UK Electric Vehicle Market, By Segment (Passenger Car, Two-wheeler, Three-wheeler, Fleet Utility, Electric Truck, Electric Bus, Other Commercial Vehicles), By Charging Type (Normal Charging, Super Charging), By Propulsion Type (Battery, Hybrid, Plug-in Hybrid, Fuel Cell), By Country (England, Scotland, Wales, Northern Ireland) Trend Analysis, Competitive Market Share & Forecast, 2017-2027
- Published Date: September 2021
- Report ID: BWC2185
- Available Format: PDF
- Page: 116
Report OverviewUK electric vehicle market is flourishing at a high rate because of the driving factors such as increasing environmental consciousness towards fuel vehicles and highly volatile prices of non-renewable resources.
United Kingdom (UK) Electric Vehicle Market- Industry Trends & Forecast Report 2027
UK electric vehicle market was worth USD 2.81 billion in 2020 and is projected to reach USD 6.26 billion by 2027, growing at a CAGR of 12.7% in the forecast period. There are several factors driving this market to flourish, including the increasing need to reduce environmental impact through fuel vehicles and the highly volatile prices of resources that are non-renewable. Furthermore, strong infrastructure support and the availability of ample charging stations to meet the growing number of electric vehicles are further propelling the growth of the United Kingdom electric vehicle market.
Source: BlueWeave Consulting
United Kingdom (UK) Electric Vehicle Market- Overview
Electric vehicles (EVs) are automobiles that makes use of an electric motor for propulsion. EVs can be charged using electricity from outside the vehicle, or it can be self-powered using batteries that is occasionally recharged by solar panels, or by transforming fuel to electricity via fuel cells. Compared to fuel vehicles, EVs are quieter and have no exhaust emissions, and lower emissions. Therefore, they are the most popular among environmentally conscious customers. Also, electric vehicles can run on battery power partially derived from petrol or diesel, which are called hybrid electric vehicles. They also have limited moving parts, which means they require less maintenance, proving cost-efficient for the owners.
United Kingdom (UK) Electric Vehicle Market Forecast and Trends
Favorable Government Initiatives Are Driving the Growth of the UK Electric Vehicle Market
UK government is taking various initiatives to promote electric vehicles among the masses. Such favorable initiatives are likely to boost the demand for electric vehicles in the country during the forecast period, thereby driving the growth of the UK electric vehicle market. The UK government has established multiple policies, such as providing financial incentives to EV manufacturers to increase market penetration of electric vehicles. Moreover, grants of up to USD 7100 are available for electric vans, and up to USD 1,100 are available for electric motorbikes.
Increasing Concern Towards Environment
Environmental benefits primarily drive the electric vehicles market in the UK. Vehicles that run on electricity are much more environmentally friendly than those that run on fuel because the former emits fewer emissions such as hydrocarbons, carbon monoxide, lead, etc. The transportation sector contributes the most to emissions in the UK. As a result, people are increasingly switching to electric vehicles to reduce their carbon footprints. As a result, electric vehicle sales are likely to skyrocket during the forecast period, fueling the market growth.
Lack of Sufficient Charging Infrastructure
Although the UK has a better charging infrastructure for electric vehicles as compared to other regions, it is still not sufficient to support the increasing penetration of EVs on UK roads. Though the UK government plans to ban the sales of new fuel vehicles from 2030, the lack of charging infrastructure in this region resulted in heavy criticism of this decision. Furthermore, it has also been claimed that the established public chargers are also slow. This factor acts as a significant restraint for the growth of the UK electric vehicle market growth.
Impact of COVID-19 on UK Electric Vehicle Market
The sudden outbreak of the COVID-19 caught the industries off-guard and the UK electric vehicle market was no exception. The UK electric vehicle market also had to face tremendous setbacks due to COVID-19 as the manufacturing and production operations of EVs were completely halted due to lockdown and social distancing measures. However, several experts claim that this setback is only temporary and the market is expected to recover soon. The post-COVID-19 period, however, will likely see a rebound in the market due to increased environmental and sustainability awareness.
United Kingdom (UK) Electric Vehicle Market - By Segment
Based on segments, the UK electric vehicle market is segmented into passenger car, two-wheeler, three-wheeler, fleet utility, electric truck, electric bus, and other commercial vehicles. With the growing support of the UK government, the passenger car segment accounts for the largest market share. The government adopts stringent regulations regarding vehicle carbon emission and offers subsidies for the adoption of EV vehicles, pushing the demand for passenger vehicles in the UK market. On the other hand, the commercial vehicle segment is also growing at a high rate with the increasing penetration of electric public buses, electric trucks, electric vans, etc.
