
United Kingdom Electric Vehicle Market Report and Forecast 2025-2034
Description
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%._x000D_
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._x000D_
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._x000D_
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._x000D_
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._x000D_
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.
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%._x000D_
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._x000D_
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._x000D_
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._x000D_
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._x000D_
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.
Table of Contents
110 Pages
- 1 Executive Summary
- 1.1 Market Size 2024-2025
- 1.2 Market Growth 2025(F)-2034(F)
- 1.3 Key Demand Drivers
- 1.4 Key Players and Competitive Structure
- 1.5 Industry Best Practices
- 1.6 Recent Trends and Developments
- 1.7 Industry Outlook
- 2 Market Overview and Stakeholder Insights
- 2.1 Market Trends
- 2.2 Key Verticals
- 2.3 Key Regions
- 2.4 Supplier Power
- 2.5 Buyer Power
- 2.6 Key Market Opportunities and Risks
- 2.7 Key Initiatives by Stakeholders
- 3 Economic Summary
- 3.1 GDP Outlook
- 3.2 GDP Per Capita Growth
- 3.3 Inflation Trends
- 3.4 Democracy Index
- 3.5 Gross Public Debt Ratios
- 3.6 Balance of Payment (BoP) Position
- 3.7 Population Outlook
- 3.8 Urbanisation Trends
- 4 Country Risk Profiles
- 4.1 Country Risk
- 4.2 Business Climate
- 5 Europe Electric Vehicle Market Overview
- 5.1 Key Industry Highlights
- 5.2 Europe Electric Vehicle Historical Market (2018-2024)
- 5.3 Europe Electric Vehicle Market Forecast (2025-2034)
- 5.4 Europe Electric Vehicle Market Share by Countries
- 5.4.1 United Kingdom
- 5.4.2 Germany
- 5.4.3 France
- 5.4.4 Italy
- 5.4.5 Others
- 6 United Kingdom Electric Vehicle Market Overview
- 6.1 Key Industry Highlights
- 6.2 United Kingdom Electric Vehicle Historical Market (2018-2024)
- 6.3 United Kingdom Electric Vehicle Market Forecast (2025-2034)
- 7 United Kingdom Electric Vehicle Market by Vehicle Type
- 7.1 Passenger Vehicle
- 7.1.1 Historical Trend (2018-2024)
- 7.1.2 Forecast Trend (2025-2034)
- 7.2 Commercial Vehicle
- 7.2.1 Historical Trend (2018-2024)
- 7.2.2 Forecast Trend (2025-2034)
- 8 United Kingdom Electric Vehicle Market by Propulsion Type
- 8.1 Battery Electric Vehicle
- 8.1.1 Historical Trend (2018-2024)
- 8.1.2 Forecast Trend (2025-2034)
- 8.2 Plug-in Hybrid Electric Vehicle
- 8.2.1 Historical Trend (2018-2024)
- 8.2.2 Forecast Trend (2025-2034)
- 8.3 Fuel Cell Electric Vehicle
- 8.3.1 Historical Trend (2018-2024)
- 8.3.2 Forecast Trend (2025-2034)
- 9 United Kingdom Electric Vehicle Market by Vehicle Drive Type
- 9.1 Front Wheel Drive (FWD)
- 9.1.1 Historical Trend (2018-2024)
- 9.1.2 Forecast Trend (2025-2034)
- 9.2 Rear Wheel Drive (RWD)
- 9.2.1 Historical Trend (2018-2024)
- 9.2.2 Forecast Trend (2025-2034)
- 9.3 All Wheel Drive (AWD)
- 9.3.1 Historical Trend (2018-2024)
- 9.3.2 Forecast Trend (2025-2034)
- 10 United Kingdom Electric Vehicle Market by Vehicle Class
- 10.1 Low-Priced
- 10.1.1 Historical Trend (2018-2024)
- 10.1.2 Forecast Trend (2025-2034)
- 10.2 Mid-Priced
