Europe Electric Vehicle Market Size

The Europe Electric Vehicle Market is poised for significant growth, driven by increasing demand across various sectors such as logistics, public transportation, and infrastructure. The market's expansion is further supported by strategic collaborations and government initiatives aimed at promoting electric mobility. As Europe moves towards banning gasoline and diesel vehicles, the shift towards electric commercial and passenger vehicles is expected to accelerate. The introduction of new products and brands, along with financial incentives, is enhancing the appeal of electric vehicles, contributing to the market's robust growth trajectory.

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Market Size of europe electric vehicle Industry

Europe Electric Vehicle Market Summary
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svg icon Study Period 2017 - 2030
svg icon Base Year For Estimation 2023
svg icon Market Size (2024) USD 261.1 Billion
svg icon Market Size (2030) USD 743.1 Billion
svg icon Largest Share by Country Germany
svg icon CAGR (2024 - 2030) 19.04 %

Major Players

Europe Electric Vehicle Market Major Players

*Disclaimer: Major Players sorted in no particular order

Key Players

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Europe Electric Vehicle Market Analysis

The Europe Electric Vehicle Market size is estimated at 261.1 billion USD in 2024, and is expected to reach 743.1 billion USD by 2030, growing at a CAGR of 19.04% during the forecast period (2024-2030).

261.1 Billion

Market Size in 2024 (USD)

743.1 Billion

Market Size in 2030 (USD)

40.56 %

CAGR (2017-2023)

19.04 %

CAGR (2024-2030)

Largest Segment by Fuel Category

46.22 %

value share, BEV, 2023

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BEVs dominate due to significant government support, extensive charging infrastructure, and increasing consumer preference for zero-emission vehicles across Europe.

Largest Country

27.92 %

value share, Germany, 2023

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Germany leads the European electric vehicle market due to its strong automotive industry, extensive charging network, and high consumer demand for electric vehicles.

Largest Segment by Vehicle Body Type

66.92 %

value share, Sports Utility Vehicle, 2023

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SUVs dominate due to their versatility, high demand from businesses, and suitability for various commercial applications.

Fastest-growing Segment by Fuel Category

31.45 %

Projected CAGR, FCEV, 2024-2030

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FCEVs are growing rapidly due to advancements in hydrogen technology, expanding hydrogen refueling infrastructure, and strong support for zero-emission vehicles.

Leading Market Player

13.65 %

market share, Toyota Motor Corporation, 2023

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Toyota Motor Corporation dominates the market with its advanced electric vehicle technology, extensive R&D investments, and strong focus on providing eco-friendly mobility solutions across Europe.

The growing logistics, supply chain, infrastructure, and construction sectors and the rise in public transportation services are bolstering the European EV market

  • The demand for commercial vehicles is set to witness a significant uptick in the coming years. Key drivers of this growth include the logistics, supply chain, infrastructure, and construction sectors. Additionally, a rise in public transportation services is bolstering the demand for buses. However, the sales of commercial vehicles experienced a downturn in 2020, largely due to the impact of the pandemic. The market swiftly rebounded in 2021, with Europe's Climate Plan playing a pivotal role. As Europe aims to ban diesel-powered vehicles by 2030, a notable shift is expected to be witnessed among business consumers toward electric commercial vehicles.
  • Across Europe, the introduction of new products and strategic collaborations, such as the partnership between Hyundai Motor Company and H2 Energy, are poised to drive sales of electric trucks. This collaboration produced Hyundai Hydrogen Mobility (HHM) in September 2019 with a vision to foster a green hydrogen ecosystem in Switzerland and Europe. HHM has set an ambitious target of introducing 1,600 fuel-cell electric heavy-duty trucks by 2025. Such initiatives are expected to fuel the sales of heavy electric trucks in Europe from 2024 to 2030.
  • In 2021, the number of electric buses in Germany's public transport sector nearly doubled, with new registrations surging by 60% to reach 1,269, up from 689 in the previous year. Of these, 586 were battery electric vehicles, while only a handful was fuel cell-powered or utilized other technologies. Furthermore, both local transport companies and government bodies in Germany have plans to add over 3,000 e-buses by 2025. Similar trends in other European nations are poised to propel the overall commercial vehicle market in Europe from 2024 to 2030.
Europe Electric Vehicle Market

The European electric vehicle market is characterized by country-level variations, reflecting differing incentives, infrastructure, and consumer preferences

  • Europe is one of the largest electric vehicle manufacturers globally. It is one of the regions globally with the fastest adoption of electric mobility. In terms of electric vehicles, sales of electric passenger cars accounted for the largest share of 8.3% of all newly registered cars in 2023, which were fully electric across the region. Gasoline-powered vehicles are expected to be banned by 2030 and 2035 in most countries, providing a boost to the sales of electric vehicles.
  • The launch of new products and the entry of new brands are expected to drive the market for passenger cars in Europe. In February 2022, the Chinese automaker Xpeng entered Sweden's electric passenger cars with its debut electric cars, P7 and P5 sedans. In June 2022, the American automaker Ford announced that it would produce and sell only electric cars in Europe by 2030. The company plans to invest USD 11.4 billion in producing an electric car at a manufacturing plant in Valencia, Spain.
  • Various government efforts in terms of rebates and subsidies are increasing the adoption of electric vehicles in various European countries. For instance, in 2023, a subsidy of EUR 2,950 was made eligible for new battery electric cars and a subsidy of around EUR 2,000 for used battery electric cars. However, the price of the vehicles should be a minimum of EUR 12,000 and a maximum of EUR 45,000. Such advantages attract customer attention to these vehicles, which is expected to enhance the demand for various types of electric vehicles from 2024 to 2030 in European countries.

