Five Trends Driving the Europe Vehicle Electrification Economy in 2024

The Europe vehicle electrification market is set to grow from US$40.4 billion in 2024 to US$72.3 billion by 2031, with a projected CAGR of 8.6%. This growth is driven by rising consumer demand, substantial investments in charging infrastructure, and advancements in battery technology and power electronics. Europe leads the market due to strong regulatory frameworks, consumer demand, and extensive charging infrastructure investments. Norway, with 93% EV sales, plays a key role in this growth. Additionally, government incentives, such as tax breaks and subsidies, are further accelerating EV adoption. Electric power steering (EPS) and plug-in hybrid electric vehicles (PHEVs) are expected to dominate the market, enhancing vehicle efficiency and maneuverability while driving the shift toward electric solutions. The growing network of charging stations and investments by OEMs in electrification continue to fuel the market's expansion, making Europe a global leader in vehicle electrification.