The Global Electric Vehicle Market Was Estimated At USD 170 Billion In 2022 And Is Expected To Reach Over USD 1103.17 Billion By 2030, Poised To Grow At A CAGR Of 23.1% During The Forecast Period 2023 To 2030.

Electric Vehicle Market Overview

By the end of 2030, the market for electric cars is expected to have exploded around the world. A big reason for this growth is that the government is pushing electric vehicles more and more. More people are becoming aware of how conventional vehicle emissions hurt the environment, which has helped the market grow. Global efforts to get more people to use electric cars for public transportation are very important for the environment's growth.

The COVID-19 pandemic has stopped production and manufacturing in the auto industry, which hurts the market for electric vehicles. When these kinds of things stop, the market should grow at the rate that was wanted.

Because of good rules and programmes from the government, developed and quickly growing economies offer the manufacturer a lot of ways to make money. By the end of the forecast period, North America, Asia-Pacific, and Europe are expected to still be the most important parts of the market.

Manufacturers are looking for ways to make money in different types of vehicles, such as hybrids and plug-in hybrid electric vehicles. Major automakers are putting a lot of money into the market to improve their standing. Nissan Motor Corporation Ltd., Ford Motor Company, General Motors Company, and Daimler AG are some of the major market players that are talked about.

Electric vehicles are self-moving cars that can carry both people and things. They get their power from batteries or a combination of an internal combustion engine and electric motors that work together. Electric cars are seen as the cars of the future and are likely to make gas-powered cars obsolete.

Market Dynamics

Driver:

Growing government initiatives

• Governments spend a lot of money on subsidies and incentives to get people to buy electric cars. Governments all over the world are taking steps that will make more people want to buy electric cars in the next ten years. Developing countries have rules about electric cars, and all countries have set fuel economy standards. Also, they offer incentives and subsidies to companies that make electric vehicles and to people who buy them. Because of this, the market is growing because of this factor.

Restraints

Lack of standardization

• Lack of international standardisation could make it hard to connect charging stations and stop the market from growing. Having different charging standards around the world makes it harder to get charging stations for electric vehicles to work together. Standardizing charging points would make it easier to put electric cars in public places and increase the demand for electric cars around the world. So, the lack of standardisation makes it hard for the market to grow. 

 Opportunities

Declining costs of electric vehicle batteries

• Over the past ten years, the price of electric vehicle batteries has gone down. This is because technology has improved and more electric vehicle batteries have been made. Because batteries are one of the most expensive parts of a car, this has made electric cars cheaper.

 Challenges

Lack of charging infrastructure

• In many parts of the world, there aren't many places to charge electric cars. Because of this, the number of public charging stations for electric vehicles is going down, which is making people less likely to buy them. Electric vehicle charging stations are being put in place in many countries. But, with the exception of a few states, most countries have not yet set up the number of charging stations that are needed.

Segment Overview

Propulsion Type Insights

In 2021, battery electric vehicles (BEV) made up over 66% of the total revenue share and ruled the world market. Most of the growth of BEVs can be attributed to the potential benefits they offer, such as the ability to control greenhouse gas (GHG) emissions, concerns about energy security, and local pollution. This is due to more people caring about the environment and the advantages of battery electric vehicles.

Also, the price of a BEV is much higher than that of a PHEV. The PHEV is expected to have the highest CAGR, at about 43.5%. This is because it has many advantages over the BEV, such as a lower battery cost and a smaller battery size. It also has a longer driving range because of its liquid fuel tanks and internal combustion engines. A lot of EV makers, like Volkswagen Group and General Motors, are also focusing on multi-platform technology, with a special focus on PHEVs that can be refuelled. BEVs, on the other hand, can only be charged at public charging stations, and there aren't many of those in the city. So, PHEV gives drivers a lot of freedom and flexibility. Volkswagen AG doubled the number of plug-in electric vehicles it sold in January 2020, from almost 50,000 to over 80,000.

During the time frame of the forecast, the segment of fuel cell electric vehicles is expected to grow at the fastest rate. This segment's explosive growth is mostly due to the growing demand for vehicles with low carbon emissions, strict carbon emission standards, and a growing focus on ditching FCEVs because of the benefits of fast refuelling, as well as government initiatives and investments to advance fuel cell technology.

Vehicle Type Insights

Depending on what kind of vehicle it is, the electric vehicles market is divided into heavy commercial vehicles, passenger vehicles, e-scooters and bikes, two-wheelers, and light commercial vehicles. In 2021, the passenger vehicle segment had the largest share of revenue in the electric vehicle market. This is because electric passenger vehicles get a lot of help from the government in these countries.

