Europe's Electric Vehicles Market Size was valued at USD 183.9 Billion in 2022. The Europe Electric Vehicles market is projected to grow from USD 206.7 Billion in 2023 to USD 526.5 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 12.40% during the forecast period (2024 - 2032). Reducing EV battery prices will boost demand for EVs. Making EVs more affordable is one of the major market drivers driving the European Electric Vehicles market. The beneficial government policies and incentives are driving the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The European Electric Vehicles market CAGR is growing because the industry leaders in high-performance vehicles, Ford Motor and General Motors, are among the companies launching a range of electric high-performance trucks. In addition to having the greatest interiors and potent electric drivetrains, these electric trucks also come with upscale features like touch displays, leather upholstery, and panoramic windows. For instance, Ford unveiled the new F-150 Raptor R in July 2022. It will have a 5.2-liter V8 engine that can generate 700 horsepower. Customers' desire for a V8-powered Raptor led to its release. Ford's new F-150 Raptor R shares features with its predecessors while delivering more power. More than 400,000 zero-emission cars and at least 100,000 new zero-emission trucks must be registered annually to achieve a reduction of 45 percent in CO2 emissions by 2030. Thus, several laws and policies from the government will encourage the market's expansion for high-performance vehicles.
The European Automobile Manufacturers' Association, also known as L'Association des Constructeurs Européens d'Automobiles (ACEA), responded to the European Commission's proposal for new CO2 standards for trucks and buses in February 2023 by requesting higher CO2 objectives along with significant expansion of infrastructure roll-out, a stronger incentive system, and a carbon price mechanism. Leading participants in the market are already expanding their production facilities to accommodate their new electric models. For instance, the Geely subbrand Radar Auto formally unveiled its first product, the Radar RD6 new battery electric pickup truck, which is available in four different configurations, in September 2022. A 200 kW permanent-magnet synchronous motor and an 86kWh/100kWh ternary lithium battery are available for the vehicle's powerplant.
The battery is a lithium-iron-phosphate battery. Additionally, EV consumers' range anxiety is reduced by a robust infrastructure for charging EVs. As charging stations proliferate, drivers can plan longer trips because they feel more certain about the availability of charging choices. The development of the infrastructure for charging is wider than in cities. By making electric vehicles more accessible to a larger population, ongoing initiatives to establish charging stations in suburban and rural locations encourage the adoption of EVs in the European region. Fast-charging networks must be installed beside key thoroughfares and roads for long-distance travel. Fast-charging stations have the potential to drastically shorten charging periods, which increases the viability of EVs for consumers who require quick recharging choices while traveling. Thus driving the Electric Vehicles market revenue.
Based on Propulsion Types, the Europe Electric Vehicles market segmentation includes hybrid vehicles (pure hybrid vehicles, plug-in hybrid vehicles), battery electric vehicles, and fuel cell electric vehicles. The battery electric vehicles segment dominated the market. The potential advantages of BEVs, such as control over greenhouse gas (GHG) emissions, worries about energy security, and control over local pollution, are primarily responsible for their notable growth. This might result from people being more conscious of environmental issues and the advantages of battery-electric cars. The main cause of the BEV's explosive growth is its prospective advantages, which include lowering regional pollution, energy security concerns, and greenhouse gas (GHG) emissions. As a result, people become more aware of the benefits of battery-powered cars and the environment. Furthermore, a BEV's cost is higher than a PHEV's. Consequently, battery electric vehicles dominate the market for electric vehicles.
The fuel cell electric vehicles segment is expected to grow fastest. The increasing demand for low-emission vehicles, stringent carbon emigration laws, and a growing emphasis on abandoning FCEVs due to the advantages of fast refueling, government initiatives, and investments in fuel cell technology advancement are largely responsible for this segment's explosive growth.
Based on power output, Europe's electric vehicle segmentation includes Less than 100 kW and 100 kW to 250 kW. The less than 100 kW category generated the most income. Less than 100 kW electric vehicles will likely be popular for city and urban commuting. These cars are useful for daily city use since they perform well in stop-and-go traffic and short-distance driving.
The 100 kW to 250 kW category is predicted to have the quickest rate. Performance and range are frequently balanced in vehicles with power outputs between 100 and 250 kW. Customers who need extra power for lengthy commutes or interstate driving and still have a respectable range on a single charge could find these useful.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Based on end-use, Europe's electric vehicle segmentation includes private use and commercial use. The private use category has the largest market share. Europe has seen a surge in the popularity of electric vehicles for personal use, primarily due to government subsidies, consumer demand for a wider range of electric models, and environmental conscience. The use of electric vehicles for personal transportation is being encouraged by several European governments. Some examples of these incentives could be tax credits, grants, lowered registration costs, and immunity from traffic fines.
