Electric Vehicle Market

Electric Vehicle Market Overview

“The Global Electric Vehicle Market is expected to grow rapidly at a 22.8% CAGR consequently, it will grow from its existing size of from $351.25 Billion in 2023 to $1410.52 Billion by 2030.”

Electric Vehicle (EV) - Meaning

• The term "electric vehicle" (EV) is a vehicle that runs on an electric motor instead of an internal combustion engine that produces power through burning a mixture of gas and fuel.
• Electric vehicles (EV's) comprise rail and road vehicles, underwater and surface vessels, electric aircrafts and spacecrafts powered by electric power.
• While the concept that electric vehicle are vehicles have been in the news for some duration, they have garnered an enormous amount of attention in the past 10 years due to an increase in carbon footprint as well as other environmental effects of vehicles powered by fossil fuels.
• A vehicle that is electric could be powered via the collector system using electricity from non-automotive sources or it could be self-contained using solar panels, a battery or fuel cells, or an electric generator that converts energy from fuel into electricity.
• Battery Electric Vehicles (BEV) In comparison with an internal combustion engine batteries powered electric vehicles contain 99% fewer moving parts that require maintenance.

Advantages of a BEV:

• It makes very little noise
• There is no spark plugs, exhaust and gears, clutch or exhaust.
• Does not burn fossil fuels, instead, it uses rechargeable batteries

BEVs can be recharged at home, allowing for enough capacity for normal journeys. However, longer trips or ones that involve lots of hills might require the fuel cells to require charging prior to arriving at the destination, but Regenerative braking and driving downhill could help protect against this by charging battery packs.

The typical time to charge an electric vehicle can vary from 30 minutes to up to 12 hours. This is contingent upon the performance of charging station as well as the capacity that the battery is.

The real-world the issue of range is among the top problems for electric vehicles but it is an issue which will soon be addressed by the automotive industry.

Plug-in Hybrid Electric Vehicles (PHEV)

Instead of relying upon an electric motor they offer the combination of petrol and battery (or diesel) power. This makes them suitable for long-distance travel as they can be switched to conventional fuels instead of having to locate charging points to recharge the battery.

Of of course, the disadvantages which are found in combustion engine vehicles are also applicable to PHEVs, including the need for greater maintenance as well as emissions, noise from engines as well as the price of gasoline. Additionally, PHEVs have smaller battery pack, resulting in shorter range.

Steps to transition from fossil fuel to electric vehicles:

• In order for the country to move to electric mobility and electric vehicles, there is a requirement for a longer-term support from the government and more funding for companies and customers who are the final ones.
• The government's backing for new businesses and manufacturers of original equipment (OEMs) in the import-dependent segment can play an important contribution to electrify 70 percent of commercial vehicles as well as 30 per cent of private cars as well as forty percent of the buses, and 80 percent of three-wheelers and two-wheelers by 2030.
• To reduce emissions in the transportation industry, it is necessary to move as quickly as possible from fossil powered vehicles to electric ones (EVs).
• Presently, there are only 5,000-6,000 charging units. Innovative designs for charging in public and private spaces and charging stations that are on-the-go in fuel points are required.

Demand Outlook

The demand for safer green, efficient and environmentally-friendly vehicles is predicted to fuel the electric vehicle market globally over the next few years. Electric also known as hybrid electric cars are designed to reduce dependence on fossil fuels and decrease the carbon footprint. Market players are focused on the development of high-quality electric vehicles that will not suffer from the effects of different types of terrain and road conditions as well as climate changes.

The top electric vehicle companies like BYD, Baic Motor, Ford Motor Company, and General Motors, are focusing on enhancing the efficiency of electric vehicles. Manufacturers are also leveraging new opportunities to help shape to power the next generation of electric cars.

An electric car (EV) can be described as a type of vehicle or mode of transport that utilizes one or two electric motors for propulsion. It is powered by a collector system using electricity from other sources or powered entirely by a battery (sometimes powered through solar panels or conversion of electricity from fuel the use of fuel cells or generators). Industrial electric vehicles, such as electric trucks are increasing in use across the globe.

