Electric Vehicle Market

Electric Vehicle Market Size, Trends & Growth (2022 - 2027)

The global electric vehicle market size is deemed to reach USD 34,756 thousand units by 2027, registering a CAGR of 22.6% during the forecast period from 4093 thousand units in 2022.

Electric vehicle uses electricity to operate unlike the other vehicles runs on fuel. Electric motor installed supplies constant energy from the batteries and does not have any internal combustion engine. Lithium ion, zinc-air, molten salt, and other nickel-based design batteries are some varieties of batteries used for the electric vehicles. The electric vehicles are specially designed to reduce the environmental pollution. With the latest technological advancements in electric vehicles many people are inclined to adopt these vehicles. The global shares for electric vehicle is expected to increase from 2% in 2016 to 30% by the end of 2030. Electric vehicles can be charged through electricity and are environment friendly vehicles.

Electric Vehicle Market Trends:

Growing prevalence to reduce the air pollution across the world by making the trend in adopting electric vehicle rather than the vehicles runs by fuel is huge factor propelling the demand of the electric vehicle market. In addition, government support for the manufacturing of electric vehicles with latest technologies is major electric vehicle market trend.

Recent Developments:

• In May 2019, new Ioniq electric version vehicle was showcased by Hyundai. This vehicle’s battery is increased to 38.3 kWh from 28 kWh.
• In November 2019, BYD launched e3 electric sedan in China that has a range of around 252miles. This was manufactured with battery options 35.2 kWh and 47.3 kWh with a single 70 kW electric motor.
• In March 2020, 2^nd generation vehicle named 330e and 330e xDrive was launched by BMW. The launch of these vehicles levelled up the shares of the company in the market that expanded the portfolio.
• In November 2020, Leaf model vehicle with a choice of battery between 40kWh and 62 kWh was introduced by Nissan in the US.
• In 2021, a new C40 recharge model was showcased by Volvo that is designed with advanced features. This is a pure electric car with the similar features of XC60 model.

Drivers and Restraints of Electric Vehicle Market:

Drivers: 

Increasing demand to reduce the carbon emissions is a key factor driving the demand of the market. Growing awareness over the launch of different electric vehicles with latest features is enhancing the demand of the market. In many countries, government organizations are highly investing on the electric vehicles that is leveraging the growth rate of the market. In addition, creating awareness through digital platform is greatly influencing the demand of the electric vehicle market. Rising demand for the zero-emission vehicle is likely to fuel the market demand. Also, launch of various schemes in favor to the end users by companies is lavishing the electric vehicle market growth rate. Introduction of vehicles with advanced features is anticipated to level up the growth rate of the electric vehicle market revenue.

In the future, the demand for the electric vehicle increases randomly across the world due to increasing rates of the fossil fuel. This attribute is anticipated to bolster the demand of the market to the extent. Decreasing fossil fuel reserves impels the growing prices of the petrol and diesel that is escalating the growth rate4 of the electric vehicle market. Electric vehicle has the capacity to convert 50% of electrical energy from the grid that is escalating the demand for the market. E-commerce companies like Amazon and others are adopting electric vehicle to reduce the carbon emission that is accelerating the demand of the electric vehicle market. Government plans to launch many electric buses as public transport especially in developed and developing countries is ascribe to bolster the demand of the market. Collaborations between the market players to bring advanced version of electric vehicles with updated features is boosting up the demand of the market. Focus on launching lower cost electric vehicles by automobile companies with latest technologies is to fuel the market growth.

Restraints:

However, electric vehicles are high in cost where common people cannot afford them is slowly restricting the demand of the electric vehicle market. Lack of skilled technician and high maintenance techniques are hampering the growth rate of the market. Increasing risks of the vehicle in long journeys is slightly impeding the demand of the electric vehicle. Stringent rules and regulations by government in approving the new technologies is big challenging factor for the market players. Rising cost of the raw materials used to manufacture the electric vehicle is increasing the cost of the end product that is limiting the demand of this market. Lack of proper charging stations is restraining the growth rate of the market. 

