Norway Electric Vehicle Market Research Report, 2030

Norway has emerged as a global frontrunner in the embrace of electric vehicles (EVs), with the nation's ambitious environmental strategies and encouraging incentives positioning it as one of the most prosperous markets for electric mobility. Over the past decade, the Norwegian EV market has experienced remarkable expansion, with EVs representing a notable portion of new car sales. Norway's path toward widespread EV acceptance commenced in the early 1990s with the launch of electric vehicles in 1990. Nevertheless, it was not until the late 2000s and early 2010s that EVs began to gain substantial momentum, spurred by favourable policies and increasing environmental awareness. In the 1990s, Norway’s government started promoting electric vehicle purchases by implementing tax exemptions, reduced toll fees, free parking, and enabling access to bus lanes for EVs. By 2010, Norway’s dedication to cutting emissions and enhancing sustainability became more apparent, and EV sales commenced to surge. In 2013, Norway set a goal to ensure that all new cars sold by 2025 would be zero-emission vehicles, prioritizing the shift to electric vehicles at a national level. This ambitious objective was supported by tax benefits and incentives, including exemption from VAT (Value Added Tax), tolls, and registration fees, which rendered EVs significantly more economical than conventional combustion engine vehicles. By 2017, Norway achieved the distinction of being the first country globally where EVs surpassed traditional cars in sales, becoming some of the most favoured models. Currently, Norway holds the highest number of electric vehicles per capita in the world, with over 50% of new car sales consisting of fully electric vehicles. The nation is recognized for its extensive charging infrastructure, and Battery Electric Vehicles (BEVs) prevail in the market, with Plug-in Hybrid Electric Vehicles (PHEVs) also exhibiting considerable growth. Norway’s dedication to clean energy and a sustainable future has established it as a global leader in electric vehicle adoption. According to the research report, "Norway electric vehicle Market Research Report, 2030," published by Actual Market Research, the Norway electric vehicle Market is anticipated to add to more than USD 31.50 Billion by 2025–30. Norway’s electric vehicle (EV) market has emerged as a global frontrunner in EV uptake, propelled by a mix of robust government initiatives, ecological considerations, and increasing consumer interest in cleaner transportation. Nevertheless, along with the remarkable expansion, the market also confronts several hurdles. The primary catalyst for EV adoption in Norway has been the government’s incentive programs. Norway provides a range of benefits for EV purchasers, such as exemption from VAT and import duties, toll-free driving, free public parking, and access to bus lanes. These incentives enhance the financial appeal of EVs relative to conventional internal combustion engine (ICE) vehicles. In addition, Norway’s focus on sustainable energy sources, particularly hydropower, which supplies nearly all the nation’s electricity requirements, renders EVs an even more eco-friendly choice. The expansion of charging infrastructure throughout the country has additionally boosted EV adoption. By 2020, Norway boasted over 16,000 charging stations, ranking among the highest numbers per capita globally, which guarantees easy access to charging for users. The Norwegian EV market presents substantial opportunities in charging infrastructure expansion, battery technology, and the advancement of electric trucks and buses. The increasing demand for used EVs indicates a potential market, particularly as more buyers are choosing second-hand EVs due to appealing prices and government incentives for new purchasers. Furthermore, Norway’s ambition for carbon neutrality by 2050 opens additional opportunities in the EV manufacturing and battery recycling fields. In spite of these opportunities, the Norwegian EV market encounters challenges, including higher purchase prices for EVs relative to traditional vehicles, even in view of incentives. Moreover, the market is significantly dependent on the availability of raw materials for batteries, which could encounter supply chain issues. Another concern is range anxiety, though this is being mitigated by ongoing enhancements in battery technology and charging infrastructure. The COVID-19 pandemic brought about a temporary dip in automobile sales, including EVs, in 2020.

