Status : Published Published On : Dec, 2023 Report Code : VRAT4079 Industry : Automotive & Transportation Available Format : Page : 185
2025
2030

Global Electric Vehicle (EV) and Electric Vehicle (EV) Infrastructure Market – Analysis and Forecast (2025 – 2030)

Industry Insights by Vehicle Type (Passenger Car, Commercial Vehicle), by Charging Station (Normal, Super), by Propulsion Type (BEV, PHEV, FCEV)

Industry Overview

The Global Electric Vehicle (EV) and Electric Vehicle Infrastructure Market was valued at 13.5 billion in 2023 and is estimated to be USD 36.7 billion by 2030. The primary factors responsible for the growth of the electric vehicle and electric vehicle infrastructure market are favorable government policies in the form of subsidies and grants, tax incentives, and other benefits in the form of carpool access. The innovations in vehicle electrification and battery performance also play a crucial role in the overall electric vehicle (EV) market.

In line with the promise of several governments to incentivize electric vehicle adoption, Germany in the era of the COVID-19 pandemic has come up with a stimulus package. Germany has provided a discount of EUR4,000 discount at the time of buying a new electric vehicle to its consumers. This has mitigated the negative impact of consumer sentiment regarding the high cost of EVs and its pledge towards de-carbonization of vehicles to curb global warming and its several ill impacts.

Market Segmentation

Insight by Vehicle Type

By vehicle type, the global EV and EV infrastructure market is bifurcated into passenger cars and commercial vehicles. In 2019, the passenger cars segment accounted for the largest share of the overall market. This growth is due to the strong intent of France, Italy, Canada, the U.K., the U.S., and other developed economies to boost the adoption of EVs. However, owing to the outbreak of COVID-19, the global automobile sector is facing a recession due to the lockdown in many countries that have limited the production of electric vehicles.

Insight by Charging Station

Based on charging stations, the EV and EV infrastructure market is categorized into normal and supercharging stations. In 2019, the normal charging station segment accounted for the largest share of the EV and EV infrastructure market. The segment is also expected to register the highest growth rate among the two.

Government stimulus packages in the future could help the EV economy solve the economic crisis caused by COVID-19 by investing heavily in charging infrastructure. China is one of the countries that is expected to make such an undertaking to further develop its electric vehicle industry. The Chinese government has highlighted "new infrastructure" as part of a stimulus strategy to boost its economy, partly due to trade tensions and coronavirus slowdowns. As a result, most governments in the affected regions have used infrastructure rehabilitation as an economic stimulus method.

Some of the major manufacturers affected by the COVID-19 epidemic include Nissan Motor Co., Kia Motors Corp., BMW AG, Daimler AG, and Tesla, Inc. Most of these companies have shut down their electrical vehicle production facilities and have shifted their focus to the production of personal protective equipment.

Global Electric Vehicle (EV) and Electric Vehicle (EV) Infrastructure Market Report Coverage

Report Metric

Details

Historical Period

2018 - 2023

Base Year Considered

2024

Forecast Period

2025 - 2030

Market Size in 2023

U.S.D.  USD 13.5 billion Billion

Revenue Forecast in 2030

U.S.D.  36.7 Billion

Growth Rate

XX%

Segments Covered in the Report

Vehicle Type, Charging Station and Region

Report Scope

Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling

Regions Covered in the Report

North America , Europe, Asia-Pacific Rest of the World

Industry Dynamics

Growth Drivers

The stringent government rules and regulations towards vehicle emissions is driving the adoption of electric vehicles. The conventional gas-powered vehicle uses the internal combustion engine to generate power. In the ideal situation, the combustion system completely burns the fuel and only creates water and carbon dioxide as waste, but the combustion system produces various greenhouse gases, resulting in environmental pollution. On the other hand, an electric vehicle uses an electric motor powered by a continuous supply of electric current, without creating any pollutants. Germany, France, the U.S., and China have introduced specific government legislation and automotive emission standards, making it compulsory for carmakers to use new technology to counter high-emission automobile pollution. The California Air Resources Board (CARB) program also includes guidelines for manufacturers to produce and deliver zero-emission vehicles (ZEVs), thereby boosting the adoption of EVs.

