Europe Electric Vehicle Market Growth and Analysis by 2030

The Europe electric vehicle market was valued at US$ 141,848.91 million in 2022 and is projected to reach US$ 383,789.43 million by 2030; it is expected to grow at a CAGR of 13.2% during 2022–2030.

Analyst Perspective:

The ecosystem of the Europe electric vehicle market encompasses a complex network of interdependent entities focused on the development, adoption, and sustainability of electric mobility. This ecosystem is continually evolving, influenced by technological advancements, regulatory frameworks, consumer behaviors, and efforts made by various stakeholders. Major automotive manufacturers and OEMs play a central role in the European EV ecosystem. These companies design, produce, and market electric vehicles, influencing the overall market dynamics. Key players include Volkswagen, Tesla, BMW, and Stellantis. End users are the fundamental component of the EV ecosystem, as their preferences, purchasing decisions, and willingness to adopt electric vehicles impact Europe electric vehicle market trends. Awareness campaigns and educational initiatives contribute to the growing inclination of end users toward electric mobility.

Market Overview:

The Europe electric vehicle market encompasses trends regarding the production, sales, and adoption of electrically powered vehicles in European countries. These vehicles utilize electric power as their primary source of propulsion, relying on rechargeable batteries or other energy storage systems to store and deploy electrical energy for vehicle operation. The main types of electric vehicles available in the market are hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and battery electric vehicles (BEVs).

The Europe electric vehicle market landscape is undergoing a notable shift due to the gradually declining sales of plug-in hybrid vehicles, particularly, in a region that has historically been a prime market for them. This trend complements a surging demand for fully electric vehicles (EVs), marking a significant transformation in consumer preferences. As consumers turned away from diesel-powered cars, which were once a popular choice, the automotive industry sought alternative solutions to meet evolving emission regulations imposed by European lawmakers. In response to this shift, certain automakers placed substantial bets on fully electric vehicles.

Europe Electric Vehicle Market: Strategic Insights

Market Driver:

Upsurge in New Registrations Bolsters Europe Electric Vehicle Market Growth

The Europe electric vehicle market experienced substantial growth in 2022, marking a significant stride toward sustainability. According to data released by the European Environment Agency, there was a remarkable 21.6% surge in the adoption of electric cars in 2022, with nearly 2 million electric cars registered in the region, recording a notable increase from 1.74 million units registered in 2021. Notably, the momentum extended to electric vans, constituting 5.5% of new registrations in 2022. The total number of newly registered battery electric vehicles (BEVs) rose by 25% in 2022, while plug-in hybrid car registrations exhibited a stable trend. Specifically, BEVs dominated the electric van segment, emphasizing a clear shift toward fully electric options.

The evolution of the Europe electric vehicle market is evident from a steep rise in the number of new registrations from 600 in 2010 to 1.74 million in 2021, constituting 18% of total vehicle registrations as of 2021. This positive trend continued in 2022, with electric cars commanding an impressive 22% of new passenger car registrations. Breaking down the numbers, BEVs accounted for 12.2%, while PHEVs represented 9.4% of total new car registrations in 2022. Further, approximately 56,500 units of electric vans were sold in the EU-27 in 2022, capturing a 5.5% Europe electric vehicle market share and reflecting a notable upsurge of 2.0 percentage points from 2020, such market trend is underscoring the positive prospect of the market. The majority of these electric vans were BEVs, signifying a preference for fully electric options in the commercial vehicle segment.

Segmental Analysis:

The Europe electric vehicle market has witnessed a remarkable transformation from 2017 to 2022, marking a substantial increase in the trade and adoption of eco-friendly vehicles. In 2022, the import dynamics of electric and hybrid cars in the European Union underwent a striking evolution, with a significant 35% increase compared to 2017, reflecting a growing preference for sustainable mobility solutions. Notably, the data reveals a substantial shift in the types of electric and hybrid cars being imported. Non-plug-in hybrid cars, which constituted 6% of total car imports in 2017, experienced a staggering rise to 21% in 2022. Similarly, the export numbers for non-plug-in hybrids increased from 0.4% in 2017 to an impressive 13% in 2022, underlining the growing demand for this category of vehicles. All such data shows promising opportunities for the Europe electric vehicle market growth.

Regional Analysis:

The Europe electric vehicle market in Italy appears to be in a consolidating phase, but it has growth potential, especially with the improvement of charging infrastructure and additional incentives. On January 10, 2023, a new round of incentives aimed at increasing the market share of electric vehicles was introduced. These incentives are not exclusive to electric vehicles but also extend to internal combustion engine vehicles contributing less to pollution, categorized based on their CO2 emissions. The availability of funds worth €650 million (approximately US$ 727 million) in 2023, with a significant portion allocated to full hybrid, mild-hybrid, and internal combustion engine vehicles, further boosts people’s expectations in terms of incentives. Additionally, funds are allocated for electric mopeds and motorcycles, electric light commercial vehicles, and domestic charging infrastructure, creating a more favorable environment for electric vehicle adoption in Italy, including low-speed options. All such factors are driving the Europe electric vehicle market growth.

This underscores the growing significance and Europe electric vehicle market share of environmentally friendly vehicles, emphasizing a broader preference for sustainable and greener mobility solutions in the European automotive landscape.

The favorable government policies, legislation, incentives, funding, research, and taxation are also contributing to the higher adoption of EVs and PHEVs. To pioneer emission reduction efforts through transportation, the majority of the Danish Parliament members passed an agreement for the green transition of road transport. According to the agreement, the government is planning to incorporate 775,000 electric cars into the automotive ecosystem of the country by 2030. Thus, these favorable government policies are driving the growth of the Europe electric vehicle market share in Denmark.

Key Player Analysis:

Renault SA, Tesla Inc, Mitsubishi Motors Corp, BYD Co Ltd, Bayerische Motoren Werke AG, Hyundai Motor Co, AB Volvo, Volkswagen AG, Peugeot SA, and Audi AG are the prominent Europe electric vehicle market players in the market.

Recent Developments: 

Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the Europe electric vehicle market. The market initiative is a strategy adopted by companies to expand their global footprint and to meet the growing customer demand. The Europe electric vehicle market players mainly focus on product and service enhancements by integrating advanced features and technologies into their offerings. A few of the recent developments by key players are listed below.

Europe Electric Vehicle Report Scope