Electric Vehicle Market

Electric Vehicle (EV) Market

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akash

Author:

Akash Vedpathak

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Editor:

Shreyas Tandon

Electric Vehicle (EV) Market Outlook 2032

The global electric vehicle market was valued at USD 404.13 billion in 2022 and is projected to reach USD 2349.22 billion by 2031, expanding at a CAGR of 21.6% during the forecast period, 2023 – 2031. The growth of the market is attributed to increasing fuel prices and the adverse effects of traditional fuel vehicles.

Growing environmental awareness and rising demand to reduce carbon emissions have sparked a significant shift toward sustainable transportation options globally. As a result, the electric vehicle (EV) market has emerged as a pivotal force in reshaping the future of mobility. Rising concerns over air pollution and climate change have prompted governments worldwide to implement stringent regulations and incentives to promote the adoption of electric vehicles. These initiatives have fueled a growing demand for EVs, driving innovation and investment in the sector.

Increasing advancements in battery technology, coupled with the expansion of charging infrastructure, have addressed concerns regarding range anxiety, thereby bolstering consumer confidence in electric vehicles. Additionally, the role of artificial intelligence (AI) in enhancing EV performance and efficiency cannot be overstated. AI-powered features such as predictive maintenance and intelligent energy management systems are revolutionizing the driving experience, further accelerating the growth of the electric vehicle market.

Electric Vehicle Market Outlook

Market Trends, Drivers, Restraints , and Opportunities

Major Drivers
 

Growing environmental awareness and the need to mitigate climate change have been significant drivers in the electric vehicle (EV) market. With concerns over air pollution and greenhouse gas emissions on the rise, governments worldwide are implementing strict regulations and incentives to promote the adoption of electric vehicles. These initiatives aim to reduce reliance on fossil fuels and transition toward cleaner, sustainable transportation options.

Rising fuel costs and volatility in oil prices have fueled consumer interest in electric vehicles. As traditional gasoline-powered vehicles become expensive to operate, consumers are increasingly turning to EVs as a cost-effective alternative. The lower operating costs and maintenance expenses associated with electric vehicles make them an attractive option for budget-conscious consumers seeking long-term savings.

Advancements in battery technology have played a crucial role in driving the growth of the electric vehicle market. Increasing investments in research and development have led to improvements in battery performance, energy density, and charging infrastructure. As a result, electric vehicles now offer longer driving ranges, faster charging times, and improved overall efficiency, addressing concerns over range anxiety and charging accessibility.

Growing investments in renewable energy sources such as solar and wind power are driving the demand for electric vehicles market. As the electricity grid becomes cleaner and sustainable, the environmental benefits of electric vehicles are further amplified. Consumers are increasingly drawn to EVs for their lower emissions and for their role in supporting the transition toward a greener energy ecosystem.

Existing Restraints


Growing concerns over charging infrastructure are restraining the electric vehicle market. Despite the expansion of charging infrastructure, there are still significant challenges related to its availability, accessibility, and reliability. In many regions, particularly in rural and remote areas, the charging infrastructure remains inadequate, leading to range anxiety among electric vehicle owners.

Moreover, the variability in charging standards and compatibility further complicates the charging experience for consumers. Addressing these challenges requires substantial investment in charging infrastructure and standardized charging protocols to ensure seamless and reliable charging options for electric vehicle users.

Rising costs of battery technology are expected to hamper the market. While advancements in battery technology have contributed to the growth of the electric vehicle market, the cost of batteries remains a significant barrier to widespread adoption. Lithium-ion batteries, which are the primary energy storage technology used in electric vehicles, account for a significant portion of the vehicle's total cost. Despite declining costs over the years, the price of batteries still represents a substantial upfront investment for consumers.

Additionally, concerns over the environmental and social impacts of lithium-ion battery production, including resource depletion and human rights issues, pose ethical challenges for the electric vehicle industry. Addressing these challenges requires continued research and development efforts to improve battery technology and reduce costs while ensuring ethical and sustainable supply chain practices.

