European Electric and Hybrid Vehicle market is expected to grow from 0.7% of the market in 2012 to 4% in 2020, according a new report from Pike Research.
The market in the region will account a small portion of the entire market and by 2020 more than 827,000 vehicles are expected to be sold per year in the region, the report added.
Pike Research senior research analyst David Alexander said that the European transportation market is significantly different from other world regions.
"Thanks to fuel prices that are significantly higher than in North America, small, efficient gasoline- and diesel-engine cars have led European sales figures for many years," Alexander said.
The report added that though government support for electric vehicles (EVs) in the region is slowing, the market growth is led by increasing availability of vehicle charging infrastructure.
"Today, the market is still testing electric drive technology, waiting for the price premium for EVs compared to conventional vehicles to narrow, and in some cases waiting for electric charging infrastructure to become established."
According to the report, the prevalence of diesel vehicles in Europe is preventing hybrids vehicles to achieve success as is the case in North America.
Growth in the market is expected to be triggered by battery electric vehicles, followed by plug-in hybrids by 2020 while sale of hybrid electric vehicle sales is expected to lag behind in the region.