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Norway's electric vehicle (EV) market is primarily fuelled by Battery Electric Vehicles (BEVs), yet Fuel Cell Electric Vehicles (FCEVs), Plug-in Hybrid Electric Vehicles (PHEVs), and Hybrid Electric Vehicles (HEVs) also play a role in the increasing use of electric mobility. Each type of propulsion addresses various consumer needs, creating a diverse and competitive EV market in Norway. Battery Electric Vehicles (BEVs) are the leading segment of the Norwegian EV market, making up the majority of new EV sales. BEVs operate entirely on battery power, without any internal combustion engine. Popular choices are in high demand for their long range, zero emissions, and excellent performance. The appeal of BEVs to Norwegian consumers is enhanced by government incentives such as tax exemptions, free tolls, and zero VAT, which provide financial benefits for these vehicles. Furthermore, Norway’s extensive charging station network and its dedication to sustainable energy (hydropower) make BEVs a perfect selection for the country’s eco-minded population. Fuel Cell Electric Vehicles (FCEVs), which run on hydrogen, remain a specialized segment in Norway, yet they offer potential for long-range travel and heavy-duty transportation. Models help alleviate range anxiety and lengthy refuelling durations compared to BEVs. Nevertheless, the uptake of FCEVs is hindered by the lack of hydrogen refuelling infrastructure and their high purchase prices. The Norwegian government has acknowledged the significance of hydrogen for a sustainable future and has begun to invest in hydrogen infrastructure, but FCEVs constitute a minor segment of the market relative to BEVs. Plug-in Hybrid Electric Vehicles (PHEVs) incorporate both a gasoline engine and an electric motor, enabling users to operate the vehicle on electricity for short distances and on gasoline for longer trips. Popular model PHEV attract consumers seeking a balance between the advantages of EVs and traditional vehicles. PHEVs provide greater flexibility and serve as a transition option for consumers moving towards fully electric driving. Norway's electric vehicle (EV) sector is varied and expanding, with notable contributions from passenger vehicles, commercial vehicles, and two-wheelers. Each category is essential to the nation's shift towards sustainable mobility, bolstered by a robust charging infrastructure, governmental incentives, and a national pledge to lower emissions. Passenger vehicles constitute the largest share of the EV market in Norway, where electric cars are widely accepted owing to supportive government policies. EVs, especially Battery Electric Vehicles (BEVs), have become the favoured option for personal travel. The Norwegian government has encouraged the acquisition of electric passenger vehicles by providing substantial advantages such as exemption from VAT, lower road tolls, complimentary public parking, and access to bus lanes. Consequently, EVs represented more than 50% of new car registrations in 2023, establishing Norway as the worldwide leader in EV uptake. The growth of charging infrastructure and the nation's dependence on hydropower for clean energy further enhance the appeal of electric passenger vehicles. The uptake of electric vehicles in the commercial vehicle sector is also gaining momentum, fuelled by companies aiming to cut operational expenses and achieve environmental goals. Electric vans, trucks, and buses are becoming more prevalent for urban deliveries and public transport. Businesses are increasingly adopting electric vehicles for last-mile delivery tasks in urban regions to minimize emissions, reduce fuel expenses, and adhere to tightening emission standards. The government provides tax incentives and grants to promote fleet electrification, rendering electric commercial vehicles an appealing choice for enterprises. Additionally, Norway’s ambitious target of having a zero-emission fleet by 2025 is driving increased adoption of electric commercial vehicles. The two-wheeler segment in Norway, which encompasses electric bicycles (e-bikes) and electric scooters (e-scooters), is also witnessing significant growth. E-bikes are favoured for commuting, particularly in cities, where they offer an efficient and eco-friendly alternative for short-distance travel. Norway has a burgeoning market for electric motorcycles and e-scooters as well, especially in urban areas. Norway's electric vehicle (EV) market is bolstered by two primary kinds of charging infrastructure: fast charging and normal (or standard) charging. These charging alternatives serve various consumer preferences, from swift recharging during long trips to more convenient overnight charging for everyday usage. The presence of both charging types has been essential to Norway’s shift towards electric mobility. Fast charging stations, commonly known as DC fast chargers, offer a rapid charging option for EV owners, considerably decreasing the time needed to recharge a vehicle. These chargers function at higher power levels, usually 50 kW to 350 kW, and can replenish an EV's battery to approximately 80% in 20 to 40 minutes, based on the battery size and charger power. Fast charging is particularly vital for long-distance travel, where time is critical, and for drivers who require a quick boost for their EVs while on the move. Norway's vast network of fast chargers ranks among the most advanced worldwide, with thousands of stations situated along highways, at rest stops, and within urban areas. The primary fast charging networks in the country, have simplified long-distance travel for Norwegian EV owners, alleviating concerns about depleting battery power. Fast chargers are also increasingly utilized by commercial fleets and taxi services, as they aid in minimizing downtime and ensuring vehicles remain operational throughout the day. Normal charging (also referred to as AC charging) is a slower approach where EVs connect to standard electrical outlets or AC charging stations. This charging type generally operates at lower power levels of 3. 7 kW to 22 kW, requiring several hours (typically 4 to 8 hours) to fully charge a vehicle, depending on the charger and battery size. It is the most prevalent form of charging in Norway, as it provides an economical and accessible solution for most EV owners who do not require fast recharging.

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Nikita Jabrela

Business Development Manager

Considered in this report • Geography: Norway • Historic Year: 2019 • Base year: 2024 • Estimated year: 2025 • Forecast year: 2030 Aspects covered in this report • Electric vehicle Market with its value and forecast along with its segments • Region & country wise electric vehicle Market analysis • Application wise electric vehicle marker distribution • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Propulsion • Battery Electric Vehicle (BEV) • Fuel Cell Electric Vehicle (FCEV) • Plug-In Hybrid Electric Vehicle (PHEV) • Hybrid Electric Vehicle (HEV)

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By Vehicle Type • Passenger • Commercial • Two Wheelers By charging type • Fast • Normals The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.