United Kingdom Electric Vehicle Market Insights Forecasts to 2033

• The UK Electric Vehicle Market Size was valued at USD 37.74 Billion in 2023.
• The Market Size is Growing at a CAGR of 20.60% from 2023 to 2033
• The U.K. Electric Vehicle Market Size is Expected to Reach USD 245.67 Billion by 2033

The United Kingdom Electric Vehicle Market Size is Anticipated to Exceed USD 245.67 Billion by 2033, growing at a CAGR of 20.60% from 2023 to 2033.   

Market Overview

Electric vehicles, also known as battery electric vehicles (BEVs), use an electric motor in place of an internal combustion engine. The car relies on a sizeable battery pack to fuel the electric motor and needs to be connected to a wall socket or charging device, known as electric vehicle supply equipment (EVSE). Since it is powered by electricity, the car does not produce any emissions from a tailpipe and does not have the usual liquid fuel parts like a fuel pump, fuel line, or fuel tank. The market is being influenced by a shift towards sustainability and changing consumer attitudes that are prompting manufacturers to stop developing ICE vehicles. The increasing air pollution's effects on health and the high carbon emissions from the transportation industry in the UK are speeding up the shift towards electrifying buses and cars. The UK electric vehicle sector has seen fast expansion, largely driven by government rules and incentives to lower carbon emissions and support eco-friendly transportation. The UK government has established ambitious goals, including the prohibition of new petrol and diesel vehicles by 2030, as part of its overall plan to reach net-zero emissions by 2050. To aid in this shift, the government has put in place different rewards like funding for electric vehicles and financial assistance for both residential and public charging systems. Not only have these measures alleviated the financial strain on customers, but they have also motivated producers to expand their selection of electric options.

Report Coverage

This research report categorizes the market for the U.K. electric vehicle market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the UK electric vehicle market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the UK electric vehicle market.

Driving Factors

The presence and ease of access to charging infrastructure is crucial for widespread EV adoption. The UK is making significant investments in the growth of its charging infrastructure, which includes public charging stations and home charging options. Additionally, rising worries regarding climate change and air pollution have heightened recognition of the environmental advantages of electric cars. The price of electric cars is continuously dropping, making them cheaper and more competitive than regular gas-powered vehicles. Furthermore, there are financial rewards and funding opportunities that are specifically designed for companies shifting their vehicle fleets to electric, which helps encourage more adoption within the fleet industry. Electric cars are now seen as a modern, advanced, and eco-friendly choice for transportation, gaining a good reputation. Consumer interest and demand have risen due to this favourable perception.

Restraining Factors

Electric vehicles tend to have a lower range (per charge) compared to similar conventional vehicles (per tank of gas). All-electric cars are not effective for highway driving because it usually takes more energy to overcome the increased resistance at higher speeds. Rapid acceleration results in a shorter vehicle range compared to gradual acceleration. Transporting large items or climbing steep hills can also lead to a decrease in distance covered.

Market Segmentation

• The passenger vehicle segment is expected to hold the largest market share through the forecast period.   

The U.K. electric vehicle market is segmented by vehicle type into passenger vehicle and commercial vehicle. Among these, the passenger vehicle segment is expected to hold the largest market share through the forecast period. The reason for their strong presence is the rising consumer need for individual transportation. Additionally, the UK government's mandate requiring 80% of cars manufactured by 2030 to be electric or hydrogen powered, along with other policies promoting EV adoption, is anticipated to enhance electric mobility options. Additionally, as battery technology and vehicle range continue to improve, there is anticipation of a notable increase in the adoption of EVs.

• The battery electric vehicle segment dominates the market with the largest market share over the predicted period.

The UK electric vehicle market is segmented by propulsion type into battery electric vehicle and others. Among these, the battery electric vehicle segment dominates the market with the largest market share over the predicted period. This is due to advancements in product offerings and increased vehicle mileage, which are boosting acceptance and reducing skepticism toward electric cars. Individuals are transitioning towards eco-friendly transportation options in order to decrease their carbon footprint and establish a sustainable living environment, positively affecting the electric vehicle market in the United Kingdom.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the United Kingdom electric vehicle market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Audi AG
• Bayerische Motoren Werke AG
• Ford Motor Company
• Hyundai Motor Company
• Jaguar Land Rover Limited
• Kia Corporation
• Mercedes-Benz
• Nissan Motor Co. Ltd.
• Toyota Motor Corporation
• Volvo Car AB
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-added resellers (VARs)

Recent Developments

• In February 2024, the UK government revealed a grant of up to 75%, financing the setup of electric vehicle charging stations in publicly-funded schools and educational facilities.

• In January 2024, In the UK, there was a 13.1% increase in battery electric vehicles registrations, with 20,935 new vehicles registered.

Market Segment

This study forecasts revenue at United Kingdom, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the United Kingdom Electric Vehicle Market based on the below-mentioned segments:

United Kingdom Electric Vehicle Market, By Vehicle Type

• Passenger Vehicle
• Commercial Vehicle

United Kingdom Electric Vehicle Market, By Propulsion Type

• Battery Electric Vehicle
• Others