United Kingdom Electric Vehicle Market Report and Forecast 2025-2034

The United Kingdom electric vehicle market size was approximately USD 19.76 Billion in 2024. The market is assessed to grow at a CAGR of 14.20% between 2025 and 2034, reaching a value of USD 74.55 Billion by 2034.

An electric vehicle is an advanced model of automobile which runs on an electric motor instead of traditionally powered diesel/petrol engines. It is gaining widespread popularity among governments and people owing to its small carbon footprint and its smart features. It travels noiselessly and provides a comfortable riding experience to the passenger.

The market is being driven by shift towards sustainability and changing consumer sentiment that is motivating manufacturers to phase out the development of ICE vehicles. The impact of rising air pollution on people’s health and the high carbon emissions generated by transport sector are accelerating the transition towards electrification of buses and cars in the United Kingdom.

Key Trends and Developments

High demand for pre-owned EVs; good government support for battery manufacturing; rise of connected and automated vehicles; and surge in demand for BEVs are the major trends boosting the United Kingdom electric vehicle market development

Jan 2024

In January 2024, 20,935 new battery electric vehicles were registered in the UK, recording an year-on-year growth of 13.1%.

Feb 2024

The UK government announced a grant of up to 75%, funding the installation of electric vehicle charging points in state-funded schools and educational institutions.

Dec 2023

The Chinese EV company Nio is planning to launch ET-7 vehicle in the UK by the end of 2024. This vehicle can run for 1000km on a single charge.

Nov 2023

Nissan announced an investment of 2 billion pounds in the UK to upgrade its existing car fleet like Qashqai, Juke, and Leaf, and establish a new EV battery gigafactory.

High demand for pre-owned electric vehicles

Vehicle owners are gradually switching to eco-friendly transportation solutions, including EVs. This is reflected in their inclination to purchase second-hand electric vehicles.

Good government support for battery research and manufacturing

The UK government is offering incentives to companies to accelerate the production of innovative batteries for electric vehicles, addressing concerns surrounding their safety and performance.

Rise of connected and automated electric vehicles

The increasing popularity of smart and connected electric vehicles is expected to favour UK’s electric vehicle market.

Surge in demand for BEVs (battery operated electric vehicles)

The United Kingdom is witnessing a steady growth in the demand for battery operated electric vehicles, due to their environmental benefits and lower noise levels.

United Kingdom Electric Vehicle Market Trends

Pre-owned electric vehicles are extremely popular among people because of their low cost and environment friendly nature. The desire to own an electric vehicle among the younger population is also high because of its technological superiority over other automotives. The shift in consumer preferences and increased demand for clean mobility are the key factors driving the United Kingdom electric vehicle market growth.

The government is incentivising battery production in the UK to boost the adoption of electric vehicles. In 2023, it invested 27.6 million pounds in the Faraday Battery Challenge to encourage research and innovation for manufacturing electric vehicle battery, with a focus on its cost-effectiveness. The growing research around lowering the cost of battery production and addressing challenges like range anxiety is expected to lower the cost of EVs and improve their performance, thus boosting EV adoption in the coming years.

Market Segmentation

“United Kingdom Electric Vehicle Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Vehicle Type:

• Passenger Vehicle
• Commercial Vehicle

Market Breakup by Propulsion Type

• Battery Electric Vehicle
• Plug-in Hybrid Electric Vehicle
• Fuel Cell Electric Vehicle

Market Breakup by Vehicle Drive Type

• Front Wheel Drive (FWD)
• Rear Wheel Drive (RWD)
• All Wheel Drive (AWD)

Market Breakup by Vehicle Class

• Low-Priced
• Mid-Priced
• Luxury

Market Breakup by Vehicle Top Speed

• Less than 125 mph
• More than 125 mph

Market Breakup by Charging Point Type

• AC (Normal Charging)
• DC (Super Charging)
• Inductive Charging

Market Breakup by Vehicle Connectivity

• V2B or V2I
• V2G
• V2V
• V2X

Passenger vehicles are expected to maintain their lead in the United Kingdom electric vehicle market due to their increased sales and desire for personal mobility

Passenger vehicles are expected to dominate the United Kingdom electric vehicle market over the forecast period. Their dominance can be attributed to increased consumer demand for personal mobility, especially in emerging nations like India and China. Besides, the government’s zero emissions vehicle mandate, which says that 8/10 cars manufactured by 2030 in the UK should either be electric or hydrogen fuelled, and other similar policies supporting EV adoption are expected to provide a boost to electric mobility solutions. Moreover, with improvements in battery technology and vehicle range, the adoption of EVs is expected to register a significant uptick.

Commercial vehicles are also expected to significantly contribute to the United Kingdom electric vehicle market revenue, as companies renew their existing vehicular stock and add more vehicles to their fleet. Passenger vehicles, that are used by company’s employees for official purposes, are subject to tax rebates.

V2G is expected to gain popularity and its demand is expected to grow significantly

V2G (vehicle to grid connectivity) is expected to account for a significant United Kingdom electric vehicle market share over the forecast period. This is because V2G allows excess electricity stored in electric vehicle batteries to be transferred to power grids, which aids the consumption of power for other purposes, including lighting, heating, and cooling, among other industrial and residential purposes. With advancements in technology, the integration of V2V (vehicle to vehicle connectivity) in electric vehicles is expected to witness robust growth as commercial need for monitoring parcel delivery and passenger movement increases. V2X (vehicle to everything) is another emerging connectivity technology that can transform the experience of car ownership and driving.

Battery electric vehicles are expected to dominate the market over the forecast period

Battery electric vehicles are gaining significant popularity in the United Kingdom electric vehicle market. This is because product innovations and improvements in vehicle range are encouraging public and lowering their hesitation surrounding the use of electric vehicles. People are switching to environment friendly modes of transport to reduce their carbon footprint and create a sustainable living space, which is favourably impacting the United Kingdom electric vehicle market.

Meanwhile, fuel cell electric vehicles are also expected to witness a surge in demand as the region strengthens its technological expertise in making membrane electrode assembly and hydrogen tanks for cleaner electric vehicles.

Competitive Landscape

The collaboration among battery manufacturers, automotive companies, and government agencies to accelerate vehicle electrification, improve battery production capacity, and improve EV charging infrastructure will be crucial in shaping the market growth trajectory

Other players in the United Kingdom electric vehicle market include Honda Motor Co., Ltd., MG Motor UK Ltd., Tesla Inc., Volvo Car AB, BYD Ord Shs A, and Nissan Motor Co., Ltd., among others.