Emerging Opportunities


Rising demand for electric SUVs and crossovers is expected to create lucrative opportunities in the market. As consumer preferences shift toward larger vehicles with greater cargo capacity and versatility, there is a growing demand for electric SUVs and crossovers. Automakers are responding to this trend by introducing a variety of electric SUV models with extended ranges and advanced features. These electric SUVs offer the practicality and performance of traditional SUVs while providing the environmental benefits and cost savings associated with electric vehicles.

Growing investment in charging infrastructure is anticipated to create new opportunities in the market. With the expansion of the electric vehicle market, there is a corresponding increase in investment in charging infrastructure. Governments, utility companies, and private organizations are collaborating to deploy charging stations in key locations such as highways, urban centers, and workplaces. This growing network of charging infrastructure aims to address concerns over range anxiety and provide convenient charging options for electric vehicle owners. Additionally, advancements in fast-changing technology are reducing charging times, further enhancing the appeal of electric vehicles.

Increasing adoption of electric commercial vehicles is a rising trend toward electrification in the commercial vehicle sector. Fleet operators and logistics companies are recognizing the benefits of electric commercial vehicles, including lower operating costs, reduced emissions, and enhanced sustainability. Electric vans, trucks, and buses are being deployed for various applications, including last-mile delivery, public transportation, and freight transport. As battery technology continues to improve and charging infrastructure expands, the adoption of electric commercial vehicles is expected to grow exponentially in the coming years.
 

Scope of Electric Vehicle (EV) Market Report

The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Attributes

Details

Report Title

Electric Vehicle Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast

Base Year

2022

Historic Data

2016–2021

Forecast Period

2023–2031

Segmentation

Vehicle Type (Passenger Cars, Commercial Vehicles, and Two Wheelers), Vehicle Class (Mid-Priced and Luxury), and Types (Battery Electric Vehicles (BEV), Hybrid Electric Vehicles (HEV), and Plug-In Hybrid Electric Vehicles (PHEV)), and Regions

Regional Scope

Asia Pacific, North America, Latin America, Europe, and Middle East & Africa

Report Coverage

Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast

Key Players Covered in the Report

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

Electric Vehicle (EV) 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 type, the global electric vehicle market is segregated into 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 the 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 the 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.

Electric Vehicle Market Vehicle Type

The mid-priced vehicle segment is projected to expand at a robust CAGR during the forecast period

On the basis of vehicle class, the global electric vehicle market is bifurcated into mid-priced and luxury. The mid-priced vehicle segment held a major market share of the total revenue in 2018. The price of batteries is decreasing, which leads to decreasing price of electric vehicles. Mid-class vehicles have few features with limited emphasis on the instrument cluster and infotainment.

Key player in the mid-price vehicle segment is China. Companies like Smart, Great Wall Motors, and BYD are focusing on manufacturing less expensive cars. In 2018, Great Wall Motors declared a partnership with BMW to launch MINI vehicles in China. In December 2018, the company introduced a new flagship vehicle under its new brand, the ‘ORA’ electric car: the ORA R1.

The plug-in hybrid electric vehicle segment held a major market share of more than 30% of the total revenue in 2019

In terms of type, the global electric vehicle market is classified as battery electric vehicles (BEV), hybrid electric vehicles (HEV), and plug-in hybrid electric vehicles (PHEV). The BEV segment is estimated to expand at a CAGR of more than 25% during the forecast period. Growth of the segment is attributed to rising environmental awareness and the multiple advantages of BEV.

The PHEV segment is anticipated to expand at a substantial CAGR of 45% during the forecast period. Government of developing countries such as China and India are taking initiatives to promote the usage of electric vehicles. Moreover, major companies such as Volkswagen Group are concentrating on increasing their sales of plug-in electric cars. The HEV segment provides fuel-based and electric driving base. This feature has increased HEV sales in regions with inadequate charging infrastructure.

