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The global New Energy Vehicle (NEV) Taxi Market size was USD 150.47 billion in 2019. The global impact of COVID-19 has been unprecedented and staggering, with new energy vehicles witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth of 0.98% in 2020 compared to the average year-on-year growth during 2016-2019. The market is projected to grow from USD 151.95 billion in 2020 to USD 173.37 billion in 2027 at a CAGR of 1.9% in the 2020-2027 period. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
Road transportation is one of the major sources of air pollution globally. It consumes the majority of energy and burns a large amount of the world’s petroleum. Government and ruling bodies across the globe have imposed stringent norms on automotive manufacturers to curb rising air pollution. Environmental regulations in developed and developing countries focus on reducing vehicular emissions. new energy vehicles minimize travel costs compared to conventional cars and have less maintenance. The rising adoption of NEV has fueled the demand for electric vehicle charging infrastructure for its smooth operation.
An Infographic Representation of New Energy Vehicle (NEV) Taxi Market
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Diminished Automotive Demand to Dampen Market amid COVID-19
China is a major contributor to the rapid development of the automobile industry and an important distributor of various auto parts and technologies. The NEV sales, including passenger vehicles and commercial vehicles in China, are majorly driven by demand worldwide. The COVID-19 severely impacted NEV car sales, including sales of electric cars worldwide in Q1 2020. The majority of the countries have been severely affected by stringent regulations on cross-border trade. In the new coronavirus pandemic, the automobile industry has been primarily affected and faced with several challenges. The auto industry is an important part of the global economy, accounting for approximately 16% of global GDP in 2018. Many manufacturing units have been shut down worldwide.
To overcome the economic crisis, governments worldwide are introducing various programs such as the "Make in India" program to encourage the local production of components. In Europe, different car companies have been temporarily closed to minimize losses. For example, during the coronavirus pandemic, Volkswagen and Daimler announced the temporary closure of their production plants in Europe.
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Rising adoption of advanced technologies such as 5G and AI to Lead New Energy Vehicle (NEV) taxi market Growth
The growing adoption of 5G and AI technology is a major trend in the market. The majority of telecom companies are developing 5G technology to enhance the efficiency and safety of NEV. According to data from the International 5G Automobile Association, 68% of accidents can be avoided by adopting the upcoming 5G technology, which is expected to be crucial in new Vehicles. For example, the European Union and South Korea have signed an agreement to work together on 5G technology, and both parties pledged to provide US$782 million and US$1.5 billion respectively to fund local 5G projects. The increasing use of sensors and other data collection technologies, such as artificial intelligence, will boost the market.
Rising Government Initiatives and Investment to Aid Market
The demand for NEV taxis is directly related to the infrastructure that can charge these vehicles in a particular country/region. Therefore, to increase the demand for NEV vehicles, the government in various countries is focusing on investing in charging infrastructure to provide users with sufficient charging stations and tax incentives or benefits for their smooth operation and curb the rising air pollution. For example, in Norway, the penetration rate of electric vehicles is very high, and there is a long waiting period for purchasing electric vehicles, and the infrastructure of electric cars is rapidly improving.
Increasing Adoption of Advanced Driver Assistance System (ADAS) to Spur Opportunities
The rising adoption of advanced driver assistance systems (ADAS) in new energy vehicles (NEVs) is expected to drive market growth during the forecast period. Technologically advanced components such as cameras and ultrasonic sensors are majorly used in road mapping systems, acting as crucial systems in the new energy vehicle (NEV) taxis. According to the road safety report released by the World Health Organization in 2018, the global road death toll has reached 1.35 million. In addition, due to increasing concerns about passenger safety, governments in developing countries have imposed strict safety regulations on automakers to build vehicles equipped with ADAS functions.
Lack of uninterrupted internet connectivity to Restrain Growth
In recent years, consumers require seamless internet connectivity, especially when traveling out of the station. Consumers expect the car’s internet to perform similarly to their smartphone. Due to the inconsistency of the networks provided by service providers in different regions, interrupted internet has become one of the main limitations of new energy vehicle (NEV) taxis.
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Passenger Cars Segment to Dominate the Market
Based on the vehicle Type, the market is segmented into commercial vehicles and passenger cars. The Passenger cars segment is expected to dominate the New Energy Vehicle (NEV) taxi market over the forecast period. The rising inclination of consumers towards environment-friendly cars is one of the major reasons fueling passenger cars' demand. The majority of the users are inclined towards carpooling, corporate cabs, etc., which helps avoid traffic caused by personal vehicles. Various discounts offered by mobility service providers to daily commuters are also boosting the demand for passenger cars. The commercial vehicle segment is expected to show decent growth in the new energy vehicles (NEV) taxi market.
Electric Vehicle Segment to Hold the Largest New Energy Vehicle Market Share
The market is segmented into Battery Electric Vehicles, Hybrid Vehicles, and Plug-in Hybrid Electric Vehicles systems based on Vehicle Type. The hybrid electric vehicle is expected to dominate the market over the forecast period. These vehicles consist of more than one power source: a combination of the internal combustion engine (ICE) and electric motor. High power, less emission, and enhanced fuel efficiency is the prime reason for the dominance of HEV in this market. Increasing stringency in vehicular emission is another reason that is helping to maintain its power in the market. For example, the government of Morocco announced removing custom duties on hybrid and electric vehicles to enhance their adoption in the market and curb the rising air pollution. The electric vehicle segment is expected to show steady growth rate in this market. Increasing demand for NEV taxis in developing countries is the prime reason for adopting EVs in the market. The low range and lack of infrastructure available are restraining the growth of electric cars over the forecast period.
Asia Pacific New Energy Vehicle (NEV) Taxi Market Size, 2019 (USD Billion)
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Based on region, the leading market is segmented into North America, Europe, Asia Pacific, and the Rest of the World. Asia-Pacific is expected to dominate the NEVs. Key emerging countries such as India, South Korea, and China are major markets for automotive and technologically advanced automotive components. The rising number of road accidents, increasing disposable income of consumers, and increasing vehicular pollution are major reasons for the growth in this region. Major market players in this region, such as BYD, sell 60% of electric vehicles for public transportation. In 2019, Shenzhen, a metropolitan city in southern China, is a high-tech hub and has reached an environmental milestone consisting almost entirely of electric vehicles. About 99% of the 21,689 vehicles operated by the city are electric vehicles.
North America is expected to hold a second-largest position in this market due to the governments' numerous development projects and the emergence of major players in the region. The European market is expected to show steady growth during the forecast period. Strict safety regulations in Europe are the main reason for the continued growth of the market.
Tesla Inc. is a Key Player in the Market
Tesla Inc. is a major player in the global NEV taxi market. Deployment of a wide range of advanced batteries, electric cars, and the development of self-driving vehicles for intelligent transportation and safe Intercity are the company's key aims. Also, the constant R&D efforts by the company are leading to the creation of innovative technologies, which are some of the prominent key factors responsible for the dominance of the company and, in turn, boosting the growth of the global NEV taxi market.
The global New Energy Vehicle taxi market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading Commutes of the product. Besides this, the report offers insights into the current market trends and highlights key industry developments. In addition to the factors above, the report encompasses several major factors that have contributed to the growth of the market in recent years.
Value (USD billion) & Volume (Thousand units)
By Vehicle Type
Fortune Business Insights says that the global market size was USD 150.47 billion in 2019 and is projected to reach USD 173.37 billion by 2027.
In 2019, the Asia Pacific market size stood at USD 67.59 billion.
The market is projected to grow at a CAGR of 1.9% and will exhibit excellent growth during the forecast period (2020-2027).
The intercity type segment is expected to be the leading segment in this market during the forecast period.
Increasing adoption of advanced driver assistance systems is driving the global market.
Tesla is the leading player in the global market.
Asia Pacific dominated the market share in 2019.
Rising inclination towards emission free and fuel efficient vehicles is expected to drive the adoption of connected vehicles.
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