Europe Industrial Batteries Market Size & Trends Analysis Report By Battery Type (Lead-acid, Lithium-based), By End Use (Motive Power, Grid-level Energy Storage), By Country and Segment Forecasts, 2023 - 2030

Report Overview

The Europe Industrial Batteries Market was valued at 3.45 billion in 2022 and expected to grow at CAGR of 7.8% over forecast period.

The growing demand for dependable and efficient energy storage solutions to support the region's transition to renewable energy sources and electrification of various industries is driving the Europe industrial batteries market. As Europe strives for decarbonization and energy sustainability, industrial batteries play an important role in grid stabilization, storing excess renewable energy, and ensuring a continuous power supply for critical applications.

The growing use of electric vehicles and renewable energy installations necessitates advanced battery technologies, which drives up demand for industrial batteries even more. Government incentives, favorable policies, and regulations promoting energy storage solutions all contribute to the sector's robust growth as Europe strives to reduce greenhouse gas emissions and improve energy resilience.

Battery Type Outlook

Based on Battery Type, the Europe Industrial Batteries Market is segmented in Lead-acid, Lithium-based. Lead-acid segment accounted for largest share in 2022. The demand for cost-effective and reliable energy storage solutions in various industries such as telecommunications, backup power systems, and material handling equipment drives the European market for lead-acid industrial batteries. Lead-acid batteries have a long history of providing a reliable and cost-effective source of backup and uninterruptible power supply, making them an excellent choice for applications requiring consistent energy supply.

Lithium-ion and lithium iron phosphate (LiFePO4) batteries are popular due to their high energy density, long cycle life, and low maintenance requirements. They are critical to the advancement of electric vehicles, grid energy storage, and smart manufacturing systems. Furthermore, as Europe focuses more on clean energy, greenhouse gas reduction, and energy efficiency, lithium-based industrial batteries are critical in ensuring a reliable, sustainable, and adaptable energy supply, fostering innovation, and assisting in the transition to a more electrified and environmentally friendly industrial landscape.

End Use Outlook

Based on End Use, Europe Industrial Batteries Market is segmented into Motive Power, Grid-level Energy Storage.  Motive Power accounted for largest share in 2022. The ongoing shift toward electrification in the material handling and logistics industries is driving the Europe motive power industrial batteries market. These batteries are required for the operation of electric forklifts, warehouse equipment, and other electric vehicles in distribution centers, manufacturing facilities, and warehouses. Motive power industrial batteries offer a clean and efficient alternative to internal combustion engines, reducing carbon emissions and improving workplace air quality as European countries prioritize sustainability and stringent emissions standards.

The increasing integration of renewable energy sources, such as wind and solar, into the electricity grid is driving the Europe grid-level energy storage market, particularly in the motive power industrial battery segment. Grid-level energy storage, achieved through the use of motive power industrial batteries, helps to mitigate the intermittent nature of renewable energy generation and ensures a stable and reliable electricity supply. With the European Union's ambitious renewable energy targets and the transition to a low-carbon grid, industrial batteries are critical for storing excess energy and discharging it when demand is high.

Country Outlook

Germany has emerged as leading market for Europe Industrial Batteries Market in 2022. Germany's industrial batteries market is primarily driven by the country's strong emphasis on sustainable and efficient energy solutions, especially in the context of clean energy transition and industrial automation. Germany's thriving manufacturing sector, which includes the automotive, machinery, and electronics industries, necessitates dependable and environmentally friendly energy storage solutions. Industrial batteries are critical for grid stabilization, integrating renewable energy sources, and powering automated industrial processes.

Furthermore, France's efforts to reduce greenhouse gas emissions, along with government incentives for electric vehicle adoption and energy storage, contribute to the country's industrial battery market growth. As France strives to improve its energy resilience and sustainability, industrial batteries will play a critical role in achieving these goals.

Recent Key Developments in Europe Industrial Batteries Market

• In May 2023. Northvolt to invest billions to build gigafactory in Germany. Northvolt could invest around 3-5 billion euros ($8.8 billion) in the plant and receive around half a billion euros in German subsidies
• In March 2023, Factorial Energy Announces European Expansion - Electric Vehicle Solid-State Battery Manufacturer Establishes a German Subsidiary. Factorial has collaboration agreements with Mercedes-Benz, Stellantis, and Hyundai to accelerate production of Factorial's solid-state battery technology, which the company believes is safer and more energy dense than current lithium-ion battery technology.

Europe Industrial Batteries Market Report Scope

Europe Industrial Batteries Market Segmentation

Battery Type Outlook (Revenue, USD Billion, 2018 - 2030)

• Lead-acid
• Lithium-based

End Use Outlook (Revenue, USD Billion, 2018 - 2030)

• Motive Power
• Grid-level Energy Storage

Europe Industrial Batteries Market, by Country

• Germany
• United Kingdom
• France
• Italy
• Russia
• Spain
• Netherlands
• Switzerland
• Sweden
• Poland