Europe Electric Vehicle (EV) Market Size - By Vehicle Type (Two-wheelers, Passenger Cars, Commercial), By Battery Type (Sealed Lead Acid, Nickel Metal Hydride, Lithium Ion), Propulsion Type, Price Range, Drive Type, Range, End Use & Forecast, 2023 - 2032

Europe Electric Vehicle Market Size 

Europe Electric Vehicle Market size crossed USD 303.6 billion in 2022 and is projected to expand at a CAGR of 16% between 2023 and 2032, driven by the extending regulatory and policy support in Europe. European countries have implemented stringent regulations and policies to reduce greenhouse gas emissions and combat climate change. These include emissions targets, carbon pricing, and stricter fuel efficiency standards.
 

For instance, the Fuel Economy Directive sets minimum fuel economy standards for new cars and vans. The standards are gradually being tightened, and by 2030, new cars will have to emit an average of 95 grams of CO2 per kilometer. Incentives such as tax breaks, subsidies, and reduced registration fees for EVs have also been implemented to encourage adoption. The European Union's commitment to achieving carbon neutrality by 2050 further emphasizes the importance of EVs in the transportation sector, creating a favorable growth outlook for the regional EV market.
 

Consistent advancements in technology and infrastructure will significantly contribute to market revenue over the next ten years. Improvements in battery technology have led to increased EV ranges, faster charging times, and lower costs. These advancements have helped alleviate "range anxiety" among potential EV buyers. Additionally, the development of a more extensive and accessible charging infrastructure, including public charging stations and fast-charging networks, has made EV ownership more convenient and practical for consumers, supporting the expansion of the market.
 

For instance, in March 2023, Elli, the charging network of Volkswagen Group, reached 500,000 charging points across Europe. This makes Elli the market leader in Europe for public charging infrastructure. However, despite efforts to expand charging infrastructure, there were still concerns about the availability and accessibility of charging stations, particularly fast-charging stations. This "charging deserts" phenomenon, where certain areas lack sufficient charging options, can create range anxiety and make potential EV buyers hesitant, impacting the overall market growth.
 

Europe Electric Vehicle Market Trends

Increasing focus on sustainable materials and recycling is also playing a key role in defining the Europe market outlook. With the expansion of the market, there was an increasing emphasis on sustainability throughout the vehicle's lifecycle, including the materials used in manufacturing and the end-of-life disposal processes. Automakers and manufacturers were expected to explore and implement more sustainable materials for EV production, such as recycled materials, bio-based plastics, and renewable energy sources for manufacturing.
 

For instance, in July 2022, Volvo Cars announced that it would only use recycled or bio-based materials in the interiors of its all-electric vehicles by 2025. The company is currently using Nordico, a material made from recycled PET bottles, cork, and other materials. Additionally, the development of efficient and environmentally friendly methods for recycling EV batteries is anticipated to gain attention to minimize the environmental impact of EVs, which will favor market dynamics in the long run.
 

Europe Electric Vehicle Market Analysis

The hybrid electric vehicle propulsion type segment will gain remarkable momentum during the forecast timeline, due to a confluence of factors. Stricter emissions regulations and climate targets have driven governments to offer incentives and tax breaks for EV adoption, spurring consumer interest. In addition, expanding charging infrastructure has alleviated range anxiety, further boosting hybrid electric vehicle appeal. Notable instances include Norway's substantial hybrid electric vehicle industry share driven by generous incentives and the Netherlands' plans to ban gasoline and diesel car sales by 2030, highlighting the region's commitment to hybrid electric vehicle expansion.
 

The passenger vehicle type segment accounted for 48% of the Europe electric vehicle market share in 2022. Stringent emissions regulations and ambitious climate goals have prompted governments to offer attractive incentives, including subsidies and tax exemptions, incentivizing consumers to choose electric vehicles (EVs). Expanding charging networks and technological advancements in battery range have alleviated concerns about infrastructure and range anxiety. Instances like the UK's ban on new petrol and diesel car sales by 2030 and France's investment in EV charging exemplify Europe's commitment to accelerating the shift towards sustainable electric mobility, fostering the adoption of electric passenger vehicles.
 

Norway electric vehicle market size dominated around USD 267.1 billion in 2022. Generous government incentives, such as tax exemptions and toll discounts, have made EV ownership financially appealing. Well-developed charging infrastructure and a strong focus on sustainability align with the population's eco-conscious mindset. Notably, Norway boasts one of the highest market shares globally, with instances like the Oslo city government's plan to ban cars with internal combustion engines by 2030, showcasing the nation's dedication to fostering EV adoption.
 

Europe Electric Vehicle Market Share

Major companies operating in the Europe EV industry are:

• Tesla
• Renault
• Hyundai Motor Company
• Volkswagen AG
• Kia Corporation
• Mercedes-Benz,
• Ford
• BYD Compay Ltd.
• Solaris Bus & Coach sp. z o.o.
• Volvo
• Ebusco
• Diamler
• Zero Motorcycles, Inc.
• Niu International
• Evoke Electric Motorcycles (HK) Ltd.
• Horwingloba
• Harley-Davidson, Inc.
• VanMoof,
• Cowboy,
• Giant Bicycles,
• myStromer AG
• Yamaha Motor.
   

These major companies are emphasizing strategic partnerships, launching new products, and making significant investments in research to drive market expansion. Their primary goal is to introduce innovative products and generate substantial market revenue through effective commercialization efforts.
 

Europe Electric Vehicle Industry News

• In February 2023, Renault announced that it would invest ?20 Billion in electric vehicles and software by 2030. The company plans to launch 30 new electric models by 2025, including 10 new Renault models and 20 new Dacia and Alpine models.
   

The Europe electric vehicle (EV) market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) and shipment (Units) from 2018 to 2032, for the following segments:

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Market, By Propulsion Type

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

Market, By Vehicle Type

• Two-wheelers
  • Motorcycles
  • E-bikes
• Passenger Cars
  • Sedan
  • SUV
  • Hatchback
  • Others
• Commercial Vehicles
  • Light
  • Medium
  • Heavy

Market, By Drive Type

• Front-wheel Drive
• Rear-wheel Drive
• All-wheel Drive

Market, By Battery Type

• Sealed Lead Acid
• Nickel Metal Hydride (NiMH)
• Lithium Ion

Market, By Range

• Less than 100 km
• 100 km-200 km
• 200 km to 300 km
• Above 300 km

Market, By Price Range

• Below USD 10,000
• USD 10,000 to USD 30,000
• USD 30,000 to USD 50,000
• Above USD 50,000

Market, By End Use

• Personal
• Commercial
  • Government
  • Private

The above information has been provided for the following Country:

• Europe
  • Norway
  • Netherlands
  • Denmark
  • Germany
  • U.K.
  • France
  • Italy
  • Turkey
  • Sweden
  • Spain
  • Poland