United Kingdom Hybrid Electric Vehicle Battery Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.21 Billion |
| Market Size (2029) | USD 0.45 Billion |
| CAGR (2024 - 2029) | 16.36 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
United Kingdom Hybrid Electric Vehicle Battery Market Analysis
The United Kingdom Hybrid Electric Vehicle Battery Market size is estimated at USD 0.21 billion in 2024, and is expected to reach USD 0.45 billion by 2029, at a CAGR of 16.36% during the forecast period (2024-2029).
- Over the long term, factors such as increasing electric vehicle (EV) production and declining lithium-ion battery prices are expected to be among the most significant drivers for the United Kingdom's hybrid electric vehicle battery market during the forecast period.
- On the other hand, limited availability of raw materials and challenges associated with the raw material supply chain are expected to hinder market growth in the forecast period.
- Nevertheless, there has been a growing demand for technological advancements in battery materials. This factor is expected to create several opportunities for the market in the future.
United Kingdom Hybrid Electric Vehicle Battery Market Trends
Lithium-ion Battery Type to Dominate the Market
- The global lithium-ion electric vehicle battery market is a dynamic arena, teeming with both opportunities and challenges. Lithium-ion rechargeable batteries are outpacing other technologies in popularity, thanks to their superior capacity-to-weight ratio. Their adoption is further fueled by advantages like extended lifespan, minimal maintenance, enhanced shelf life, and a notable drop in prices.
- While lithium-ion batteries traditionally commanded a premium over their counterparts, leading market players have been channeling investments into achieving economies of scale and ramping up R&D. This intensified competition has not only bolstered battery performance but also driven down lithium-ion battery prices.
- In the United Kingdom, government initiatives are championing electric vehicles, spurred by mounting environmental concerns and a commitment to net-zero carbon emission targets. Lithium, a crucial component for EV storage capacity, is being aggressively extracted by global leaders to meet the surging demand for lithium-ion batteries.
- March 2024 saw electric cars making up 15.2% of new registrations, a testament to their growing allure. The International Energy Agency reported a 21.6% sales uptick in 2023, with the United Kingdom moving 450,000 electric vehicles. This trend underscores a robust momentum in the United Kingdom's electric car market. As the majority of EVs utilize lithium-ion batteries for added advantages, hence growth in EVs is likely to favor the battery chemistry.
- In a groundbreaking achievement, a Cambridge-based EV manufacturer unveiled a 35kWh lithium-ion battery in July 2024, boasting a charging time of under five minutes—comparable to traditional gas refueling. This battery not only charges from 10% to 80% in just over four and a half minutes but also promises longevity with over 4,000 fast charge cycles, translating to approximately 600,000 miles. Such advancements are poised to spur lithium production, aligning with the escalating demand for lithium-ion batteries in the coming years.
- The United Kingdom government is bolstering the appeal of electric and hybrid vehicles through a suite of incentives, including grants, subsidies, and financial assistance.
- In a move underscoring the United Kingdom's leadership in zero-emission vehicle technology, October 2023 saw a landmark funding of 89 million pounds distributed among 20 pioneering net-zero tech projects. These spanned hydrogen-powered off-road vehicles, a new lithium scale-up plant, and innovative EV battery systems. The comprehensive funding package encompassed four collaborative R&D projects, five scale-up initiatives to gauge automotive sector growth readiness, and seven feasibility studies aimed at establishing large-scale manufacturing facilities in the United Kingdom.
- Given this backdrop, the forecast period anticipates a bolstered role for lithium-ion batteries in the hybrid electric vehicle sector.
The Increasing Electric Vehicle (EV) Production is Expected to Drive the Market
- The United Kingdom is witnessing a rapid expansion in hybrid electric vehicle (HEV) battery production, driven by surging demand for electric and hybrid vehicles. To cater to this escalating demand, global battery giants, including Nissan and Britishvolt, have set up production facilities in the United Kingdom.
- The United Kingdom's advantageous location, combined with its robust automotive sector and a skilled workforce, positions it as a prime hub for battery production. Additionally, the government's backing for innovation and infrastructure development amplifies the nation's ability to produce cutting-edge battery technologies. This includes lithium-ion batteries, which play a pivotal role in hybrid vehicles.
- The United Kingdom government has rolled out multiple initiatives to further the production and adoption of hybrid and electric vehicles. Notable policies encompass the "Road to Zero" strategy, which targets the cessation of new petrol and diesel car sales by 2030, alongside significant investments in battery production and electric vehicle infrastructure.
- As of January 2023, the United Kingdom is home to 17 projects focused on advancing EV battery technologies. These initiatives, backed by EUR 27.6 million (USD 29.8 million) from UK Research and Innovation (UKRI) via Innovate UK, aim to enhance the United Kingdom's competitiveness in the battery value chain. Additionally, 20 groundbreaking projects in net-zero technology have secured EUR 89 million (USD 96.12 million) in funding, reinforcing the United Kingdom's stature as a global leader in zero-emission vehicle technology.