The market share for electric vehicles is predicted to rise significantly over the forecast period due to the increasing popularity of environmentally friendly vehicles. Increase in the purchasing power of consumers and increased demand for carbon-free vehicles are also boosting the market.

Key Takeaway:

• Sales of electric vehicles increased by 84percent across the United States in 2022.
• By 2040, Europe will be able to achieve 38.5% reduction in greenhouse gases and net-zero by 2050.
• In Europe In Europe, Norway and Iceland is now registered with 86 percent and 64% of electric cars for 2022 respectively.
• Asia Pacific EV market was estimated at USD 121.56 billion by 2022.
• Propulsion type: BEV had the highest revenue share 65.6% by 2022.
• Based on the type of vehicle the segment of passenger cars has been responsible for 61.5% of the total revenue share by 2022.
• In terms of car class, the middle-priced segment had a 72.56% of the market share by 2022.
• Asia Pacific has dominated the market, claiming 42% of the revenue share in 2022.

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Market Dynamics

Growth Drivers

There are a variety of initiatives that are taken by governments of different nations include tax rebates, subsidy & grants, along with other benefits that are not financial in the registration of cars and accessibility to public transportation is, are expected to boost the sales of electric vehicles in the upcoming years. In November, for instance 2019 German automobile manufacturers increased their incentives to purchase electric vehicles to help them move from the switch from combustion engines to batteries-powered engines to cut harmful emissions. Countries like that of the U.S., China, as well as other nations in Europe have witnessed significant increases in the sales of electric vehicles over the last few years which, in turn, will aid in market's growth.

But, the lack in charging facilities, different methods in setting load, and a insufficient standardization are some major factors limiting the market's expansion. Different regions, like China, Europe, the U.S., Japan, Korea and many more, have different specifications for charging vehicles with electric power.

Certain manufacturers of electric vehicles like Tesla Inc., are focused on global standards for charging infrastructures to address this issue. However, the growing acceptance of electric vehicles within the government as well as commercial areas is predicted to propel the market. In 2020, for instance it was announced that the U.K. government approved 200 electric buses, with the goal to have all buses electric by 2025. This could help save 7,400 tons of CO2 annually.

• Demand for fuel-efficient and high-performance and low-emigration automobiles
• Government regulations and rules are strict to encourage vehicle migration, along with the reduction of the cost of batteries for electric vehicles and increasing the cost of fuel
• Insufficient manufacturing costs charging structure, range serviceability as well as anxiety

The market for electric vehicles is expected to be positively affected by the trend towards self-driving trucks. In addition the top OEMs such as Volvo, Daimler Vera, and Tesla are among the many who have developed automated-driving electric vehicles that are available for sale.

This means that technology for self-driving vehicles will increase demand for electric vehicles in the future due to the attractive benefits of a lower risk of accidents as well as the ease of use and the inclusion of valuable features. This technology is predicted to grow in the next five to six times. Thus, the development of self-driving electric cars is likely to bring opportunities for growth for the industry in the coming years.

Growth Drivers

Decrease in the Cost of EVs:

The cost of battery packs that comprise a large amount of the manufacturing cost in electric vehicle production, has declined in the course of time. The price of lithium-ion batteries dropped dramatically by 89%, from $1,200 up to $132 per kWh (by 2021) within a 10 years. The price is close to the threshold of $100 per kWh which would permit electronic vehicles to price in a similar way to vehicles with internal combustion engine.

Additionally the price of new cars rose by 2.2 percentage from 2020 to 2021 however, the price of EVs decreased by 10.8 percent. What's to come for internal combustion engines (ICE) automobiles and their electric counterparts are evident by this trend of electrification. Because of this, EV usage has risen across the globe. Because of the decrease in price and the increasing demand to purchase electric automobiles is expected to grow in the near future.

The government is implementing more initiatives

Governments are spending huge amounts on incentives and subsidy to convince people to purchase electric vehicles. Global governments are implementing policies that could boost the demand for electric vehicles over the coming years. Electric vehicles are being restricted in countries that are developing and fuel efficiency standards are in place across all nations. Additionally, they provide incentives and financial aid to electric vehicle manufacturers and consumers. Therefore, this is driving the growth of the market.

Restraints

Lack of Universal Charger and Ecosystem:

The process of setting up a suitable charging space is becoming increasingly difficult since every electric vehicle manufacturing company is equipped with a distinct charging outlet. In addition the majority of EV owners fear getting into moral trouble when charging their vehicles at different EV manufacturers charging stations. This could hinder the EV sector's growth. The lack of a standardization process is a major obstacle to the electric car industry as it impacts the current and future market. A single charging station cannot be used to charge the entire range of electric vehicles. Therefore, every electric scooter comes with unique charging outlets. This can impact the charging station infrastructure. In addition, the overall EV use is decreased due to the need for greater uniformity.

The absence of a standardization

The lack of standardization between countries could impact charging station connectivity and slow the expansion of markets. The use of different charging standards across the world makes it difficult to standardize electric charging stations for vehicles. Standardizing charging points could allow for easier setting electric vehicles on public roads and will lead to a quicker growth in demand for electric vehicles globally. This is why the absence of a standardization hinders the growth of the market.

Opportunities

Increasing Investment by the Government in Charging Infrastructure for Heavy Duty Vehicles (HDVs):

All over the world, government agencies are taking on the task to develop strategies and programs for developing quick charging infrastructure. There are numerous investments taking place across the globe to increase commercial charging in order to help HDVs. For example, with directly invested capital, California and a few other US regions are encouraging the development of the infrastructure necessary for the electric HDVs.

The largest hydrogen refueling system within North America has been supported by the California Energy Commission (CEC) with more than USD125 million for 62 stations in the public sector in the state's goal to build 200 stations in 2025. The investment has been primarily concentrated on LDV infrastructure to refuel until 2020. A plan to provide as much as USD 115 millions more for hydrogen refueling infrastructure which includes fueling medium as well as heavy duty trucks was announced at the end of November 2020. This means that these initiatives of the government will provide huge possibilities for those in the electric car sector.

Costs of batteries for electric vehicles

Thanks to technological advancements and the massive production of electric vehicle batteries in large quantities, the price of battery packs for electric vehicles has decreased in the last decade. Since electric vehicle batteries are among the vehicle's most expensive parts which is why this has helped lower the price of electric vehicles.

Challenges

Insufficient charging infrastructure

There are a few electric vehicle charging facilities across many countries all over the world. In the end, public charging stations for electric vehicles for electric vehicles are becoming scarcer and reducing the number of people who use them. Electric vehicle charging infrastructure is currently being constructed in a variety of countries. However, the majority of nations, with the exception of a few states, are yet to to create the necessary quantity of charging points.

Electric Vehicle Market Segment Analysis

Propulsion Type Insights

Batteries Electric Vehicles (BEV) were the top market in the world and was responsible for greater than 67% overall revenue share by 2022. The significant growth of BEVs is because of the benefits that can be derived from in terms of control over carbon dioxide (GHG) emissions as well as security issues related to energy and the control of local pollution. This could be because of the growing awareness of the environmental and the advantages from battery-electric vehicles.

Potential benefits from a BEV that include the reduction of local pollution, security concerns for energy and carbon dioxide (GHG) emissions are the main reason behind the rapid growth. It is a result of people becoming more aware of their surroundings and the benefits of cars powered by batteries. Furthermore, in comparison to PHEV, the cost of BEVs is higher. This is why BEVs that are battery-powered dominate the market for electric vehicles.

Additionally, the expense associated with BEV is much more important than that of the PHEV. The PHEV is expected to see the highest CAGR of 43.5 percent due to a variety of advantages over BEV. Some include a lower battery cost, smaller batteries and longer driving range since they have tanks that can be filled with liquid fuel as well as Internal combustion engine. In addition, many EV manufacturers like Volkswagen Group and General Motors are investing in multi-platform technology with a particular focus on the PHEV since they are able to be refueled at any petrol station.

