The global electric vehicles (EVs) market is estimated to witness a robust growth rate of 23.5% during the period 2019-2028. Rising concern about air pollution in urban areas is one of the key drivers of the growth of the EV market. Conventional fuel vehicles are one of the leading causes of air pollution; it forces government bodies to impose strict rules and regulations on car manufacturers to restrain vehicle emissions. EVs can reduce reliance on oil-based fuels and deliver significant reductions in greenhouse gas emissions. The governments of several economies are also actively participating in soaring the sales of EVs by focusing on providing subsidies to customers on EV sales. Supportive government policies are helping in increasing demand for EVs in recent years, which is fueling the market growth. However, the market is likely to get hampered by factors including the lack of charging infrastructure, high manufacturing cost, and range anxiety and serviceability. Furthermore, technological advancements coupled with the ongoing development of self-driving EV technology are expected to create ample growth opportunities for the market.
EV100 initiative fostering the demand for global commercial EVs
The EV100 initiative brings together over 100 companies to make electric transport the new normal by 2030. Most of the companies across the globe are shifting their fleets towards global electric light- commercial vehicles. Amazon ordered 100,000 units of commercial vehicles from a startup as it aims to be net-zero emissions by 2040. Leading logistic companies such as FedEx and DHL group are also shifting towards delivering their mails and parcels by EVs. As per the International Energy Agency (IEA), the number of commercial EVs increased by 23% in 2020, with electric trucks increasing by three times. The Asia Pacific is among the leading regions for commercial EVs in 2020. Due to China’s dominance, the EV market in the Asia Pacific has grown at an exponential rate in recent years. The huge demand for electric buses, favorable regulations for commercial electric vehicles, and the rapidly growing logistics sector are expected to boost the demand for EVs in the region.
Europe is one of the prominent regions
Europe is one of the prominent regions in the global EV market. The steps taken by the governments of European countries to reduce carbon emissions have been driving the growth of the market in the region. According to the IEA, in Europe new electric car registrations more than doubled to 1.4 million representing a sales share of 10% in 2020. Germany registered 395,000 new electric cars and France registered 185,000. In the UK, registrations more than doubled to reach 176,000. Electric cars in Norway reached a record high sales share of 75%, up about one-third from 2019. Sales shares of electric cars exceeded 50% in Iceland, 30% in Sweden, and reached 25% in the Netherlands. Moreover, the market growth of EVs in Asia-Pacific is led by China, Japan, and South Korea. China is among the leading market for EVs across the region. The governments of Asian economies such as China, India, South Korea, and Japan are supporting the Electric vehicles’ market growth by installing charging stations, framing emission norms, and shifting to full or hybrid from internal combustion engine (ICE) vehicles. Further, the new vehicle scrap policy in India will pave the way for the development of the country’s automotive industry.
Market Structure and Competition Landscape
The global EV market is fragmented in nature, with the presence of various players operating in the market. Some of the prominent players that contribute significantly to the market growth include Tesla Inc., Volkswagen AG, SAIC Motors, BYD Auto Co. Ltd., BMW Group, Nissan Motor Co. Ltd., Hyundai Group, Toyota Motor Corp., Renault Group, GAC Motor, Honda Motor Company Ltd., Mahindra Electric Mobility Ltd., Daimler AG, General Motors Company, and Geely (Zhejiang Geely Holding Group Co., Ltd.) among others. Tesla is one of the leading companies operating in the global EV market and has a strong foothold in the US Electric Vehicle market. Players operating in the market adopt various strategies in order to reinforce their global electric vehicle market share and gain a competitive edge over other competitors. Mergers and acquisitions, partnerships and collaborations, and product launches are some of the strategies followed by industry players. Some of the key developments in the global EV market include,
- In February 2022, Reliance Industries Ltd. announced the acquisition of the stake in an EV technology company, Altigreen. The investment is a part of the company’s strategic intent, which is the collaboration with innovative companies. This would enable Reliance to diversify its product and service offerings.
