Description of the Report
The market for electric vehicles worldwide was worth $163.01 billion by 2020 and is expected to grow to $823.75 billion in 2030, with an increase of 18.2 percent from 2021 to 2030.
An electric vehicle operates using electricity, unlike its counterpart, which operates on fuel. Instead of an internal combustion engine, they run using an electric motor that requires a constant supply of energy from batteries to function. There are many kinds of batteries that are used within these automobiles. They include lithium-ion zinc-air, molten salt, and a variety of nickel-based designs. Electric vehicles were initially developed to substitute for conventional methods of transport, which can lead to environmental pollution. It has grown in popularity due to numerous technological advances. It is superior to conventional vehicles, offering greater fuel efficiency, lower carbon dioxide and maintenance emissions, the convenience of charging at your home, smoother motoring, and less noise generated by the engines. There are three kinds of batteries for electric vehicles, hybrid and plug-in electric vehicles. Additionally, electric vehicles don’t require maintenance on the engine, but they are more expensive than counterparts made of gasoline.
Factors such as the increasing demand for fuel-efficient, high-performance vehicles that emit fewer emissions, strict government rules and rules regarding emissions from vehicles, and a decrease in the cost of electric vehicle batteries, as well as increasing costs for fuel, are major factors in the expansion in this electronic vehicle industry. Furthermore, factors like insufficient charging infrastructure, the high cost of manufacturing, range anxiety, and service accessibility are expected to hinder the development of the market for electric vehicles. In addition, factors like technological advances as well as proactive government initiatives and the development of self-driving electric vehicle technology are likely to provide plenty of opportunities for the major players in the market for electric vehicles.
The market for electric vehicles in the world is classified according to the type of vehicle, its type and class, vehicle type, top Speed, drive type, and region. Based on type, it’s divided into battery electric cars (BEV) and plug-in hybrid electric vehicles (PHEV), as well as fuel cell electric vehicles (FCEV). Regarding vehicle type, it is divided into two-wheelers, commercial vehicles, and passenger cars. The car class is classified into the mid-priced and luxurious classes. Based on the top speed, it’s classified into smaller than 100 MPH, 100 to 125 MPH, and greater than the Speed of 125 MPH. The type of vehicle drive is classified as front-wheel drive, rear-wheel drive, and all-wheel drive. The market by region is examined over North, Europe, Asia-Pacific, and LAMEA.
Companies have implemented the process of product development and launch as their main strategy for development within the electric vehicle market. The major players in this sector include Ampere Vehicles, Bending India Energy and Technology Pvt Ltd, BMW AG, BYD Company Limited, Chevrolet Motor Company, Daimler AG, Energica Motor Company S.p.A., Ford Motor Company, General Motors, Hero Electric, Hyundai Motor Company, Karma Automotive, Kia Corporation, Lucid Group, Inc., Mahindra Electric Mobility Limited, NIO, Nissan Motors Co., Ltd. Okinawa Automotive Tech Pvt. Ltd., Rivain, Tata Motors, Tesla, Inc., Toyota Motor Corporation, Volkswagen AG, WM Motor, and Xiaopeng Motors.
COVID-19’s Impact on The EV Market
The COVID-19 pandemic is harming the general automotive industry and electric vehicle manufacturing. According to data published by the Society of Electric Vehicle Manufacturers (SMEV), the number of new registrations for the various types of electric vehicles in FY21 fell by 20 percent when compared to the number of registrations for new electric vehicles in FY20.
In addition, amid the pandemic, many players are trying to devise different approaches to keep up with the condition by using electric vehicles for medical supplies as it provides affordable transportation with excellent maneuverability. For example, Omega Seiki Mobility recently introduced Rage frost, a refrigerated load transporter three-wheeler specially made for the pharmaceutical, vaccine, and food delivery during these tough times.
The demand is growing for fuel-efficient, high-performance, and low-emission automobiles.
Fossil fuel gasoline is not a sustainable source of energy, and it is expected to be exhausted shortly. To ensure sustainable development, it’s crucial to create and implement alternative energy sources. This includes using electric vehicles that don’t require gas and are much more affordable than traditional vehicles. A vehicle powered by electricity converts more than 50% of electric energy generated by the grid into energy for the wheels, while a gas-powered vehicle can only convert approximately 17%21% of gas-powered energy. The demand for fuel-efficient vehicles has been increasing recently due to the increasing cost of diesel and petrol. This is due to the diminishing of fossil fuel reserves as well as the growth in the desire of companies to maximize profits from the oil reserves. These factors result in the demand for advanced fuel-efficient technologies, causing a surge in demand for electric-powered automobiles for travel.
Government rules and regulations about the emission of vehicles
In light of the increasing environmental concerns, governments and global environmental organizations are enacting strict emission standards and laws to limit vehicle emissions. The most significant regulatory measures are strict emission standards for reducing NOx (NOx) and carbon dioxide (CO2) in the air. The greenhouse gases in high quantities are produced by automobiles, and the federal and state governments of the U.S. are stepping up efforts to reduce the pollution of transportation.