The market in Asia Pacific is expected to expand at a robust CAGR during the forecast period

On the basis of region, 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. Additionally, the presence of major players such as BAIC, BYD, SAIC, and Chery in the region is expected to propel the market.

Several companies are concentrating on manufacturing electric vehicles in China. For instance, Tesla, Inc. has planned to manufacture more than 150 thousand 3s car Models in Shanghai, China. In 2018, Volkswagen Group declared its plan to manufacture 22 billion EVs until 2026. Among that, half of the cars were to be manufactured in China. 
North America held a considerable market share of around 15% of the total revenue in 2019.

Growth of the market is attributed to initiatives taken by policymakers, automotive manufacturers, charging network companies, and non-profit organizations. Furthermore, in 2018, Electrify America was launched to promote EV adoption and had a plan to invest USD 200 billion in California. Thus, demand for EVs in North America is projected to rise during the forecast period.

Electric Vehicle Market Regions

Segments

The global electric vehicle market has been segmented on the basis of

Vehicle Type

  • Passenger Cars
  • Commercial Vehicles
  • Two Wheelers

Vehicle Class

  • Mid-Priced
  • Luxury

Type

  • Battery Electric Vehicles (BEV)
  • Hybrid Electric Vehicles (HEV)
  • Plug-In Hybrid Electric Vehicles (PHEV)

Region

  • Asia Pacific
  • North America
  • Latin America
  • Europe
  • Middle East & Africa

Key Players

  • 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
  • Hero Electric

Competitive Landscape

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.

