Europe Electric Vehicle Market

Europe Electric Vehicle Market Statistics 2020-2027:

The Europe electric vehicle market was valued at $25,489.81 million in 2019, and is projected to reach $143,084.57 million by 2027, registering a CAGR of 25.4% from 2020 to 2027. 

With the advent in COVID-19 pandemic across the globe, the Europe electric vehicle market has been affected as the electric vehicle manufacturing units have been shut down due to the imposed lockdown in major countries across the Europe. In addition, the unavailability of skilled labor has further affected the market growth.

An electric vehicle operates on electricity unlike its counterpart, which runs on fuel (internal combustion engine powered vehicles). Instead of internal combustion engine, these vehicles run on an electric motor that requires constant supply of energy from batteries to operate. A variety of batteries, such as lithium-ion, molten salt, zinc-air, and various nickel-based designs, is used in these vehicles. An electric vehicle was primarily designed to replace conventional ways of travel as they lead to environmental pollution. It has gained popularity, owing to numerous technological advancements. It outperforms the conventional vehicle providing higher fuel economy, low carbon emission & maintenance, convenience of charging at home, smoother drive, and reduced sound from engine. Majorly, there are three types of electric vehicles—battery, hybrid, and plug-in hybrid electric vehicles. In addition, electric vehicles require no engine oil changes but are slightly expensive than their gasoline equivalents. 

COVID Impact Analysis: With the advent in COVID-19 pandemic across the globe, the Europe electric vehicle market has been affected as the electric vehicle manufacturing units have been shut down due to the imposed lockdown in major countries across the Europe. In addition, the unavailability of skilled labor has further affected the market growth. 

Factors, such as increase in demand for fuel-efficient, high-performance, & low-emission vehicles and stringent government rules & regulations toward vehicle emission, supplement the growth of the electric vehicle market in Europe. However, high manufacturing cost and insufficient electric vehicles charging infrastructure in Europe are the factors that are expected to hamper the growth of the electric vehicle market. Moreover, technological advancements and proactive government initiatives supplement the growth of the Europe electric vehicle market during the forecast period.

The Europe electric vehicle market is segmented on the basis of type, vehicle type, and country. By type, it is divided into battery electric vehicle (BEV), hybrid electric vehicle (HEV), plug-in hybrid electric vehicle (PHEV), mild hybrid electric vehicle (MHEV), and extended range electric vehicle (E-REV). By vehicle type, it is classified into passenger car and commercial vehicle. By country, the market is analyzed across Germany, France, the UK, The Netherlands, Spain, Portugal, Italy, Belgium, and the rest of Europe. 

Based on country, the market is studied across Germany, France, UK, Netherlands, Spain, Portugal, Italy, Belgium, and Rest of Europe.

The major companies profiled in the Europe electric vehicle market include Renault, Tesla, Mitsubishi, Nissan, BMW, Hyundai, Volvo, Volkswagen, Peugeot, and Audi.

Increase in demand for fuel-efficient, high-performance, and low-emission vehicles

Presently, most vehicles run on fossil fuels such as petrol and diesel. The reserves of crude oil are anticipated to become dry over the years; hence, there is increased demand to search for a viable, economical, and clean source to power the automobile. Electric vehicles are the solution for a carbon-neutral, high performance, economic, and practical transportation system. 

European countries have very well accepted electric vehicles. According to the Guardian, in 2020, car manufacturers sold more than 500,000 electric cars in Europe. The sales of electric vehicles have increased progressively since 2010, with a yearly growth of around 50% over the past 5 years. As per the statistics published in the European Electric Vehicle Fact book 2019/2020, electric vehicles represented 3.6% of new passenger car registrations in 2019, a growth of 2.5% as compared with 2018. Electric vehicles have witnessed a growing trend of acceptance in Europe as charging infrastructure is being improved, the production cost falls, and governments take efforts to bring down the carbon emission generated by the transportation sector. According to the International Council on Clean Transportation report, Europe is now the second-largest electric vehicle market in the world by volume, behind China and ahead of the U.S. This tremendous growth in demand for electric vehicles in Europe is expected to drive the growth of the Europe electric vehicle market over the forecast timeframe.

Stringent government rules & regulations toward vehicle emission

The European Union has imposed strict rules and regulations over the years for carbon emissions generated by automobile. These regulations forced the manufacturers in Europe to come up with low-emission vehicles and ultimately led to the large-scale adoption of electric vehicles in Europe. 

The regulation 443/2009 fixed the compulsory reduction of carbon emission targets for new cars. The very first target was fully realized from 2015 onwards. Following an upward trend from 2012 onwards, a goal of 130 grams of CO2 per kilometer was set for the EU fleet-wide standard emanation of new passenger cars between 2015 and 2019. The maximum permitted emissions released from the new cars registered in 2019 in Norway, Iceland, and EU28were 122.4 grams CO2/km. From 2021, the EU fleet-wide average emission goal for new cars is set to be just 95 grams CO2/km. In any case, if the CO2 emissions of a company's products surpass its maximum emission’s goal in a given year, the company has to pay a surplus emissions charge for every car registered. Since 2019, the fine is around $106.7 for each gram/km of passing the set target. Therefore, strict implementation of stringent government rules and regulations to limit carbon emissions of an automotive is anticipated to drive the growth of electric vehicles in Europe over the forecast period

Key Benefits For Stakeholders

• This study presents analytical depiction of the Europe electric vehicle market analysis along with the current trends and future estimations to depict the imminent investment pockets.
• The overall market potential is determined to understand the profitable trends to gain a stronger foothold.
• The report presents information related to key drivers, restraints, and opportunities of the market with a detailed impact analysis.
• The current Europe electric vehicle market size is quantitatively analyzed from 2019 to 2027 to benchmark the financial competency.
• Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the Europe electric vehicle industry.

 Europe Electric Vehicle Market Report Highlights