Electric Vehicles - United Kingdom

United Kingdom

In 2024, the projected revenue in the Electric Vehicles market in the United Kingdom is expected to reach €31.5bn.
This market segment is foreseen to display a compound annual growth rate (CAGR 2024-2029) of 8.79%, resulting in a projected market volume of €48.1bn by 2029.
By 2029, unit sales of Electric Vehicles market in the United Kingdom are expected to reach 703.60k vehicles.
The volume weighted average price of Electric Vehicles market in the United Kingdom in 2024 is projected to be €67.7k.
From an international perspective, it is evident that the highest revenue will be generated China, amounting to €349,100m in 2024.
The United Kingdom is experiencing a surge in demand for electric vehicles, driven by government incentives and increasing concerns about air pollution.

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

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Analyst Opinion

The Electric Vehicles market in United Kingdom is experiencing significant growth and development.

Customer preferences: Customers in the United Kingdom are increasingly opting for electric vehicles due to their numerous benefits. Electric vehicles are more environmentally friendly compared to traditional vehicles as they produce zero emissions. This is particularly appealing to customers who are concerned about climate change and want to reduce their carbon footprint. Additionally, electric vehicles offer lower operating costs as they require less maintenance and have lower fuel costs compared to traditional vehicles. The availability of government incentives and subsidies for electric vehicle purchases also contribute to the growing customer preferences for electric vehicles in the United Kingdom.

Trends in the market: One of the key trends in the electric vehicles market in the United Kingdom is the increasing availability of charging infrastructure. The government has been investing in the development of charging stations across the country, making it easier for electric vehicle owners to recharge their vehicles. This trend is crucial in addressing the issue of range anxiety, which has been a barrier to the adoption of electric vehicles. With a growing number of charging stations, customers can confidently choose electric vehicles without worrying about running out of power during their journeys. Another trend in the market is the expansion of the electric vehicle model offerings. Various automakers are introducing new electric vehicle models to cater to the increasing demand in the United Kingdom. This trend provides customers with a wider range of options to choose from, including different vehicle types, sizes, and price ranges. The availability of more electric vehicle models encourages customers to switch to electric vehicles as they can find a vehicle that suits their specific needs and preferences.

Local special circumstances: The United Kingdom has set ambitious targets to reduce greenhouse gas emissions and transition to a low-carbon economy. As part of these efforts, the government has implemented policies and regulations to promote the adoption of electric vehicles. These include grants and incentives for purchasing electric vehicles, as well as stricter emissions standards for traditional vehicles. The strong government support and commitment to reducing emissions create a favorable environment for the growth of the electric vehicles market in the United Kingdom.

Underlying macroeconomic factors: The United Kingdom is experiencing a shift towards renewable energy sources, with a significant increase in renewable energy generation in recent years. This shift is driven by the need to reduce reliance on fossil fuels and mitigate the impact of climate change. As the electricity grid becomes greener, the environmental benefits of electric vehicles are further enhanced. Customers are more likely to choose electric vehicles knowing that they are powered by clean energy, contributing to the overall sustainability goals of the country. Furthermore, advancements in technology have made electric vehicles more efficient and affordable. The cost of batteries, which is one of the major components of electric vehicles, has been decreasing over time. This reduction in battery costs has made electric vehicles more accessible to a wider range of customers. Additionally, improvements in charging technology and battery range have addressed the concerns of customers regarding the practicality and convenience of electric vehicles. In conclusion, the Electric Vehicles market in the United Kingdom is growing rapidly due to customer preferences for environmentally friendly and cost-effective transportation options. The availability of charging infrastructure, expanding model offerings, government support, and underlying macroeconomic factors such as the shift towards renewable energy and technological advancements are driving the development of the electric vehicles market in the United Kingdom.

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).