The global electric vehicle market was valued at USD 273.31 billion in 2020 and is projected to reach USD 802.75 billion by 2028, expanding at a CAGR of 21.6% during the forecast period, 2021 – 2028. The growth of the market is attributed to increasing fuel prices and adverse effect of traditional fuel vehicles.
Electric vehicle runs on electricity. These vehicles do not have internal engine, as they function on electric motor that needs constant electric supply from batteries. Different types of batteries are used in electric vehicles such as molten salt, lithium ion, several nickel-based designs, and zinc air. Main motive of launching electric vehicle was to reduce environmental pollution.
Market Trends, Drivers, Restraints, and Opportunities:
- Technological advancements have increased the popularity of electric vehicles.
- Rising awareness of clean environment has increased the demand for electric vehicles.
- Increasing fuel prices and adverse effects of traditional fuel on environment have increases the demand for electric vehicles.
- Changing consumer preferences towards hybrid or battery-powered cars is expected to drive the market.
- Rising demand for fuel efficient, low emission, and high-performance vehicles are estimated to fuel the market.
- Favorable government policies, support for subsidies & grants, and tax rebates is projected to drive the market.
- Factors such as low fuel economy & serviceability and high cost of manufacturing are expected to hamper the market growth.
- Absence of charging infrastructure is estimated to hamper the market growth.
- Rising preference for electric vehicles in government and commercial sector is projected to fuel the market.
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Market Segment Insights:
The commercial vehicle segment is expected to hold a major market share of the total revenue during the forecast period.
Based on vehicle types, the global electric vehicle market is segregated as passenger cars, commercial vehicles, and two wheelers. The commercial vehicles segment is projected to expand at a rapid pace during the forecast period. Growth of the segment is attributed to rising adoption of electric buses in developing countries such as India and China. Various countries are focusing on replacing their existing fuel-based buses with electric buses. Rising trend of replacement of fossil fuel-based vehicles with electric buses are likely to boost the market. Moreover, advancements in the battery of electric vehicles to improve the load capacity of vehicle are expected to drive the segment. The growth of logistics, shared mobility, and e-commerce is expected to propel the market during the forecast period.
The two-wheeler segment is expected to expand at a substantial CAGR during the forecast period. Transportation poses a challenge in several developing countries and many people in these regions opt for two wheelers. Rising petrol prices encouraged consumers to adopt electric vehicles.
The mid-priced vehicle segment is projected to expand at a robust CAGR during the forecast period
The plug-in hybrid electric vehicle segment held a major market share of more than 30% of the total revenue in 2019
The market in Asia Pacific is expected to expand at a robust CAGR during the forecast period
On the basis of regions, the global electric vehicle market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Automotive industries in Asia Pacific such as Japan, South Korea, and China are inclined towards technology, development, and innovation of advanced electric vehicles. Rising demand for decreasing carbon emissions and developing fast and advanced charging stations are estimated to boost the market in the region.
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- Key players in the global electric vehicle market include Tesla, Nissan, BMW, BYD, Volkswagen AG, Toyota Motor Corporation, Daimler AG, BYD Company Motors, Ford Motor Company, Tata Motors, Bajaj Auto Corp, MG Motor India, JBM Auto Limited, Hyundai Motor India, Groupe Renault, Mahindra & Mahindra Limited, and Hero Electric.
- These players adopted strategies such as developing new products, expansion strategies, partnerships, collaborations, and mergers & acquisitions to maintain their position in the competitive market.
- Developed countries such as Germany, the UK, and the US are encouraging the use of electric vehicles to minimize emissions, which in turn, has increased the sales of electric vehicles.
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