- 10.2.1 Historical Trend (2018-2024)
- 10.2.2 Forecast Trend (2025-2034)
- 10.3 Luxury
- 10.3.1 Historical Trend (2018-2024)
- 10.3.2 Forecast Trend (2025-2034)
- 11 United Kingdom Electric Vehicle Market by Vehicle Top Speed
- 11.1 Less than 125 mph
- 11.1.1 Historical Trend (2018-2024)
- 11.1.2 Forecast Trend (2025-2034)
- 11.2 More than 125 mph
- 11.2.1 Historical Trend (2018-2024)
- 11.2.2 Forecast Trend (2025-2034)
- 12 United Kingdom Electric Vehicle Market by Charging Point Type
- 12.1 AC (Normal Charging)
- 12.1.1 Historical Trend (2018-2024)
- 12.1.2 Forecast Trend (2025-2034)
- 12.2 DC (Super Charging)
- 12.2.1 Historical Trend (2018-2024)
- 12.2.2 Forecast Trend (2025-2034)
- 12.3 Inductive Charging
- 12.3.1 Historical Trend (2018-2024)
- 12.3.2 Forecast Trend (2025-2034)
- 13 United Kingdom Electric Vehicle Market by Vehicle Connectivity
- 13.1 V2B or V2I
- 13.1.1 Historical Trend (2018-2024)
- 13.1.2 Forecast Trend (2025-2034)
- 13.2 V2G
- 13.2.1 Historical Trend (2018-2024)
- 13.2.2 Forecast Trend (2025-2034)
- 13.3 V2V
- 13.3.1 Historical Trend (2018-2024)
- 13.3.2 Forecast Trend (2025-2034)
- 13.4 V2X
- 13.4.1 Historical Trend (2018-2024)
- 13.4.2 Forecast Trend (2025-2034)
- 14 Market Dynamics
- 14.1 SWOT Analysis
- 14.1.1 Strengths
- 14.1.2 Weaknesses
- 14.1.3 Opportunities
- 14.1.4 Threats
- 14.2 Porter’s Five Forces Analysis
- 14.2.1 Supplier’s Power
- 14.2.2 Buyer’s Power
- 14.2.3 Threat of New Entrants
- 14.2.4 Degree of Rivalry
- 14.2.5 Threat of Substitutes
- 14.3 Key Indicators for Demand
- 14.4 Key Indicators for Price
- 15 Competitive Landscape
- 15.1 Supplier Selection
- 15.2 Key Global Players
- 15.3 Key Regional Players
- 15.4 Key Player Strategies
- 15.5 Company Profiles
- 15.5.1 Volkswagen Group
- 15.5.1.1 Company Overview
- 15.5.1.2 Product Portfolio
- 15.5.1.3 Demographic Reach and Achievements
- 15.5.1.4 Certifications
- 15.5.2 Toyota Motor Corp.
- 15.5.2.1 Company Overview
- 15.5.2.2 Product Portfolio
- 15.5.2.3 Demographic Reach and Achievements
- 15.5.2.4 Certifications
- 15.5.3 Honda Motor Co., Ltd.
- 15.5.3.1 Company Overview
- 15.5.3.2 Product Portfolio
- 15.5.3.3 Demographic Reach and Achievements
- 15.5.3.4 Certifications
- 15.5.4 MG Motor UK Ltd.
- 15.5.4.1 Company Overview
- 15.5.4.2 Product Portfolio
- 15.5.4.3 Demographic Reach and Achievements
- 15.5.4.4 Certifications
- 15.5.5 Tesla Inc.
- 15.5.5.1 Company Overview
- 15.5.5.2 Product Portfolio
- 15.5.5.3 Demographic Reach and Achievements
- 15.5.5.4 Certifications
- 15.5.6 Volvo Car AB
- 15.5.6.1 Company Overview
- 15.5.6.2 Product Portfolio
- 15.5.6.3 Demographic Reach and Achievements
- 15.5.6.4 Certifications
- 15.5.7 BYD Ord Shs A
- 15.5.7.1 Company Overview
- 15.5.7.2 Product Portfolio
- 15.5.7.3 Demographic Reach and Achievements
- 15.5.7.4 Certifications
- 15.5.8 Nissan Motor Co., Ltd.
- 15.5.8.1 Company Overview
- 15.5.8.2 Product Portfolio
- 15.5.8.3 Demographic Reach and Achievements
- 15.5.8.4 Certifications
- 15.5.9 Kia Corp.
- 15.5.9.1 Company Overview
- 15.5.9.2 Product Portfolio
- 15.5.9.3 Demographic Reach and Achievements
- 15.5.9.4 Certifications
- 15.5.10 Renault SA
- 15.5.10.1 Company Overview
- 15.5.10.2 Product Portfolio
- 15.5.10.3 Demographic Reach and Achievements
- 15.5.10.4 Certifications
- 15.5.11 Others
Pricing
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