Europe Electric Vehicle Market

Europe Electric Vehicle Market Size (2024 to 2029)

The European electric vehicle market was valued at USD 44,905 million in 2023. The European EV market size is expected to grow at a CAGR of 23.4% from 2024 to 2029 and be worth USD 158,557 million by 2029 from USD 55,412 million in 2024.

Electric vehicles (EVs) are primarily designed to replace traditional travel methods that cause environmental pollution. Electric cars have gained popularity due to numerous technological advances. They perform better than conventional automobiles, have higher fuel economy, lower carbon emissions and maintenance, and provide the convenience of charging at home, smooth operation, and reduced engine noise.

Strict government regulations to curb pollution levels and reduce our dependence on expensive fossil fuels are driving the growth of the electric vehicle market in Europe. The growing awareness of the environment has led people to choose electric vehicles. European customers are also less cost-sensitive and more adaptable to the latest technologies. Increased environmental awareness will continue to encourage more people to adopt electric cars during the forecast period.

The electric vehicle market in Europe has grown significantly due to the need to address future energy requirements. The need for sustainable transport plays a vital role in the demand for electric vehicles. The market is emerging as a crucial part of the automotive industry, and it represents a way to achieve energy efficiency along with the reduction of pollutants and other greenhouse gas emissions. The increase in environmental problems, together with favorable government initiatives, are supporting the growth of the European EV market. The growing energy costs and competition between emerging energy efficiency technologies are driving the European EV market growth. Currently, much attention is paid to passenger cars for electric vehicles, but this trend is expected to change soon and extend to other types of cars.

However, the high costs involved in manufacturing low fuel economy and the ease of service of the electric vehicle limit the rapid expansion of the market.

REPORT COVERAGE:

This research report on the Europe electric vehicle market has been segmented and sub-segmented into the following categories.

Europe Electric Vehicle Market - By Vehicle:

• Passenger Vehicles
• Commercial Vehicles 

Of these, passenger cars hold the dominant position in the region due to the strict government regulations and consumer awareness of a pollution-free society. However, the commercial vehicle segment is predicted to witness rapid growth in the forecast period due to the rising adoption of these vehicles in public fleets and transportation in countries like London, etc.

Europe Electric Vehicle Market - By Type:

• Battery Electric Vehicle (BEV)
• Hybrid Electric Vehicle (HEV)
• Plug-in Hybrid Electric Vehicle (PHEV)

Among these, HEV and PHEV are presumed to contribute majorly to the regional market in the coming years due to more advanced options for charging and an increase in production units.

Europe Electric Vehicle Market - By Vehicle Class:

• Mid-Priced
• Luxury

Of these two, the mid-priced vehicles are likely to have the highest demand in the foreseen years due to the launch of several affordable electric cars by leading manufacturers in the region.

Europe Electric Vehicle Market - By Country:

• UK
• France
• Spain
• Germany
• Italy
• Russia
• Sweden
• Denmark
• Switzerland
• Netherlands
• Turkey
• Czech Republic
• Rest of Europe

Germany is the largest market in Europe, followed by Norway, the United Kingdom, and France. Norway is a relevant European country when it comes to the dissemination of electric vehicles, with approximately 30% of all cars sold in the first half of 2017, followed by Iceland and Sweden. The strict regulations and environmental incentives of the government are the main drivers of the European electric vehicle market. However, adequate charging infrastructure is hampering the sales of electric vehicles in the country.

KEY MARKET PLAYERS:

Companies playing a leading role in the European electric vehicle market are BMW Group, Tesla, Nissan Motor Corporation, Volkswagen AG, Toyota Motor Corporation, General Motors, Energica Motor Company S.P.A., Daimler AG, BYD Company Motors and Ford Motor Company.

RECENT HAPPENINGS IN THE MARKET:

• Volkswagen, Daimler, and Honda will showcase their latest electric cars at trade shows, and if they are able to meet their objective, it will help them avoid fines exceeding one billion euros. Companies from Volkswagen to Daimler will announce a new battery model in Frankfurt, hoping to attract consumers and reduce emissions.
• The Netherlands and Norway to completely ban the sale of fossil fuel cars by 2026. Other countries, such as Germany, also decided to ban the sale of conventional vehicles by 2030.