Electric Vehicles - Europe

Europe

In 2024, the projected revenue in the Electric Vehicles market in Europe is estimated to reach US$182.9bn.
It is expected to exhibit a compound annual growth rate (CAGR) of 12.11% between 2024 and 2028, resulting in a projected market volume of US$288.9bn by 2028.
By 2028, the unit sales of Electric Vehicles market in Europe are expected to reach 4.83m vehicles.
The volume weighted average price of Electric Vehicles market in Europe in 2024 is projected to be US$60.1k.
From an international perspective, it is evident that in China will generate the highest revenue in the Electric Vehicles market, with an estimated revenue of US$319,000m in 2024.
Germany, the leading country in Europe for electric vehicles, is seeing a surge in demand due to generous government incentives and a well-established charging infrastructure.

Key regions: United States, Germany, Netherlands, China, United Kingdom

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Analyst Opinion

The Electric Vehicles market in Europe has been experiencing significant growth in recent years, driven by a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: One of the key reasons for the growth of the Electric Vehicles market in Europe is the increasing customer preference for environmentally friendly transportation options. With growing concerns about climate change and air pollution, consumers are actively seeking alternatives to traditional gasoline-powered vehicles. Electric Vehicles offer a cleaner and more sustainable mode of transportation, making them a popular choice among environmentally conscious consumers.

Trends in the market: Several trends have contributed to the growth of the Electric Vehicles market in Europe. Firstly, there has been a significant improvement in the performance and range of electric vehicles. Technological advancements have led to the development of more efficient batteries, allowing electric vehicles to travel longer distances on a single charge. Additionally, the availability of a wider range of electric vehicle models has also contributed to the market growth. Customers now have more options to choose from, including sedans, SUVs, and even electric sports cars.

Local special circumstances: Europe has implemented various policies and incentives to promote the adoption of electric vehicles. Governments across the region have introduced subsidies and tax incentives to make electric vehicles more affordable for consumers. Additionally, there has been a significant expansion of charging infrastructure in Europe, making it easier for electric vehicle owners to recharge their vehicles. The presence of charging stations in public places, as well as in residential areas, has helped alleviate range anxiety and increase the convenience of owning an electric vehicle.

Underlying macroeconomic factors: The growth of the Electric Vehicles market in Europe is also influenced by underlying macroeconomic factors. The European Union has set ambitious targets to reduce greenhouse gas emissions, and the transportation sector plays a significant role in achieving these goals. Governments in Europe are actively promoting the adoption of electric vehicles as part of their efforts to transition to a low-carbon economy. Additionally, the European automotive industry is undergoing a transformation, with many traditional automakers investing heavily in electric vehicle technology. This has led to increased competition and innovation in the market, further driving the growth of electric vehicles in Europe. In conclusion, the Electric Vehicles market in Europe is experiencing significant growth due to customer preferences for environmentally friendly transportation options, market trends such as improved performance and range, local special circumstances including government incentives and charging infrastructure, and underlying macroeconomic factors such as the need to reduce greenhouse gas emissions and the transformation of the automotive industry.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).