Electric Vehicle (EV) Market Overview
Electric Vehicle (EV) Market Dynamics
Drivers: Favourable government subsidies and policies to promote sales
To promote EV sales, governments are implementing enticing incentives and regulations. It offers users several advantages, including lower selling prices, no registration or minimal registration fees, and free EV infrastructure at numerous charging points. Additionally, several governments worldwide exempt purchase, import, and road tax based on various subsidies. Moreover, these subsidies have encouraged automakers to increase their EV output. The government has also created beneficial policies and invested in building infrastructure. For instance, the U.S. government plans to invest USD 287 billion in highway improvements over the next five years. To assist the growth of these vehicles in the nation, the government will also be building EV charging stations across the United States.
Restraints: High manufacturing cost
EVs are better than conventional fuel vehicles. However, they are more expensive than gasoline-powered vehicles. Because they are not mass-produced, these vehicles have not yet benefited from economies of scale. Additionally, the lack of infrastructure for charging linked with the development of EVs has shown to be a drawback, which has hampered the market's expansion. The manufacturers also need a lot of money and resources, which could impede the market's expansion.
Opportunities: Increasing investment in electric vehicles
The expansion of the market is thought to be fueled by the rising investment in electric mobility. Players on the market, including Daimler AG, Ford Motor Company, and Groupe Renault, are putting more money into their EV production plans. For instance, the Ford Company declared its intention to spend USD 300 million at its Romanian plant in 2023 to create a new light commercial vehicle. Major corporations, including Daimler AG and Mercedes Benz, are also making significant investments to create EVs. As a result, during forecasting, the market is anticipated to grow over the long run.
Passenger cars category is estimated to be the largest growing market segment during the forecast period
The passenger cars category is estimated to dominate the market growth over the forecast period. Due to original equipment manufacturers and other Asian-Pacific automakers, EVs are adopted at a high rate. During the projection period, these elements will aid in promoting the expansion of this segment. Due to ongoing advancements in EV batteries that increase the load capacity of commercial vehicles, it is also predicted that the commercial vehicle market will grow in the upcoming years.
BEV category is estimated to be the largest growing market segment during the forecast period
The BEV category is estimated to dominate the market growth over the forecast period due to regulations on car CO2 emissions and consumers' growing preference for EVs over ICE automobiles. BEVs have the potential to drastically lower overall ownership costs and emissions from vehicles. Additionally, it is expected that over the projected timeframe, demand for BEVs will rise as a result of developments in battery technology and falling lithium-ion battery prices.
Asia Pacific segment is estimated to be the largest growing market during the forecast period
Asia Pacific is the largest electric vehicle (EV) market and is projected to grow at the highest CAGR during the forecast period due to the rise in passenger automobile demand in developing countries. China makes up the largest portion of passenger cars and other vehicles. China dominates the global EV market share in the region as the largest EV manufacturer and consumer. Their government has taken action, including providing subsidies for EV buyers, providing significant funding for installing EV charging stations throughout major cities, enacting laws requiring all automakers to produce EVs in proportion to the volume of vehicles they produce, and enacting regulations against excessively polluting vehicles.
The rise in demand for electric vehicles in China, Japan, and India contributes to the growth. For instance, the Indian government announced tax incentives for EV purchases in 2019. The government intends to eliminate income tax on loans made or interest paid on EV purchases.
Key Market Players
The electric vehicle (EV) market is dominated by a few global players and comprises several regional players. Some of the key manufacturers operating in the market are Tesla, Volkswagen AG, Saic Motors, BYD, Stellantis, BMW Group, Nissan Motors, Hyundai Group, Great Wall Motors, Toyota Motor Corporation, GAC Motors, Renault Group, Geely, General Motors, Rivian, Fisker, Lucid Motors, Ford Motor Company, Baic Motors, Mitsubishi Motors, Chery, JAC, Zoyte, Daimler AG, Xpeng, Byton, Nikola Corporation, Altcraft Motor Company, NIO, Faraday Future, Leap Motors, WM Motors, Fresco Motors and Lordstown Motors.
- In February 2022, It was possible to see the MG 4, an electric vehicle that MG Motors would launch in India later in 2022. The EV should have a range of roughly 400 km thanks to its 61.1 kWh battery pack.
- In January 2022, Volkswagen ID.5 model development was revealed to be based on the Skoda Enayaq iV vehicle. The automobile should go roughly 300 miles on one charge.
- In December 2021, for the Indian market, BYD unveiled its brand-new e6 EV of the second generation. By February 2022, deliveries for this model had begun. With a 71.7 kWh battery, this MPV has a range of more than 250 miles on a single charge.
- In November 2021, BMW unveiled its brand-new i4 electric vehicle, which has a 300–367 mile range. In under four seconds, the car can reach 100 kilometers per hour. It has an automatic transmission and capabilities for linked vehicles.
Segmentation of Global EV Market :
Global Electric Vehicle (EV) Market – By Component
- Mining Platform
- Coin Wallet
- Passenger Cars
- Commercial Vehicles
- <125 MPH
- >125 MPH
- Front Wheel Drive
- Rear Wheel Drive
- All Wheel Drive
- Normal Charging
- Super Charging
- V2B or V2H
- Commercial Fleets
- North America
- Rest of Europe
- Asia Pacific
- South Korea
- South-east Asia
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- GCC Countries
- South Africa
- Rest of Middle East and Africa