Battery Electric Vehicles - Europe

Europe

Highlights

The Battery Electric Vehicles market in Europe is projected to reach a revenue of US$147.1bn by 2024.
It is expected to exhibit a Compound Annual Growth Rate (CAGR) of 10.51% from 2024 to 2029, resulting in a projected market volume of US$242.3bn by 2029.
The unit sales of Battery Electric Vehicles market in Europe are expected to reach 3.56m vehicles by 2029.
The volume weighted average price of Battery Electric Vehicles market in Europe is projected to be US$69.8k in 2024.
When considering the global market, it is evident that China will generate the highest revenue, amounting to US$211bn in 2024.
Germany, being a pioneer in the automotive industry, is experiencing a surge in demand for Battery Electric Vehicles due to stringent environmental regulations.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureMethodology

The Battery Electric Vehicles market in Europe has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for this growth is the increasing demand for environmentally friendly transportation options. Customers in Europe are becoming more conscious of the environmental impact of traditional vehicles and are actively seeking out greener alternatives. Battery Electric Vehicles (BEVs) offer zero-emission transportation, making them an attractive option for environmentally conscious consumers. Additionally, the growing concern about air pollution and the need to reduce greenhouse gas emissions has also contributed to the rise in demand for BEVs.

Trends in the market: One of the key trends in the Battery Electric Vehicles market in Europe is the expansion of charging infrastructure. As the popularity of BEVs increases, there is a growing need for a reliable and accessible network of charging stations. Governments and private companies are investing in the development of charging infrastructure to support the growing number of BEV owners. This trend is expected to continue as the market for BEVs expands further. Another trend in the market is the increasing range and performance of BEVs. In the past, range anxiety was a significant concern for potential BEV buyers, as the limited range of early models made long-distance travel challenging. However, advancements in battery technology have significantly improved the range of BEVs, making them a more viable option for everyday use and long-distance travel. Additionally, BEVs are becoming more powerful and are offering comparable performance to traditional internal combustion engine vehicles.

Local special circumstances: Europe has a unique set of circumstances that has contributed to the growth of the Battery Electric Vehicles market. One of the key factors is the presence of strict emissions regulations in many European countries. Governments have implemented stringent emission standards, and automakers are required to meet these standards to sell their vehicles in the European market. This has incentivized automakers to invest in electric vehicle technology and develop BEVs to comply with the regulations. Furthermore, European governments have implemented various incentives to promote the adoption of BEVs. These incentives include financial incentives such as tax credits and subsidies, as well as non-financial incentives like access to restricted areas and preferential parking. These incentives have made BEVs more affordable and attractive to consumers, further driving the growth of the market.

Underlying macroeconomic factors: The Battery Electric Vehicles market in Europe is also influenced by macroeconomic factors. One of the key factors is the availability of government support and funding for the development of electric vehicle infrastructure. Governments across Europe are investing in the expansion of charging infrastructure and providing financial support to automakers to develop and produce BEVs. This support has created a favorable environment for the growth of the market. Additionally, advancements in battery technology and the decreasing cost of batteries have made BEVs more affordable and accessible to a wider range of consumers. As the cost of batteries continues to decline, the price of BEVs is expected to become more competitive with traditional vehicles, further driving the growth of the market. In conclusion, the Battery Electric Vehicles market in Europe is experiencing significant growth due to increasing customer preferences for environmentally friendly transportation options, the expansion of charging infrastructure, local special circumstances such as strict emissions regulations and government incentives, and underlying macroeconomic factors such as government support and advancements in battery technology. This growth is expected to continue as the market for BEVs in Europe expands further.

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).