Electric Car Market

The global Electric Car Market is valued at USD 215.6 Billion in 2022 and is projected to reach a value of USD 1943.31 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 31.5% between 2023 and 2030.

Premium Insights

The Electric Car market is propelled by several factors that contribute to its rapid growth and acceptance. The global focus on sustainable and eco-friendly transportation, driven by concerns about climate change and air quality. For instance, In Europe, the EU has committed to reducing greenhouse gas emissions by 20% in 2020, 40% by 2040, and achieving net-zero emissions by 2050, as outlined in the Paris agreement. Government policies and incentives, such as tax credits, subsidies, and strict emissions regulations, further encourage consumers and automakers to adopt electric vehicles (EVs). For instance, according to a report by CleanTechnica, the market share of plug-in electric vehicles in October 2021 has increased to 89.3% from 79.1% in 2020. Additionally, the Norwegian Road Foundation (OFV) states that overall new car sales in Norway have seen a 25% rise in 2021, reaching a record-breaking number of 176,276 cars, with 65% being fully electric. This is a significant increase from the 54% market share in 2020. The Norwegian parliament has established a non-binding objective to have all cars sold emit zero emissions by 2025, which is fueling the growth of the electric vehicle market in Norway.

• Advances in battery technology are also crucial, as they increase range and performance, mitigating concerns about limited distance and making electric cars more appealing. Furthermore, increasing consumer awareness about the environmental impact of traditional engines and declining costs of EV components make electric cars a more attractive option
• Europe generated more than 40.5% of revenue share in 2022
• Asia Pacific is expected to grow at the quickest rate from 2023 to 2030
• Battery Electric Vehicle (BEV) segment accounted for the largest market growth of 62.5%. It contributed significant in total revenue share in 2022
• Compact SUV segment accounts for the most significant market share in 2022

Economic Insights

The Electric Car industry is playing a crucial role in driving economic transformation, affecting various sectors in diverse ways. The move towards electrification has encouraged innovation, generated employment, and attracted investments in research and development. Governments worldwide are introducing economic incentives and regulations to speed up the adoption of electric vehicles, leading to growth in the Electric Car market. This transition is also transforming the automotive supply chain, as there is now a greater demand for lithium, cobalt, and rare earth metals used in battery production.

Top Market Trends

• Growing Adoption of Electric Vehicles (EVs): The growing adoption of electric cars can be attributed to an expanding consumer awareness of environmental concerns and government incentives.
• Advancements in Battery Technology: The continuous advancements in battery technology, such as increased energy density and decreased costs, are enhancing the mileage capabilities and decreasing the overall expenses of electric vehicles.
• The rise of commercial EVs: Businesses are increasingly opting for commercial electric vehicles like electric delivery vans and buses to both mitigate emissions and cut expenses on fuel.
• The development of autonomous EV technology: The transportation industry could potentially undergo a revolution as automakers work on developing technology for autonomous electric vehicles.
• Shift in Consumer Preferences: The automotive industry is being influenced by shifting consumer preferences and a stronger focus on sustainability, leading to more individuals considering electric cars as feasible alternatives.

Market Segmentation

Electric Car {{Segmentation_Ext}}

Based on Type

Battery Electric Vehicle (BEV) holds the largest share

Battery Electric Vehicles (BEVs) are expected to dominate the Electric Car market. One advantage of BEVs is their longer range, which gives drivers the ability to travel further without needing frequent refueling or recharging. Additionally, BEVs contribute to environmental sustainability by emitting zero tailpipe emissions, addressing concerns about air quality and climate change. The increasing availability of public charging stations also adds to the appeal of BEVs, making them more convenient for consumers to own and operate, ultimately contributing to their market dominance.

Based on Vehicle Type

Compact SUV will account for largest market share

The Electric Car market is dominated by compact SUV. The worldwide popularity of SUVs significantly contributes to the significant market share of compact SUVs. Another driving factor is their practical size, which provides ample space for passengers and cargo without the difficulties often associated with larger SUVs, making them attractive to a wide range of drivers. Furthermore, the affordability of compact SUVs in comparison to their larger counterparts makes them an appealing choice for many buyers.

Based on Region

Europe will lead the market

Europe dominated the market in 2022 because of the regions strict emissions regulations require automakers to invest heavily in electric vehicles in order to meet these evolving standards. Furthermore, European governments are actively encouraging the adoption of electric cars by offering incentives such as tax breaks and subsidies, making them more affordable for consumers. The high demand for electric cars in Europe is also fueled by concerns about the environment, rising fuel prices, and attractive government incentives. As a result, Europe is expected to maintain its leading position in the electric car market, with Germany, France, the United Kingdom, Norway, and Sweden emerging as the top markets in the region.

Competitive Landscape

The Electric Car market is highly competitive, experiencing significant changes as car manufacturers strive to take advantage of the increasing demand for sustainable transportation. Tesla, known for its advanced technology and strong market presence, continues to lead the industry. Meanwhile, traditional automakers like Volkswagen, General Motors, and BMW are aggressively entering the electric vehicle sector by leveraging their extensive production capabilities and global reach. Governments around the world are encouraging electric mobility through initiatives, and advancements in battery technology are driving the race to develop affordable electric vehicles with longer ranges.

The players in the global Electric Car market include Tesla among others.

Recent Market Developments

• June 2023: In order to revolutionize battery cell production, PowerCo, a subsidiary of Volkswagen Group, and Koenig & Bauer have formed a partnership. Their collaboration is focused on developing a groundbreaking technology that involves a roller press for powder coating electrodes on a large scale. This Dry Coating process eliminates the need for wet-coating and subsequent drying processes, resulting in a significant reduction in energy consumption and the complete elimination of chemical solvents. The new procedure is currently being tested and refined in a pilot line located in Northern Germany by PowerCo. If successful, this innovative technology has the potential to save approximately 30% of energy and floor space, as well as completely eliminate the use of chemical solvents.
• June 2023: SiliconAuto, a joint venture between Stellantis and Foxconn, has been established to design and sell advanced semiconductors for the automotive industry, including Stellantis vehicles, starting from 2026. Through this 50/50 partnership, SiliconAuto aims to leverage Foxconns expertise in the ICT industry and Stellantis' profound understanding of global mobility requirements to offer a specialized supply of semiconductors for computer-controlled features and modules.
• January 2023: BMW Group and Solid Power have joined forces to further their research and development efforts in the implementation of solid-state batteries (ASSB) in vehicles produced for the mass market. In the spirit of an extended Joint Development Agreement, BMW will create an ASSB prototype line at its Cell Manufacturing Competence Center (CMCC) in Munich. The goal of this partnership is to improve the design and manufacturing abilities of all-solid-state batteries, with both entities working together to advance cell development and manufacturing processes.

Segmentation of the Global Electric Car Market