However, BEVs can only be charged at charging stations that are public and public charging points are scarce and scarce in cities. This is why PHEV gives flexibility and freedom for drivers. As of the beginning of 2020 Volkswagen AG increased its electric cars that plug into PHEV sales by 60 percent between 50,000 and more than 80,000 in the year the year 2019.

Electric fuel cell vehicle segment is expected to expand at the fastest rate during the period of casting. The rapid growth of this segment can be mostly due to the increasing demand for vehicles that have emission-free technology, strict carbon emigration ethics and a growing focus on the revocation of FCEVs because of the advantages that come from rapid refueling, a the government's investment in advanced technology for fuel cells.

Vehicle Type Insights

Based on the type of vehicle The market for electric vehicles is classified in to heavy commercial vehicles passenger vehicles, escooters & bicycles, two-wheelers, along with light commercial vehicles. With the largest revenue share of 2022 the passenger vehicle segment has dominated the market for electric vehicles as a result of governments in a number of nations are strongly in favor of electric passenger cars.

In the forecast timeframe that includes commercial light vehicles is anticipated to grow at the fastest CAGR. The increase in the demand for electric cars in order to limit line emigrations strict government regulations and rules regarding vehicle emigration, as well as the growing awareness of consumers about electric vehicles' part in lessening emigration are all major factors in this segment's rapid growth.

The rapid growth of this segment is in large part due to the rising public awareness of the role that electric cars play in the reduction of the number of emigrants and the increase in the demand for electric vehicles to decrease line emigrations as well as the strict rules of the government and regulations governing the removal of vehicles.

Vehicle Class Insights

The V2X industry was the largest market share in 2022. Demand for V2Xs is increasing due to the growing environmental pollution and the emergence of connected auto trends. There are more opportunities for V2Xs to be used in the electric vehicle sector because of advancements in 5G technology and advancements connected autonomous vehicles. Different governments are also involved in a range of V2X related initiatives. For instance that the US government has recently announced a number of initiatives to improve V2X technology until 2022. So, it is expected to see that V2X technology will see a significant increase in demand. V2X category will undergo a substantial growth over the next few years.

End-Use Insights

Based on the use for which it is used The market for electric vehicles is divided into commercial, private and industrial uses. Commercial use is expected to expand at the highest rate of CAGR in the coming years. This growth rate is due to the increase in the cost of fuel and the strict morals for emigration that are set by government as well as the steady decline of delivery vehicles that are independent as well as the growing abandonment of electric motorcars as well as cars.

The rapid growth of this sector is due to the rising prices for fuel and the an imposed strict morality on emigration by the government and the increasing abandonment of delivery vehicles that are independent, and the growing abandonment of electric motorcars as well as cars.

Competitive Landscape of the Electric Vehicle Market

• Karma Automotive
• Kia Corporation
• Lucid Group, Inc.
• Mahindra Electric Mobility Limited
• NIO
• Nissan Motors Co., Ltd.
• Okinawa Autotech Pvt. Ltd.
• Rivain
• Tata Motors
• Tesla Inc.
• Toyota Motor Corporation
• Volkswagen AG
• WM Motor
• Xiaopeng Motors
• Ampere Vehicles
• Benling 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

Recent Developments in Electric Vehicle Market

In January 2023, the UK government achieved its goal of converting over a quarter of all of its automobiles (25.5%) to ultra-low emission vehicles, and is now moving forward with decarbonizing its central car fleet (ULEV).

In January 2023, MG unveiled new small electric car concept at the biennial Auto Expo in India.

BMW will debut its new i4 electric vehicle in November 2021, with a range of 300-367 miles. In just four seconds, the car can reach 100 km/h. It has an automatic transmission and is equipped with linked car capabilities.

In April 2022, Qualcomm Technologies Inc. and Stellantis formed a multi-year technology collaboration to utilize the latest Snapdragon Digital Chassis advancements to deliver intelligent, customizable, and immersive in-vehicle experiences to millions of vehicles across Stellantis’ 14 iconic automotive brands

In February 2022, Renault Group, Siemens, and Valeo Automotive announced that they had signed a Memorandum of Understanding to form a strategic partnership for design, co-development, and manufacture of a new-generation electric motor in France by eliminating the use of rare earth. This partnership will combine their expertise and knowledge to design a unique electric powertrain system that is unparalleled worldwide, offering more power on less energy.