During the time frame of the forecast, the segment of light commercial vehicles is expected to have the highest CAGR. Growing consumer awareness about the role of electric vehicles in reducing emigration, a surge in demand for electric cars to reduce line emigration, and strict government regulations about vehicle emigration are all major factors in this segment's explosive growth.

End-Use Insights

The electric vehicle market is split into private, commercial, and industrial use based on how the cars will be used. During the next few years, the segment for commercial use is likely to have the highest CAGR growth rate. This segment is growing quickly because fuel prices are going up and governments are making it harder for people to leave. Also, more and more people are getting rid of their own delivery vehicles and electric cars.

Rising fuel prices and strict emigration rules set by the government, the growing abandonment of independent delivery vehicles, and the growing abandonment of electric motorcars and cars all help the segment grow quickly.

Regional Analysis

Asia-Pacific was the biggest market for electric cars worldwide in 2021, and it is expected to be the most profitable region for the rest of the forecast period. China is the biggest market for electric cars in the world. Nearly half, or 45%, of all sales of electric cars happen there. Other countries like Japan, Korea, and India are also good markets because their governments are putting a lot of money into electric vehicle (EV) startup companies to get more EVs made and sold around the world. In July 2019, Mitsui & Co. put USD 13.3 million into the Indian e-Vehicle startup SmartE. The investment would help SmartE grow in the long run by creating synergies on the global EV market. In the same way, Toyota Motor Corporation put $2 billion into developing electric cars in Indonesia in June 2019.

Government subsidies and strict rules in both developing and developed countries are helping the electric vehicle market grow in the Asia-Pacific region. The Chinese Ministry of Transport gives grants and other incentives to help build bus fleets with low emissions, which is good for the market. Even though COVID-19 broke out, Chinese bus makers sold 61,000 more new energy buses in 2020.

The world market for electric cars is growing quickly in Europe and North America. This is because people in the United States, Norway, France, and Germany want electric cars more and more. Germany and Norway are the top two markets in Europe, with a CAGR of almost 40%. Also, policymakers, automakers, and companies that run charging networks have started a non-profit group called Veloz to promote electric cars in North America. The group wanted to encourage new ideas, investment, marketing, and the growth of the electric vehicle market. Electrify America, an American company that makes electric cars, said it would invest USD 2 billion in Zero Emission Vehicle (ZEV) infrastructure across the U.S. from 2017 to 2027, with USD 800 million going to California, which has one of the largest ZEV markets in the world.

Most of the growth of the electric vehicle market in Europe can be attributed to the European Union's strict rules on immigration and its push to reduce the number of traditional buses. Norway is the first country in Europe to stop using electric cars. In 2020, battery electric cars made up 54.3% of all new car sales. In 2021, that number is expected to go over 65%.

North America's electric vehicle market is dominated by the United States. This is because more and more people in the United States want to buy electric cars. Electrify America, a non-profit group that works to get people to buy electric cars, also said it would invest $200 million in California in 2018. Because of this, it is expected that the demand for electric vehicles in North America will rise during the forecast period.

Scope Analysis:

Recent Developments

• BMW will debut its new i4 electric vehicle with a range of 300-367 miles in November 2021. In only four seconds, the vehicle can reach 100 kilometres per hour. It is equipped with an automatic transmission and linked car capabilities.
• In April 2021, the key player Toyota introduced the new Mirai and LS models with advanced driving assessment technology in the city of Japan.
• In April 2021, in Chongqing, the key player BYD introduced four new electric vehicle models equipped with Blade batteries. New vehicle models Qin plus EV, E2 2021 Tang EV, and Song plus EV were equipped with an advanced battery safety feature.
• In April 2021, the key player Volkswagen criticised the 7-seater ID.6 X and EV ID.6 Crozz produced in China in collaboration with SAIC and FAW. Additionally, these vehicles may only be sold in China. In addition, it has two battery configurations, 77 kWh and 58 kWh, and four powertrain configurations.
• In March 2019, Tesla, Inc. announced the acquisition of Maxwell Technologies, Inc. The acquisition was made to improve Tesla's batteries and reduce overall costs in order to gain a competitive advantage on the market.
• Nissan Motor Company has surpassed 180,000 consumers, the most significant launch milestone to date for the LEAF. This company's newest vehicle is the Ariya, an electric crossover coupe.

Market Segmentation

This portion of the study on the Electric Vehicle Market gives detailed data on the segments at the country and regional level, thereby aiding the strategist in determining the target demographics for the relevant product or service and the impending opportunities.

By Propulsion Type

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

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

By Vehicle Type

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

By Vehicle Class

• Mid-priced
• Luxury

By Top Speed

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

By Vehicle Drive

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

By EV Charging Point Type

• Normal Charging
• Super Charging

By V2G

• V2B or V2H
• V2G
• V2V
• V2X

By Companies

• 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
• 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