For example, it was reported that, for instance, the U.S. Environmental Protection Agency (EPA) has announced that they are currently working on new regulations to reduce the emissions of nitrogen oxide (NOx) and other pollutants from heavy-duty trucks. Furthermore, California’s California Air Resources Board (CARB) has adopted heavy-duty low NOx Omnibus Regulations, aiming to achieve a 90 percent reduction in NOx emission limit in 2027. In addition, there is a commitment in Europe; European Union (EU) is committing under the Paris agreement (COP21) to reach its 20 percent greenhouse gas reduction target by 2020 in the second stage of the Kyoto Protocol. In addition, the EU is also establishing a goal of achieving 40% reductions in greenhouse gas emissions before 2040 and net-zero emissions in 2050.
So, with emission regulations for vehicles powered by fossil fuels, the burden placed on car manufacturers, particularly commercial vehicle manufacturers, has increased. This is anticipated to increase the market for electric cars. So, the strict emission regulations applied to fossil-fuel commercial vehicles will significantly boost the expansion of the market for electric vehicles.
Insufficient infrastructure for charging
The governments of different countries are encouraging using electric vehicles to serve commercial purposes to cut greenhouse emissions to the environment. But, the lack of charging facilities for electric cars hinders the market for electric vehicles. For instance, India’s Government of India is aiming to only have electric vehicles on the road by 2030. But, developing a robust electric infrastructure for vehicles is among the main requirements to facilitate the acceptance of an electric vehicle. Unfortunately, the infrastructure for charging EVs in a majority of countries that are developing is not sufficient at the moment, and yet it is unable to catch up with the requirements, which hinders the development of the market for electric vehicles. Furthermore, although China is among the largest countries for electric vehicle sales, it is struggling to build enough infrastructure to charge electric vehicles for charging electric vehicles, which is likely to slow the growth of the market. Therefore, the lack of charging infrastructure hinders the EV market’s expansion.
The development of self-driving electric vehicles technology
The market for electric vehicles is likely to be impacted by the current trend of self-driving vehicles. Leading OEMs like Tesla, Volvo, Vera, and Daimler have created self-driving electric cars for sale. Startups like Waymo, Uber, Embark, Einride, TuSimple, and Ike have also begun to develop autonomous electric cars. In one instance, Tesla has announced plans to test its self-driving electric vehicle at the end of 2022.
For example, Waymo started testing its self-driving trucks in January 2020. In the same way, TuSimple plans to operate autonomous routes between Pheonix and Tucson in Arizona and some Texas regions. In May 2019, Einride started its tests for driverless trucks. In January 2019, Daimler announced an investment of $570 million to develop autonomous electric cars. This means that self-driving technology will boost the popularity of electric automobiles in the long run because of its many benefits, such as a lower risk of accidents, simple usage, and the availability of features that add value. The technology is expected to mature at the end of 5-6 years. Therefore, the development of self-driving electric cars will be an opportunity to grow the market.
Electric Vehicle Market Report Scope and Segmentation
|UNIT||Value (USD Million/Billion)|
|BY REGION||North America, Europe, Asia Pacific, Latin America, Middle East and Africa|
Europe is expected to show the most CAGR from 2020-2030.
The Benefits for Stakeholders
- This research provides a quantitative representation of the market for electric vehicles in the world analysis as well as the present trends and forecasts for the future to illustrate the potential investment pockets.
- The total electric vehicle market can be defined by understanding profitable trends to gain a solid base.
- The report contains information about the major factors, limitations, and opportunities in the global market for electric vehicles with an in-depth analysis of the impact.
- The market for electric vehicles is analyzed quantitatively from 2020 until 2030 to assess the financial competence.
- Porter’s five forces analysis shows the potential of suppliers and buyers in the business.
The Key Market Segments
- By Type
- A vehicle with Battery Electric
- Plug-in Hybrid Electric Vehicle
- Cell Electric Vehicle Fuel Cell Electric Vehicle
- By Type of Vehicle
- Passenger Cars
- Commercial Vehicles
- By Class of Vehicle
- By the top Speed
- Not more than 100 MPH
- 100-125 MPH
- More than 125 MPH
- By vehicle drive type
- Front-Wheel Drive
- Rear Wheel Drive
- All Wheel Drive
- By Region
- North America
- The Netherlands
- Czech Republic
- Rest of Europe
- Asia Pacific
- South Korea
- Australia & New Zealand
- Rest of Asia Pacific
- South America
- Rest of South America
- The Middle East & Africa
- Saudi Arabia
- South Africa
- Northern Africa
- Rest of MEA
- North America
- Key Player
- Ampere Vehicles
- Bending India Energy and Technology Pvt Ltd
- BMW AG
- BYD Company Limited
- Chevrolet Motor Company
- Daimler AG
- Energica Motor Company S.p.A.
- Ford Motor Company
- General Motors
- Hero Electric
- Hyundai Motor Company
- Karma Automotive
- Kia Corporation
- Lucid Group, Inc.
- Mahindra Electric Mobility Limited
- Nissan Motors Co., Ltd.
- Okinawa Autotech Pvt. Ltd.
- Tata Motors
- Tesla Inc.
- Toyota Motor Corporation
- Volkswagen AG
- WM Motor
- Xiaopeng Motors