 Electric Vehicle Market Key Players

1. Executive Summary
2. Assumptions and Acronyms Used
3. Research Methodology
4. Electric Vehicle Market Overview
  4.1. Introduction
     4.1.1. Market Taxonomy
     4.1.2. Market Definition
  4.2. Macro-Economic Factors
     4.2.1. Industry Outlook
  4.3. Electric Vehicle Market Dynamics
     4.3.1. Market Drivers
     4.3.2. Market Restraints
     4.3.3. Opportunity
     4.3.4. Market Trends
  4.4. Electric Vehicle Market - Supply Chain
  4.5. Global Electric Vehicle Market Forecast
     4.5.1. Electric Vehicle Market Size (US$ Mn) and Y-o-Y Growth
     4.5.2. Electric Vehicle Market Size (000’ Units) and Y-o-Y Growth
     4.5.3. Electric Vehicle Market Absolute $ Opportunity
5. Global Electric Vehicle Market Analysis and Forecast by Types
  5.1. Market Trends
  5.2. Introduction
     5.2.1. Basis Point Share (BPS) Analysis by Types
     5.2.2. Y-o-Y Growth Projections by Types
  5.3. Electric Vehicle Market Size and Volume Forecast by Types
     5.3.1. Battery Electric Vehicles (BEV)
     5.3.2. Hybrid Electric Vehicles (HEV)
     5.3.3. Plug-In Hybrid Electric Vehicles (PHEV)
  5.4. Absolute $ Opportunity Assessment by Types
  5.5. Market Attractiveness/Growth Potential Analysis by Types
6. Global Electric Vehicle Market Analysis and Forecast by Region
  6.1. Market Trends
  6.2. Introduction
     6.2.1. Basis Point Share (BPS) Analysis by Region
     6.2.2. Y-o-Y Growth Projections by Region
  6.3. Electric Vehicle Market Size and Volume Forecast by Region
     6.3.1. North America
     6.3.2. Latin America
     6.3.3. Europe
     6.3.4. Asia Pacific
     6.3.5. Middle East and Africa (MEA)
  6.4. Absolute $ Opportunity Assessment by Region
  6.5. Market Attractiveness/Growth Potential Analysis by Region
  6.6. Global Electric Vehicle Demand Share Forecast, 2019-2026
7. North America Electric Vehicle Market Analysis and Forecast
  7.1. Introduction
     7.1.1. Basis Point Share (BPS) Analysis by Country
     7.1.2. Y-o-Y Growth Projections by Country
  7.2. North America Electric Vehicle Market Size and Volume Forecast by Country
     7.2.1. U.S.
     7.2.2. Canada
  7.3. Absolute $ Opportunity Assessment by Country
  7.4. North America Electric Vehicle Market Size and Volume Forecast by Types
     7.4.1. Battery Electric Vehicles (BEV)
     7.4.2. Hybrid Electric Vehicles (HEV)
     7.4.3. Plug-In Hybrid Electric Vehicles (PHEV)
  7.5. Basis Point Share (BPS) Analysis by Types
  7.6. Y-o-Y Growth Projections by Types
  7.7. Market Attractiveness/Growth Potential Analysis
     7.7.1. By Country
     7.7.2. By Product Type
     7.7.3. By Application
  7.8. North America Electric Vehicle Demand Share Forecast, 2019-2026
8. Latin America Electric Vehicle Market Analysis and Forecast
  8.1. Introduction
     8.1.1. Basis Point Share (BPS) Analysis by Country
     8.1.2. Y-o-Y Growth Projections by Country
     8.1.3. Latin America Average Pricing Analysis
  8.2. Latin America Electric Vehicle Market Size and Volume Forecast by Country
      8.2.1. Brazil
      8.2.2. Mexico
      8.2.3. Rest of Latin America
   8.3. Absolute $ Opportunity Assessment by Country
  8.4. Latin America Electric Vehicle Market Size and Volume Forecast by Types
     8.4.1. Battery Electric Vehicles (BEV)
     8.4.2. Hybrid Electric Vehicles (HEV)
     8.4.3. Plug-In Hybrid Electric Vehicles (PHEV)
  8.5. Basis Point Share (BPS) Analysis by Types
  8.6. Y-o-Y Growth Projections by Types
  8.7. Market Attractiveness/Growth Potential Analysis
     8.7.1. By Country
     8.7.2. By Product Type
     8.7.3. By Application
  8.8. Latin America Electric Vehicle Demand Share Forecast, 2019-2026
9. Europe Electric Vehicle Market Analysis and Forecast
  9.1. Introduction
     9.1.1. Basis Point Share (BPS) Analysis by Country
     9.1.2. Y-o-Y Growth Projections by Country
     9.1.3. Europe Average Pricing Analysis
  9.2. Europe Electric Vehicle Market Size and Volume Forecast by Country
     9.2.1. Germany
     9.2.2. France
     9.2.3. Italy
     9.2.4. U.K.
     9.2.5. Spain
     9.2.6. Russia
     9.2.7. Rest of Europe
  9.3. Absolute $ Opportunity Assessment by Country
  9.4. Europe Electric Vehicle Market Size and Volume Forecast by Types
     9.4.1. Battery Electric Vehicles (BEV)
     9.4.2. Hybrid Electric Vehicles (HEV)
     9.4.3. Plug-In Hybrid Electric Vehicles (PHEV)