In April 2021, the key player named Toyota introduced the new Mirai & LS models in the city japan which come with the technology of advanced driving assessment.

In April 2021, the key player named BYD introduced four new electric vehicle models which were equipped with Blade batteries in Chongqing. The new vehicle models, Qin plus EV, E2 2021 Tang EV, and Song plus EV came with the advanced feature of battery safety.

In April 2021, the key player named Volkswagen reviled the 7 seater ID.6 X and EV ID.6 Crozz manufactured along with SAIC and FAW in China. Furthermore, these vehicles be sold in China only. Also, it comprises of 2 versions of battery, as 77 kWh & 58 kWh and comes in four powertrain configurations.

Tesla, Inc. declared the acquisition of Maxwell Technologies, Inc. in March 2019. The purchase was made with the goal of improving Tesla's batteries and lowering overall costs in order to obtain a competitive edge in the market.

The Nissan Motor Company has surpassed 180,000 consumers, which is the most significant milestone in the LEAF's launch. The latest vehicle from this business is the Ariya, an electric crossover coupe.

Regional Insights

Geographically geographically, in terms of geography, the Asia Pacific region dominated the EV market by 2022 and is expected to experience the highest CAGR among the regions during the forecast time. According to estimations, China will hold the largest market share of electric cars within the Asia-Pacific region by 2022. It will be being followed by India and Japan. The substantial market share held by China is in large part due to its extensive government support and the expansion of its infrastructure to charge electric vehicles, enhancements in the efficiency of electric vehicles and an rise in the amount chargers.

Asia Pacific is home to the largest number of EV battery producers, including China, South Korea, and Japan. The power that the battery sector has is gaining momentum in China. Chinese producers like CATL as well as BYD have increased and expanded their market share thanks to the government's vast investment and favorable regulation.

Additionally, a lot of people can afford automobiles due to China's rapid economic growth. This has meant that there's been an increase in mobility, the biggest global market for automobiles. However, there has seen a significant rise in air pollution from cities as well as greenhouse gas emissions and the dependence on oil imports.

China is the main electric vehicle market in the world and accounts for more than 50, i.e., 45 percent of the total electric vehicle sales. Other countries like Japan, Korea, and India are also potential markets since their governments in these nations are investing in EV startups to boost the manufacturing and sales of EVs all over the world.

In July of 2019 the Japanese company Mitsui & Co. invested USD 13.3 million into an Indian electric vehicle startup called SmartE. This investment would allow SmartE to make numerous synergies to worldwide EV market to ensure its long-term expansion. Similar to that, in June of 2019, Toyota Motor Corp. made a $2 billion investment to create electrical vehicles for Indonesia.

In addition there is it is worth noting that the Indian state's participation in the construction of an infrastructure for charging is helping to boost growth of the Asia Pacific EV market. For example there is the FAME II initiative in India will provide approximately USD 135 million in order to spur the development of EVSE to power electric vehicles. The funds will pay for a low-power charger as well as one rapid charger for every 10 buses. Therefore, the market to purchase electric vehicle across the Asia Pacific area is expanding because of the reasons mentioned previously.

The governments of both advanced nations provide incentives to market players and strict regulations are driving the development of the market for electric vehicles within the Asia-Pacific region. The Chinese Ministry of Transport provides grants and other incentives for the development of buses that are low-emission, which is affecting the market more positively. Despite the COVID-19 virus outbreak, Chinese bus manufacturers sold an additional 61,000 new energy buses in 2020.

Europe as well as North America witness substantial growth in the electric automobile market. This is due to the growing demands for electric vehicle in U.S., Norway, France as well as Germany. Germany along with Norway are the most important countries of Europe. Norway and Germany are the top markets in European region, with an increase of 40 percent.

