Electric Vehicle Market Size Reached USD 161 billion in 2020 and is anticipated to grow at a CAGR of 25.3% during the forecast period | Research Report, Size, Growth & Forecast Analysis

June 13 11:55 2022
Electric Vehicle Market Size Reached USD 161 billion in 2020 and is anticipated to grow at a CAGR of 25.3% during the forecast period | Research Report, Size, Growth & Forecast Analysis
Electric Vehicle Market Size & Share
Electric vehicle market size was valued at USD 161 billion in 2020 and is projected to grow at a CAGR of 25.3% over the forecast period due to the increasing government support through subsidies and tax rebates.

Electric Vehicle Market Dynamics 

Electrification of vehicles is one of the major trends of the 21st century. An electric vehicle is a self-propelling automobile used to transport passengers and goods. The electric vehicle was primarily designed to replace traditional ways of travel as they cause environmental pollution. The growing demand for fuel-efficient, low emission vehicles, increasing fuel costs, and growing environmental concerns are the major factors driving the electric vehicle market growth. Government across the developing and developed nations are investing in the development of EV charging stations and Hydrogen fuelling stations. Also, several governments are offering various incentives such as exemptions from import tax, purchase tax, and zero registration fees to encourage the development of electric vehicle infrastructure, such as charging stations.

The coronavirus crisis had a severe impact on the worldwide automotive industry. The production and sales of new vehicles had come to a halt due to the stringent lockdown norms enforced throughout the nation. However, post-pandemic, the demand for EVs surged as governments across the nation increasingly encouraged switching to low emission vehicles. The Government of Germany planned an investment of USD 146 billion for the economic recovery, which included an allotment of USD 2.8 billion for the development of EV charging infrastructure. Moreover, the Chinese Government mandated the production or import of at least 10% electric vehicles.

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With the increasing petrol prices and limited crude oil reserves, the automakers emphasize on introducing alternative sources of fuel for their vehicles. Thus, the environmental impact of traditional vehicles and the increase in petroleum prices have bolstered the market growth. Buyers are inclined to use battery-powered automobiles, which is likely to drive the electric vehicles market share.

Key players operating in the Electric Vehicle Market include Tesla, Toyota Motor Inc., Ford Motor Company, Nissan Motor, BYD Company Ltd., BMW, Volkswagen of America, Inc., Volvo Car Corporation, Daimler, and Hyundai.

Product Type Segment Analysis

BEV is expected to emerge as the fastest-growing segment over the forecast period. With the growing concerns to reduce emissions by nations, the demand for BEV has increased. Strong government support and strategic policies are the major factors driving the market growth. The modern BEV offers remarkable advantages such as better performance, improved connectivity level, cost-efficiency, and enlarged interior space.

Vehicle Class Segment Analysis

The mid-priced segment is expected to lead the overall market during the forecast period. China accounted for the largest share in terms of mid-priced EV production. The key players in the market, such as Great Wall Motor and BYD, are emphasizing introducing cost-efficient vehicles. For example, Great Wall Motor, in 2018, collaborated with BMW Group to innovate electric MINI vehicles in China.

Vehicle Type Segment Analysis

The commercial segment is expected to hold a larger share during the forecast period due to the increasing adoption of electric vehicles in China and India. Also, the increasing innovations in the battery of EVs to enhance the load capacity of the commercial vehicle will strengthen the market growth. The Indian Government introduced the Faster Adoption and Manufacturing of Hybrid and EV (FAME) scheme with an investment of USD 130 million. Also, the scaled-up FAME II allotted USD 1.4 billion to be used for incentives on the purchase of EVs in order to encourage the adoption of charging infrastructure in the country.

Regional Analysis

The Asia-pacific region is expected to show significant growth in the market over the forecast period because of the growing demand for passenger cars in developing nations. China is one of the leading countries in the EV market in terms of passenger cars and other automobiles. The Chinese Government has encouraged the adoption of electric vehicles by making emission norms, installing EV charging stations, and offering subsidies to EV buyers. Moreover, the region witnessed an increase in the number of new EV producers, such as Yudo, intending to launch battery-electric SUVs. Volkswagen Group announced the production of 22 million EVs by 2026, out of which half of the production will be carried out in China. Also, Tesla Inc. disclosed its plan to produce nearly 150 thousand 3s Model cars in Shanghai, China. Thus, the increasing participation of leading players in this region will drive market growth.

Electric Vehicle Market Segmentation:

Electric Vehicle Market by Battery Type

            • Lead-acid

            • Nickel Metal Hydride

            • Lithium-ion

            • Sodium Nickel Chloride

            • Others

Electric vehicle Market by Product Type

            • Battery Electric Vehicle (BEV)

            • Hybrid Electric Vehicle (HEV)

            • Plug-in Hybrid Electric Vehicle (PHEV)

            • Fuel Cell Electric Vehicle (FCEV)

Electric vehicle Market by Vehicle Class

            • Luxury

            • Mid-Priced

Electric vehicle Market by Vehicle Type

            • Passenger Car

            • Commercial Vehicle

Electric Vehicle Market by Region:

            • Asia Pacific

                    o China

                    o Japan

                    o India

                    o Rest of APAC

            • North America

                    o United States of America

                    o Canada

            • Europe

                    o United Kingdom

                    o Germany

                    o France

                    o Spain

                    o Rest of Europe

            • RoW

                    o Brazil

                    o South Africa

                    o Saudi Arabia

                    o UAE

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