Electric Vehicles - EU-27 | Statista Market Forecast

The Electric Vehicles market in the EU-27 is projected to reach a revenue of US$172.4bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 11.03%, resulting in a projected market volume of US$290.8bn by 2029.
The unit sales of Electric Vehicles market in the EU-27 are expected to reach 4.26m vehicles in 2029.
The volume weighted average price of Electric Vehicles market in the EU-27 in 2024 is expected to be US$69.7k.
From an international perspective, it is shown that China will generate the most revenue with US$376bn in 2024.
Germany is leading the way in the EU-27 electric vehicle market, with a strong commitment to innovation and investment in charging infrastructure.

CO2 emissions exert a profound influence on climate and the environment, fueling the greenhouse effect and contributing significantly to global climate change. Nearly one-fourth of these emissions worldwide can be attributed to the transportation sector. Electric vehicles (EVs) emerge as a promising solution, potentially acting as a carbon-neutral alternative when powered by renewable energy sources. This underscores their pivotal role in mitigating the impact of traditional combustion engine vehicles on the environment.

The Electric Vehicles market includes information about electric vehicles in countries where, according to our sources, a public electric vehicle charging infrastructure is already available. In this context, “public” means that people have unrestricted access to the charging infrastructure. A vehicle can be defined as electric if it is self-contained with a battery or classified as a plug-in hybrid. All key figures shown represent the sales of new cars, and their basic configuration in the respective year. The figures do not include the sale of used vehicles nor adapted equipment for the new cars sold. The prices and revenues shown are accordingly based on the basic models.

The Electric Vehicle market is divided into distinct two distinct markets, namely Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs). This categorization allows for a nuanced understanding of the market dynamics, considering the specific attributes and market penetration of each electric vehicle type. The emphasis on new car sales and their foundational configurations ensures clarity, while the exclusion of used vehicles and customizations maintains focus on the evolving landscape of electric vehicles.

Battery electric vehicles (BEVs)
Plug-in hybrid electric vehicles (PHEVs)
Road electric vehicles
Passenger Cars

Electric vehicles that are not self-contained and cannot be classified as BEVs or PHEVs
Rail electric vehicles
Surface and underwater vessels
Electric aircraft or spacecraft
Motorcycles, scooters, mopeds, buses, vans, and trucks

The Electric Vehicles market in EU-27 is experiencing significant growth and development.

Customer preferences: Customers in the EU-27 are increasingly opting for electric vehicles due to their environmental benefits. With growing concerns about climate change and air pollution, there is a strong demand for vehicles that produce lower emissions. Electric vehicles offer a greener alternative to traditional combustion engine cars, and customers are attracted to their reduced carbon footprint. Additionally, the rising cost of fossil fuels has made electric vehicles a more cost-effective option for many consumers.

Trends in the market: One of the key trends in the Electric Vehicles market in the EU-27 is the increasing availability and variety of electric vehicle models. As more automakers invest in electric vehicle technology, there are now a wide range of options for customers to choose from. This has led to increased competition in the market, driving innovation and pushing manufacturers to improve the performance and features of their electric vehicles. Another trend in the market is the expansion of charging infrastructure. To address the issue of range anxiety and encourage the adoption of electric vehicles, governments and private companies are investing in the development of charging stations across the EU-27. This infrastructure expansion is crucial for the widespread adoption of electric vehicles, as it provides customers with the confidence that they can easily recharge their vehicles when needed.

Local special circumstances: Each country in the EU-27 has its own unique set of circumstances that influence the development of the Electric Vehicles market. For example, countries with strong government support and incentives for electric vehicle adoption, such as Germany and the Netherlands, have seen faster growth in the market. On the other hand, countries with limited charging infrastructure or higher upfront costs for electric vehicles may experience slower adoption rates.

Underlying macroeconomic factors: Several macroeconomic factors are driving the development of the Electric Vehicles market in the EU-27. One of the main factors is government regulations and policies aimed at reducing carbon emissions. Many countries in the EU-27 have set ambitious targets for reducing greenhouse gas emissions, and promoting the adoption of electric vehicles is seen as a key strategy to achieve these goals. In addition, advancements in battery technology and decreasing costs of electric vehicle production have made electric vehicles more affordable and accessible to a wider range of customers. Overall, the Electric Vehicles market in the EU-27 is experiencing growth and development due to customer preferences for greener transportation options, the availability of a wider range of electric vehicle models, the expansion of charging infrastructure, local special circumstances in each country, and underlying macroeconomic factors such as government regulations and advancements in technology.

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).

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For the first time in the past decade, lithium-ion battery pack costs increased in 2022 due to the raw material and battery component soaring price inflation. However, this increase in production cost has not slowed down the global electric vehicle (EV)market. Electric vehicle sales have increased tremendously over the past decade.