Market Overview
Electric Vehicles (EVs) or Electric Personal Cars are partially or fully powered with electricity & most commonly run on batteries. These cars have lower running costs due to their fewer moving parts, which also results in low maintenance. With the mounting concerns over vehicle emissions & deteriorating environmental conditions, the governments of different countries throughout Europe are seeking environmentally friendly alternatives like EVs & encouraging the public to invest in such vehicles. It is also why the industry holds substantial potential for the future, with a hint toward the presence of lucrative opportunities for the prominent players in the industry.
Market Insights
The Europe Electric Personal Car Market is projected to grow at a CAGR of around 18% during the forecast period, i.e., 2022-27. The market is driven by the mounting demand for cleaner & smarter vehicles across different countries across Europe, bolstered by rigid emissions regulations imposed by the governments, alongside the mounting awareness among people about the ill effects of these emissions on climate change. In addition, improving the economic conditions of the people have also augmented the demand for Electric Vehicles (EVs), particularly passenger cars, which shall exceed dominant China in terms of EV sales in the coming years.
Besides, back in 2019, the region witnessed significantly greater sales of electric personal cars and is set to prevail in the same trend through 2027, demonstrating the high popularity of battery-based vehicles. Nordic countries (like Denmark, Norway, Sweden, Finland, and Iceland, as well as the Faroe Islands, Greenland, and Åland) alongside the Netherlands have been the prominent areas demonstrating an elevation in the sales of these cars. Followed by, the UK shall also make significant contributions to the market growth on the back of the rigid emission regulations entwined with the growing concerns over climate change agendas, showcasing greater emphasis on decarbonization.
Additionally, countries like the UK are committed to their target of attaining Zero-Emissions by 2050 & imposed a ban on the sale of vehicles causing pollution. In the same line, Germany plans to mitigate greenhouse gas emissions by 55 percent by the end of 2030 & up to 95 percent by the end of 2050. Such initiatives & plans hint toward a presence of favorable policies and incentives for the users, encouraging them to invest money in buying electric personal cars and contribute to the industry.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR (2022-2027) | 18% |
| Country Covered | The UK, Germany, Italy, France, Spain, Sweden, Poland, The Netherlands, Rest of Europe |
| Key Companies Profiled | MercedesBenz Group AG, Stellantis N.V., Volkswagen AG, Groupe Renault, Hyundai Motor Company, Tesla Motors, BYD Company Ltd., Ford Motor, Alcraft Motor Company Ltd., Toyota Motor, Bayerische Motoren Werke AG (BMW), Others |
| Unit Denominations | USD Million/Billion |
In fact, improving economic conditions and changing living standards are influencing the sales of these vehicles and hinting toward the prevalence of private ownership of cars. The same aspect is also triggering the leading players to introduce new variants in the market and cater to the burgeoning user requirements through 2027.
Although the Covid-19 & national lockdown measures affected the total car sales across Europe due to the shutdown of showrooms, manufacturing halt, and movement limitations, EV sales still managed to remain upheld over Internal Combustion Engine (ICE). The initial phase in the European Union showcased a contraction in the demand for new passenger cars, yet later in April 2020, the month demonstrated a significant number of registrations for new passenger cars.
Key Trends in the Europe Electric Personal Car Market
As concerns over air pollution & emission on human health & environment are mounting rapidly alongside the hiking prices of fuels, the governments of different countries across Europe are imposing stringent emission limitations. Such norms are principally for decarbonization & to encourage the adoption of cleaner & cost-effective alternatives.
Hence, the demand for Electric Vehicles replacing Internal Combustion Engines (ICE) is mounting rapidly across Europe and positively influencing the market growth. Besides, constant developments in batteries for EVs to bring higher efficiency to cars are further stimulating the market across Europe through 2027.
Market Segmentation
Based on Propulsion Type:
Here, Battery Electric Vehicle dominated the Europe Electric Personal Car Market with the largest share in the previous years and is set to continue the same trend during the forecast period. This dominance attributes to the low charging costs of these vehicles, attracting a substantial consumer base. Since BEVs entail almost half the electricity cost to charge as conventional vehicles, people are opting for these cars for their personal use and enjoying the cost-effectiveness.
