"Market Intelligence for High-Geared Performance"
The global electric vehicle market size was USD 273.22 billion in 2019. The global impact of COVID-19 has been unprecedented and staggering, with EVs witnessing a positive demand shock across all regions amid the pandemic. Based on our analysis, the global EV market will exhibit a growth of -9.7% in 2020. The market is projected to grow from USD 246.74 billion in 2020 to USD 985.72 billion in 2027 at a CAGR of 17.4% in the 2020-2027 period. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
The rise in fuel prices and the environmental impact of traditional fuel vehicles have opened the door to alternative fuel vehicles on the market. Consumers are increasingly inclined to use hybrid or battery-powered cars, which is expected to drive the market. All EV models use one or more electric motors for propulsion. Electricity is the main energy source for EVs. There is no internal combustion engine among them. On a global scale, conventional cars are one of the main causes of air pollution. Therefore, it forces many governing bodies to impose strict emission vehicle regulations on car manufacturers to curb vehicle emissions. In recent years, the demand for Plug-In Hybrid Electric Vehicle (PHEV) and Battery Electric Vehicle (BEV) is increasing considerably among consumers because these vehicles do not use traditional fuels such as diesel or gasoline as power. The maintenance cost of EVs is also considerably less, which gives it an advantage over the traditional fuel-based vehicles.
Market to Show Positive Signs of Recovery Post COVID-19 Lockdown
The COVID-19 pandemic had a severe impact on the global automotive industry, the lockdown caused due to the pandemic led to the closure of several automotive production facilities. However, the sales of all types of EVs improved post-June 2020 as the lockdown lifted in most of the countries. Especially the sales of MEV & HEV were dominant. The 2022 to 2024 period is considered to be the most optimistic period for EV sales as manufacturers are planning to launch new vehicles in this period. Moreover, the reduction in battery prices and government support for vehicle electrification are anticipated to keep the market growth buoyant over the next few years.
Request a Free sample to learn more about this report.
Increasing Investments in Electric Cars to Drive the Market
The increasing investment in EVs is considered to be a driving force for the growth of the market. Companies such as Groupe Renault, Ford Motor Company, and Daimler AG are investing heavily in their plans to produce EVs. For instance, Daimler AG invested USD 20 billion in 2018, for the procurement of EV batteries. Major companies such as Ford Company and Mercedes Benz are also investing heavily to produce EVs. Therefore, the market is expected to experience long-term growth during the electric vehicle market forecast period.
Favorable Government Subsidies and Policies to Promote Electric Vehicle Sales
Governments are providing attractive policies and incentives to promote the sales of EVs. It provides consumers with multiple benefits, such as reduced selling prices, zero or low registration fees, and free charging infrastructure of EVs at multiple charging stations. Besides, the government exempts purchase tax, import tax, and road tax based on different subsidies. These subsidies have also encouraged automakers to increase their production of EVs. In addition, the government has also invested in infrastructure construction and formulated favorable policies. For instance, the U.S. government is planning to invest USD 287 billion in highway developments over the next five years. In addition, the government shall also be developing EV charging stations across the U.S. to support the development of EVs in the country.
Strict Government Regulations on Vehicle Emissions to Promote Market
In order to reduce the amount of greenhouse gas emissions in the atmosphere, governments of many countries in the world have implemented strict vehicle emission regulations. In Europe, the European Union has formed a regulation to reduce the CO2 emissions of light and medium commercial vehicles by 15% before 2025. The Petroleum Ministry of India mandated all automotive manufacturers to start manufacturing BS-VI vehicles post 1 April 2020, The decision was aimed at reducing air pollution in the country. The strict steps taken by various governments to curb air pollution are anticipated to boost the EVs industry over the forecast period.