REPORT COVERAGE:

Electric Vehicle Market Segmentation:

By Vehicle:

•  Passenger Car
• Commercial Vehicle
• Two wheeler

The passenger car segment is thriving with the largest shares of the electric vehicle market. Growing rules from the government to reduce environment pollution and rising awareness are mainly fueling the demand of this segment. In Asia pacific, the demand for the passenger car is very high followed by Europe and North America. High support from the government through investments for production of electric vehicle is promoting the demand of this segment to the extent.

Commercial vehicle segment is to have the highest CAGR in the near future. Two wheeler segment shares are growing tremendously with the increasing adoption of these vehicles by e-commerce.

By Propulsion:

• Battery electric vehicle (BEV)
• Fuel cell electric vehicle (FCEV)
• Plug-in hybrid electric vehicle (PHEV)
• Hybrid electric vehicle (HEV)

Battery electric vehicle segment is expected to reach highest shares of the market followed by fuel cell electric vehicle.

By Components:

• Battery Cells & Packs
• On-Board Charge
• Infotainment
• Electric Motor

Battery cells & packs segment is leading with the dominant shares of the market in the coming period.

By Charging Station Type:

• Normal charging
• Super charging

Super charging segment is to have the dominant shares owing to launch of products with advanced technology.

By Vehicle Class:

• Mid-Priced
• Economy
• Luxury

Electric Vehicle Market Region wise analysis:

North America is holding with the dominant shares of the electric vehicle market. Rising per capita income and growing investments on the automobile industries are elevating the demand of the market. Creating awareness to reduce the environmental pollution in all the countries is greatly promoting the demand of this market in North America. In emerging countries like US and Canada, the demand for the electric vehicles is very high from past few years. Rapid adoption of the technological advancements in automobile industries is quietly gearing up the growth rate of the electric vehicle market. Government set up a target to increase the production rate of the electric vehicle by 2050 that is likely to level up the demand of the market.

Europe is next in holding the largest shares of the electric vehicle market. High disposable income in urban areas and growing prevalence for the electric vehicle with the increasing fuel prices are promoting the demand of the market in Europe. Also, support from the government in providing subsidies for the electric vehicles is impelling the demand of the market. Countries like Germany and UK are focusing on introducing new electric vehicles with advanced technologies at lower cost that is gaining more traction over the shares of the market.

Asia Pacific is expected to have the highest CAGR in the coming years with the increasing stringent rules and regulations by government to promote zero-emission vehicles. India and China are major contributors for the market shares. China electric vehicle market has the highest growth opportunities. Installing electric charging stations with good infrastructure is a key driving factor for the market to grow in China. India is planning to increase the sales of the electric vehicles by introducing electric buses in urban areas. Launch of innovative techniques is accelerating the growth rate of the electric vehicle market.

Latin America is to have substantial growth rate in the coming period. Middle East and Africa electric vehicle market revenue is to have slow growth rate during the forecast period 2022 - 2027.

Key Players of Electric Vehicle Market: 

• Tesla
• BMW Group
• Nissan Motor Corporation
• Toyota Motor Corporation
• Volkswagen AG
• General Motors
• Daimler AG
• Energica Motor Company S.p.A.
• BYD Company Motors
• Ford Motor Company

The impact of COVID-19 on Electric Vehicle market:-

The sudden outburst of the COVID 19 pandemic led to bring huge loss for the companies. Ban on flights and strict lockdown restrictions in 2020 brought many changes for the company. In the initial pandemic days, all the companies were completely shut down due to restrictions imposed by government that lowered the production and sales of the new vehicles. Operative equipment manufacturers were halted till the government released unlock guidelines. In 2021, all companies slowly resumed their activities according to instructions from government where the demand for the electric vehicle market slowly raising. The electric vehicle market shares soon to hit the highest CAGR.

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