Plug-in Hybrid Electric Vehicles - Europe

Europe

Highlights

The revenue in the Plug-in Hybrid Electric Vehicles market in Europe is estimated to reach US$79.0bn in 2024.
It is projected to experience an annual growth rate of 12.29% (CAGR 2024-2029), leading to a market volume of US$141.1bn by 2029.
The unit sales of Plug-in Hybrid Electric Vehicles market in Europe are expected to reach 2.07m vehicles in 2029.
In 2024, the volume weighted average price of Plug-in Hybrid Electric Vehicles market in Europe is anticipated to be US$68.8k.
When considering the global market, it is evident that China is expected to generate the highest revenue of US$166bn in 2024.
In Europe, Norway leads the way in the plug-in hybrid electric vehicle market with its strong government incentives and high level of consumer adoption.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureMethodology

The Plug-in Hybrid Electric Vehicles market in Europe is experiencing significant growth and development.

Customer preferences: One of the main reasons for the increasing popularity of Plug-in Hybrid Electric Vehicles in Europe is the growing concern for the environment and the need for sustainable transportation solutions. Customers are becoming more conscious of their carbon footprint and are actively seeking greener alternatives to traditional gasoline-powered vehicles. Plug-in Hybrid Electric Vehicles offer a compromise between electric vehicles and conventional cars, providing the benefits of reduced emissions and improved fuel efficiency without the range anxiety associated with fully electric vehicles. Additionally, many European countries provide incentives and subsidies for purchasing Plug-in Hybrid Electric Vehicles, further driving customer preferences towards these vehicles.

Trends in the market: The Plug-in Hybrid Electric Vehicles market in Europe is witnessing several trends. Firstly, there is a growing number of new models and options available to consumers. Automakers are investing heavily in Plug-in Hybrid Electric Vehicles technology and are introducing a wide range of models to cater to different customer needs and preferences. This increased competition in the market is driving innovation and pushing automakers to improve the performance and efficiency of Plug-in Hybrid Electric Vehicles. Another trend in the market is the development of charging infrastructure. As the demand for Plug-in Hybrid Electric Vehicles increases, there is a need for a reliable and accessible charging network. European governments and private companies are investing in the expansion of charging stations across the region, making it easier for Plug-in Hybrid Electric Vehicle owners to recharge their vehicles. This infrastructure development is crucial in addressing the range anxiety concerns of potential customers and further promoting the adoption of Plug-in Hybrid Electric Vehicles.

Local special circumstances: Different European countries have their own unique circumstances that contribute to the development of the Plug-in Hybrid Electric Vehicles market. For example, countries such as Norway and the Netherlands have implemented strong incentives and policies to promote the adoption of electric vehicles, including Plug-in Hybrid Electric Vehicles. These countries offer generous subsidies, tax breaks, and other benefits to Plug-in Hybrid Electric Vehicle owners, making it financially attractive for customers to choose these vehicles over traditional gasoline-powered cars.

Underlying macroeconomic factors: There are several macroeconomic factors that are driving the growth of the Plug-in Hybrid Electric Vehicles market in Europe. One of the main factors is the increasing awareness and concern for climate change and environmental sustainability. European governments and policymakers are actively promoting the transition to cleaner and greener transportation options, including Plug-in Hybrid Electric Vehicles. This support from the government, coupled with the growing public awareness, is creating a favorable market environment for Plug-in Hybrid Electric Vehicles. Another macroeconomic factor is the advancement in technology and the decreasing cost of batteries. As battery technology improves and becomes more affordable, the cost of Plug-in Hybrid Electric Vehicles is decreasing, making them more accessible to a wider range of customers. Additionally, the development of more efficient and powerful batteries is extending the range of Plug-in Hybrid Electric Vehicles, addressing one of the main concerns of potential customers. In conclusion, the Plug-in Hybrid Electric Vehicles market in Europe is experiencing growth and development due to customer preferences for sustainable transportation solutions, the availability of new models and charging infrastructure, local special circumstances, and underlying macroeconomic factors such as government support and advancements in battery 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).