Europe Electric Vehicle Market Size, Share & Industry Analysis, By Vehicle Type (Passenger Car and Commercial Vehicle), By Propulsion Type (Battery Electric Vehicle (BEV) and Hybrid Electric Vehicle (HEV)), By Drive Type (All Wheel Drive, Front Wheel Drive, and Rear Wheel Drive), By Range (Up to 150 Miles, 151-300 Miles, and Above 300 Miles), By Component (Battery Pack & High Voltage Component, Motor, Brake, Wheel & Suspension, Body & Chassis, and Low Voltage Electric Component) and Country Forecast, 2023-2030

Europe is the second largest region in the global electric vehicle market. It is projected to record a CAGR of 17.9% during the forecast period. The Europe electric vehicle market is anticipated to grow from USD 119.44 billion in 2022 to USD 492.87 billion by 2030.

Growing adoption of electric vehicles and increasing setup of EV charging infrastructure in major countries will drive the market growth during the forecast period. This growth can also be attributed to government-backed policies & subsidies and increasing environmental concerns. The growing sales of electric vans and electric trucks for delivery applications will also boost the market growth during the forecast period. For instance, in October 2022, Amazon announced that it would spend USD 1.07 billion to electrify its European delivery fleet over the next few years. The company currently has around 3,000 electric last-mile delivery vans in Europe. This investment will allow the company to grow its fleet size to 10,000 vans in Europe by 2025. This development will expand the market size during the forecast period.

The report on the European market covers the following countries/regions – U.K., Germany, France, and the Rest of Europe.

LATEST TRENDS

Increase in Devolvement of Electric Vehicle Infrastructure to Propel the Market Growth

In Europe, countries focus on infrastructure development activities to roll out electric vehicles as soon as possible. For instance, governments of various European nations have started initiatives to develop and expand their domestic supply chains of batteries for electric type of vehicles. But most supply chains will remain Chinese throughout 2030 due to high EV battery production. Major countries in Europe are focusing on electric vehicle charging infrastructure, for instance in January 2023, the Ministry of the Environment and Energy Security (MASE) announced that More than 21 000 charging stations for electric vehicles (EVs) will be operational by 2026 in urban and inter-urban roads across Italy, this development drives the Europe electric vehicle market growth during the forecast period.

DRIVING FACTOR

Rise in Sales of Battery Electric Vehicle & Hybrid Vehicles Drive Market Growth

The growth of electric vehicles in Europe region grown significantly due to increased sales of battery and hybrid electric vehicles in 2022.  For instance, The European automotive market grows by 14% in October 2022. The BEVs grew 17% in October to some 124,000 registrations. Plugin vehicle share of the overall European auto market was 23.2%, thus rising demand for electric vehicles drives the market growth during the forecast period. The below table shows the top-selling electric vehicles in Europe (October).

Also, The European government is highly emphasizing adopting these vehicles to reduce carbon footprint.  Increasing awareness related to the use of these vehicles to reduce emissions this development augments the Europe electric vehicle market share during the forecast period.

RESTRAINING FACTOR

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Reduction in Electric Vehicle Subsidiaries to Hamper the Market Growth

The European country plans to reduce electric vehicle subsidiaries from 2023, which is anticipated to hamper the market growth during the forecast period. For Instance, In March 2022, Germany's economy ministry announced the government will have reduced financial incentives to buy electric cars next year after an agreement within the governing coalition. According to the government, the incentives or premiums for electric cars will expire once an allocated sum of USD 3.44 billion from the next two years' budget is spent, thus reducing subsidiaries of electric vehicles hampering the market growth.

KEY INDUSTRY PLAYERS

In terms of the competitive landscape, BYD Company Ltd., Daimler AG, and Tesla, Inc. (U.S.) are the key players in the Europe market due to their strong product portfolios and active involvement in R&D investments. These initiatives will help them accelerate their product launches and approvals processes during the forecast period.

Other prominent players, such as A.B. Volvo and Toyota Motor Company are also leading the market due to their strong distribution network for their products. Some of the other major players include General Motors Company, Hyundai Motor Company, and others.

LIST OF KEY COMPANIES PROFILED:

• AB Volvo (Sweden)


• BMW Group (Germany)


• BYD Europe HQS (China)


• Daimler AG (Germany)


• Audi AG (Germany)


• Ford Motor Company (U.S.)


• General Motors Europe (Germany)


• Honda Motor Europe Limited (U.K.)


• Hyundai Motor Company (South Korea)


• Nissan Automotive Europe (France)


• Mitsubishi Motors Europe (Netherlands)

KEY INDUSTRY DEVELOPMENTS:December 2022:

• AB Volvo Truck announced the expansion of its range with the launch of several new electric trucks, making it possible to electrify even more transport routes in cities and regions. Volvo Trucks was planning to expand its offering by introducing rigid versions of its heavy electric trucks: The Volvo FH, Volvo FM, and Volvo FMX.


• November 2022: Feintool signed a contract with a renowned European Original Equipment Manufacturer (OEM). The contract includes the delivery of stators and rotors used to manufacture main electric drives for electric vehicles. It has a lifetime volume in the triple-digit million Euro range.

REPORT COVERAGE

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The market report provides qualitative and quantitative insights into the market and a detailed analysis of the market’s size & growth rate for all possible segments in the market. Along with the market’s forecast, the research report provides an elaborative analysis of the market dynamics and competitive landscape. Various key insights presented in the report are an overview of the number of EVs, types of vehicles, regulatory scenario in key countries, new product launches, key industry developments – mergers, acquisitions & partnerships, and impact of the COVID-19 pandemic on the market.

Report Scope & Segmentation