
Insights into the European Automotive Market
The automotive industry is constantly changing, and the European auto market is a vibrant hot spring of new developments and changes.
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CIO Applications Europe | Tuesday, November 14, 2023

An in-depth detail of the evolving landscape of European automotive software, where connectivity and digital innovations are reshaping the industry's future.
FREMONT, CA: The automotive industry is constantly changing, and the European auto market is a vibrant hot spring of new developments and changes. Some major trends in automotive software influencing the industry's future show not just changing consumer tastes but also technological and sustainable developments.
There are currently 298 vehicle assembly and engine production facilities in Europe, 196 of which are located in the European Union. There have been 18.8 million vehicles, lorries, and buses produced in Europe. With around 33.3 per cent of all applications, the EU is the region with the most self-driving car patents in the world, according to EAMA.
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The automotive business is expanding due to the market for automakers. The sector is responsible for 440.4 billion euros in taxes in key European markets.
The automobile industry in Sweden, Germany, and the Netherlands is witnessing a significant surge in adopting hybrid electric vehicles (HEVs) and battery electric vehicles (BEVs). During the forecast period, electric vehicle (EV) sales surged by an impressive increase, highlighting robust market growth. This upswing in sales can be attributed to the escalating electrification of vehicles across all regions, resulting in an overall penetration rate of 7.5 per cent.
The European autonomous cars market boasts a substantial size, exceeding 9 million units. It is poised for continued growth at a robust compound annual growth rate (CAGR) of 12 per cent throughout the forecast period. The industry's propulsion is primarily attributed to the proactive support from government initiatives and policies, coupled with escalating investments in infrastructure to enhance communication technologies for autonomous vehicles. Moreover, the European Union remains committed to funding novel research projects, enabling the operation of autonomous cars on roads without the need for permits and additional insurance coverage.
The shared mobility market marked a substantial value of 54 billion. Forecasts indicate a consistent annual growth rate of 15.2 per cent from 2015 to 2030, with this new paradigm contributing significantly to the automotive industry at 14 per cent. Meanwhile, the connected car device market continues its upward trajectory, projected to sustain a robust CAGR of 16.3 per cent. In Europe specifically, this market is expected to reach an impressive 34.37 billion by 2025, with a steady CAGR of seven per cent from 2020 to 2025. European car manufacturers strategically prioritise connectivity solutions to boost sales, in sync with consumers' growing appetite for connecting seamlessly to the external world.
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