European Micro Electric Vehicle (EV) Market: Market Growth, Opportunities, Regional Insights

European Micro Electric Vehicle (EV) Market Definition:

Micro Electric Vehicles (EV) is a miniature electric car that can carry one or two passengers. They are essentially a synthesized technology resulting from the adaption of electric vehicles to the micro-mobility context, which could have the potential to solve many of our transport issues. These vehicles are the innovation that comprises a small electric car with two seats, unlike a larger car, these vehicles run on an electric motor that requires a constant electric supply of energy from batteries to operate. A micro electric vehicle is primarily designed to replace conventional ways of travel as they lead to environmental pollution. It has gained popularity, owing to numerous technological advancements.

 

Further, the European Micro Electric Vehicle (EV) Market is segmented by Power Output, Application, Battery Outlook, and Geography. Based on Power Output, the European Micro Electric Vehicle (EV) Market is segmented into Less than 100KW, 100KW-250KW, and More than 250KW. Based on the Application, the European Micro Electric Vehicle (EV) Market is segmented under the users like Passenger vehicles, Commercial Vehicles, and Industrial Vehicles. Based on the Battery Outlook, the European Micro Electric Vehicle (EV) Market is segmented under the consumption of Lead Acid Batteries and Lithium-Ion Batteries. By Geography, the market covers the following regions: the United Kingdom, Germany, Italy, France, Russia, and the Rest of Europe. For each segment, the market sizing and forecasts have been done based on value (in USD Billion).

 

 

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European Micro Electric Vehicle (EV) Market Dynamics:

Increase in the Demand for Fuel-Efficient, High-Performance, and Low Emission Vehicles Promotes the Growth- In Europe, the concerns like environmental pollution in major sectors or industries require a solution in Manufacturing facilities, Supply chains, and Consumer demands were paralyzed in the year 2019. The micro EV market in Europe was moderately affected. As a result, the market is estimated to show a growth level from 2021. The government supported the automotive industry by regulating policies that benefitted both consumers and manufacturers. Incentives and subsidies were notably increased for purchasing an EV in countries such as Italy, the U.K., and Norway. The prices for batteries continued to reduce, which helped increase the adoption rate of Micro EVs in these countries, the sale of Micro EVs was doubled in 2020, as compared to the previous year. Developed countries such as Italy, France, the U.K., and Germany commanded most of the stakes in this sale. Thus, the market is anticipated to grow significantly during the forecast period.

 

In recent years, most vehicles run on fossil fuels such as petrol and diesel in various industries are reduced by 35% by Micro EVs. The reserves of crude oil are anticipated to become dry over the years; there is increased demand to search for a viable, economical, and clean source to power the various industries. Micro Electric vehicles are the solution for a carbon-neutral, high-performance, economic and practical transportation system.

 

Acceptance of Micro Electric Vehicles Influence the Market- European countries have very well accepted micro electric vehicles for their consumption in all sectors and promote the sales also technological innovation for micro electric vehicles. According to the Economic Times, in 2020, car manufacturers sold more than 200,000 micro electric cars in Europe. The sales of electric vehicles have increased progressively since 2018, with a yearly growth of around 32% over the past years.

 

As per the statistics published in the European Electric Vehicle Fact-book 2019/2020, micro-electric vehicles represented 2.6% of new passenger micro EV car registrations in 2019, a growth of 1.45% as compared with 2018. Electric vehicles have witnessed a growing trend of acceptance in Europe as charging infrastructure is being improved, the production cost falls, and governments take efforts to bring down the carbon emission generated by the transportation sector.

 

According to the International Council on Clean Transportation report, Europe is estimated to hold the second-largest micro electric vehicle market in the world by volume, behind China and ahead of the U.S over the forecasted period. This tremendous growth in demand for electric vehicles in Europe is expected to drive the growth of the Europe electric vehicle market over the forecast timeframe.

 

Stringent Government Rules & Regulations and Innovation in Micro EV Influence Opportunities- The European Government has imposed strict rules and regulations over the years for carbon emissions for every industry to reduce environmental issues. These regulations forced the manufacturers in Europe to come up with low-emission vehicles and ultimately led to the large-scale adoption of electric vehicles in Europe.

 

The regulation 443/2009 fixed the compulsory reduction of carbon emission targets for new cars by personal or passenger vehicles. The maximum permitted emissions released from the new cars registered in 2019 in Norway, Iceland, and EU28were 122.4 grams CO2/km. From 2021, the EU fleet-wide average emission goal for new cars is set to be just 95 grams CO2/km. If in case, if the CO2 emissions of a company's products surpass its maximum emission goal in a given year, the company has to pay a surplus emissions charge for every car registered. The strict implementation of stringent government rules and regulations to limit carbon emissions is anticipated to drive the growth of micro electric vehicles in Europe over the forecast period

 

European Micro Electric Vehicle (EV) Market Segment Analysis:

By Power Output: Less than 100KW is the segment that holds the market share the most and the owing factors are the increasing adoptions of electric golf cars, electric transport vehicles in malls, electric mopeds, increasing investments by government authorities in the development of micro EV charging infrastructure, and favourable policies, incentives, and subsidies introduced by several governments in Europe. This factor influences the growth by 15% over the forecasted period.