The growing demand for fuel-efficient, low-emission vehicles, and high-performance vehicles. Gasoline being a fossil fuel is not a renewable energy source and is expected to be exhausted in the future. It is important to develop and use alternative sources of fuel to support sustainable development. This involves the use of electric vehicles that do not use gas and are more economical than conventional vehicles. The electric vehicle converts more than 50 percent of the electrical energy from the grid to the wheels. In comparison, the gas-powered vehicle converts only about 17 percent – 21 percent of the energy stored in gasoline. Demand for fuel-efficient vehicles has recently increased due to an increase in the price of petrol and diesel. This is due to the depletion of fossil fuel reserves and the increasing tendency of companies to make maximum profits from these oil reserves. As a result, these considerations give rise to the need for new fuel-efficient technology, contributing to a growth in the market for electric cars for transport.

Challenges

However, the high manufacturing cost of electric vehicles and the malfunctioning of high-performance batteries are paving hindrances to the EV and EV infrastructure market. The high cost is mostly due to less adoption of EVs across the globe, the mass production of EVs is expected to bring down its cost and is yet to witness economies of scale. In line with the same, manufacturing of electric vehicles requires a huge investment which also affects the growth of the market.

Geographic Overview

North America held a substantial market share in terms of revenue in 2021. This share is due to the increasing need for electric vehicles in the U.S. In addition, new initiatives are being taken by car manufacturers, non-profit organizations, and ancillary firms, and a new non-profit organization called "Veloz" has been launched. This new company seeks to promote funding, creativity, promotion, and development of electric vehicles in North America. In addition, Electrify America, a company launched to support the adoption of EV, announced plans to invest USD 200.0 million in California in 2018. As a result, North America's demand for EVs is bound to rise over the forecast period.

Asia Pacific is projected to emerge as one of the most profitable regions in terms of revenue over the forecast timeframe. This upsurge is attributed to the increasing demand for electric cars in China, Japan, and India. Approximately 45.0 percent of electric cars on the road were in China in 2018 compared to 39.0 percent in 2017. In addition, various companies are focusing on the production of EVs in China. For example, in 2018, the Volkswagen Group announced its plan to manufacture 22 million EVs by 2026, half of which will be manufactured in China. Similarly, Tesla, Inc. plans to produce about 150 thousand 3s Model cars in Shanghai, China. The Government of India (GOI) proposed tax incentives for the purchase of electric cars in 2019. The government plans to deduct income tax on interest paid or borrowed for the purchase of an electric vehicle.

The moratorium on nearly all of the automotive industry's operations, the realistic restrictions on access to electric vehicle dealers, and the postponed transactions due to COVID-19 are now contributing to lower demand and declining prices across the global automobile market. A contraction is also necessary for short-term sales of EVs, perhaps also in terms of market shares. Several factors could contribute to this development: the implementation of transport de-carbonization regulations and policies may be delayed. This was proposed by the European unions of the automotive industry in a letter to the European Commission dated 25 March, while a group of businesses, cities, and civil society groups protested the postponement of regulation in a letter dated 16 April. Consumers will have greater restrictions on borrowing money, which could impede the selling of electric vehicles due to higher-than-normal sales costs. However, this impact can be minimal, as EVs continue to fall into the higher business segments where capital-restricted consumers are lower.

The latest collapse in oil prices after the worldwide implementation of mobility constraints (aggravated by the supply shock) increases the average expense of running fossil-fueled cars and makes hybrid vehicles less appealing. Conventional automobile manufacturers agreed to postpone or reduce the investment they have made in order to diversify the selection of EV models and to comply with the preferences of the wider market.

Opportunities for self-reinforcing cost savings in EV output will continue. These are the result of increasing battery production and battery technology improvements and will make it easier for BEVs and PHEVs to compete with vehicles using internal combustion engines in terms of total cost of ownership. Governments around the world are voicing their deep commitment to ensure the safety of people and entrepreneurs against the negative economic impacts of COVID-19 and to provide economic stimulus to counteract the induced slowdown.

