Electric Vehicles - Finland

Finland

In Finland, the revenue in the Electric Vehicles market is projected to reach US$2.9bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 16.18%, resulting in a projected market volume of US$6.2bn by 2029.
The unit sales of Electric Vehicles market in Finland are expected to reach 111.30k vehicles in 2029.
The volume weighted average price of Electric Vehicles market in Finland in 2024 is expected to amount to US$56.6k.
From an international perspective, it is shown that the most revenue will be generated China, with US$376,400m in 2024.
Finland, known for its commitment to sustainability, is embracing electric vehicles as a key solution for reducing carbon emissions in its transportation sector.

Key regions: United States, Germany, Netherlands, China, United Kingdom

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Analyst Opinion

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

Customer preferences: One of the main reasons for the increasing popularity of electric vehicles in Finland is the growing concern for the environment. Finnish consumers are becoming more conscious of the impact of traditional gasoline-powered vehicles on climate change and are actively seeking greener alternatives. Electric vehicles offer a cleaner and more sustainable mode of transportation, which aligns with the environmentally conscious mindset of Finnish consumers. Additionally, the government has introduced various incentives and subsidies to encourage the adoption of electric vehicles, further driving consumer preferences towards electric vehicles.

Trends in the market: The electric vehicle market in Finland has witnessed a surge in demand in recent years. This can be attributed to several factors. Firstly, advancements in technology have led to improved battery performance and increased driving range, addressing one of the main concerns of potential electric vehicle buyers. As a result, consumers are now more confident in the reliability and practicality of electric vehicles. Secondly, the availability of a wider range of electric vehicle models in the market has also contributed to the increased adoption. With more options to choose from, consumers can find electric vehicles that suit their specific needs and preferences. Lastly, the establishment of a robust charging infrastructure across the country has alleviated concerns regarding the accessibility and convenience of charging electric vehicles, making them a more viable option for daily commuting.

Local special circumstances: Finland's geographical location and climate present unique challenges for electric vehicle adoption. The country experiences long and harsh winters, which can negatively affect the performance of electric vehicle batteries. However, Finnish consumers have shown resilience in overcoming this challenge by opting for electric vehicles with advanced battery heating systems and improved cold weather performance. Additionally, the government has invested in expanding the charging infrastructure in rural areas, ensuring that electric vehicle owners have access to charging facilities even in remote locations.

Underlying macroeconomic factors: Finland has set ambitious climate targets and aims to become carbon neutral by 2035. To achieve this goal, the government has implemented various policies and initiatives to promote the adoption of electric vehicles. These include tax incentives, subsidies, and grants for electric vehicle purchases. Furthermore, Finland has a well-developed renewable energy sector, which provides a sustainable and clean source of electricity for charging electric vehicles. The combination of supportive government policies and a reliable renewable energy infrastructure has created a favorable environment for the growth of the electric vehicle market in Finland.

Methodology

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).