Battery Electric Vehicles - United Kingdom

United Kingdom

Highlights

In 2024, the projected revenue in the Battery Electric Vehicles market in the United Kingdom is estimated to reach US$24.5bn.
It is expected to demonstrate a Compound Annual Growth Rate (CAGR) of 7.92% from 2024 to 2029, resulting in a projected market volume of US$35.8bn by 2029.
Furthermore, it is anticipated that the unit sales of Battery Electric Vehicles market in the United Kingdom will reach 467.20k vehicles by 2029.
The volume weighted average price of Battery Electric Vehicles market in the United Kingdom in 2024 is expected to be US$76.5k.
When considering the international market, it is worth noting that China is expected to generate the highest revenue, amounting to US$211bn in 2024.
The United Kingdom is experiencing a surge in demand for Battery Electric Vehicles, driven by government incentives and a growing environmental consciousness among consumers.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureMethodology

Battery Electric Vehicles (BEVs) have been gaining significant traction in the United Kingdom (UK) market in recent years.

Customer preferences: One of the key factors driving the growth of BEVs in the UK is the increasing concern for environmental sustainability. Customers are becoming more conscious about the impact of traditional gasoline-powered vehicles on climate change and air pollution. As a result, there is a growing demand for electric vehicles that produce zero tailpipe emissions. Additionally, the availability of government incentives, such as grants and tax benefits, has also contributed to the increasing popularity of BEVs among customers.

Trends in the market: The UK BEV market has witnessed a steady increase in sales over the past few years. This can be attributed to several factors. Firstly, advancements in battery technology have led to improved range and performance of electric vehicles, addressing one of the major concerns of potential buyers. Additionally, the expansion of charging infrastructure across the country has made it more convenient for customers to own and operate BEVs. The increasing number of public charging stations and the installation of charging points in residential areas have alleviated range anxiety, further boosting the adoption of BEVs. Moreover, the introduction of new models by automakers and the availability of a wider range of vehicle types, including sedans, SUVs, and hatchbacks, have expanded the options for customers, attracting a broader consumer base.

Local special circumstances: The UK government has set ambitious targets to reduce greenhouse gas emissions and improve air quality. In order to achieve these goals, there is a strong focus on transitioning to cleaner transportation options, including electric vehicles. The UK has implemented various policies and initiatives to promote the adoption of BEVs. For instance, the government has announced a ban on the sale of new gasoline and diesel cars by 2030, which has accelerated the shift towards electric vehicles. Additionally, the UK has established a network of low-emission zones in major cities, where only vehicles meeting certain emission standards are allowed to enter. These measures create a favorable environment for the growth of the BEV market in the country.

Underlying macroeconomic factors: The UK automotive industry has been undergoing a transformation, with a shift towards electric vehicles being a key part of the strategy. Automakers are investing heavily in the development and production of electric vehicles to meet the increasing demand. This has led to the creation of new jobs and economic opportunities in the sector. Furthermore, the UK government has provided financial support and incentives to attract investments in the manufacturing of electric vehicles and batteries. These initiatives have not only boosted the domestic production of electric vehicles but have also attracted foreign investment, contributing to the overall growth of the BEV market in the UK. In conclusion, the Battery Electric Vehicles market in the United Kingdom is experiencing significant growth due to customer preferences for environmentally-friendly transportation options, the availability of government incentives, advancements in battery technology, the expansion of charging infrastructure, and the implementation of policies to promote the adoption of electric vehicles. The UK's strong focus on reducing emissions and improving air quality, along with the transformation of the automotive industry and government support, are driving the development of the BEV market in the country.

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).