Electric Mobility Market Size, Share & COVID-19 Impact Analysis, By Product (Electric Car, Electric Motorcycle, Electric Scooter, Electric Bike, and Others), By Voltage (Less than 24V, 24V, 36V, 48V, and Greater than 48V), By Battery (Sealed Lead Acid, NiMH, and Li-ion), and Regional Forecast Period, 2021-2028

The global electric mobility market size was USD 230.12 billion in 2020 and is projected to grow from USD 279.45 billion in 2021 to USD 1,507.21 billion in 2028 at a CAGR of 27.2% in the 2021-2028 period. The global impact of COVID-19 pandemic has been unprecedented and staggering, with electric mobility witnessing a positive impact on demand across all regions amid the pandemic. Based on our analysis, the global e-mobility market exhibited a stellar growth of 21.16% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s growth and demand, returning to pre-pandemic levels once the pandemic is over.

The global automotive sector is undergoing once in a century revolution. Rapidly changing electric vehicle economics and growing automotive electrification are driving an exponential rise in electric vehicle sales. Additionally, strengthening the electric vehicle charging service network and infrastructural development is fueling the electric mobility market growth. For instance, 2020 was the record-breaking year for electric mobility. According to International Energy Agency (IEA), in 2020, the overall global EV sales surpassed more than 3 million units globally.

The sales growth was majorly driven by government initiatives to offer subsidies and tax benefits on electric vehicle purchases. For instance, incentives offered in Europe on EV purchases in 2020 have fueled the EV sales in the region and boosted the global e-mobility market. Moreover, shifting consumer preference from conventional to electric vehicle purchase due to environmental concern and tightening emission norms worldwide has also influenced the market growth.

COVID-19 IMPACT

Government Policies and Incentives to Fuel Market Growth

The spread of COVID-19 has severely affected the overall automotive industry, closed manufacturing facilities, disrupted supply chains, and declining demand for automotive during the pandemic, which significantly affected the overall automotive sales. However, its impact on the global e-mobility market has been reversed due to government stimulus incentives, packages, and tax benefits for the adoption of electric mobility.

For instance, due to policy support and stringent emission norms from the European Union, Europe witnessed more than double EV sales in 2020 compared to the previous year. Both Europe and China witnessed a surge in EV sales during the pandemic. According to the IEA, in 2020, the number of new EVs registered globally increased 41% as compared to 2019 and reached total registrations of more than 3 million units.

LATEST TRENDS

Rising Trend for Adoption of Electric Micro-Mobility to Drive Market Growth

The ongoing trend for adopting electric micro-mobility is expected to emerge intact and expected to thrive in the long term. Due to extensive social distancing guidelines, disrupted public transport worldwide, and higher awareness regarding environmental concerns and personal hygiene, consumers prefer to utilize electrical micro-mobility products, such as electric bikes, e-scooters, and others, rather than public transportation for short commute. Moreover, rising fuel prices and stringent emission norms further support the development of electric micro-mobility globally.

Governments across the globe are also promoting the adoption of electric micro-mobility to fight climate change and become carbon neutral. For instance, in April 2020, Milan introduced an ambitious scheme to reallocate 35 km of streets for cycling amid pandemic; these streets were previously used by cars. Additionally, the rising level of road traffic and the lowering lithium-ion battery prices are expected to boost the adoption of electric micro-mobility in the coming years.

Furthermore, automakers’ focus on specially designed electric two-wheelers and low-speed vehicles for emerging economies to grab early revenue growth opportunities is also anticipated to propel the market growth in future. For instance, in August 2021, ride-hailing and electric automotive manufacturing company, Ola, launched its S1pro and S1 electric scooter models in India at a competitive price. The company intends to cater to the growing electric micro-mobility demand in India.

DRIVING FACTORS 

Increasing Demand for Emission Free Vehicles to Drive Market Growth

Governments across the globe enforce stringent emission norms to reduce carbon emissions and fight climate change. Additionally, they introduce various scrapping policies for conventional or fossil fuel-powered vehicles. Therefore, due to increasing insecurity regarding the adoption and future use of conventional or fossil fuel-powered vehicles, consumers’ preference is shifting toward electric vehicles, which is expected to drive the market growth during the forecast period.

Lower Lithium-ion Batteries Cost to Fuel Market Growth

The high cost of electric vehicles is one of the major obstacles for the adoption of electric mobility. However, recent technological developments and automakers’ focus on the mass production of lithium-ion batteries have reduced the cost of li-ion batteries over the years, resulting in a significant decline in EV cost. The drop in lithium-ion batteries’ cost is expected to continue in the coming years, further influencing market growth.

