Electric Car Market Projected to Reach a Valuation of 354.80 USD Billion by 2028

Vantage Market Research

Mar 28, 2022

In terms of revenue, the Global Electric Car Market is expected to reach 354.80 USD Billion by 2028, growing at a Compound Annual Growth Rate (CAGR) of 19% from 2022 to 2028. Increasing demand for low emission commuting, growing governments support, development of zero-emission vehicles through subsidies & tax rebates are some factors that accelerate the growth of the Electric Car Market in coming years. Countries across the globe have set up targets to reduce emissions according to their own capacity, which is likely to propel the demand for Electric Car Market over a projected time period.

Key Findings:

  • Based on the type segment, the fuel cell electric vehicle sub-segment accounted for the largest growth for the Electric Car Market in 2021. Fuel cell electric vehicles are charged from the electrical grid and it has the ability to generate electricity through regenerative braking.
  • Based on the drive type, rear-wheel-drive estimated maximum growth for Electric Car Market in 2021. This wheel drive is used to improve both steering feel and ultimate cornering grip and also optimizes the accelerative traction.
  • Asia Pacific anticipated the largest growth of Electric Car market during the forecast period. This surge is majorly accounted for owing to the favorable government regulations in order to manufacture electric vehicle per number of vehicles manufactured and large support EV charging installation in multiple cities in this region.

Some of key players in Electric Car Market include, Tesla, Morris Garages, Tata Motors, BYD, Hyundai, Volkswagen AG, BMW Group, and Nissan Motors.

By keeping in mind the environmental issues, governments, and various environmental agencies are imposing stringent emission rules in order to minimize vehicle emissions. These regulations also include norms related to the reduction of nitrogen oxides (NOx) and carbon dioxide (CO2) in the air. In this regard, various government-funded around USD 14 billion on tax deductions for electric cars and direct purchase incentives in 2020. Thus, stringent government regulations for reducing vehicle emissions are expected to witness the high growth of Electric Car market during the forecast period.

The government across the globe supports the development of electric vehicles to reduce the emission of greenhouse into the environment. But, the lack of charging infrastructure is a major problem in the development of the electric car market. The electric charging infrastructure is poor at present years in various developing countries. For instance, China has the biggest electric vehicles markets, but the country is still suffering from inefficient electric vehicle charging infrastructure to recharge electric cars. Thus, a shortage in charging infrastructure is a major obstacle in the development of the Electric Car market during the forecast period.