Electric Vehicles Market Overview:
Electric vehicles market size was worth USD 379.70 Billion in 2022 and is expected to reach over USD 1,403.78 Billion by 2030, growing at a CAGR of 17.8% during the forecast period (2022-2030).
An electric vehicle runs on electricity rather than the internal combustion engine which generates power by burning fuels and gases. They have low running costs due to few moving parts for maintenance. Electric vehicles have fast acceleration, are extremely silent, cost-effective, and easy to operate due to automatic gear transmission. Further, a large section of the population is switching to electric vehicles because of the benefits being offered by original equipment manufacturers (OEMs). Electric vehicles are flourishing at an increased rate and they are gradually changing the world around them. People are preferring electric vehicles over the ones that operate on petrol and diesel owing to the fluctuating prices of such fossil fuels. Even manufacturers have started to focus on the production of electric vehicles to serve their customers effectively.
Unlike conventional vehicles, electric vehicles are environment-friendly as they do not generate carbon emissions. Owing to environmental concerns, the market of electric vehicles is anticipated to rise in the forecast period. Furthermore, the demand for fuel-efficient, high-performance vehicles is driving the growth of the global market.
Electric Vehicles Report Coverage:
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)||1,403.78 Billion|
|By Propulsion||Battery Electric Vehicles (BEV), Plug-in Electric Hybrid Vehicles (PHEV), and Fuel-cell Electric Vehicles (FCEV)|
|By Vehicle Type||Two-Wheelers, Passenger And Commercial Vehicles|
|By Battery Capacity||Less than 50 kWh, 50-250kWh, and Above 250kWh|
|By Range||Less Than 150 Miles, 150 To 300 Miles, And Above 300 Miles|
|By End-User||Private and Commercial Fleet|
|By Geography||North America [United States, Canada, Mexico]
Europe [Germany, Spain, UK, Italy, France, Russia, Netherlands, Turkey, Switzerland]
Asia-Pacific [China, India, Southeast Asia, Japan, Korea, Western Asia]
Middle East & Africa [GCC, North Africa, South Africa]
South America [Argentina, Brazil, Columbia, Peru, Chile]
|Key Players||Tesla, Audi AG, Volkswagen AG, BMW AG, SAIC Motors, Mercedes-Benz AG, BYD, TATA Motors, Toyota Motor Corporation, Mahindra & Mahindra Ltd, Hyundai Motor India|
A large section of the population is shifting to electric vehicles because of the rising prices of petrol across the globe. Moreover, the low maintenance costs of electric vehicles are also fascinating for people to opt for environment-friendly vehicles. Further, the growing consumer awareness in terms of the negative environmental impacts of carbon emissions due to the usage of conventional vehicles is another reason for consumers to shift to electric vehicles. Moreover, governments around the world are offering a variety of incentives to encourage the adoption of electric vehicles, such as tax breaks, subsidies, and access to carpool lanes. Additionally, many countries are imposing stricter emissions regulations, which is making it more difficult for traditional internal combustion engine vehicles to comply.
The high costs of manufacturing and purchasing electric vehicles primarily restrain the growth of the global market. Furthermore, the limited driving range of these vehicles results in a frequent need for charging, which ultimately restrains the large-scale adoption of electric vehicles. Moreover, the risks of battery degradation also create limiting circumstances for the electric vehicles market growth due to the overall negative impact on vehicles’ performance and range.
The scope of introducing new advanced technologies at affordable costs is expected to open new doors for the growth of the global market. Furthermore, the introduction of self-driving technology is also anticipated to provide potential opportunities for the growth of the global market. Furthermore, the usage of renewable energy as the power source for charging infrastructures is also anticipated to create favorable opportunities for market growth.
In an attempt to stop the spread of the Coronavirus, governments of several countries imposed several restrictions across the globe to maintain social distancing and reduce the spread of the virus. Supply chains were disrupted as a result of lockdowns. Due to the COVID-19 restrictions, daily operations also witnessed a halt which resulted in less demand for electric vehicles. Moreover, the manufacturers of electric vehicles were also facing challenges in getting the supplies of the raw materials for the production of electric vehicles. For instance, public transport vehicles also stopped functioning due to the government’s restrictions. As a result, the demand for such vehicles also decreased during the pandemic. Therefore, COVID-19 had a negative impact on the electric vehicles market.
The propulsion segment is divided into battery electric vehicles (BEV), plug-in electric hybrid vehicles (PHEV), and fuel-cell electric vehicles (FCEV). The BEV segment is expected to witness the fastest CAGR during the forecast period. A BEV is a battery-powered electric vehicle that uses chemical energy stored in rechargeable battery packs. These types of electric vehicles witness favorable demand from consumers due to their easy maintenance and comparatively fast charging. Also, the PHEV segment is expected to account for a larger revenue contribution to the market growth due to its enhanced electricity storage capacity. PHEV vehicles can be operated on electricity or fuel. Fuel-cell electric vehicles (FCEV) employ ‘fuel cell technology’ to generate electricity. FCEVs are powered with pure hydrogen gas which is stored in a fuel tank on the electric vehicle.