- In March 2024, the Advanced Propulsion Centre UK unveiled an investment of approximately USD 77.2 million to bolster the electric vehicle industry. Notable companies, including Nissan, YASA, EMPEL Systems, and JLR, are poised for collaborative research and development endeavors in the nation's electric vehicle production.
- Data from the Society of Motor Manufacturers and Traders (SMMT) indicates that in 2023, hybrid Electric Vehicles (HEVs) constituted about 12.6% of total vehicle registrations. This marks a 27.1% surge from 2022, with registrations hitting 238,942. Given the segment's advantages, such as reduced carbon emissions, it's poised for further growth in the coming years.
- Consequently, the burgeoning hybrid electric vehicle landscape in the United Kingdom is set to drive an increased demand for batteries in the foreseeable future.
United Kingdom Hybrid Electric Vehicle Battery Industry Overview
The United Kingdom Hybrid Electric Vehicle Battery Market is moderate. Some of the key players in this market are BYD Company Ltd., EnerSys, Panasonic Holdings Corporation, Energizer Holding Inc., and LG Energy Solution.
United Kingdom Hybrid Electric Vehicle Battery Market Leaders
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BYD Company Ltd
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EnerSys
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Panasonic Holdings Corporation
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Energizer Holding Inc.
*Disclaimer: Major Players sorted in no particular order
United Kingdom Hybrid Electric Vehicle Battery Market News
- March 2024: EVE Energy planned to construct a 5.7-square-foot electric vehicle battery gigafactory in Coventry, England. The project is expected to require an investment of more than USD 1 billion.
- July 2023: Tata, the parent company of Jaguar Land Rover (JLR), is set to invest EUR 4 billion in establishing an electric vehicle (EV) battery factory in the United Kingdom. Located in Somerset, this new gigafactory is poised to become one of Europe's largest, with an anticipated annual production capacity of 40GWh of cells.
United Kingdom 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 The Increasing Electric Vehicle (EV) Production
4.5.1.2 Declining Lithium-ion Battery Prices
4.5.2 Restraints
4.5.2.1 Lack of Raw Material Reserves
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 BYD Company Ltd
6.3.2 EnerSys
6.3.3 Panasonic Holdings Corporation
6.3.4 Energizer Holding Inc.
6.3.5 LG Energy Solution
6.3.6 Britishvolt
6.3.7 Johnson Matthey
6.3.8 Oxis Energy
6.3.9 Faradion
6.3.10 Nexeon Ltd.
- *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
United Kingdom Hybrid Electric Vehicle Battery Industry Segmentation
A Hybrid Electric Vehicle (HEV) battery is a rechargeable energy storage system that powers the electric motor of a hybrid vehicle. HEVs combine a conventional internal combustion engine (ICE) with an electric propulsion system. The battery in an HEV is crucial for capturing and storing energy, particularly during regenerative braking, and for providing additional power during acceleration.
The United Kingdom's hybrid electric vehicle battery market is Segmented by Battery Type and Vehicle Type. By battery type, the market is segmented into Lithium-Ion Battery, Lead-Acid Battery, Sodium-Ion Battery, and Others. The report also covers the market size and forecasts for the United Kingdom hybrid electric vehicle battery market across the country. The report offers the market size and forecasts in revenue (USD) for all the above segments.
| Battery Type | |
| Lithium-ion Battery | |
| Lead-Acid Battery | |
| Sodium-ion Battery | |
| Others |
| Vehicle Type | |
| Passenger Cars | |
| Commercial Vehicles |
United Kingdom Hybrid Electric Vehicle Battery Market Research FAQs
How big is the United Kingdom Hybrid Electric Vehicle Battery Market?
The United Kingdom Hybrid Electric Vehicle Battery Market size is expected to reach USD 0.21 billion in 2024 and grow at a CAGR of 16.36% to reach USD 0.45 billion by 2029.
What is the current United Kingdom Hybrid Electric Vehicle Battery Market size?
In 2024, the United Kingdom Hybrid Electric Vehicle Battery Market size is expected to reach USD 0.21 billion.
Who are the key players in United Kingdom Hybrid Electric Vehicle Battery Market?
BYD Company Ltd, EnerSys, Panasonic Holdings Corporation and Energizer Holding Inc. are the major companies operating in the United Kingdom Hybrid Electric Vehicle Battery Market.
What years does this United Kingdom Hybrid Electric Vehicle Battery Market cover, and what was the market size in 2023?
In 2023, the United Kingdom Hybrid Electric Vehicle Battery Market size was estimated at USD 0.18 billion. The report covers the United Kingdom Hybrid Electric Vehicle Battery Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the United Kingdom Hybrid Electric Vehicle Battery Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
United Kingdom Hybrid Electric Vehicle Battery Industry Report
Statistics for the 2024 United Kingdom Hybrid Electric Vehicle Battery market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. United Kingdom 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.