The commercial use category is predicted to have the quickest rate. The strong expansion of this segment is attributed to rising fuel prices, government-imposed morality about emigration, the increasing abandonment of autonomous delivery vehicles, and the increasing abandonment of electric cars and motorcars. Rising fuel prices, strict government emigration policies, the increasing abandonment of autonomous delivery trucks, and the growing abandonment of electric cars and motorcars all contribute to this segment's explosive growth.
The largest market share is expected to be in Germany. The Federal Motor Transport Authority (FMTA) reports that during the first half of 2022, there were 25% more electric car registrations in Germany than during the previous year. During that period, the number of newly registered electric vehicles increased to 13.5%. Over half of all new car registrations were alternative-drive vehicles (gas, battery electric, hybrid, plug-in hybrid, hydrogen fuel cell, and battery electric). Overall, alternative-drive car registrations increased by 14.2%. For new passenger cars with electric drivetrains registered during the reporting period, 50.6% were from German brands. Germany plans 15 million electric cars on the road by 2030.
Additionally, the German Federal Government is actively promoting the use of plug-in electric vehicles. Moreover, the market share of battery electric cars (BEVs) has risen significantly since the increase in BEV subsidies in June 2020: the environmental advantages and the growing number of electric automobiles on the market fuel growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Major players in the sector are expanding their product lines and investing heavily in R&D, fueling the growth of the Europe Electric Vehicles Market. Market participants are also taking part in several strategic initiatives to increase the size of their market share. Significant developments include new product introductions, contract agreements, mergers and acquisitions, higher investment levels, and collaboration with other organizations. The Electric Vehicles industry must offer reasonably priced products to thrive in a highly competitive and ever-changing market.
Businesses engaged in research and development are trying to boost demand for Electric Vehicles from major participants in the market, including AB Volvo, Alcraft Motor Company Ltd., BMW Group, Volkswagen AG, Groupe Renault., Daimler AG, BYD Company Ltd., Toyota Motor Company, Ford Motor Company, Honda Motor Co., Ltd., Hyundai Motor Company, and Nissan Motor Co., Ltd.
June 2023: Rolls-Royce announced that the Spectre all-electric supercoupé's testing program had successfully concluded. The program needed to travel 2.5 million kilometers in extreme temperatures (-40 °C to +50°C) and difficult conditions (Arctic winter, deserts, steep mountain routes, and busy cities) to simulate nearly 400 years of use.
June 2023: The AMG EQE 53 4MATIC+ SUV was revealed by Mercedes-Benz. With a configurable interior and a drive concept focused on performance, Mercedes-AMG's most recent model stands out as the most versatile electric car in their series.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 183.9 Billion |
| Market Size 2023 | USD 206.7 Billion |
| Market Size 2032 | USD 526.5 Billion |
| Compound Annual Growth Rate (CAGR) | 12.40% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019-2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Propulsion Type, Power Output, End-Use, and Region |
| Region Covered | Europe |
| Countries Covered | Germany, France, UK, Italy, Spain, Sweden, Denmark, Luxembourg, Norway, Austria, and the Rest of Europe |
| Key Companies Profiled | AB Volvo, Alcraft Motor Company Ltd., BMW Group, Volkswagen AG, Groupe Renault., Daimler AG, BYD Company Ltd., Toyota Motor Company, Ford Motor Company, Honda Motor Co., Ltd., Hyundai Motor Company, and Nissan Motor Co., Ltd. |
| Key Market Opportunities | Increasing EV demand in the transportation and automotive industries Expanding government investment in heavy-duty vehicle (HDV) charging infrastructure. |
| Key Market Dynamics | Reducing EV battery prices will boost demand for EVs by making EVs more affordable. The beneficial government policies and incentives |
Frequently Asked Questions (FAQ) :
The Europe Electric Vehicles market size was valued at USD 206.7 Billion in 2023.
The market is projected to grow at a CAGR of 12.40% during the forecast period 2024-2032.
The key players in the market are AB Volvo, Alcraft Motor Company Ltd., BMW Group, Volkswagen AG, Groupe Renault., Daimler AG, BYD Company Ltd., Toyota Motor Company, Ford Motor Company, Honda Motor Co., Ltd., Hyundai Motor Company, and Nissan Motor Co., Ltd.
The Battery Electric Vehicles category dominated the market in 2023.
The Less Than 100 kW category had the largest share of the market.
Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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