The North Europe battery market is expected to grow at a CAGR of more than 14.5% during the forecast period. Factors such as supportive government policies for renewable energy and electric vehicle and its charging infrastructure projects are expected to stimulate market growth. The battery market in North Europe is mainly driven by surging transportation needs, increasing battery integration in consumer electronics, and rising fuel-saving initiatives. However, the supply-demand gap of raw material such as cobalt which is essential for the Li-ion battery is likely to hinder the growth of the market during the forecast period.
- The lithium-ion segment is expected to have a significant growth in the North Europe battery market owing to the increasing demand from electric vehicles produced in the region, and the segment is expected to be the leading end-user for lithium-ion batteries in upcoming years.
- Growth in sales of electric vehicles and energy storage increases the demand for lithium-ion batteries. In the near-term, North Europe is expected to have sufficient manufacturing capacity to meet domestic demand, which in turn, are likely to provide an opportunity in the battery market in the future.
- Sweden is expected to dominate in the market during the forecast period.
Key Market Trends
The Lithium-ion Segment is Expected to Witness a Significant Growth
- North Europe is expected to be the fastest-growing market for lithium-ion battery market during the forecast period. The penetration of electric vehicles and increased usage of batteries for transportation, energy storage, and consumer market is anticipated to provide a massive impetus for the lithium-ion battery industry growth.
- Factors such as growing concerns towards the environment, decreasing oil reserves are the main factors for the increasing demand for batteries for electric vehicles. Advances in battery technology have led to faster charging, higher energy densities, and reduced battery degradation.
- Nordic countries are gaining share in the lithium-ion battery market owing to the high usage of EVs particularly in Norway. Norway is the largest electric vehicle market in Europe. The total EV demand in Norway accounted for 72.69 thousand units in 2018.
- The demand for electric car batteries and raw materials needed for the manufacturing of lithium-ion batteries is expected to continue to increase in the coming years in Finland. Based on its mineral resources and other strengths, Finland has the potential to fill the cathode material needs of one large electric vehicle battery (EVB) plant. This translates it into a key supplier position for one or two car manufactures in Europe.
- Morevoer, declining battery prices and improving technology are expected to bring price-competitive electric vehicles to the market, creating demand for lithium-ion battery technologies. Therefore the growth in the automotive industry is mainly expected to have a direct impact on the growth of lithium-ion battery market in the country during the forecast period.
Sweden is Expected to Dominate in the Market
- Sweden has a unique position to establish large-scale battery production to support Europe's transition to renewables with its clean and affordable energy, proximity to raw materials, and a strong industrial tradition.
- Sweden has the highest share of energy production from renewables (53.9%) among EU member states. Thus producing the batteries in Sweden gives them a lower carbon footprint than even before they are put into service to help reduce emissions.
- Driving the automotive industry away from oil and towards lithium-ion batteries is expected to reduce its carbon footprint and make it possible to build affordable electric cars that perform at the same level, or better, as cars with combustion engines. And Sweden is already a leader when it comes to green electricity.
- Sweden's electric car stock has reached 78.63 thousand vehicles by 2018 from 2.66 thousand vehicles in 2013 showing the increased demand for battery run vehicles in the country.
- Sweden is rich in minerals and the leading mining nation in Europe. Demand for batteries in electric vehicles is surging, which leads to growing interests from foreign companies to explore Swedish lithium deposits.
- The construction of Europe's largest green battery factory is underway in Sweden. Therefore, Sweden is expected to dominate in the North Europe battery market during the forecast period.
The North Europe battery market is moderately consolidated. Some of the key players in the market include Northvolt AB, Clayton Power, Broadbit Batteries Oy, Geyser Batteries Oy, and Micropower Group AB.
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