The global electric vehicle market was valued USD 170 billion in 2021 and is expected to reach over USD 802.81 billion by 2027, poised to grow at a compound annual growth rate (CAGR) of 40.7% during the forecast period 2021 to 2027.
Significant number of initiatives taken by the government of various countries such as tax rebate, subsidies & grant, and other various non-financial benefits in terms of car registration, and access to car pool lane expected to drive the sale of electric vehicles in coming years. For instance, in November 2019, Germany car manufacturers have raised their cash incentives for electric cars to move away the transition from combustion engine to battery-powered engines to reduce harmful emission. Countries, such as U.S., China, and different countries in Europe, have registered significant growth in the sale of electric vehicle in the past few decades that in turn, will contribute to the market growth.
However, lack of charging infrastructure along with variations in charging load & lack of standardization are some of the major factors analyzed to hinder the market growth. Different regions such as China, Europe, U.S., Japan, Korea, and others have different standards for electric vehicle charging. Some of the electric vehicle manufacturer such as Tesla Inc. is focusing on global standardization of charging infrastructure to overcome this drawback. Nevertheless, rising adoption of electric vehicles in government and commercial sectors is anticipated to drive the market. For instance, in 2020, UK government has approved 200 electric buses with an ambition to make all buses fully electric by 2025 that could save nearly 7,400 tonnes of CO2 every year.
The Battery Electric Vehicles (BEV) led the global market and accounted for more than 65% of the overall revenue share in 2019. The significant growth of the BEV is largely due to the potential benefits offered such as control over greenhouse gas (GHG) emission, energy security concerns, and control over local pollutants.
Moreover, the cost associated with BEV is greater as compared to the PHEV. The PHEV is expected to witness the fastest CAGR of around 43.2% owing to numerous benefits over BEV, some are low battery cost with smaller battery size and longer driving range as they are equipped with liquid fuel tank and internal combustion engine. Additionally, many EV manufacturers such as Volkswagen Group and General Motors are focusing on multi-platform technology with large attention towards PHEV as they can be refueled at any gas station while BEVs can only be charged at public charging stations. Public charging spots are far between and very few in the city. Thus, PHEV offers flexibility and freedom to the drivers. In January 2020, Volkswagen AG increased its plug-in electric car sales by 60%, from nearly 50,000 to over 80,000 in 2019.
Asia Pacific dominated the global electric vehicle market in 2019 and expected to be the most lucrative region during the forecast period. China is the major electric vehicle market globally as it accounted nearly half i.e. 45% of the global electric vehicle sale. Other countries such as Japan, Korea, and India are also opportunistic markets as the governments of these countries are significantly investing in the EV startup to promote the manufacturing and sale of EVs across the globe. In July 2019, a Japanese firm Mitsui & Co. invested USD 13.3 million in an Indian e-Vehicle startup company, SmartE. The investment would help SmartE to bring multiple synergies in global EV market for its long term growth. Similarly, in June 2019, Toyota Motor Corp. invested USD 2 Bn for the development of electric vehicle in Indonesia.
Europe and North America witness substantial growth in the global electric vehicle market. This is attributed to the increasing demand of electric vehicles in U.S., Norway, France, and Germany. Germany and Norway are the leading markets in European region that witnesses a CAGR nearly 40%. Moreover, for the promotion of electric vehicles in North America policy makers, automotive manufacturers, and charging network companies have launched a non-profit organization called ‘Veloz’. The organization aimed at attracting innovation, investment, marketing, and growth of the electric vehicles market. Electrify America, a U.S. based electric vehicle manufacturer, announced to invest USD 2 Bn in Zero Emission Vehicle (ZEV) infrastructure across U.S. over 10 years from 2017 to 2027 out of which USD 800 Mn were invested in California, one of the largest ZEV market across the world.
Key Companies & Market Share Insights
The global electric vehicle market is consolidated with high competition owing to presence of large number of market players. The existing players are significantly focused towards innovation and development of new models and technology to overcome the drawbacks and strengthening their roots in the global market. Some of the market players are also investing in EV startups to boost their regional presence. In December 2019, an electric vehicle startup, Rivian, raised USD 1.3 billion fund from Amazon.com Inc. and U.S. based automaker Ford Motor Co.
Furthermore, rising initiatives from governments of several regions towards environmental depletion from CO2 emission has forced the automakers to switch towards battery-powered or electric vehicles. Merger, acquisition, partnership, and joint venture are the strategies adopted by the companies to retain their market position. For instance, in March 2019, Alternet Systems, Inc. announced its merger and acquisition pipeline for the expansion of electric vehicle technology innovation and its production capacity. Some of the prominent players in the electric vehicle market include:
Report Scope of the Electric Vehicle Market
|Market Size in 2020||USD 165 Billion|
|Growth Rate||CAGR of 40.7% from 2021 to 2027|
|Largest Market||Asia Pacific|
|Fastest Growing Market||Europe and North America|
|Forecast Period||2021 to 2027|
|Segments Covered||Product Type, Regional Type|
|Companies Mentioned||BYD Company Ltd., Ford Motor Company , Daimler AG , General Motors Company, Mitsubishi Motor Corporation and Groupe Renault|
Segments Covered in the Report
This research report estimates revenue growth at global, regional, and country levels and offers an analysis of present industry trends in every sub-segment from 2016 to 2027. This research study analyzes market thoroughly by classifying electric vehicle market report on the basis of different parameters including product and region as follows:
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