 

By Application, The passenger vehicle segment is expected to account for the largest share of the European micro electric vehicles market in 2023. The large market share of this segment is attributed to the growing awareness regarding the hazards associated with greenhouse gas emissions and environmental pollution, stringent emission norms, and demand for micro EVs by consumers. The electric vehicles market has taken a huge leap forward in the past decade. Today, consumers are focused on better fuel efficiency, more power, and reduced CO2 emissions, thereby adopting EVs for personal use and prefer those transport facilities which consist of electricity. The government incentives to promote sales and manufacturing of EVs, tax rebates, and the decline in battery costs which reduces the cost of micro electric vehicles drive the adoption of Micro EVs among consumers for private use.

 

 

European Micro Electric Vehicle (EV) Market Regional Insights:

The European Micro Electric Vehicle (EV) Market is expected to have a high annual growth rate of about 4.25% annually, and countries wise contribute to the growth of this market by 36% over the forecast period, especially Germany, Norway, and France.

 

Germany is expected to account for the largest share of the European electric vehicles market in 2023. The German Micro EV market is gradually growing owing to the increased government initiatives for boosting EV adoption, the rising number of charging stations, and increasing competition in the automobile market.

 

The German government has set a target to have 3 million to 6 million Micro EV registrations by the end of 2030, which has forced manufacturers to increase their production, formulate new marketing strategies, technological improvement, and increase micro EV sales in the country. The use of wireless micro EV charging systems carries a huge potential for growth in Germany. For instance, Mercedes-Benz announced wireless charging for the S550e plug-in hybrid (PHEV) luxury sedan.

 

The German automotive manufacturers are investing heavily in zero-emission technology development.  These manufacturers have invested over $5.17 billion in electric vehicle technology development. Moreover, leading automotive OEMs are heavily investing in the development of the electric vehicle ecosystem. For instance, BMW invested $340 million in a Leipzig EV plant and $95 million in a Munich battery plant for micro electric vehicles. The company has plans to introduce 7 new Micro EVs.

 

Norway is a relevant European country when it comes to the dissemination of micro electric vehicles, with an approximate 30% increase in the sales of micro EVs in the year 2023.

 

European Micro Electric Vehicle (EV) Market Key Players Insights:

The market is characterized by the existence of a number of well-known firms. These companies control a large portion of the market, have a wide product portfolio, and have a global presence. In addition, the market comprises small to mid-sized competitors that sell a limited variety of items, some of which are self-publishing organizations.

 

The market's major companies have a significant impact because most of them have extensive global networks through which they can reach their massive client bases. To drive revenue growth and strengthen their positions in the global market, key players in the market, particularly in North America and Europe, are focusing on strategic initiatives such as acquisitions, new collection launches, and partnerships.

 

The objective of the report is to present a comprehensive analysis of the European Micro Electric Vehicle (EV) Market to the stakeholders in the industry. The report provides trends that are most dominant in the European Micro Electric Vehicle (EV) Market and how these trends will influence new business investments and market development throughout the forecast period. The report also aids in the comprehension of the European Micro Electric Vehicle (EV) Market dynamics and competitive structure of the market by analyzing market leaders, market followers, and regional players.

 

The qualitative and quantitative data provided in the European Micro Electric Vehicle (EV) Market report is to help understand which market segments, and regions are expected to grow at higher rates, factors affecting the market, and key opportunity areas, which will drive the industry and market growth through the forecast period. The report also includes the competitive landscape of key players in the industry along with their recent developments in the European Micro Electric Vehicle (EV) Market. The report studies factors such as company size, market share, market growth, revenue, production volume, and profits of the key players in the European Micro Electric Vehicle (EV) Market.

 

The report provides Porter's Five Force Model, which helps in designing the business strategies in the market. The report helps in identifying how many rivals exist, who they are, and how their product quality is in the European Micro Electric Vehicle (EV) Market. The report also analyses if the European Micro Electric Vehicle (EV) Market is easy for a new player to gain a foothold in the market, do they enter or exit the market regularly, and if the market is dominated by a few players, etc.

 

The report also includes a PESTEL Analysis, which aids in the development of company strategies. Political variables help in figuring out how much a government can influence the European Micro Electric Vehicle (EV) Market. Economic variables aid in the analysis of economic performance drivers that have an impact on the European Micro Electric Vehicle (EV) Market. Understanding the impact of the surrounding environment and the influence of environmental concerns on the European Micro Electric Vehicle (EV) Market is aided by legal factors.

 

European Micro Electric Vehicle (EV) Market Scope:

 

European Micro Electric Vehicle (EV) Market
Market Size in 2023	USD 5.04 Bn.
Market Size in 2030	USD 13.44 Bn.
CAGR (2024-2030)	15.02%
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
Segment Scope	By Power Output Less than 100KW 100KW-250KW More than 250KW
	By Application Passenger Vehicle Commercial Vehicle Industrial Vehicle
	By Battery Outlook Lead Acid Battery Lithium-Ion Battery
	By Countries United Kingdom Italy France Russia Rest of Europe

 

European Micro Electric Vehicle (EV) Market Key Players: 

• Italcar Industrial S.r.I (Italy)
• Renault Group (France)
• Tesla (UK)
• Audi (Germany)
• BMW (Germany)
• Hyundai (Germany)
• Mitsubishi (Germany)
• Pergeot (UK)
• Volvo (UK)
• VOLKSWAGEN AG (UK)