Electric Vehicle Market to Reach Valuation of USD 434.4 Billion by 2028 – Reducing Cost of EV Batteries to Support Demand for Cost-Effective EVs; Drives the Market

Vantage Market Research

Sep 27, 2022

In terms of revenue, the Global Electric Vehicle Market is expected to reach USD 434.4 Billion by 2028, growing at a Compound Annual Growth Rate (CAGR) of 17.5% from 2022 to 2028.

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 growth of the Electric Vehicle market. Additionally, it is anticipated that constraints such as a lack of infrastructure for charging, high production costs, range anxiety, and serviceability will restrain the growth of the EV industry. Additionally, the leading players in the electric vehicle market should benefit greatly from aspects including technological growth, pro-active government initiatives, and the development of self-driving electric car technology.

Key Highlights from Report:

● Among the vehicle type, the passenger car segment is anticipated to dominate the Electric Vehicle market during the forecast period. This is due to strong government support for passenger EVs in the countries such as the Netherlands, Germany, France, Norway, the U.K., Sweden, etc.

● The rear-wheel drive sub-segment accounted for the largest market share of the vehicle drive segment. This segment is expected to do well owing to its easier vehicle control and growing demand for these vehicles.

● The Asia Pacific held the largest market share and is anticipated to be the most profitable market during the forecast period. This surge is because of the presence of countries like China; which is the largest producer and user of electric vehicles across the globe, along with other countries such as Japan, and South Korea.

Market Dynamics:

Over the past decade, scientific improvements and the mass manufacture of Electric Vehicle batteries have led to a drop in the price of EV batteries. As Electric Vehicle batteries are one of the most pricey parts of the car, this has resulted in a downfall in the price of Electric Vehicles. A typical Electric Vehicle (EV) battery was worth about USD 1,100 per kWh in 2010. However, the cost had dropped to around USD 137 per kWh by 2020, and by 2021, it had fallen to USD 120. By 2030, the price of EV batteries is anticipated to drop to around USD 60 per kWh, which would result in a considerable decrease in the cost of Electric Vehicles, making them more affordable than traditional ICE vehicles.

Countries worldwide have set targets to reduce vehicle emissions by 2030-2050. As a result, they have begun pushing the growth of the Electric Vehicle market, its sales, and the associated infrastructure for charging them. For example, the US government spent USD 5 billion in 2017 to support infrastructure for electric vehicle use, such as charging stations. In addition, the adoption of EVs is being encouraged by a number of countries through various incentives, including low or no registration costs and exemptions from import taxes, purchase taxes, and road charges.

Asia Pacific market is anticipated to observe considerable market growth, with the highest growth rate during the forecast period. China, Japan, and South Korea are the market leaders for electric vehicles in the Asia Pacific region. China, the world's largest producer and consumer of electric vehicles have a monopoly on the Electric Vehicle market in the area. Their government has taken action, including providing subsidies for electric vehicle buyers, enacting laws requiring all automakers to produce electric vehicles in proportion to the volume of vehicles they produce, providing significant funding for installing EV charging stations throughout major cities, and enacting regulations against excessively polluting vehicles. The Electric Vehicle market has also been expanding in Japan and South Korea.

The Global Electric Vehicle Market is Segmented as follows:

  • Vehicle Type
    • Passenger Vehicles
    • Heavy Commercial Vehicles
    • Two-Wheelers
    • E-Scooters & Bikes
    • Light Commercial Vehicles
  • Propulsion Type
    • Hybrid Vehicles
    • Battery Electric Vehicles
    • Fuel Cell Electric Vehicles
  • Power Output
    • Less than 100 kW
    • 100 kW to 250 kW
    • More than 250 kW
  • End Use
    • Private Use
    • Commercial Use
    • Industrial Use
  • Charging Standard
    • Guobiao Standards (GB/T)
    • CHArge de MOve (CHAdeMO)
    • Combined Charging System (CCS)
    • Tesla Supercharger
    • Type 1 (SAE J1772)
    • Type 2 (IEC 62196)
  • Region
    • North America
    • Europe
    • Asia Pacific
    • Latin America
    • Middle East & Africa

A list of the Key Players of the Global Electric Vehicle Market is:
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)
The Global Electric Vehicle Market Scope can be Tabulated as below:
Parameter Details
Market Size Provided for Years 2016-2028
Base Year 2021
Historic Years 2016-2020
Forecast Years 2022-2028
Segments Covered
  • Vehicle Type
    • Passenger Vehicles
    • Heavy Commercial Vehicles
    • Two-Wheelers
    • E-Scooters & Bikes
    • Light Commercial Vehicles
  • Propulsion Type
    • Hybrid Vehicles
    • Battery Electric Vehicles
    • Fuel Cell Electric Vehicles
  • Power Output
    • Less than 100 kW
    • 100 kW to 250 kW
    • More than 250 kW
  • End Use
    • Private Use
    • Commercial Use
    • Industrial Use
  • Charging Standard
    • Guobiao Standards (GB/T)
    • CHArge de MOve (CHAdeMO)
    • Combined Charging System (CCS)
    • Tesla Supercharger
    • Type 1 (SAE J1772)
    • Type 2 (IEC 62196)
  • Region
    • North America
    • Europe
    • Asia Pacific
    • Latin America
    • Middle East & Africa
Regions & Counties Covered
  • North America
    • U.S.
    • Canada
    • Mexic
  • Eurpe
    • U.K
    • France
    • Germany
    • Italy
    • Spain
    • Rest Of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • Suth Korea
    • South East Asia
    • Rest Of Asia Pacific
  • Latin America
    • Brazil
    • Argentina
    • Rest Of Latin America
  • Middle East & Africa
    • GCC Cuntries
    • South Africa
    • Rest Of Middle East & Africa
Companies Covered
Report Coverage Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market attractiveness analysis by segments and North America, company market share analysis, and COVID-19 impact analysis