Electric vehicle (EV) is a vehicle which requires one or more electric motors and makes its own electricity for propulsion. The global electric vehicle market is growing at significant rate, due to mounting alarm about environmental pollution and promising government strategies and supports. Different propulsion type contributed to the electric vehicle market size. The market has witnessed high demand for battery electric vehicle in the coming years due to refining charging infrastructure, government assistance in the form of permits, supports, and tax rebates, decreasing charging time and zero emission of carbon.
Insight by Component
On the basis of component the electric vehicle market is subdivided into infotainment system, EV battery cells & packs, instrument cluster and on-board charger. Of all components, EV battery segment accounted the largest share in the market, as it is the most important component of an EV and it makes up substantial cost of an EV due to its high cost.
Insight by Propulsion Type
On the basis of propulsion type the market is subdivided into plug-in hybrid electric vehicle (PHEV), battery electric vehicle (BEV), fuel cell electric vehicle (FCEV) and hybrid electric vehicle (HEV). Of all the propulsion type, the BEV accounted the largest share in the market due to refining charging infrastructure, government assistance in the form of permits, supports, and tax rebates, decreasing charging time and zero emission of carbon. In addition, FCEV segment is expected to grow at fastest rate in the electric vehicle market due to government support and availability of better subsides.
Insight by Vehicle Type
On the basis of vehicle type the market is subdivided into passenger cars (PC) and commercial vehicles (CV). Among the all vehicle type, the passenger cars accounted the largest share in the electric vehicle market due to mounting demand for fuel efficient vehicle and mounting environmental awareness among consumers.
Development of electric taxi, battery swapping, light electric vehicle, robo-taxi and electric autonomous vehicles are the trends observed in the electric vehicle market.
Promising government strategies and supports, substantial investments from automakers in EVs, mounting price of gasoline, launch of novel technologies, expanding vehicle range and amplified vehicle variety per charge are the primary growth drivers for electric vehicle market.
In addition, increase in the requirement of efficient vehicle with zero carbon emission, mounting alarm about environmental pollution and strict regulations regarding vehicle emission are also driving the growth of the market. For instance, according to World Health Organization (WHO), globally exposure of ambient air pollution leads to 4.2 million deaths every year. In addition, 91% of the world’s population lives in place where air quality exceeds WHO guidelines limits.
Usage of vehicle-to-grid (V2G) EV charging stations, volumetric swell in the automotive sector, improving charging infrastructure, reducing cost of lithium ion batteries and EV charging stations motorized by solar panels are also facilitating the growth for the electric vehicle market.
Dearth of standardization, short lifespan of the EV battery, poor charging infrastructure, and stringent rules for installation of charging stations are the major challenges for the growth of electric vehicle market. In addition, limited vehicle range, high manufacturing price of EVs, and small distance traveled by EVs are also hindering the growth of the market.
Globally industry players are leveraging market growth through launching new products. Different players are investing in development of new battery technology to lower the cost of electric vehicles to compete against gasoline vehicles in terms of price and performance. In the coming years, industry leaders are anticipated to significantly lower the cost of these vehicles and enhance performance of these vehicles leading to adoption by masses.
Geographically, Asia-Pacific is the largest electric vehicle market and is observed to witness fastest growth in the market due to government assistance in the manner of permits, supports, and tax rebates. Constantly refining charging setup in countries such as Japan and China and expanding vehicle range are also up surging growth of the Asia-Pacific electric vehicle market.
In addition, China is the budding market for the EVs, as it has utmost number of EVs fabrication industries and largest fleet of EVs on the road. Moreover, availability of strong charging infrastructure and government support are the factors driving the growth of the China electric vehicle market. For instance, according to China Association of Automobile Manufacturers in February 2018, the production of BEV reached 56,706 units and is increasing 168.4% year on year.
Key players in the electric vehicle market are catering the demand by collaborating with small players and investing on technologically advanced EVs across the globe. In July 2018, BMW Group and Great Wall Motor signed an agreement to produce MINI electric vehicles. Tesla, BMW, Volvo, Nissan Motor, Toyota, Hyundai, Volkswagen, Ford, BYD Auto, Honda and Daimler are the key players offering electric vehicle.