Electric Vehicle Market

Market Snapshot

Premium Insights:

Global Electric Vehicle Market is valued at USD 165.1 Billion in 2021 and is projected to reach a value of USD 434.4 Billion by 2028 at a CAGR of 17.5% over the forecast period.

Increased demand for fuel-efficient, high-performance, and low-emission vehicles, strict government pollution restrictions, falling prices for Electric Vehicle batteries, and rising gasoline prices all contribute to the expansion of the Electric Vehicle market. There is more demand for fuel-efficient cars due to the recent increase in the price of gasoline and diesel. As a result, an increasing need for highly fuel-efficient technology fuels a spike in the market for Electric Vehicles. Additionally, governments and environmental organizations worldwide pass strict emission standards and rules to lower car emissions in response to growing environmental concerns. This is predicted to increase consumer demand for Electric Vehicles, propelling market expansion.

Furthermore, the leading players in the Electric Vehicle market should benefit greatly from technological growth, proactive government initiatives, and self-driving electric car technology development. The cost of Electric Vehicle batteries has declined over the last ten years due to technological advancements and massive battery production. As Electric Vehicle batteries are one of the most expensive parts of the automobile, this has led to a decrease in the price of Electric Vehicles, causing the market to grow. However, most developing nations lack suitable EV charging infrastructure and have not yet caught up to meet the demand, impeding the expansion of the market for Electric Vehicles.

Top Market Trends

· Increased demand for fuel-efficient, high-performance, and low-emission vehicles, strict government pollution restrictions, falling prices for Electric Vehicle batteries, and rising gasoline prices all contribute to the expansion of the Electric Vehicle market.

· In 2021, the commercial vehicle market accounted for the greatest portion of the overall market, about 57%.

· In 2021, the BEV segment will dominate the Electric Vehicle market with the highest revenue share of 63%.

· The development of self-driving Electric Vehicle technology and other factors, including technological advancement and proactive government policies, could be very advantageous for the top players in the Electric Vehicle market.

Market Segmentation:

The Electric Vehicle (EV) Market is segmented based on Vehicle Type, Propulsion, Power Output, End User and Region. Based on the Type, the market is further segmented into Passenger Vehicles, LCVs, HCVs, Two-wheelers, e-Scooters & Bikes. Based on Propulsion, the market is divided into BEV, FCEV, PHEV, and HEV. Based on the power output, the market is segmented as less than 100 kW, 100 kW to 250 kW, and more than 250 kW. Based on End Users, the Electric Vehicle market is segmented as Private, Commercial, and Industrial.

Based on End Users:

The Commercial Category Dominated the Market in 2021

In 2021, the commercial category dominated the Electric Vehicle market. The nation's ongoing deployment of electric light-duty commercial vehicles and electric buses is responsible for the segment's expansion. As the government pursues aggressive plans to increase the number of electric cars on the road to minimize vehicle pollution in the nation's major cities, electric buses are already gaining popularity. Due to rising fuel prices, tough immigration laws imposed by governments, an increase in independent delivery vehicles, and the addition of electric motorcars and vehicles, this market segment is expected to grow rapidly. The growing abandonment of independent delivery trucks and the growing abandonment of electric motorcars and vehicles are all factors contributing to the segment's quick growth. Furthermore, the passenger car segment is expected to expand throughout the forecast period. Due to growing government investments in EV infrastructure and tax incentives provided to consumers, the market for diesel and gasoline-powered passenger vehicles is transitioning from diesel and gasoline-powered vehicles to electric passenger vehicles.

Based on Propulsion:

BEV Category Dominated the Market in 2021

The segment's dominant market share can be attributed to consumers' growing preference for EVs over ICE cars and regulations on vehicle CO2 emissions. BEVs have the potential to significantly reduce both the long-term cost of ownership and vehicle emissions. It is also anticipated that advances in battery technology and declining lithium-ion battery pricing would increase demand for BEVs over the forecasted timeframe. Furthermore, it is anticipated that the PHEV market will grow significantly. The purpose of plug-in hybrid Electric Vehicles (PHEVs), which work in conjunction with low-range, high voltage (HV) battery systems, is to improve the utilization of internal combustion engines. In PHEVs, the electric motor is more powerful, and the battery is significantly bigger. The battery may be recharged using regenerative braking, ICE, and an external power source. As a result, PHEVs provide customers a flexible and useful transportation options.

Based on Regional Analysis:

The Asia Pacific had the Largest Share in 2021

The Asia Pacific accounted for the largest Electric Vehicle market share in 2021. Federal funding for market players from both developing and developed nations, combined with stringent rules, is fueling the growth of the Asia-Pacific Electric Vehicle market. Subsidies and other incentives from China's Transport Ministry help low-emission bus fleets develop, which benefits the market. While their governments significantly invest in EV companies to promote EV manufacturing and sales globally, other countries like Japan, Korea, and India are also opportunistic markets. These market participants provide a variety of Electric Vehicles, such as electric buses, light commercial vehicles, and passenger automobiles. Corporations are putting a lot of effort into releasing cutting-edge, technologically superior products. The country will become the region's fastest-growing market for EVs in the next year thanks to the new car scrappage legislation, which allows existing vehicles to be scrapped for conversion to low-emission ones.

Recent Developments:

· In February 2022, the MG 4, an EV that MG Motors will soon release in India later in 2022, was on display. The EV will have a 61.1 kWh battery pack and should have a range of about 400 km.

· In January 2022, Volkswagen said its ID.5 vehicle, based on the Skoda Enayat ivy model, is under development. On a single charge, the car should travel about 300 miles.

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

· In April 2021, the key player BYD introduced four new Electric Vehicle models 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 battery safety feature.

Competitive Landscape:

The key players in the Global Electric Vehicle (EV) Market include- BMW Group (Germany), BYD Company Ltd. (China), Daimler AG (Germany), Honda Motor Co., Ltd. (Japan), Hyundai Motor Company (South Korea), Kia Corporation (South Korea)Nissan Motor Co., Ltd. (Japan), TATA Motors Limited (India), Mahindra & Mahindra Ltd. (India), Tesla, Inc. (U.S.), Volkswagen AG (Germany), Toyota Motor Company (Japan), Mitsubishi Motors Corporation (Japan), Groupe Renault (France), Beijing Automotive Industry Corp. (BAIC) (China), SAIC Motor Corporation Limited (China), Geely Automobile Holdings Limited (China), Guangzhou Xiaopeng Motors Technology Company Ltd. (China), NIO Inc. (China). and others.

Segmentation of the Global Electric Vehicle (EV) Market: