Electric Vehicle Market to Advance at CAGR of 26.62%, Policy Push, Newer Battery Technologies And Rise In Consumer Awareness Bolster Growth
Electric vehicles (EVs) of all types have been growing as the share of automobile sales in all key automotive markets. The penetration pivots on the growing government incentives, notably subsidies and exemption of road taxes. Of note, state policies are offering subsidies for electric two-wheelers based on basis of the size of their lithium-ion battery packs, promoting adoption of products in the electric vehicle market. Policymakers in developed and emerging economies are offering financial incentives, which help market players strengthen charging station infrastructure and vehicle dealership training.
Leading carbon emitters of the world are embracing electrification of road transport as a key step toward meeting their climate goals. Various legislations notably in India, China, and the U.S. are thus promoting zero-emission vehicle (ZEV) standards, thereby catalyzing automotive manufacturers to increase the production of electric vehicles. In turn, this has spurred the commercialization scope of electric vehicles. Consequently, this has been propelling industry investments in battery infrastructure, especially to spur sales of passenger and commercial vehicles.
Thus, a combination of favorable economics and climates concerns arising from the steadily rising CO2 emissions from the transportation industry are broadening the outlook, finds a TMR study on the electric vehicle market. The electric vehicle market is projected to surpass the valuation of US$ 1.53 Trn by 2031, expanding at a CAGR of 26.62% during 2021 – 2031. Passenger vehicles have emerged as the lucrative segment for players in the electric vehicles market.
Key Findings of Electric Vehicle Market Study
- Automotive Manufacturers Incorporating Efficient Battery Packs, Invest in Charging Platforms: Introduction of new battery chemistries, adoption of new battery materials, and advancements in manufacturing techniques by vehicle manufacturers have catalyzed the market prospects for all types of electric vehicles. In developed countries, such as in Europe and North America, incentives for electric vehicles have translated into increased access to charging stations.
Furthermore, in emerging markets, manufacturers of battery-powered two-wheelers are looking to capitalize on the vast consumer appetite for green electric alternatives. For instance, several automobile manufacturers in the electric vehicles market have geared toward expanding the charging options for their new models, and also the cost by incorporating simpler battery designs.
- Stakeholders Collaborate to Reduce Manufacturing Cost and Boost Affordability: The high cost of electric vehicles in contrast to vehicles powered by internal combustion engines is a major concern for buyers. Nonetheless, in recent years, there is increased propensity for all stakeholders—ranging from raw material suppliers to automotive manufacturers to battery manufacturers and recyclers—to collaborate and improve the environmental footprint of EVs on one hand while making them more affordable.
Several leading automotive manufacturers are keen to capture revenues by meeting the substantial demand for electric cars, such as in India. Governments in the European Union and in the U.K. have been offering utility incentive programs, which spurred the growth momentum of the electric vehicles market.
Electric Vehicle Market: Drivers
- Rise in demand for oil in various countries, coupled with soaring fuel prices world over in recent years, has nudged the policymakers to promote awareness about electrical alternatives. A few countries have been looking to phase out sales of internal combustion vehicles in next few decades.
- The past few years have witnessed governments in various countries coming out with new guidelines and plans to become carbon neutral by adopting non-fossil fuel energy sources. Subsequently, this has spurred implementation of green policies, notably in the transportation sector, as it is viewed as one of the largest contributors to global carbon emissions. This is a key driver for consumer awareness about the gains of electrification of the sector, thereby boosting the appetite for electric vehicles.
Electric Vehicle Market Study: Key Players
Some of the key players in the electric vehicles market are Volvo Cars, Toyota Motor Corporation, Protean Electric, Nissan Motor Corporation Ltd., Hyundai, Honda Motor Co., Ltd., Motors, Ford Motor Company, Daimler, Continental, BMW, Baic Motor, and ABB Ltd.
Global Electric Vehicle Market: Segmentation
- Electric Vehicle Market, by Vehicle Type
- Two Wheeler Vehicle
- Passenger Vehicle
- Utility Vehicles
- Light Commercial Vehicle
- Commercial Vehicle
- Class 6 Trucks
- Class 7 Trucks
- Class 8 Trucks
- Electric Vehicle Market, by Application
- Last Mile Delivery Vehicles
- Power sports Application
- ATVs (All-Terrain Vehicles) and Quads
- Golf Cart
- Boats/ Watersports
- Snow Mobile
- UTVs (Utility Terrain Vehicles)
- Electric Vehicle Market, by Motor Type
- DC Motor
- AC Motor
- Electric Vehicle Market, by Propulsion Technology
- Battery Electric Vehicle (BEV)
- Plug-in Hybrid Electric Vehicle (PHEV)
- Electric Vehicle Market, by Region
- North America
- Asia Pacific
- Middle East & Africa
- Latin America