Automakers Commitment to Become Carbon Neutral to Propel Market Growth

Almost all the leading automakers have already pledged to become carbon neutral in the near future. They intend to stop manufacturing fossil fuel-powered vehicles and electrify their entire product portfolio. For instance, in February 2021, Ford Motors Company announced that its European division would soon phase out of fossil fuel-powered vehicle production, and by 2026, Ford will only offer electric and plug-in hybrid electric vehicles. Moreover, by 2030, all passenger vehicles will be powered by batteries only. Therefore, automakers’ focus on rapid electrification is anticipated to boost the market growth over the forecast period.

RESTRAINING FACTORS

Global Semiconductor Chip Shortage to Hamper Market Growth

The global semiconductor chip shortage has also reduced the overall EV production. For instance, major automakers, including Volkswagen, Mercedes-Benz, General Motors, and others have already witnessed a drop in the production volume of new electric vehicles, resulting in a shortage of new electric vehicles and increase in delivery time and cost of the EVs. Moreover, the slow adoption of electric mobility in some developing and underdeveloped countries may also restrain the market growth in the coming years.

SEGMENTATION

By Product Analysis

Rapid Automotive Electrification to Drive Segmental Growth

Based on product, the market is segmented into an electric car, electric motorcycle, electric scooter, electric bike, and others.

The electric car segment held the largest market share in 2020 and is expected to continue its dominance during the forecast period. Some of the factors supporting the segment growth include government policy support for purchasing plug-in hybrid & electric vehicles, stringent automotive emission norms, rising fuel prices, and lowering the cost of EVs due to technological advancement. Moreover, the high penetration of electric cars in major regions, such as the U.S., Europe, China, and others, compared to electric two-wheelers is expected to fuel the segment growth.

The electric motorcycle segment is expected to witness the fastest growth rate during the forecast period. Increasing demand for electric micro-mobility for short-distance commute due to disrupted public transport amid pandemic is expected to drive the market growth. Additionally, the low cost of electric motorcycles compared to electric cars and significant travel range are further expected to increase their popularity in emerging economies. Moreover, the rising level of urban traffic, coupled with emission norms and rising fuel prices, is expected to boost the demand for electric motorcycles in the coming years.

The electric scooter segment is also expected to witness an eye-catching growth rate during the forecast period. Increasing preference for electric scooters for short-distance commute and automaker’s focus to design affordable electric two-wheelers for emerging economies are expected to propel the segment growth in the coming years. The electric bike segment is also anticipated to register a significant growth rate over the forecast period due to the rising number of health-conscious populace and ease of use.

The others segment, which includes electric skateboards and electric wheelchairs, is expected to witness certain growth due to the growing popularity of electric skateboards among children and the increasing demand for electric wheelchairs in hospitals. Moreover, increasing demand for an electric wheelchair for comfort and convenience of specially challenged and the elderly populace is also expected to influence the market growth during the forecast period.

By Voltage Analysis

Increasing Demand for Efficient Electric Vehicles to Drive Segmental Growth

Based on voltage, this market is segmented into less than 24V, 24V, 36V, 48V, and greater than 48V.

The 24V segment led the market in 2020. Due to high compatibility, these batteries are highly popular among a wide range of electric vehicles. The 24V battery system provides significant power output to cater to various functional requirements in electric vehicles. Moreover, smaller and lighter wiring harnesses can be utilized using a 24V battery system. Therefore, increasing demand, high compatibility, and efficient vehicle functioning are likely to accelerate the segment growth.

The greater than 48V segment is anticipated to witness the fastest growth rate and is likely to dominate the market by 2028. Increasing demand for higher voltage systems for modern electric vehicles is expected to boost the segment growth over the forecast period. It offers efficient performance and high power output, resulting in improved travel range. Moreover, its increasing preference among automakers and continuous research & development on higher voltage systems are also expected to influence the market growth in the coming years.

The 36V and 48V segments are also expected to witness a significant growth rate due to their increasing adoption among the electric two-wheelers for better efficiency and long-range compared to low volt battery systems. Moreover, the less than 24V battery segment is also expected to witness a considerable growth rate due to their adoption of electric vehicles for other functionalities such as communication, door locks, and others.

By Battery Analysis

Technological Developments in Lithium-ion Battery to Drive Segmental Growth

Based on battery, the e-mobility market is segmented into sealed lead acid, NiMH, and Li-ion.