By Vehicle Type
Based on the vehicle type, the market is segmented into two-wheelers, passenger, and commercial vehicles. The passenger segment dominated the global market accounting for the highest revenue share. This is because of the presence of manufacturers as well as the increasing adoption of electric vehicles in several regions. Also, a large number of electric vehicles are available in the category of passenger segment due to the growing production by OEMs. Moreover, the commercial vehicle segment is also expected to witness an increase owing to rising innovations in the battery and load capacity of commercial vehicles. These commercial vehicles are primarily powered by hydrogen fuel cells which support the long haul of commercial trucks.
By Battery Capacity
Based on the battery capacity, the market is segmented into less than 50 kWh, 50-250 kWh, and above 250 kWh. The less than 50 kWh batteries take around one hour to be charged around 80% of the battery capacity. Each kW adds over 4 miles of range per hour. The 50-250kWh battery capacity will take up to 3 hours to charge its full capacity. The above 250kWh battery capacity is expected to grow with the fastest CAGR during the forecast period. Electric vehicles with this battery capacity are expected to witness increased preference among the population due to the availability of a driving range of over 400 miles on a single charge. Such high-capacity batteries provide increased power to the drivetrain which results in improved performance along with acceleration. Thus, all the mentioned factors are anticipated to support the market growth based on electric vehicle specifications and maintenance.
Based on range, the market is segmented into less than 150 miles, 150 to 300 miles, and above 300 miles. Majorly, passenger electric vehicles have a range of fewer than 150 miles. The manufacturing costs of electric vehicles that fall within this range are comparatively lower than commercial electric vehicles. Additionally, such electric vehicles act as convenient commute alternatives to daily business chores, which results in favorable preference among large numbers of the population. Moreover, commercial vehicles have a range of above 300 miles as they are used for long and time-consuming distances. Such large-range vehicles are offered at comparatively high costs as they have a better battery capacity as per their range.
Based on the end-user, the market is bifurcated into private and commercial fleets. Passenger electric vehicles are increasingly being adopted by a large section of the population, leading to the growth of the private segment. For instance, public transport vehicles have shifted from fuel-driven vehicles to electric vehicles. Also, the growing disposable income and environmental awareness among the population have resulted in the adoption of various priced electric vehicles. Further, electric vehicles are also used for commercial purposes in several industries such as logistics, agriculture, and transportation. Electric commercial vehicles can range from vans, buses, trucks, and agricultural vehicles, such as tractors or combine harvesters to construction machineries such as wheel loaders or excavators. Thus, the adoption of such electric commercial vehicles is expected to result in a reduced carbon footprint caused due to such heavy-load vehicles.
The region is segmented into Europe, Asia Pacific, North America, the Middle East and Africa, and South America. The Asia-Pacific region is expected to account for the largest revenue share in the regional market. The public transportation sector in China is the major driver of revenue in the Asia-Pacific region. The market is also anticipated to rise owing to the increasing popularity of electrical buses, and trucks in the region. Moreover, technological advancements in the logistics industries will further drive the growth of the global market. Also, the growing government initiatives to support the adoption of electric vehicles also create a favorable platform for electric vehicle adoption in this region.
One of the fastest-growing occupations in North America is truck driving. The United States is the major hub for electric vehicles which is driving the growth of the North-American regional market. Increasing public awareness and growing consumer demand for commercial vehicles is the driving factor in the region.
Electric Vehicles Market Competitive Landscape:
The nature of competition in terms of the global market is primarily high due to the presence of extensive numbers of established market players. These industry players have adopted several business strategies through the latest product innovations and business strategies to attract more profits to the market. As a result, other market players are also engaging to form collaborative efforts and joint ventures for the generation of revenue opportunities in the coming years. Following are the prominent market players that comprise the latest market concentration–
- Audi AG
- Volkswagen AG
- BMW AG
- SAIC Motors
- Mercedes-Benz AG
- TATA Motors
- Toyota Motor Corporation
- Mahindra & Mahindra Ltd
- Hyundai Motor India
- In April 2021, Toyota launched its new BEV series. The company decided to launch 15 new BEV models by 2025.
- In October 2020, two leading companies, BYD and Hino, collaborated to form a new company for commercial BEV development.
- In January 2022, Mercedes-Benz introduced an all-electric SUV. It launched two models-Pinnacle and Exclusive.