To promote the use of electric cars in North America, policymakers, automakers, and charging network companies have formed an organization that is not for profit called Veloz. The group aims to encourage new investment, innovation marketing and development in the electric vehicle market. Electrify America, a U.S.-based electric vehicle maker, announced plans to invest USD 2 billion to build zero Emission Vehicle (ZEV) infrastructure throughout the U.S. over ten years between 2017 and 2027, from which USD 800 million was earmarked in California as one of the biggest ZEV markets around the globe.

The increase in the development of the market for electric vehicles within the European region is largely due to the co-ordinated progress in the implementation of strict regulations on emigration by the European Union and putting an emphasis on decreasing the amount of traditional buses. Norway sets the standard for electronic mobility emancipation across Europe. The proportion of electric vehicles powered by batteries in the new deals for cars grew to 54.3 percent in 2020. It is predicted to rise to 65 percent of market share by 2021.

It is believed that the U.S. is dominating the electric automobile market within the North American region, and the growing demand for electric vehicles within the U.S. accounts for this portion. Additionally, Electrify America, a non-profit group that promotes electric vehicles, recently announced plans of investing $200.0 millions in California in the year 2018. This means that the demand for electric vehicles across North America is expected to increase over the forecast period.

Segments Covered in the Electric Vehicle Market

Electric Vehicle Market By Propulsion Type

• Hybrid Vehicles
• Pure Hybrid Vehicles
• Plug-in Hybrid Vehicles
• Battery Electric Vehicles
• Fuel Cell Electric Vehicles

Electric Vehicle Market By Components

• Battery Cells & Packs
• On-Board Charge
• Motor
• Reducer
• Fuel Stack
• Power Control Unit
• Battery Management System
• Fuel Processor
• Power Conditioner
• Air Compressor
• Humidifier

Electric Vehicle Market By Vehicle Type

• Passenger Cars
• Commercial Vehicles
• Two-Wheelers
• E-Scooters & Bikes
• Light Commercial Vehicles
• Others

Electric Vehicle Market By Vehicle Class

• Mid-priced
• Luxury

Electric Vehicle Market By Top Speed

• Less Than 100 MPH
• 100 to 125 MPH
• More Than 125 MPH

Electric Vehicle Market By Vehicle Drive

• Front-Wheel Drive
• Rear Wheel Drive
• All Wheel Drive

Electric Vehicle Market By EV Charging Point Type

• Normal Charging
• Super Charging

Electric Vehicle Market By V2G

• V2B or V2H
• V2G
• V2V
• V2X

Electric Vehicle Market By Region

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France

Asia-Pacific

• China
• India
• Japan
• South Korea
• Malaysia
• Philippines

Latin America

• Brazil
• Rest of Latin America

Middle East & Africa (MEA)

• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa

Frequently Asked Questions:

What is the current size of electric vehicle market?

According to Precedence Research, the electric vehicle market size was reached at USD 205.58 billion in 2022 and is anticipated to surpass USD 1,716.83 billion by 2032.

Which are the products of electric vehicle?

On the basis of product they are categorized into Battery Electric Vehicle (BEV) and Plug-in Hybrid Electric Vehicle (PHEV).

How much is the battery electric vehicles market revenue share in 2022?

The Battery Electric Vehicles (BEV) led the global market and accounted for more than 65% of the overall revenue share in 2022.

Which region dominated the global electric vehicle market in 2022?

Asia Pacific dominated the global electric vehicle market in 2022 and expected to be the most lucrative region during the forecast period.

Which are the top key companies are contributing in the electric vehicle market?

The top key companies are contributing in the electric vehicle market are BYD Company Ltd., Ford Motor Company , Daimler AG , General Motors Company, Mitsubishi Motor Corporation and Groupe Renault, etc.

What is the revenue of Europe and North America electric vehicles market?

Europe and North America are the prominent electric vehicles market with around 45% combined revenue share globally.

What is the market revenue share of battery electric vehicles (BEV)?

Battery Electric Vehicles (BEV) led the product segment with approximately 65% of the global market share.

Why electric vehicle?

Electric vehicle is an electrically powered vehicle that uses traction motor or electric motor for propulsion. They have shown attractive growth over the past decade and their adoption rate is still prospering in double digit growth.