  9.5. Basis Point Share (BPS) Analysis by Types
  9.6. Y-o-Y Growth Projections by Types
  9.7. Market Attractiveness/Growth Potential Analysis
     9.7.1. By Country
     9.7.2. By Product Type
     9.7.3. By Application
  9.8. Europe Electric Vehicle Demand Share Forecast, 2019-2026
10. Asia Pacific Electric Vehicle Market Analysis and Forecast
  10.1. Introduction
     10.1.1. Basis Point Share (BPS) Analysis by Country
     10.1.2. Y-o-Y Growth Projections by Country
     10.1.3. Asia Pacific Average Pricing Analysis
  10.2. Asia Pacific Electric Vehicle Market Size and Volume Forecast by Country
     10.2.1. China
     10.2.2. Japan
     10.2.3. South Korea
     10.2.4. India
     10.2.5. Australia
     10.2.6. Rest of Asia Pacific (APAC)
  10.3. Absolute $ Opportunity Assessment by Country
  10.4. Asia Pacific Electric Vehicle Market Size and Volume Forecast by Types
     10.4.1. Battery Electric Vehicles (BEV)
     10.4.2. Hybrid Electric Vehicles (HEV)
     10.4.3. Plug-In Hybrid Electric Vehicles (PHEV)
  10.5. Basis Point Share (BPS) Analysis by Types
  10.6. Y-o-Y Growth Projections by Types
  10.7. Market Attractiveness/Growth Potential Analysis
     10.7.1. By Country
     10.7.2. By Product Type
     10.7.3. By Application
  10.8. Asia Pacific Electric Vehicle Demand Share Forecast, 2019-2026
11. Middle East & Africa Electric Vehicle Market Analysis and Forecast
  11.1. Introduction
     11.1.1. Basis Point Share (BPS) Analysis by Country
     11.1.2. Y-o-Y Growth Projections by Country
     11.1.3. Middle East & Africa Average Pricing Analysis
  11.2. Middle East & Africa Electric Vehicle Market Size and Volume Forecast by Country
     11.2.1. Saudi Arabia
     11.2.2. South Africa
     11.2.3. UAE
     11.2.4. Rest of Middle East & Africa (MEA)
  11.3. Absolute $ Opportunity Assessment by Country
  11.4. Middle East & Africa Electric Vehicle Market Size and Volume Forecast by Types
     11.4.1. Battery Electric Vehicles (BEV)
     11.4.2. Hybrid Electric Vehicles (HEV)
     11.4.3. Plug-In Hybrid Electric Vehicles (PHEV)
  11.5. Basis Point Share (BPS) Analysis by Types
  11.6. Y-o-Y Growth Projections by Types
  11.7. Market Attractiveness/Growth Potential Analysis
     11.7.1. By Country
     11.7.2. By Product Type
     11.7.3. By Application
  11.8. Middle East & Africa Electric Vehicle Demand Share Forecast, 2019-2026
12. Competition Landscape
  12.1. Global Electric Vehicle Market: Market Share Analysis
  12.2. Electric Vehicle Distributors and Customers
  12.3. Electric Vehicle Market: Competitive Dashboard
  12.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)
     12.4.1. Tesla
     12.4.2. Nissan
     12.4.3. BMW
     12.4.4. BYD
     12.4.5. Volkswagen AG
     12.4.6. Toyota Motor Corporation
     12.4.7. Daimler AG
     12.4.8. BYD Company Motors
     12.4.9. Ford Motor Company
     12.4.10. Tata Motors
     12.4.11. Bajaj Auto Corp

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FAQ Section

Some frequently asked questions about this report!

According to Growth Market Report, the Global Electric Vehicle Market is projected to reach USD 2349.22 Billion by 2031, expanding at a CAGR of 21.6% during the forecast period, 2023 – 2031.

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.

The global electric vehicle market is classified into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa based on region.

Factors such as low fuel economy & serviceability and high cost of manufacturing are analyzed in the final report.

The base year considered for the Electric Vehicle market report is 2022. The complete analysis period is 2016 to 2031, wherein, 2016 to 2021 are the historic years, and the forecast is provided from 2023 to 2031.

In addition to market size (in USD Million), Company Market Share (in % for the base year 2021), Technology Landscape, Pricing Analysis, Growth Factors, and Trends, and Revenue Forecast are available in the report.

The key technologies affecting the EV market are battery technology, electric motors and drivetrains, vehicle-to-grid (V2G) technology, autonomous driving, and solid-state batteries, among others.

Developed countries such as Germany, the UK, and the US are encouraging the use of electric vehicles to minimize emissions, which has increased the sales of electric vehicles. Our report contains a more detailed view of the topic.