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Energy market booming in Europe with EVs driving growth in the UK

Strong EV growth is helping to bolster the energy market in the UK and mainland Europe. Image: Getty.

Strong EV growth is helping to bolster the energy market in the UK and mainland Europe. Image: Getty.

The energy market in Europe is progressing faster than expected despite the impact of COVID-19.

In 2020, there was a 53% increase in customer spend compared to 46% in 2019 according to a new report from energy research and consultancy company Delta-EE. In its new State of the Energy Market 2021 report, it shows that over the next five years, customer spend on new energy services is expected to grow by 32% annually.

Emobility is expected to grow even faster, and in 2020 saw triple digit year-on-year growth, with the UK, Germany, France and Italy leading the way.

The report estimates that there will be 84 million electric vehicles (EVs) on the roads in Europe by 2030, with an annual market revenue of £123 billion (€146 billion) by 2025. In the UK, sales of EVs have already begun to jump outselling diesel cars for the second month in a row in July, ahead of the ban on the sale of new petrol and diesel cars in 2030.

The company found that the EV charger market is set to see a 29% year-on-year increase in sales through to 2030, in a report released last year, helping to bolster this growth in the number of vehicles on the roads.

Delta-EE suggests that a virtuous cycle is emerging, where increased EV demand is pushing businesses to think of innovative emobility offerings, which are in turn attracting people to EVs. This includes aspects like smart charging, which a report from NewMotion in May heralded as key to encouraging EV uptake.

“Charging your electric vehicle inevitably increases your electricity bill and we see that as a motivating factor for the uptake of other new energy propositions, such as smart home management and charging propositions,” said Alix Weil, the New Energy Business Model Service manager in Delta-EE.

The report also details the opportunities emerging in the heat sector, with a 9% year-on-year growth seen in 2020. France and Germany lead the market with heat pump uptake and connectivity becoming “must-haves”, but Delta-EE expects the UK market to see the most growth in the next five years driven by a growing customer appetite for connectivity and a growing number of service providers.

Additionally, supportive policies such as the upcoming Heat and Buildings Strategy could further boost the UK market.

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