The Li-ion segment held the leading market share of 51.96% in 2020 and is expected to retain its position throughout the forecast period. Increasing demand for lithium-ion batteries in electric vehicles due to their compactness, lightweight, and high capacity is expected to boost the segment growth during the forecast period. Technological advancement in lithium-ion batteries and manufacturers’ efforts to reduce the cost of a lithium-ion battery are expected to influence the segment growth. Moreover, rapid automotive electrification will support the segment growth in the near future.

The sealed lead-acid battery segment held the second-largest market share in 2020. High adoption of lead-acid batteries in electric vehicles as a supplement for other loads, such as headlight, communication, and others, is anticipated to accelerate the segment growth. Moreover, their high compatibility with a wide range of EVs is expected to drive the segment growth. The NiMH segment is expected to witness a considerable growth rate due to its increasing demand for hybrid electric vehicles, owing to its high charge density, lightweight, and efficiency.

REGIONAL INSIGHTS

Asia Pacific dominated the global electric mobility market with market size of USD 116.35 billion in 2020 and is expected to retain its position throughout the forecast period. The high adoption of electric vehicles in China fueled the market growth. According to the International Energy Agency (IEA), China witnessed an increase in EV sales from 1.1 million units of EVs in 2019 to 1.2 million units of EVs in 2020. Moreover, increasing penetration of electric vehicles in emerging countries of APAC, including India, South Korea, Japan, and others is expected to boost the market growth in future.

Europe is the fastest-growing market for electric mobility. With the increasing number of government policies and incentives for new EV purchases and shifting preference of the populace toward electric mobility due to stringent emission norms and environmental concerns, Europe is expected to register a promising CAGR of 28.3% during the forecast period. For instance, in 2020, EV sales in Europe more than doubled, with total new EV registrations reaching 1.4 million units, which is higher than any other country. Moreover, the well-established automotive industry in major European countries, such as Germany, the U.K., and others, coupled with charging infrastructure availability, is further expected to fuel the market growth in the coming years.

North America is also expected to witness a significant growth rate over the forecast period. Significant EV sales in the U.S. are driving the market growth. Additionally, technological advancement in North America and the presence of leading EV manufacturers, such as General Motors, Tesla Inc., and others, are expected to fuel the electric vehicle market in North America, resulting in a surge in the adoption of electric mobility.

The rest of the world, including the Middle East & Africa and Latin America, is expected to register a considerable CAGR from 2021 to 2028. Increasing adoption of electric two-wheelers in the regions coupled with expanding automotive industry in Latin America is expected to fuel the market growth in the coming years

KEY INDUSTRY PLAYERS

Focus on Early Development of Electric Vehicle Battery Technology to Drive Competition

The market is fragmented with various players worldwide. Companies are expanding their business geographically to grab untapped opportunities in emerging markets. In January 2021, Tesla announced its global expansion plans to expand in China and open new manufacturing facilities in Germany and Texas. Moreover, in February 2021, Tesla confirmed its intentions to set up a new manufacturing facility in southern Indian state of Karnataka. Apart from global expansion, companies are also investing heavily in developing electric vehicle battery technology.

Tesla Inc. is One of the Leading Players in the Market 

Tesla is one of the leading manufacturers of pure electric vehicles headquartered in California, U.S. The company designs, develop, manufactures, and sells fully electric vehicles, energy generation, and storage systems. It also provides vehicle service centers, charging stations, and self-driving technologies. In 2020, Tesla sold the highest number of electric cars than any other manufacturer. Moreover, Tesla Model 3 was the highest-selling electric passenger car worldwide, with roughly 365,000 units sold in 2020.

LIST OF KEY COMPANIES PROFILED:

• Tesla Inc. (California, U.S.)


• Nissan Motor Corporation (Yokohama, Japan)


• BMW MOTORRAD (Munich, Germany)


• General Motors Company (Michigan, U.S.)


• Honda Motor Company, Ltd. (Tokyo, Japan)


• BYD Company Ltd. (Shenzhen, China)


• Accell Group (Heerenveen, Netherlands)


• Volkswagen AG (Wolfsburg, Germany)


• Zero Motorcycles, Inc. (California, U.S.)


• Ford Motor Company (Michigan, U.S.)

KEY INDUSTRY DEVELOPMENTS:

• December 2021: Volkswagen to Increase Spending on E-Mobility In December 2021, Volkswagen Group pledged to increase its spending on electric mobility by 50% to USD 59 billion through 2026.


• November 2021: Nissan to Invest USD 18 Billion for EV Battery Development In November 2021, Nissan announced to invest USD 18 billion over five years on electric vehicle battery development. The company actively invests in developing cost-effective and high-capacity batteries for electric vehicles.

REPORT COVERAGE

The global market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading product applications. Further, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market growth in recent years.

Report Scope & Segmentation