Europe E-SUV Market Size, Share and Growth Report - Forecast Trends and Outlook (2025-2034)

The Europe E-SUV market reached around USD 71.45 Billion in 2024. The market is projected to grow at a CAGR of 15.20% between 2025 and 2034 to reach nearly USD 294.12 Billion by 2034.

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

Stringent environmental regulations, expansion of charging infrastructure, rising incentives by the government, and increasing innovation and investments in the automobile sector are the major trends impacting the Europe E-SUV market expansion

August 2022

Indian automobile manufacturer Mahindra announced an ambitious initiative to introduce five new electric SUVs, with support from Volkswagen, in Europe. Central to Mahindra's strategy is the development of a novel electric platform named INGLO, which will serve as the foundation for five e-SUVs across two distinct brands.

February 2024

Rivian (RIVN), an American manufacturer of electric vehicles and a company specialising in automotive technology and outdoor recreation, announced the upcoming launch of its more affordable R2 electric SUV in Europe. The starting price for the Rivian R2 is projected to be between $40,000 and $50,000.

May 2024

The Volkswagen Group's Board of Management decided to improve access to affordable all-electric vehicles in Europe, with a global launch expected in 2027. The Brand Group Core aims to produce compact electric vehicles priced around 20,000 euros, supporting the Group's commitment to making electric mobility accessible to all.

September 2024

Geely, a Chinese automotive manufacturer, is preparing to introduce its electric SUV, the EX5, to markets in Europe, Australia, and Indonesia. The EX5 is equipped with a 160 kW electric motor located on the front axle, producing 320 Nm of torque. Its advanced electric drive system consolidates 11 key components into one unit, which aids in reducing weight and enhancing overall efficiency.

Stringent Environment Regulations in the Region

The stringent emissions standards and regulations in Europe, including the CO2 reduction targets set by the European Union, necessitate that both automakers and consumers transition to electric vehicles, such as E-SUVs, in order to achieve environmental compliance.

Rising Government Incentives

Different nations in Europe provide financial support in the form of subsidies, tax incentives, and grants to facilitate the purchase of electric vehicles. These monetary benefits lower the expenses associated with E-SUVs and promote their widespread acceptance.

Expansion of Charging Infrastructure

The expansion of a well-developed and easily accessible charging infrastructure throughout Europe mitigates range anxiety and promotes the greater adoption of E-SUVs by providing convenient and effective recharging solutions.

Rising Innovations and Investments by Automakers

Substantial investments from European automotive manufacturers in the development of electric SUVs and the expansion of their electric vehicle offerings are driving the market growth. Advances in battery technology and improvements in vehicle performance increase the attractiveness and practicality of electric SUVs.

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

The report titled “Europe E-SUV Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type:

• Mid-Size
• Full Size
• Compact

Market Breakup by Propulsion:

• Battery Electric Vehicles (BEVs)
• Plug-In Hybrid Electric Vehicles (PHEVs)

Market Breakup by Drive Type:

• FWD
• RWD
• AWD

Market Breakup by Country:

• United Kingdom
• Germany
• France
• Italy
• Others

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 2025-2034 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 significant player in the global automotive market, celebrated for its groundbreaking hybrid technology and an expanding range of electric vehicles.

Nissan Motor Co. Ltd.

Nissan Motor Co. Ltd. was established in 1933 and is headquartered in Yokohama, Japan. The company is a key automotive manufacturer and provides a wide array of vehicles, including the innovative Nissan Leaf, which ranks among the top-selling electric cars worldwide.

Hyundai Motor Company

Hyundai Motor Company was founded in 1967 and is situated in Seoul, South Korea. Renowned for its cutting-edge designs and technological progress, Hyundai offers a diverse selection of vehicles, including electric options like the Kona Electric.

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.