Automotive - Industry - Europe Market, Share and Trends 2023-2028

Summary of Automotive

The automotive industry remains a key sector for the European economy though it faces significant challenges from global economic headwinds and the push towards more sustainable mobility solutions. Electric vehicles are gaining traction as charging infrastructure expands across the region and regulations tighten emissions standards. However– adoption varies greatly between markets, with Norway, Germany and Netherlands leading while Eastern Europe lags behind.

European automakers are investing heavily in electrification to comply with increasingly stringent fleet-wide emissions targets. Volkswagen aims to transition its fleet entirely to EVs and hybrids in the coming decades. Other major brands like Renault, BMW and Volvo also have ambitious electrification roadmaps. Battery production capacity is ramping up rapidly across Europe to support this shift, led by Sweden’s Northvolt and Germany’s Tesla Gigafactory.

Based on our estimates, we can say that Europe’s regional Automotive industry is forecasted to be a $1117.69 billion industry in 2029 from $743.51 billion in 2023 with a CAGR of 6.97%.

Connected and autonomous driving technologies are also advancing, though regulatory and infrastructure barriers remain before self-driving vehicles can operate safely on public roads. Meanwhile– shared mobility services are gaining popularity in major cities, reducing private vehicle ownership rates among younger generations. Mobility-as-a-Service models integrating various transport modes hold promise to optimize transportation systems.

Recent Trends and Insights

EV sales doubled in 2021 and continue rising rapidly this year. Norway leads with over 80% of new cars being electric while Germany purchased over 400,000 EVs. Charging infrastructure buildout supports this shift.

The war in Ukraine and ongoing semiconductor shortages have exacerbated parts procurement issues. Production cuts have impacted major brands like Volkswagen, Mercedes and Stellantis.

EU regulations are pushing automakers to reduce fleet emissions to zero by 2035. Companies invest heavily in renewable energy and carbon offset programs to achieve net-zero status. Advanced driver assistance systems and vehicle-to-everything communication features are becoming mainstream offerings on new models across price segments.

Ride-hailing and car-sharing see steady growth in major cities, complemented by e-scooters, bikes and integrated public transit apps. Sustainability and accessibility are priorities.

Commercial trucks and buses increasingly utilize hydrogen power, with passenger vehicles like Toyota Mirai and Hyundai Nexo also available. Fueling infrastructure remains a challenge however.

Product Insights

Major brands continue expanding EV lineups with new crossovers, SUVs and sedans. Volkswagen recently launched the ID.Buzz electric microbus, while Mercedes revealed the EQE SUV. Advanced driver assistance systems like adaptive cruise control and lane keeping are becoming standard on mainstream models. Digital cockpits also integrate seamlessly with smartphones.

Major automakers conduct public road testing of self-driving vehicles in Germany and the Netherlands. Level 3 conditional automation is arriving in high-end vehicles from BMW and Mercedes. EV startups like Arrival and Volta Trucks are launching electric vans and trucks purpose-built for last-mile delivery services.

Startups like LeasePlan and Green Mobility offer fleet vehicles tailored for ride-hailing services with large batteries and fast charging. Toyota and Hyundai sell fuel cell versions of the Mirai and Nexo sedans in Germany and the UK, with more dealerships planned as hydrogen infrastructure expands.

Key Companies

Some major players within this vast domain of industry are

• Volkswagen Group
• BMW
• Daimler AG
• Renault-Nissan-Mitsubishi Alliance
• PSA Group
• Ford
• Hyundai
• Honda
• Nissan
• Mazda
• Mitsubishi

Regional Analysis

Progress and investment in the European auto industry over the past several decades have contributed to Europe’s macro-image. German engineering is widely touted and our research suggests many European automakers are considered front-runners in sustainability, with some of the most ambitious targets around electric vehicles (EVs), decarbonization and safety.

Thanks in part to this work– the brand value of the ten largest European auto companies is conservatively estimated at a combined €200 billion; five of the ten most valuable car brands worldwide are European. The grand challenge now is to maintain and build on these assets in the face of profound and accelerating change.

Germany, France, Poland and Hungary are major manufacturing and production hubs for renowned automakers– with Germany standing out as a production powerhouse, emphasizing luxury and high-performance vehicles.

The European automotive industry has shown good development dynamics – with positive trends in car production and sales. For instance – EU car sales surged by almost 17% in the first three quarters of 2023, with further growth forecasted.

Market Segmentation

By Type:

• Connected vehicle technologies (telematics, infotainment, OTA updates)
• Advanced driver assistance systems (ADAS)
• Electric powertrain components
• Vehicle safety systems
• Automotive manufacturing equipment
• Industrial automation solutions

By End user:

• Original Equipment Manufacturers (OEMs)
• Automotive suppliers
• Mobility service providers
• Infrastructure providers
• Automotive dealerships

By Enterprise Size :

• Large automakers
• Mid-size vehicle manufacturers
• Component and parts suppliers
• Startups in mobility, EV, and self-driving technologies

By Country:

• Germany
• United Kingdom
• France
• Italy
• Russia
• Netherlands
• Switzerland

Our Methodology

We have offered a well-founded review of the Europe’s regional Automotive market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.