Passenger Cars - Europe

  • Europe
  • Revenue in the Passenger Cars market is projected to reach US$440.6bn in 2024.
  • Revenue is expected to show an annual growth rate (CAGR 2024-2028) of -0.42%, resulting in a projected market volume of US$433.2bn by 2028.
  • The market's largest segment is SUVs with a projected market volume of US$172.2bn in 2024.
  • Passenger Cars market unit sales are expected to reach 14.40m vehicles in 2028.
  • The volume weighted average price of Passenger Cars market is expected to amount to US$29.96k in 2024.
  • With a vehicle unit sales share of 40.4% in 2024, Other is expected to have one of the highest market share in the selected region.
  • The value market share of the make Other in the selected region is expected to stand at 39.8% in 2024.
  • From an international perspective it is shown that the most revenue will be generated in the United States (US$558bn in 2024).

Key regions: United States, Germany, Europe, China, India

 
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Analyst Opinion

The Passenger Cars market in Europe is experiencing steady growth and development, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in the European Passenger Cars market are shifting towards more eco-friendly and fuel-efficient vehicles.

With growing concerns about climate change and environmental sustainability, customers are increasingly opting for electric and hybrid cars. This shift in preferences is also influenced by government initiatives and regulations promoting the adoption of electric vehicles. Additionally, customers in Europe value safety features, advanced technology, and comfortable interiors in their cars.

Trends in the European Passenger Cars market indicate a significant increase in the demand for SUVs and crossover vehicles. These types of vehicles offer a combination of spaciousness, versatility, and off-road capabilities, which appeal to a wide range of customers. The popularity of SUVs can be attributed to their perceived safety, higher driving position, and aesthetic appeal.

Furthermore, there is a growing trend towards car-sharing and ride-hailing services, which is impacting the market dynamics and creating new opportunities for automakers. Local special circumstances in different European countries also influence the Passenger Cars market. For example, in countries with high population density and limited parking space, smaller and more compact cars are preferred.

On the other hand, countries with vast rural areas and long distances between cities tend to have a higher demand for larger and more powerful vehicles. Additionally, cultural factors and brand preferences play a significant role in shaping the market dynamics in different countries. Underlying macroeconomic factors such as GDP growth, employment rates, and disposable income levels also impact the Passenger Cars market in Europe.

When the economy is performing well, consumers have higher purchasing power and are more likely to invest in buying cars. Conversely, during economic downturns, consumers may delay or reduce their car purchases, leading to a decline in market demand. Furthermore, fluctuations in fuel prices, interest rates, and exchange rates can also influence consumer behavior and affect the overall market performance.

In conclusion, the Passenger Cars market in Europe is witnessing growth and development driven by customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The shift towards eco-friendly vehicles, the popularity of SUVs, and the rise of car-sharing services are shaping the market dynamics. Additionally, local factors such as parking space availability and cultural preferences influence the demand for different types of cars.

Overall, the market is influenced by macroeconomic factors such as GDP growth, employment rates, and disposable income levels.

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).

Overview

  • Unit Sales
  • Analyst Opinion
  • Technical Specifications
  • Revenue
  • Price
  • Global Comparison
  • Methodology
  • Key Market Indicators
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