- In November 2021, the US President signed into law the Infrastructure Investments and Jobs Act, the bill includes total spending of US$1.2 trillion. This helped to accelerate EV adoption by building a network of half a million EV chargers in the US.
Significantly, some OEMs plan to reconfigure their product lines to produce only EVs which is also expected to propel the market growth. In the first trimester of 2021, the following announcements were included
- Volvo will only sell electric cars from 2030
- Ford will only focus on electric car sales in Europe from 2030
- General Motors plans to offer only electric LDVs by 2035
- Volkswagen aims for 70% electric car sales in Europe, and 50% in China and the US by 2030
- Stellantis aims for 70% electric cars sales in Europe and 35% in the US
Key Market Segmentation
RationalStat has segmented the global electric vehicle market on the basis of vehicle type, type, drive type, and region.
- By Vehicle Type
- Passenger Vehicles
- Mopeds, Bikes, and Scooters
- Small Cars
- Medium Cars
- Large Cars
- Commercial Vehicles
- Light Commercial Vehicles (LCVs)
- Heavy Commercial Vehicles (HCVs)
- Passenger Vehicles
- By Number of Wheels
- By Type
- HEV (Hybrid Electric Vehicle )
- PHEV (Plug-in Hybrid Electric Vehicle)
- BEV (Battery Electric Vehicle)
- FCEV (Fuel-cell Electric Vehicle)
- By End-User
- By Region
- North America
- Latin America
- Rest of Latin America
- Western Europe
- Rest of Western Europe
- Eastern Europe
- Rest of Eastern Europe
- Asia Pacific
- South Korea
- ASEAN (Indonesia, Vietnam, Malaysia, etc.)
- Rest of Asia Pacific
- Middle East & Africa
- South Africa
- Rest of the Middle East & Africa
- North America
RationalStat has developed a state-of-the-art research methodology to crunch numbers and provide the best possible real-time insights to clients. We combine a varied range of industry experience, data analytics, and experts’ viewpoint to create a research methodology for market sizing and forecasting.
RationalStat combines a mix of secondary sources as well as primary research to assess the market size and develop a forecast. Key steps involved in accurately deriving the market numbers are:
- Defining the problem by understanding the type of market and data required by the client.
- Data gathering and collection through relevant paid databases, publicly available sources, company reports, annual reports, surveys, and interviews.
- Formulating a hypothesis to create market numbers, forecast, influencing factors, and their relevance.
- Evaluating and analyzing the data by referring to data sources utilized and leveraged.
- Validating, interpreting, and finalizing the data by combining the details gathered from primary and secondary sources with the help of experienced analysts.
- Annual reports, company filings, investor presentations, product catalogs, and company documents
- Industry and market-related documents available in the public domain
- Paid database including Bloomberg, Factiva, S&P Capital IQ, FactSet, Refinitiv Eikon, ICIS, EUWID, Thomson Reuters, among others
- Whitepapers, research papers, and industry blogs.
Why Buy this Report?
The report is intended for EV manufacturers, EV battery manufacturers and suppliers, educational organizations, government entities, regulatory agencies, market research firms, industry associations, and research organizations among others. The report provides an in-depth analysis of market size, consumption pattern, ongoing market trends and challenges, and future market opportunities. The report will serve as a source for a 360-degree analysis of the market thoroughly delivering insights to clients to find the right answers to their business questions.
Frequently Asked Questions (FAQs)
The Global Electric Vehicle market is expected to grow at a CAGR of around 23.5% during the forecast period 2022-2028.
Europe is dominating the Global Electric Vehicle market in 2021.
The Global Electric Vehicle market is estimated at around US$ 165.5 billion in 2020.
Rising concern about air pollution in urban areas is one of the key drivers in the Global Electric Vehicle market.
Major companies operating in the Global Electric Vehicle market include Tesla Inc., Volkswagen AG, SAIC Motors, BYD Auto Co. Ltd., BMW Group, Nissan Motor Co. Ltd., Hyundai Group, Toyota Motor Corp, etc.