The global electric vehicle market is expected to grow at a CAGR of around 23.2% from 2021 to 2028 and is expected to reach the market value of around US$ 810.5 Bn by 2028.
An electric vehicle is a completely electric vehicle that is powered by a rechargeable battery and an electric motor. According to the IEA report, after a decade of rapid growth, the global electric car stock will reach an all-time high of 10 million in 2020, a 43% increase over 2019, representing a 1% stock share.
Electric vehicle among the consumer base have 100% gains on adoption
According to the IEEE report, the automotive industry plays an important role in the majority of countries. Vehicles, on the other hand, are generally harmful to the environment because they consume large amounts of fossil fuels. Furthermore, concerns about climate change and the security of energy supply are shifting their focus toward the use of renewable energy systems (RES) rather than traditional forms of energy. As a result, electric vehicles are pre-programmed to develop and implement environmental sustainability. EVs are the best option for sustainability and clean mobility because their energy consumption is comparable to that of general electric equipment. Furthermore, according to IEA data, consumers will spend US$120 Bn on electric vehicle purchases in 2020, a 50% increase from 2019.
Government involvement and initiative fuel the growth of electric vehicle production and adoption rate among the consumer
According to the IEA report, the Electric Vehicle Initiative (EVI), a multi-government policy forum, was launched to accelerate the global introduction and adoption of electric vehicles. The Clean Energy Ministerial (CEM), a high-level dialogue among Energy Ministers from the world's major economies, launched EVI. According to the AFDC report, the US Department of Energy (DOE) is collaborating with public and private sector partners to research, develop, and deploy technologies that improve the performance of electric-drive vehicles. According to the National Renewable Energy Laboratory and Idaho National Laboratory report, Levelized Cost of Charging Electric Vehicles in the United States, driving an electric vehicle instead of a comparable conventional vehicle saves the driver approximately US$14,500 in fuel costs over 15 years. Furthermore, the Autonomie model explains that an electric vehicle is more than three times more efficient than a conventional vehicle. Such government involvement and initiatives help the electric vehicle market grow.
How COVID-19 defied electric car market?
The economic ramifications of the COVID-19 pandemic had a significant impact on the global market for all types of automobiles. According to the IEA report, new car registrations fell by nearly one-third in the first quarter of 2020 compared to the previous year. Furthermore, early market data suggests that global car sales will fall by an estimated 14% year on year in 2020. Lockdown measures paralyzed manufacturing facilities and supply chains on the one hand, and consumer demand on the other. Global electric vehicle sales were 15% lower in the first quarter of 2020 compared to the same period in 2019. Several factors influenced the increase in electric vehicle registration in 2020. Various governments provided or extended fiscal incentives that insulated electric car purchases from the car market downturn.
The global electric vehicle market is segmented as type, vehicle class, and vehicle type. Based on type, the market is segmented as Battery Electric Vehicles (BEV), Hybrid Electric Vehicles (HEV), and Plug-in Hybrid Electric Vehicles (PHEV). By vehicle class, the market is bifurcated into mid-priced and luxury. By vehicle type, the market is classified into passenger cars and commercial vehicles.
Based on type, PHEV segment will hold dominant share for the global electric vehicle market. BEV vehicles are skewed towards larger vehicle segments therefore holds larger revenue share.
According to the EEA report, electric vehicle car registrations were close to 550,000 units in 2019, up from around 30,000 units in 2018. This represents a 2 to 3.5% increase in total car registrations. As a result, battery electric vehicles (BEV) accounted for the majority of electric vehicle registrations in 2019 for cars and vans, rather than plug-in hybrid vehicles. Furthermore, the average mass of a BEV increased from 1200 kg in 2010 to 1700 kg in 2019, while average energy consumption decreased from 264 Wh/k to 150 Wh/km, indicating that BEVs have become more efficient over time. Such factors contribute to segmental growth, which in turn contributes to the growth of the global electric vehicle market.
Based on vehicle type segment passenger car segment will hold largest revenue share for the global electric vehicle market.
According to ICCT statistics, the UK has seen rapid growth in the electrification of its passenger car market, which is expected to continue throughout the forecast period. Plug-in electric vehicles accounted for 3.2% of new passenger car registrations in 2019, and that figure is expected to more than triple in the first half of 2020. Furthermore, by 2030, it is expected that two-plug in electric vehicle uptake will be 50-70% of new passenger car sales. Such factors contribute to the expansion of the global electric vehicle market.
Asia Pacific to hold largest share for the electric vehicle market
In the coming years, Asia Pacific will account for the lion's share of the electric vehicle market. China leads the Asia Pacific provinces in electric vehicle sales, with Korea entering the market. The pandemic had a smaller impact on China's overall electric vehicle market than in other regions. The total number of new registrations was down by 9%. However, as a result of the pandemic, this trend reversed in the second half. This resulted in a 5.7% increase in sales share from 4.8% in 2019. BEVs accounted for roughly 80% of new car registrations. Aside from that, Korea has taken the lead in the deployment of fuel cell electric vehicles (FCEV). In 2020, Korea took the lead in FCEV surpassing the US and China to reach sales of more than 10,000 vehicles.
The key players of the global electric vehicle market involve Volvo Cars, Ford Motor Company, General Motors, Volkswagen, Stellantis N.V., Tesla, Inc., BYD Co. Ltd. (Build Your Dreams), LUCID MOTORS, ABB, and among others.
Market By Vehicle
Hybrid Electric Vehicles (HEV)
Plug-in Hybrid Electric Vehicles (PHEV)
Market By Vehicle Class
Market By Vehicle Type
Market By Geography
• Rest of Europe
• South Korea
• Rest of Asia-Pacific
• Rest of Latin America
Middle East & Africa
• South Africa
• Rest of Middle East & Africa
Electric vehicle is expected to reach a market value of around US$ 810.5 Bn by 2028
The electric vehicle market is expected to grow at a CAGR of around 23.2% from 2021-2028.
Based on type, battery electric vehicles (BEV) segment is the leading segment in the overall market.
High government involvement and initiatives is one of the prominent factors that drive the demand for electric vehicle market.
Volvo Cars, Ford Motor Company, General Motors, Volkswagen, Stellantis N.V., Tesla, Inc., BYD Co. Ltd. (Build Your Dreams), LUCID MOTORS, ABB, and among others.
Asia Pacific is anticipated to grab the highest market share in the regional market
Europe is expected to be the fastest growing market in the forthcoming years