fully electric vehicles.
- According to Avere-France, hybrid electric vehicle sales in France have surged recently. Between 2022 and 2023, the French hybrid fleet grew by over 10.3%. Over the last decade, this fleet has expanded nearly 450-fold, highlighting the nation's burgeoning appetite for hybrid electric vehicles.
- This growth is fueled not just by regulatory mandates but also by consumer preferences for vehicles that blend environmental advantages with practicality. As hybrid vehicle sales rise, so does the demand for their batteries, essential for optimizing fuel efficiency and curbing emissions. With an increasing number of hybrids on the roads, the demand for high-performance, reliable batteries intensifies, leading manufacturers to boost production and channel investments into research and development.
- Government incentives and policies aimed at curbing carbon emissions and championing cleaner energy are further fueling the hybrid vehicle fleet's growth. The French government's dedication to slashing greenhouse gas emissions resonates with broader European Union goals, hastening the shift towards hybrids. Financial incentives like subsidies, tax breaks, and rebates are making hybrid vehicles more accessible, carving out a larger market share for them.
- In 2023, the French government rolled out new ecological bonuses to further encourage electric vehicle adoption. For new passenger cars, the aid covers 27% of the total acquisition cost, taxes included. If the battery is leased, its expense is also included. The bonus caps at EUR 5,000 for individuals and EUR 3,000 for businesses. For new vans, the aid is set at 40% of the purchase cost, including taxes, and again encompasses leased battery costs. However, the maximum aid is limited to EUR 6,000 for individuals and EUR 4,000 for businesses.
- As hybrid vehicles proliferate, so does the demand for their batteries. This demand emphasizes not just quantity but also quality, with a focus on longer life cycles, quicker charging, and enhanced energy density. As a result, the battery market is becoming increasingly competitive, with suppliers innovating to secure a larger slice of this expanding market.
- In conclusion, the burgeoning fleet of hybrid electric vehicles, bolstered by proactive government policies, is set to propel the market forward during the forecast period.
France Hybrid Electric Vehicle Battery Industry Overview
The France Hybrid Electric Vehicle Battery Market is semi-fragmented. Some of the key players in this market (in no particular order) are LG Energy Solution, Contemporary Amperex Technology Co Ltd., BYD Company, Saft Groupe SA, and Elecsys France
France Hybrid Electric Vehicle Battery Market Leaders
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LG Energy Solution
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Contemporary Amperex Technology Co Ltd.
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BYD Company
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Saft Groupe SA
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Elecsys France
*Disclaimer: Major Players sorted in no particular order
France Hybrid Electric Vehicle Battery Market News
- January 2024: ProLogium Technology Co, a Taiwanese manufacturer of electric vehicle batteries, announced its intention to begin mass production at a new factory in France, with operations set to commence in 2027. The French government has validated ProLogium's significant investment of USD 5.67 billion in a state-of-the-art battery plant located in Dunkirk. Although the specific annual production capacity has not been revealed, the facility is designed to serve a diverse range of vehicles, encompassing electric cars, hybrids, three-wheelers, and two-wheelers.
- May 2023: France has launched its first electric car battery plant, marking a significant step in its ambitious "reindustrialization" strategy. The plant, operated by ACC - a joint venture co-owned by industry titans TotalEnergies, Stellantis (parent company of Jeep), and Mercedes-Benz - has been bolstered by a hefty USD 1.4 billion aid package. This financial support, sourced from France, Germany, and Italy, is a slice of a grander USD 7.5 billion endeavor. This larger initiative is focused on setting up a network of state-of-the-art facilities across the three nations. The Lens plant, gearing up to start operations this summer, boasts an impressive annual production capacity of 800,000 batteries, catering to both electric and hybrid vehicles.
France Hybrid Electric Vehicle Battery Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD, till 2029
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.1.1 Rising Hybrid Vehicle Fleet
4.5.1.2 Decreasing Lithium-ion Battery Price
4.5.2 Restraints
4.5.2.1 Supply Chain Constraints
4.6 Supply Chain Analysis
4.7 PESTLE Analysis
4.8 Investment Analysis
5. MARKET SEGMENTATION
5.1 Battery Type
5.1.1 Lithium-ion Battery
5.1.2 Lead-Acid Battery
5.1.3 Sodium-ion Battery
5.1.4 Others
5.2 Vehicle Type
5.2.1 Passenger Cars
5.2.2 Commercial Vehicles
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 LG Energy Solution
6.3.2 Contemporary Amperex Technology Co Ltd.
6.3.3 BYD Company
6.3.4 Panasonic Holdings Corporation
6.3.5 SK Innovation Co Ltd
6.3.6 Enersys Sarl
6.3.7 Exide Industries Ltd
6.3.8 Saft Groupe SA
6.3.9 Elecsys France
6.3.10 Clarios, LLC
- *List Not Exhaustive
6.4 List of Other Prominent Companies
6.5 Market Ranking/Share (%) Analysis
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Technological Advancements in Battery Materials
France Hybrid Electric Vehicle Battery Industry Segmentation
A hybrid electric vehicle (HEV) battery is a critical component of a hybrid vehicle's powertrain system. The battery allows hybrid electric vehicles to achieve better fuel efficiency and lower emissions compared to traditional internal combustion engine vehicles by enabling regenerative braking, which captures and stores energy that would otherwise be lost during braking. The stored energy can then be used to reduce the load on the internal combustion engine or power the vehicle at low speeds, contributing to the overall efficiency and eco-friendliness of hybrid vehicles.
The France Hybrid Electric Vehicle Battery Market is segmented by battery type and vehicle type. By battery type, the market is divided into Lithium-ion Batteries, Lead-Acid Batteries, Sodium-ion Batteries, and Others. By vehicle type, it is divided into Passenger Cars and Commercial Vehicles. The report also covers the size and forecasts for the Hybrid Electric Vehicle Battery Markets across major regions. The market sizing and forecasts have been done for each segment based on revenue (USD).
| Battery Type | |
| Lithium-ion Battery | |
| Lead-Acid Battery | |
| Sodium-ion Battery | |
| Others |
| Vehicle Type | |
| Passenger Cars | |
| Commercial Vehicles |
France Hybrid Electric Vehicle Battery Market Research FAQs
How big is the France Hybrid Electric Vehicle Battery Market?
The France Hybrid Electric Vehicle Battery Market size is expected to reach USD 0.22 billion in 2024 and grow at a CAGR of 17.06% to reach USD 0.48 billion by 2029.
What is the current France Hybrid Electric Vehicle Battery Market size?
In 2024, the France Hybrid Electric Vehicle Battery Market size is expected to reach USD 0.22 billion.
Who are the key players in France Hybrid Electric Vehicle Battery Market?
LG Energy Solution, Contemporary Amperex Technology Co Ltd., BYD Company, Saft Groupe SA and Elecsys France are the major companies operating in the France Hybrid Electric Vehicle Battery Market.
What years does this France Hybrid Electric Vehicle Battery Market cover, and what was the market size in 2023?
In 2023, the France Hybrid Electric Vehicle Battery Market size was estimated at USD 0.18 billion. The report covers the France Hybrid Electric Vehicle Battery Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the France Hybrid Electric Vehicle Battery Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
France Hybrid Electric Vehicle Battery Industry Report
Statistics for the 2024 France Hybrid Electric Vehicle Battery market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. France Hybrid Electric Vehicle Battery analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