Moreover, the low maintenance of these vehicles due to fewer moving parts facilitates easy, cost-effective, & less frequent service requirements, and hence, has a larger and growing consumer base across Europe. The same aspect is also generating growth opportunities for the leading players to increase their production & distribution capacities for BEVs and cater to the burgeoning demands throughout the region. For Instance:
On the other hand, Plug-in Hybrid Electric Vehicles (PHEV) are projected to demonstrate the fastest growth in the Europe Electric Personal Car Market during the forecast period. This growth is driven by the significantly less petroleum consumption in these vehicles than that f conventional fuel-powered cars. Besides, these cars are excellent for those seeking electric & fuel based vehicles, owing to their capability to run on fuel in case the batteries run out.
Based on Battery Type:
Here, Lithium Ion Batteries are anticipated to acquire the largest share of the Europe Electric Personal Car Market during the forecast period. It owes principally to the capabilities of these batteries to provide higher energy to vehicles than other sources entwined with their low self-discharge & excellent performance in high-temperature.
Besides, since Lithium Ion batteries are also highly energy efficient, they have a wider consumer base across different countries in the region. Backed by the current trends of adopting environmentally-friendly mechanisms to minimize emissions, the deployment of lithium-ion batteries in Electric personal cars is likely to mount throughout Europe and drive the overall market in the coming years.
Country-Level Projection
On the geographical front, the Europe Electric Personal Car Market expands across:
Among all, The Netherlands is projected to prevail in its mighty contribution to the market expansion during the forecast period. This growth attributes to the country registering a substantial number of Electric Vehicles and hinting toward an opportunistic future for the automakers in the coming years.
According to the International Council on Clean Transportation, the Netherlands showcased 21% newly registered Battery Electric Vehicles (BEVs) & 4% Plug-In Hybrid Electric Vehicles (PHEVs) in 2020. This upsurge in demand, popularity, & EV manufacturing hinted toward a testament to the supportive & progressive policies implemented by the government in recent years to attain zero-emission targets.
Additionally, the country aims to bring electrification to vehicle fleets. Hence, the government is further laying out new norms, regulations, stringent emission policies, & favorable incentives for EVs, attracting a substantial consumer base to purchase personal cars & contributing to the overall market expansion across the Netherlands through 2027.
On the other hand, Germany is anticipated to emerge as an area of opportunity in the regional market during the forecast period. This growth attributes to the robust presence & establishment of several prominent automakers in the country & their active indulgence in the development, manufacturing, & introduction of electric vehicles & new models. Besides, active participation of the government through funds & encouragement for the development & adoption of EVs & making substantial contributions to the market growth. For instance:
Recent Developments in the Europe Electric Personal Car Market
Possible Restraint
Electric Vehicles equipped with batteries need a relatively more punctual inspection to ensure top-notch performance of the car with excellent performance. However, frequent maintenance requirements may restrain cost-sensitive users from investing in these vehicles for commutation and reduce the market growth pace.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Europe Electric Personal Car Market is projected to grow at a CAGR of around 18% during 2022-27.
A. Battery Electric Vehicle is anticipated to emerge as an area of remunerative opportunities for the leading players in the Europe Electric Personal Car Market during the forecast period.
A. The mounting demand for some cleaner & smarter vehicles across different countries across the region, bolstered by rigid emissions regulations imposed by the governments, are the prominent aspects fueling the EV sales & driving the Europe Electric Personal Car Market through 2027.
A. The prominent players in the Europe Electric Personal Car Market are Mercedes Benz Group AG, Stellantis N.V., Volkswagen AG, Groupe Renault, Hyundai Motor Company, Tesla Motors, BYD Company Ltd., Ford Motor, Alcraft Motor Company Ltd., Toyota Motor, and Bayerische Motoren Werke AG (BMW), among others.
A. “The Netherlands” would offer substantial growth prospects in the Europe Electric Personal Car Market during 2022-27.
A. The frequent maintenance requirements in Electric Personal Cars may restrain cost-sensitive users from investing in these vehicles for commutation & affect the fledged growth of the market across Europe in the coming years.