Europe Electric Vehicle Industry Segmentation

Commercial Vehicles, Passenger Vehicles, Two-Wheelers are covered as segments by Vehicle Type. BEV, FCEV, HEV, PHEV are covered as segments by Fuel Category. Austria, Belgium, Czech Republic, Denmark, Estonia, France, Germany, Ireland, Italy, Latvia, Lithuania, Norway, Poland, Russia, Spain, Sweden, UK, Rest-of-Europe are covered as segments by Country.

  • The demand for commercial vehicles is set to witness a significant uptick in the coming years. Key drivers of this growth include the logistics, supply chain, infrastructure, and construction sectors. Additionally, a rise in public transportation services is bolstering the demand for buses. However, the sales of commercial vehicles experienced a downturn in 2020, largely due to the impact of the pandemic. The market swiftly rebounded in 2021, with Europe's Climate Plan playing a pivotal role. As Europe aims to ban diesel-powered vehicles by 2030, a notable shift is expected to be witnessed among business consumers toward electric commercial vehicles.
  • Across Europe, the introduction of new products and strategic collaborations, such as the partnership between Hyundai Motor Company and H2 Energy, are poised to drive sales of electric trucks. This collaboration produced Hyundai Hydrogen Mobility (HHM) in September 2019 with a vision to foster a green hydrogen ecosystem in Switzerland and Europe. HHM has set an ambitious target of introducing 1,600 fuel-cell electric heavy-duty trucks by 2025. Such initiatives are expected to fuel the sales of heavy electric trucks in Europe from 2024 to 2030.
  • In 2021, the number of electric buses in Germany's public transport sector nearly doubled, with new registrations surging by 60% to reach 1,269, up from 689 in the previous year. Of these, 586 were battery electric vehicles, while only a handful was fuel cell-powered or utilized other technologies. Furthermore, both local transport companies and government bodies in Germany have plans to add over 3,000 e-buses by 2025. Similar trends in other European nations are poised to propel the overall commercial vehicle market in Europe from 2024 to 2030.
Vehicle Type
Commercial Vehicles
Passenger Vehicles
Hatchback
Multi-purpose Vehicle
Sedan
Sports Utility Vehicle
Two-Wheelers
Fuel Category
BEV
FCEV
HEV
PHEV
Country
Austria
Belgium
Czech Republic
Denmark
Estonia
France
Germany
Ireland
Italy
Latvia
Lithuania
Norway
Poland
Russia
Spain
Sweden
UK
Rest-of-Europe
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Europe Electric Vehicle Market Size Summary

The Europe Electric Vehicle Market is experiencing significant growth, driven by increasing demand across various sectors such as logistics, supply chain, infrastructure, and construction. The market is poised for substantial expansion as Europe moves towards banning diesel-powered vehicles, prompting a shift towards electric commercial vehicles. Strategic collaborations, like the partnership between Hyundai Motor Company and H2 Energy, are expected to enhance the sales of electric trucks, contributing to the market's growth. The rise in public transportation services, particularly in Germany, is also boosting the demand for electric buses, with similar trends anticipated in other European countries. This momentum is supported by government initiatives and subsidies aimed at promoting electric vehicle adoption, further propelling the market forward.

Europe stands as a leading region in the global electric vehicle landscape, with a rapid adoption rate of electric mobility. The market for electric passenger cars is expanding, fueled by the entry of new brands and the launch of innovative products. Government policies banning gasoline-powered vehicles by 2030 and 2035 are expected to significantly boost electric vehicle sales. The market is moderately consolidated, with major players like Bayerische Motoren Werke AG, Groupe Renault, Tesla Inc., Toyota Motor Corporation, and Volkswagen AG dominating the landscape. These companies are actively investing in electric vehicle production and infrastructure, aligning with the region's decarbonization goals. As a result, the Europe Electric Vehicle Market is set to witness robust growth, driven by both consumer demand and supportive regulatory frameworks.

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Europe Electric Vehicle Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2030 and analysis of growth prospects)

    1. 1.1 Vehicle Type

      1. 1.1.1 Commercial Vehicles

      2. 1.1.2 Passenger Vehicles

        1. 1.1.2.1 Hatchback

        2. 1.1.2.2 Multi-purpose Vehicle

        3. 1.1.2.3 Sedan

        4. 1.1.2.4 Sports Utility Vehicle

      3. 1.1.3 Two-Wheelers

    2. 1.2 Fuel Category

      1. 1.2.1 BEV

      2. 1.2.2 FCEV

      3. 1.2.3 HEV

      4. 1.2.4 PHEV

    3. 1.3 Country

      1. 1.3.1 Austria

      2. 1.3.2 Belgium

      3. 1.3.3 Czech Republic

      4. 1.3.4 Denmark

      5. 1.3.5 Estonia

      6. 1.3.6 France

      7. 1.3.7 Germany

      8. 1.3.8 Ireland

      9. 1.3.9 Italy

      10. 1.3.10 Latvia

      11. 1.3.11 Lithuania

      12. 1.3.12 Norway

      13. 1.3.13 Poland

      14. 1.3.14 Russia

      15. 1.3.15 Spain

      16. 1.3.16 Sweden

      17. 1.3.17 UK

      18. 1.3.18 Rest-of-Europe

Europe Electric Vehicle Market Size FAQs

The Europe Electric Vehicle Market size is expected to reach USD 261.14 billion in 2024 and grow at a CAGR of 19.04% to reach USD 743.07 billion by 2030.

In 2024, the Europe Electric Vehicle Market size is expected to reach USD 261.14 billion.

Europe Electric Vehicle Market Report Snapshots

Europe Electric Vehicle Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030