High Manufacturing Cost to Hinder Market Growth
EVs are superior to conventional vehicles, but the cost is higher than that of gasoline-powered vehicles. This is because these vehicles have not yet achieved economies of scale and because they are not mass-produced. In addition, the absence of infrastructure associated with the development of EVs has proven to be a negative factor, which has affected the growth of the market. Similarly, manufacturing EVs requires a lot of assets and investment, which may also affect the growth of the market.
Passenger Car Segment is Expected to Hold the Largest Electric Vehicle Market Share
Based on the vehicle type, the market is segmented into passenger cars and commercial vehicles. The passenger car segment accounts for the major share in the global market owing to increased sales and demand for passenger cars in Asia-Pacific. The adoption rate of EVs in Asia-Pacific is high owing to the presence of EV manufacturers' original equipment manufacturers and other automakers in the region. These factors will help promote the growth of this segment during the forecast period. The commercial vehicle segment is expected to experience growth during the forecast period due to the ever-increasing innovations in the battery of EVs to enhance the load capacity of the vehicle. It also includes expanding the scope and using lighter materials in vehicle design.
To know how our report can help streamline your business, Speak to Analyst
Battery Electric Vehicles BEV Segment is Expected to Dominate the Market
Based on the type, the market is segmented into a BEV, plug-in hybrid EV, and hybrid EV. The hybrid EV held the largest market share in 2019, HEV offers the dual option as electric as well as fuel-based driving range, especially in regions with insufficient charging infrastructure availability. The demand for BEV is gaining attention as the governments as well as private entities are planning to deploy a web of charging infrastructure across the world in order to promote the usage of green energy. The PHEV segment is growing at a steady pace, decreasing prices of these vehicles are anticipated to boost the demand in the near future.
Asia Pacific Electric Vehicle Market Size, 2019 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
Asia-Pacific is expected to show significant growth in the global market owing to the growing demand for passenger cars in developing nations. China accounts for the largest share in terms of passenger cars and other automobiles.
Europe is expected to become the main region. The steps taken by the regional government to reduce carbon emissions have been the driving factor for the growth of the market in Europe. The important countries contributing to the growth of the region are the United Kingdom, Germany, and France. Besides, the rapid adoption of fuel-efficient vehicles will augur well for the market in Europe. North America is expected to witness the highest growth in the market. The regional growth can be attributed to growing initiatives by the Department of Energy (DOE) to build charging infrastructure throughout the U.S. to support the growing number of EVs in the region.
Tesla Inc. is the Top Player in the Market
Tesla Inc. is a California based EV manufacturing company, the Tesla cars are well known for their autopilot mode allowing semi-autonomous features in their car range. Tesla Inc. is known for its innovative product designing, technological enhancements, and quality assurance. In order to fulfil the charging station gap in North America, Tesla constructed a web of charging stations across the U.S. and Canada. The company also built solar power generation plants to make green energy available for the charging stations.
Daimler AG is one of the largest manufacturers of commercial vehicles and high-end automobiles in the world. The company has launched a range of passenger cars, commercial vehicles, and electric buses to support the growing EV demand. Few prominent EVs launched by Daimler include EQC, Smart EQ, GLC F-Cell, Concept EQV among others. Moreover, Daimler AG also provides financing, insurance, fleet management, leasing, and innovative electric mobility services.
An Infographic Representation of Electric Vehicle Market
To get information on various segments, share your queries with us
The market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, 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 electric vehicle market growth over recent years.
Value (USD Billion) & Units (Thousands Units)
By Vehicle Type
Fortune Business Insights says that the global market size was USD 273.22 billion in 2019 and is projected to reach USD 985.72 billion by 2027.
In 2019, the Asia Pacific market revenue was at USD 146.46 Billion.
The market is projected to grow at a CAGR of 17.4% and will exhibit exponential growth during the forecast period (2020-2027).
The BHEV segment is expected to be the leading segment in this market during the forecast period.
Strict government regulations are expected to propel the market growth
Tesla Inc. is the leading player in the global market.
Asia Pacific dominated the market share in 2019.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry