Europe E-SUV Market Size, Share and Growth Report - Forecast Trends and Outlook (2024-2032)

Europe E-SUV Market Growth

In 2022, the European Union witnessed substantial advancements in the adoption of electric cars and vans, with electric vehicles constituting 21.6% of new car registrations. This marked an increase to nearly two million electric car registrations within a single year, rising from 1.74 million in 2021. The transport sector remains one of the primary sources of greenhouse gas emissions in the EU, making the reduction of transport-related emissions essential for achieving the EU's climate neutrality goals. Starting in 2025, Regulation (EU) 2019/631 will impose more stringent EU-wide CO2 fleet targets, a 15% reduction for both cars and vans by 2025, followed by a 50% reduction target for vans and a 55% reduction target for cars by 2030, all based on a 2021 baseline.

A zero-CO2 emission target for new cars and vans is set to be implemented from 2035. To meet these objectives, a significant increase in the adoption of electric vehicles will be necessary. Electric cars, which encompass battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), are progressively making their way into the EU market. The number of new electric car registrations has steadily risen from 600 in 2010 to approximately 1.74 million in 2021, representing 18% of new registrations. This upward trend continued in 2022, with nearly 22% of newly registered passenger cars being electric.

In 2022, BEVs accounted for 12.2% of total new car registrations, while PHEVs made up 9.4%. Electric vehicles (EVs) play a crucial role in supporting sustainability initiatives by mitigating greenhouse gas emissions and reducing air pollution in comparison to conventional internal combustion engine vehicles. They contribute to improved air quality, particularly in urban environments, and aid in diminishing dependence on fossil fuels. Additionally, progress in battery recycling and energy-efficient technologies fosters a circular economy, aligning with broader sustainability and climate action goals.

Key Trends and Developments

Europe E-SUV Market Trends

There is a notable trend among European consumers to adopt luxury electric SUVs, influenced by innovations in electric technology and a preference for high-performance, environmentally friendly vehicles. Leading automotive manufacturers are broadening their luxury electric vehicle portfolios to cater to this rising demand.

Luxury electric SUVs in Europe are integrating sophisticated driver assistance systems, which encompass autonomous driving capabilities and enhanced safety features. This development signifies a consumer inclination towards state-of-the-art technology and heightened vehicle safety, thereby rendering electric SUVs more appealing and competitive in the market.

Europe E-SUV Industry Segmentation

Europe E-SUV Market Share

Based on the country, the market is segmented into the United Kingdom, France, Italy, and Germany.France is projected to grow at a CAGR of 16.1% during the forecast period of 2024-2032 amid the introduction of stringent government regulations pertaining to emissions from the transportation sector.

Leading Companies in the Europe E-SUV Market

Major players are focusing on the manufacturing of technologically equipped and luxury E-SUVs to gain a competitive edge in the market.

AB Volvo

AB Volvo was established in 1927 and is based in Gothenburg, Sweden. AB Volvo stands as a prominent global producer of trucks, buses, and construction machinery. The organisation is widely recognised for its commitment to safety and innovation within the commercial vehicle sector.

Toyota Motor Corporation

Toyota Motor Corporation was founded in 1937 and is located in Aichi, Japan. Toyota Motor Corporation is a sig...

Nissan Motor Co. Ltd.

Nissan Motor Co. Ltd. was established in 1933 and is headquartered in Yokohama, Japan. The company is a key au...

Hyundai Motor Company

Hyundai Motor Company was founded in 1967 and is situated in Seoul, South Korea. Renowned for its cutting-edge...

*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*

Other major players in the market are Tesla Inc., BMW AG, Volkswagen AG, Mercedes-Benz Group AG, BYD Co. Ltd., and SAIC Motor Corp. Ltd, among others.