Interest and need for policy action on priority objectives such as climate change mitigation, local air quality improvement, economic productivity improvement and industrial development will continue. These priorities require support for innovation, including industrial progress in the EV sector and battery value chains. Oil prices will slowly grow from their current levels as the global economy recovers from the COVID-19 scare, even though they may stay lower than before the pandemic.

Electric mobility requires rapid government action to provide insurance against COVID-19 risks to a wide range of stakeholders. These range from big existing firms such as electric car manufacturers, electric utilities, and electricity providers to tiny but sometimes fast-growing businesses with no steady and significant cash flows.

Economic stimulus packages aimed at decarbonizing transport will support electric mobility and help increase the speed of economic growth over time. That is because electric mobility, like other energy efficiency enhancements, will increase economic growth by reducing transportation costs. It is key to accelerating advances in battery development, which has wider consequences for the transition to renewable energy and, more generally, for the growth-enhancing effects of self-reinforcing technologies. Increased public debt as a result of recovery measures would undoubtedly mean that mid-to long-term policy forces would continue to help restore government revenues and not only rely on policy goals such as sustainable growth and clean mobility. This could raise interest in taxing carbon-intensive fuels, adopting bonus/malus systems that tax vehicles based on their environmental efficiency, as well as incorporating distance-based road use charges that are well tailored to handling a decline in fuel tax revenues arising from the de-carbonization of transport.

Competitive Insight

Some of the major players in the market for electric vehicle and electric vehicle infrastructure are Tesla, BYD, BMW, Volkswagen, Nissan, LG Chem, Panasonic, Chery, SAIC, and Bosch, among others. Tesla is one of the leading players in this market. The company continuously delivers new advanced electric vehicles and charging technologies. Despite the effect of COVID-19, Tesla sold more than 88,000 electric vehicles in the first quarter of 2020, surpassing deliveries of Volkswagen. Tesla continued to deliver in the U.S. despite shutting down production at its Fremont, California plant and also began delivering Model Y, its fifth electric vehicle.

Primary Research

VynZ Research conducts extensive primary research to understand the market dynamics, validate market data, and have key opinions from industry experts. The key profiles approached within the industry include, CEO, CFO, CTO, President, Vice President, Product Managers, Regional Heads, and Others. Also, end user surveys comprising of consumers are also conducted to understand consumer behavior.

The Electric Vehicle (EV) and Electric Vehicle (EV) Infrastructure Market report offers a comprehensive market segmentation analysis along with an estimation for the forecast period 2025–2030.

Segments Covered in the Report

  • Vehicle Type
    • Passenger Car
    • Commercial Vehicle
  • Charging Station
    • Normal
    • Super
  • Propulsion Type
    • BEV
    • PHEV
    • FCEV

Geographical Segmentation

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • U.K.
    • France
    • Italy
    • Spain
    • Russia
    • Rest of Europe
  • Asia-Pacific (APAC)
    • China
    • Japan
    • India
    • South Korea
    • Rest of Asia-Pacific
  • Rest of the World (RoW)
    • Brazil
    • Saudi Arabia
    • South Africa
    • U.A.E.
    • Other Countries

 

Electric Vehicle and Electric Vehicle Infrastructure Market Size

Source: VynZ Research

Electric Vehicle and Electric Vehicle Infrastructure Market Analysis

Source: VynZ Research

Frequently Asked Questions

The high manufacturing cost of electric vehicles and malfunctioning of high performance batteries are paving as hindrance to the EV and EV infrastructure market. The high cost is mostly due to less adoption of EVs across the globe, the mass production of EVs is expected to bring down its cost, and is yet to witness economies of scale.
Tesla, BYD, BMW, Volkswagen, Nissan, LG Chem, Panasonic, Chery, SAIC, and Bosch, among others.
The primary factors responsible for growth of electric vehicle and electric vehicle infrastructure market are favorable government policies in the form of subsidies and grants, tax incentives, and other benefits in the form of carpool access.
The global electric vehicle (EV) and electric vehicle infrastructure market is estimated to be 3.5 million by 2023.

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Research Methodology

  •  Desk Research / Pilot Interviews
  •  Build Market Size Model
  •  Research and Analysis
  •  Final Deliverabvle

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