United Kingdom (UK) Electric Vehicle Market - By Charging Type
Based on charging infrastructure, the UK electric vehicle market is segmented into normal charging and supercharging. The normal charging segment accounts for the largest market share because of the high penetration of electric vehicles charged through this method. Most electric vehicles come with portable charging equipment, which is capable of functioning with any 120-volt outlet. On the other hand, the supercharging segment is likely to witness the highest CAGR during the forecast period. Supercharging offers 10 to 20 miles of range per minute, which proves to be very convenient for long journeys.
United Kingdom (UK) Electric Vehicle Market - By Propulsion Type
UK electric vehicle market is segmented into battery, hybrid, plug-in hybrid, and fuel cell, based on propulsion types. The battery vehicles segment holds the largest market share as they are more environmentally beneficial than hybrid or other propulsion types. This is because battery vehicles burn no fossil fuel, which means no carbon is released into the atmosphere. Furthermore, they also prove to be more cost-effective for the drivers and save more money because of the elimination of fuel consumption.
United Kingdom (UK) Electric Vehicle Market - Regional Insights
Geographically, the UK electric vehicle market is segmented into England, Scotland, Wales, and Northern Ireland. England accounted for the largest market share, with the highest cumulative electric vehicle sales of around 434,282 EVs in 2020. In terms of the adoption of electric vehicles, Yorkshire recorded the highest sales, followed by London. Due to the increasing demand for EVs in the British market, Tesla Model 3 has seen a massive increase in popularity among people in this region.
The leading market players of the UK electric vehicle market are BMW UK Ltd, Colt Car Company, Nissan Motor Manufacturing, Volkswagen Group UK Ltd., Renault UK Ltd, FORD UK, Mercedes-Benz Cars UK Ltd, Audi UK Ltd., Tesla Inc., Hyundai Motor UK Ltd., and other prominent players.
UK electric vehicle market is highly fragmented with the presence of several industry players with established brands. The companies significantly invest in r&d activities to improve the vehicle and battery performance for long-distance rides. They also offer a wide range of products as well as services to cater to various customer needs. Furthermore, the adoption of competitive strategies like mergers, acquisitions, partnerships, and collaborations, etc., to gain a competitive edge.
- In September 2021, Royal Dutch Shell, a multinational oil and gas company, offered to install 50,000 on-street electric vehicle charging devices in the UK to expand their charging infrastructure business.
- In August 2021, a BMW project aimed towards developing a long-distance electric vehicle battery secured USD 36.07 million in joint funding from industry and the UK government.
Scope of the Report
Historical data – 2017-2020
Base Year – 2020
Forecast – 2021 – 2027
Revenue in USD Billion
England, Scotland, Wales, and Northern Ireland
By Segment, By Charging Type, By Propulsion Type, By Country
BMW UK Ltd, Colt Car Company, Nissan Motor Manufacturing, Volkswagen Group UK Ltd, Renault UK Ltd, FORD UK, Mercedes-Benz Cars UK Ltd, Audi UK Ltd., Tesla Inc., Hyundai Motor UK Ltd., and other prominent players.
- Passenger Car
- Fleet Utility
- Electric Truck
- Electric Bus
- Other Commercial Vehicles
By Charging Type
- Normal Charging
- Super charging
By Propulsion Type
- Plug-in Hybrid
- Fuel Cell
- Northern Ireland
Frequently Asked Questions:
- Global Conductive Silver Paste Market Size, Share, Growth & Forecast 2027 | BlueWeave
- Diabetes Care Devices Market Size, Share, Growth & Forecast 2027 | BlueWeave
- Veterinary Dental Equipment Market Size, Share & Forecast 2027 | BlueWeave
- Earphone & Headphone Market Trends, Share & Trends - Global Research Report, 2027
- Global Professional Employer Organizations (PEOs) Market Size | Industry Report, 2019-2025
WHY CHOOSE US
24/7 Research support
Get your queries resolved from an industry expert. Request for a free product review before report purchase.
Coustom Research Service
Ask the Analyst to customize an exclusive study to serve your research needs
Quality & Accuracy
Ask the Analyst to customize an exclusive study to serve your research needs
As the business world is changing dynamically every day. We need to stay pin point in relation to data management and optimum data utilization
We never share your personal and confidential information. Your personal information is safe and secure with us.