Battery Electric Vehicles - EU-27

EU-27

Highlights

The Battery Electric Vehicles market in the EU-27 is expected to generate a projected revenue of US$107.4bn in 2024.
This is based on the anticipated annual growth rate (CAGR 2024-2029) of 10.37%.
As a result, the market volume is projected to reach US$175.9bn by 2029.
By 2029, it is expected that the unit sales of Battery Electric Vehicles market in the EU-27 will reach 2.57m vehicles.
The volume weighted average price of the Battery Electric Vehicles market in 2024 is estimated to be US$70.2k.
When considering the global market, it is evident that the highest revenue will be generated China, with an estimated revenue of US$211bn in 2024.
Germany is leading the EU-27 in the adoption of Battery Electric Vehicles, driven by strong government incentives and a well-developed charging infrastructure.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureMethodology

The Battery Electric Vehicles market in EU-27 is experiencing significant growth and development due to several key factors. Customer preferences for environmentally friendly transportation options, government incentives and regulations, and advancements in technology are driving the increased adoption of Battery Electric Vehicles (BEVs) in the region.

Customer preferences: Customers in the EU-27 are increasingly concerned about the environmental impact of traditional gasoline-powered vehicles. They are seeking more sustainable and eco-friendly alternatives, which has led to a growing demand for BEVs. The lower carbon emissions and reduced reliance on fossil fuels make BEVs an attractive option for environmentally conscious consumers.

Trends in the market: The EU-27 has witnessed a surge in the availability and variety of BEV models from different automakers. This has resulted in increased competition and lower prices, making BEVs more accessible to a wider range of customers. Additionally, advancements in battery technology have improved the range and performance of BEVs, addressing one of the key concerns of potential buyers.

Local special circumstances: Several countries within the EU-27 have implemented policies and regulations to promote the adoption of BEVs. For example, Norway has provided significant incentives such as tax exemptions, toll discounts, and free parking to encourage the purchase of electric vehicles. As a result, Norway has one of the highest electric vehicle adoption rates in the world. Other countries such as Germany and France have also introduced financial incentives and targets to increase the number of electric vehicles on the road.

Underlying macroeconomic factors: The EU-27 has set ambitious targets to reduce carbon emissions and transition to cleaner energy sources. This has led to increased investment in renewable energy infrastructure and the promotion of electric vehicles as a sustainable transportation solution. The European Commission has also proposed stricter emission standards for vehicles, which will further drive the adoption of electric vehicles. In conclusion, the Battery Electric Vehicles market in EU-27 is experiencing significant growth due to customer preferences for environmentally friendly transportation options, government incentives and regulations, advancements in technology, and the region's commitment to reducing carbon emissions. The increasing availability and variety of BEV models, along with improvements in battery technology, have made electric vehicles more accessible and appealing to a wider range of customers. The implementation of policies and regulations by several EU-27 countries, along with the region's focus on reducing carbon emissions, has further accelerated the adoption of electric vehicles.

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).